Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at HubSpot (NYSE:HUBS) and its peers.
Companies need to be able to interact with and sell to their customers as efficiently as possible. This reality coupled with the ongoing migration of enterprises to the cloud drives demand for cloud-based customer relationship management (CRM) software that integrates data analytics with sales and marketing functions.
The 4 sales software stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 5.4% on average since the latest earnings results.
Weakest Q2: 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 $911.7 million, up 19.8% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations significantly and full-year revenue guidance slightly missing analysts’ expectations.
HubSpot scored the fastest revenue growth but had the weakest guidance update and weakest full-year guidance update among its peers. The company added 6,988 customers to reach a total of 306,446. Still, the market seems discontent with the results. The stock is down 10% since reporting and currently trades at $225.12.
Is now the time to buy HubSpot? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $310.4 million, up 1.2% year on year, outperforming analysts’ expectations by 2.7%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ annual recurring revenue estimates.
ZoomInfo achieved the biggest analyst estimate beat, highest guidance raise, and highest full-year guidance raise of the whole group. The market seems happy with the results as the stock is up 5% since reporting. It currently trades at $3.84.
