The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how sales and marketing software stocks fared in Q2, starting with Braze (NASDAQ: BRZE).
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 22 sales and marketing software stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Braze (NASDAQ: BRZE)
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 revenues of $180.1 million, up 23.8% year on year. This print exceeded analysts’ expectations by 5%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ billings estimates and accelerating customer growth.
Braze pulled off the highest full-year guidance raise of the whole group. The company added 80 customers to reach a total of 2,422. Unsurprisingly, the stock is up 3.6% since reporting and currently trades at $28.71.
Is now the time to buy Braze? Access our full analysis of the earnings results here, it’s free.
Best Q2: Shopify (NASDAQ: SHOP)
Starting with just three people selling snowboards online in 2004, Shopify (NYSE: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Shopify reported revenues of $2.68 billion, up 31.1% year on year, outperforming analysts’ expectations by 5.2%. The business had an exceptional quarter with a solid beat of analysts’ gross merchandise volume and EBITDA estimates.
Shopify achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 17.9% since reporting. It currently trades at $149.84.
Is now the time to buy Shopify? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: AppLovin (NASDAQ: APP)
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ: APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
AppLovin reported revenues of $1.26 billion, up 16.5% year on year, falling short of analysts’ expectations by 1.2%. It was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations.
AppLovin delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 80.6% since the results and currently trades at $706.50.
Read our full analysis of AppLovin’s results here.
ZoomInfo (NASDAQ: GTM)
Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ: GTM) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.
ZoomInfo reported revenues of $306.7 million, up 5.2% year on year. This print topped analysts’ expectations by 3.5%. More broadly, it was a satisfactory quarter as it also recorded accelerating growth in large customers but EPS guidance for next quarter missing analysts’ expectations.
The company added 16 enterprise customers paying more than $100,000 annually to reach a total of 1,884. The stock is down 14.3% since reporting and currently trades at $10.41.
Read our full, actionable report on ZoomInfo here, it’s free.
Integral Ad Science (NASDAQ: IAS)
Processing over 280 billion digital ad interactions daily through its AI-powered technology, Integral Ad Science (NASDAQ: IAS) provides a cloud-based platform that measures and verifies digital advertising across devices, channels, and formats to ensure ads are viewable, fraud-free, and brand-safe.
Integral Ad Science reported revenues of $149.2 million, up 15.7% year on year. This result beat analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance beating analysts’ expectations.
The stock is up 27.9% since reporting and currently trades at $10.16.
Read our full, actionable report on Integral Ad Science here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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