Yahoo Finance Q1 Earnings Roundup: Sprinklr (NYSE:CXM) And The Rest Of The Sales And Marketing Software Segment
Let's dig into the relative performance of Sprinklr (NYSE:CXM) and its peers as we unravel the now-completed Q1 sales and marketing software earnings season.
The Internet and the exploding amount of data have transformed how businesses interact with, market to, and transact with their customers. Personalization of offerings, e-commerce, targeted advertising and data-empowered sales teams are now table stakes for modern businesses, and sales and marketing software providers are becoming the tools of evolving customer interaction.
The 23 sales and marketing software stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 2.3%. while next quarter's revenue guidance was in line with consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and sales and marketing software stocks have held roughly steady amidst all this, with share prices up 1.2% on average since the previous earnings results.
Sprinklr (NYSE:CXM)
Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.
Sprinklr reported revenues of $196 million, up 13% year on year, in line with analysts' expectations. Overall, it was a slower quarter for the company with underwhelming revenue guidance for the next quarter and a decline in its gross margin.
The stock is down 12.7% since reporting and currently trades at $9.46.
Read our full report on Sprinklr here, it's free.
Best Q1: AppLovin (NASDAQ:APP)
Co-founded by Adam Foroughi, who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is both a mobile game studio and provider of marketing and monetization tools for mobile app developers.
AppLovin reported revenues of $1.06 billion, up 47.9% year on year, outperforming analysts' expectations by 8.6%. It was an exceptional quarter for the company with an improvement in its gross margin.
AppLovin delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.3% since reporting. It currently trades at $80.99.
Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Sprout Social (NASDAQ:SPT)
Founded by Justyn Howard and Aaron Rankin in 2010, Sprout Social (NASDAQ:SPT) provides a software as a service platform that companies can use to schedule and respond to posts on major social media networks like Twitter, Facebook, Instagram, Youtube and LinkedIn.
Sprout Social reported revenues of $96.78 million, up 28.7% year on year, in line with analysts' expectations. It was a weak quarter for the company with underwhelming revenue guidance for the next quarter and a miss of analysts' billings estimates.
Sprout Social had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company added 134 enterprise customers paying more than $10,000 annually to reach a total of 8,823. As expected, the stock is down 22.3% since the results and currently trades at $37.41.
Read our full analysis of Sprout Social's results here.
LiveRamp (NYSE:RAMP)
Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE:RAMP) is a software-as-a-service provider that helps companies better target their marketing by merging offline and online data about their customers.
LiveRamp reported revenues of $171.9 million, up 15.6% year on year, surpassing analysts' expectations by 7%. Zooming out, it was a very strong quarter for the company with optimistic revenue guidance for the next quarter and a meaningful improvement in its net revenue retention rate.
The company added 10 enterprise customers paying more than $1m annually to reach a total of 115. The stock is flat since reporting and currently trades at $32.30.
Read our full, actionable report on LiveRamp here, it's free.
Yext (NYSE:YEXT)
Founded in 2006 by Howard Lerman, Yext (NYSE:YEXT) offers software as a service that helps their clients manage and monitor their online listings and customer reviews across all relevant databases, from Google Maps to Alexa or Siri.
Yext reported revenues of $95.99 million, down 3.5% year on year, in line with analysts' expectations. Zooming out, it was a slower quarter for the company with a miss of analysts' ARR (annual recurring revenue) estimates and underwhelming revenue guidance for the next quarter.
The stock is up 6.9% since reporting and currently trades at $5.40.
Read our full, actionable report on Yext here, it's free.
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