The end of an earnings season can be a great time to discover new stocks and assess how companies are handling 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 Q1.
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 a strong Q1. 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.
Yext (NYSE: YEXT)
Built to solve the problem of inconsistent business information scattered 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 revenues of $109.5 million, up 14.1% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ annual recurring revenue estimates and a solid beat of analysts’ billings estimates.
Interestingly, the stock is up 25.6% since reporting and currently trades at $8.55.
Is now the time to buy Yext? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q1: 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 a stunning quarter with an impressive beat of analysts’ gross merchandise volume estimates and a solid beat of analysts’ EBITDA estimates.
Shopify achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 32% since reporting. It currently trades at $167.80.
Is now the time to buy Shopify? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q1: Semrush (NYSE: SEMR)
Born from the need to make sense of the complex digital marketing landscape, Semrush (NYSE: SEMR) is a software-as-a-service platform that helps companies improve their online visibility, analyze digital marketing efforts, and optimize content across search engines and social media.
Semrush reported revenues of $108.9 million, up 19.7% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and revenue guidance for next quarter missing analysts’ expectations.
As expected, the stock is down 20.4% since the results and currently trades at $7.36.
Read our full analysis of Semrush’s results here.
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 number topped analysts’ expectations by 5%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ billings estimates and accelerating customer growth.
The company added 80 customers to reach a total of 2,422. The stock is up 3.6% since reporting and currently trades at $28.69.
Read our full, actionable report on Braze here, it’s free for active Edge members.
HubSpot (NYSE: HUBS)
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
HubSpot reported revenues of $760.9 million, up 19.4% year on year. This result beat analysts’ expectations by 2.9%. It was a very strong quarter as it also recorded an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
The company added 9,724 customers to reach a total of 267,982. The stock is down 6.3% since reporting and currently trades at $459.75.
Read our full, actionable report on HubSpot here, it’s free for active Edge members.
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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