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Reflecting On Sales And Marketing Software Stocks’ Q3 Earnings: Yext (NYSE:YEXT)

StockStory - Thu Jan 18, 12:30AM CST

YEXT Cover Image

Let's dig into the relative performance of Yext (NYSE:YEXT) and its peers as we unravel the now-completed Q3 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 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. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but sales and marketing software stocks held their ground better than others, with the share prices up 14.8% on average since the previous earnings results.

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.

"Our record non-GAAP profitability and strong Q3 adjusted EBITDA illustrate our commitment to driving profitable growth, even in a challenging macroeconomic environment," said Yext CEO and Chair of the Board, Michael Walrath.

Yext Total Revenue

Yext delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The stock is down 21.7% since the results and currently trades at $5.49.

Read our full report on Yext 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 1.2% since the results and currently trades at $40.63.

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

WalkMe (NASDAQ:WKME)

Founded in Israel in 2011, WalkMe (NASDAQ:WKME) is software that teaches users how to get the most out of new applications.

WalkMe reported revenues of $67.02 million, up 5.8% year on year, falling short of analyst expectations by 0.6%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.

The stock is up 8.9% since the results and currently trades at $10.57.

Read our full analysis of WalkMe's results here.

Freshworks (NASDAQ:FRSH)

Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses.

Freshworks reported revenues of $153.6 million, up 19.3% year on year, surpassing analyst expectations by 1.9%. t was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but decelerating growth in large customers.

The company added 446 enterprise customers paying more than $5,000 annually to reach a total of 19,551. The stock is up 24.6% since the results and currently trades at $22.38.

Read our full, actionable report on Freshworks 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 good quarter for the company, with a decent beat of analysts' revenue estimates.

The stock is up 32.9% since the results and currently trades at $38.5.

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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