The end of an earnings season can be a good time to discover new stocks and assess how companies are coping with the current business environment. Let’s take a look at how Yext (NYSE:YEXT) and the rest of the sales and marketing software stocks fared in the first quarter.
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 23 sales and marketing software stocks we track reported a strong first quarter. As a group, revenues exceeded analyst consensus expectations by 2.2%, while revenue expectations for the next quarter were in line.
In light of this news, the companies’ stock prices have remained stable. On average, they are relatively unchanged since the last earnings results.
Built to solve the problem of inconsistent business information spread across the Internet, Yext (NYSE:YEXT) provides a digital presence platform that helps businesses manage their information across websites, maps, apps and search engines.
Yext reported revenue of $109.5 million, up 14.1% year over year. This print exceeded analyst expectations by 1.8%. Overall, it was an exceptional quarter for the company, with an impressive increase in annual recurring revenue estimates from analysts and a solid increase in analyst billing estimates.
Yex total turnover
Interestingly, the stock is up 25.6% since reporting and is currently trading at $8.55.
Is Now the Time to Buy Yext? See our full analysis of the revenue results here. This is free for active Edge members.
Started in 2004 with just three people selling snowboards online, Shopify (NYSE:SHOP) offers a comprehensive platform that helps sellers of all sizes build, manage and grow their businesses across multiple sales channels.
Shopify reported revenue of $2.68 billion, up 31.1% year over year, and beat analyst expectations by 5.2%. The company had a stunning quarter with an impressive return to analyst gross trading volume estimates and a solid improvement to analyst EBITDA estimates.
Shopify’s total revenue
Shopify earned the highest analyst estimates among its peers. The market seems pleased with the results, as the stock is up 32% since reporting. It is currently trading at $167.80.
Is Now the Time to Buy Shopify? See our full analysis of the revenue results here. This is free for active Edge members.
Born from a need to understand the complex digital marketing landscape, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps businesses improve their online visibility, analyze digital marketing efforts, and optimize content across search engines and social media.
Semrush reported revenue of $108.9 million, up 19.7% year over year, in line with analyst expectations. It was a slower quarter as full-year revenue expectations fell slightly short of analyst expectations and next quarter revenue expectations fell short of analyst expectations.
As expected, the stock has fallen 20.4% since the results and is currently trading at $7.36.
Read our full analysis of Semrush’s results here.
With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ:BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.
Braze reported revenue of $180.1 million, up 23.8% year over year. This figure exceeded analyst expectations by 5%. Overall, it was an exceptional quarter as it also solidly beat analyst expectations and accelerated customer growth.
The company added 80 customers, reaching a total of 2,422. The stock is up 3.6% since reporting and is currently trading at $28.69.
Read our full, actionable report on Braze here, it’s free for active Edge members.
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE:HUBS) offers an integrated platform that helps companies attract, engage and manage customer relationships through marketing, sales, service and content management tools.
HubSpot reported revenue of $760.9 million, up 19.4% year over year. This result exceeded analyst expectations by 2.9%. It was a very strong quarter as it also saw an impressive increase in analyst expectations and a solid increase in analyst EBITDA estimates.
The company added 9,724 customers for a total of 267,982. The stock is down 6.3% since reporting and is currently trading at $459.75.
Read our full, actionable report on HubSpot here, it’s free for active Edge members.
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually declining from its post-pandemic peak and moving closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashy recession signals. This is the much-desired soft landing that many investors were hoping for. The recent interest rate cuts (0.5% in September and 0.25% in November 2024) have boosted the stock market, making 2024 a strong year for equities. Donald Trump’s presidential victory in November fueled additional market gains, sending indexes to record highs in the days following his victory. However, debates over possible corporate tax rates and adjustments continue, raising questions about economic stability in 2025.
Do you want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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