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Q3 Earnings Highlights: Braze (NASDAQ:BRZE) Vs The Rest Of The Sales And Marketing Software Stocks

StockStory - Thu Jan 11, 3:25AM CST

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Wrapping up Q3 earnings, we look at the numbers and key takeaways for the sales and marketing software stocks, including Braze (NASDAQ:BRZE) and its peers.

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 24 sales and marketing software stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 2.4% while next quarter's revenue guidance was in line with consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but sales and marketing software stocks held their ground better than others, with the share prices up 15.4% on average since the previous earnings results.

Braze (NASDAQ:BRZE)

Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns.

Braze reported revenues of $124 million, up 33.1% year on year, topping analyst expectations by 5.7%. It was a decent quarter for the company, with optimistic revenue guidance for the next quarter but decelerating customer growth.

"We delivered another strong quarter, demonstrating our ability to balance high growth with operational efficiency," said Bill Magnuson, cofounder and CEO of Braze.

Braze Total Revenue

Braze scored the fastest revenue growth and highest full-year guidance raise of the whole group. The company added 53 customers to reach a total of 2,011. The stock is down 10.4% since the results and currently trades at $50.29.

Is now the time to buy Braze? Access our full analysis of the earnings results here, it's free.

Best Q3: 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 $864.3 million, up 21.2% year on year, outperforming analyst expectations by 8.5%. It was a stunning quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' revenue estimates.

AppLovin Total Revenue

AppLovin delivered the biggest analyst estimates beat among its peers. The stock is up 1.7% since the results and currently trades at $40.85.

Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.

Weakest Q3: 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 $101.2 million, up 1.9% year on year, falling short of analyst expectations by 1%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Yext had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 21.5% since the results and currently trades at $5.5.

Read our full analysis of Yext's results here.

SEMrush (NYSE:SEMR)

Started by Oleg Shchegolev while still in university, Semrush (NYSE:SEMR) is a software as a service platform that helps companies optimize their search engine and content marketing efforts.

SEMrush reported revenues of $78.72 million, up 19.6% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.

The company added 2,800 customers to reach a total of 106,800. The stock is up 64.1% since the results and currently trades at $12.49.

Read our full, actionable report on SEMrush here, it's free.

DoubleVerify (NYSE:DV)

When Oren Netzer saw a digital ad for US-based Target while sitting in his Tel Aviv apartment, he knew there was an unsolved problem, so he started DoubleVerify (NYSE:DV), a provider of advertising solutions to businesses that helps with ad verification, fraud prevention, and brand safety.

DoubleVerify reported revenues of $144 million, up 28.3% year on year, surpassing analyst expectations by 3.6%. It was a decent quarter for the company, with a beat of analysts' revenue estimates.

The stock is up 23.5% since the results and currently trades at $35.76.

Read our full, actionable report on DoubleVerify here, it's free.

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The author has no position in any of the stocks mentioned

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