Winners and losers of Q2: Sprout Social (NASDAQ:SPT) vs the rest of the sales and marketing software stocks
As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the sales and marketing software industry, including Sprout Social (NASDAQ:SPT) 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 17 sales and marketing software stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 1.2% below.
Luckily, sales and marketing software stocks have performed well with share prices up 15.6% on average since the latest earnings results.
Sprout Social (NASDAQ:SPT)
Born from the recognition that businesses needed a centralized way to handle their growing social media presence, Sprout Social (NASDAQ:SPT) provides a comprehensive software platform that helps businesses manage, analyze, and optimize their presence across various social media networks.
Sprout Social reported revenues of $123.8 million, up 10.8% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 55.1% since reporting and currently trades at $12.70.
Is now the time to buy Sprout Social? Access our full analysis of the earnings results here, it’s free.
Best Q2: PubMatic (NASDAQ:PUBM)
Powering billions of daily ad impressions across the open internet, PubMatic (NASDAQ:PUBM) operates a technology platform that helps publishers maximize revenue from their digital advertising inventory while giving advertisers more control and transparency.
PubMatic reported revenues of $78.59 million, up 10.5% year on year, outperforming analysts’ expectations by 13.7%. The business had an incredible quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations.
PubMatic delivered the biggest analyst estimate beat and highest guidance raise in the group. The market seems happy with the results as the stock is up 23.2% since reporting. It currently trades at $16.61.
Is now the time to buy PubMatic? Access our full analysis of the earnings results here, it’s free.
