Spotting Winners: Yext (NYSE:YEXT) and Sales & Marketing Software Stocks in Q3
The end of earnings season is always a good time to take a step back and look at who’s excelling (and who’s not so good). Let’s take a look at how sales and marketing software stocks fared in the third quarter, starting with Yext (NYSE:YEXT).
The Internet and its exploding amount of data have changed the way companies interact with, market to, and transact with their customers. Personalization, e-commerce, targeted advertising and data-driven sales teams are now important to modern businesses, and sales and marketing software providers are becoming the tools for evolving customer interactions.
The 22 sales and marketing software stocks we track reported a strong third quarter. As a group, revenues exceeded analyst consensus expectations by 2.2%, while revenue expectations for the next quarter were 0.6% above.
Fortunately, sales and marketing software stocks have done well, with an average price increase of 11% since the last earnings results.
Yext (NYSE:YEXT), founded in 2006 by Howard Lerman, provides software as a service that allows their customers to manage and monitor their online listings and customer reviews across all relevant databases, from Google Maps to Alexa or Siri.
Yext reported revenue of $114 million, up 12.7% year over year. This print exceeded analyst expectations by 0.7%. Overall, it was a very strong quarter for the company, with solid improvement in analysts’ annual recurring revenue and billing estimates.
“Our fiscal third quarter results demonstrate our continued ability to increase operating efficiencies, deliver significant margin improvements and generate net growth,” said Mike Walrath, Chairman and CEO of Yext.
Yex total turnover
Unsurprisingly, the stock has fallen 24.8% since reporting and is currently trading at $6.40.
Is Now the Time to Buy Yext? See our full analysis of earnings results here. It’s free.
Zeta Global (NYSE:ZETA), co-founded by former Apple CEO John Scully, provides software and data analytics tools that help companies sell their products to billions of customers.
Zeta reported revenue of $268.3 million, up 42% year over year, and beat analyst expectations by 6.3%. The company had a stunning quarter with an impressive showing of analyst expectations and EBITDA guidance for the next quarter exceeding analyst expectations.
Zeta total turnover
Zeta achieved the fastest revenue growth and the highest full-year guidance increase among its peers. While it had a good quarter compared to its peers, the market seems unhappy with the results as the stock is down 49% since reporting. It is currently trading at $18.74.
Is Now the Time to Buy Zeta? See our full analysis of earnings results here. It’s free.
Initially focused solely on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.
Sprinklr reported revenue of $200.7 million, up 7.7% year over year, beating analyst expectations by 2.2%. Still, it was a slower quarter as full-year earnings expectations fell short of analyst expectations.
Interestingly, the stock is up 3.7% since the results and is currently trading at $8.95.
Read our full analysis of Sprinklr’s results here.
Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy-to-use website building platform.
Wix reported revenue of $444.7 million, up 12.9% year over year. This figure was in line with analyst expectations. Overall, it was a satisfying quarter as it also delivered a decent improvement on analysts’ EBITDA estimates.
The stock is up 22.9% since reporting and is currently trading at $225.96.
Read our full, actionable report on Wix here. It’s free.
Although the company is not a domain registrar and does not sell domain names directly to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net.
VeriSign reported revenue of $390.6 million, up 3.8% year over year. This number met analysts’ expectations. Other than that, it was a mixed quarter as it failed to impress in some other areas of the business.
The stock is up 8.8% since reporting and is currently trading at $201.48.
Read our full, actionable report on VeriSign here. It’s free.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs and is moving closer to the 2% target. This disinflation has occurred without serious consequences for economic growth, indicating a soft landing success. The stock market boomed in 2024, boosted by recent interest rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump’s victory in the presidential election in November, pushing the indices were pushed to historic highs. Nevertheless, the outlook for 2025 remains clouded by the pace and magnitude of future interest rate cuts and by potential changes to trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Do you want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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