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A Look Back at Sales And Marketing Software Stocks' Q2 Earnings: Upland (NASDAQ:UPLD) Vs The Rest Of The Pack

StockStory - Tue Oct 3, 2023

UPLD Cover Image

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the sales and marketing software stocks, starting with Upland (NASDAQ:UPLD).

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 Q2; on average, revenues beat analyst consensus estimates by 2.26%, while on average next quarter revenue guidance was 0.54% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and while some of the sales and marketing software stocks have fared somewhat better than others, they have not been spared, with share prices declining 6.17% since the previous earnings results, on average.

Upland (NASDAQ:UPLD)

Founder Jack McDonald’s second software rollup, Upland Software (NASDAQ:UPLD) is a one stop shop for sales and marketing software, project management, HR, and contact center services for small and medium sized businesses.

Upland reported revenues of $74.5 million, down 7.14% year on year, beating analyst expectations by 1.59%. It was a mixed quarter for the company, with revenue topping analysts' expectations. Gross margin also improved. On the other hand, revenue guidance for the next quarter missed consensus estimates.

"In Q2, we beat our revenue and Adjusted EBITDA guidance midpoints and free cash flow came in as expected," said Jack McDonald, Upland's chairman and chief executive officer.

Upland Total Revenue

The stock is up 26.7% since the results and currently trades at $4.36.

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

Best Q2: 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 a provider of marketing and monetization tools for mobile app developers and also operates a portfolio of mobile games.

AppLovin reported revenues of $750.2 million, down 3.36% year on year, beating analyst expectations by 3.57%. It was an impressive quarter for the company, with optimistic revenue guidance for the next quarter and a significant improvement in its gross margin.

AppLovin Total Revenue

The stock is up 40.6% since the results and currently trades at $41.34.

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

Weakest Q2: GoDaddy (NYSE:GDDY)

Founded by Bob Parsons after selling his first company to Intuit, GoDaddy (NYSE:GDDY) provides small and mid-sized businesses with the ability to buy a web domain and tools to create and manage a website.

GoDaddy reported revenues of $1.05 billion, up 3.21% year on year, missing analyst expectations by 0.61%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.

The stock is down 2.15% since the results and currently trades at $74.09.

Read our full analysis of GoDaddy's results here.

LiveRamp (NYSE:RAMP)

Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE:RAMP) provides software as a service that helps companies better target their marketing by merging offline and online data about their customers.

LiveRamp reported revenues of $154.1 million, up 8.31% year on year, beating analyst expectations by 4.82%. It was a mixed quarter for the company, with full-year revenue guidance coming in higher than Wall Street's estimates. On the other hand, its customer growth slowed.

The company added one enterprise customer paying more than $1m annually to a total of 96. The stock is up 8.97% since the results and currently trades at $29.53.

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

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 $79.3 million, up 29.1% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter. Additionally, full-year revenue guidance missed analysts' expectations.

The company added 284 enterprise customers paying more than $10,000 annually to a total of 7,391. The stock is down 7.35% since the results and currently trades at $49.4.

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

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The author has no position in any of the stocks mentioned

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