Let’s dig into the relative performance of Upland (NASDAQ:UPLD) and its peers as we unravel the now-completed Q4 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 23 sales and marketing software stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 25.9% since the latest earnings results.
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 $68.03 million, down 5.8% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year guidance of slowing revenue growth and EBITDA guidance for next quarter missing analysts’ expectations.
Upland delivered the weakest full-year guidance update of the whole group. The stock is down 20.8% since reporting and currently trades at $2.26.
Read our full report on Upland here, it’s free.
Best Q4: 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 $113.1 million, up 11.9% year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ annual recurring revenue estimates and a solid beat of analysts’ billings estimates.
The stock is down 10.2% since reporting. It currently trades at $5.89.
Is now the time to buy Yext? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: The Trade Desk (NASDAQ:TTD)
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads.
The Trade Desk reported revenues of $741 million, up 22.3% year on year, falling short of analysts’ expectations by 2.3%. It was a disappointing quarter as it posted EBITDA guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ billings estimates.
As expected, the stock is down 58.1% since the results and currently trades at $51.20.
Read our full analysis of The Trade Desk’s results here.
VeriSign (NASDAQ:VRSN)
While the company is not a domain registrar and does not directly sell domain names to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net.
VeriSign reported revenues of $395.4 million, up 3.9% year on year. This result met analysts’ expectations. Zooming out, it was a mixed quarter as it failed to impress in some other areas of the business.
The stock is up 14.3% since reporting and currently trades at $251.57.
Read our full, actionable report on VeriSign here, it’s free.
ON24 (NYSE:ONTF)
Started in 1998 as a platform to broadcast press conferences, ON24’s (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers.
ON24 reported revenues of $36.68 million, down 6.8% year on year. This print surpassed analysts’ expectations by 2.5%. However, it was a slower quarter as it logged full-year EPS guidance missing analysts’ expectations.
ON24 had the slowest revenue growth among its peers. The stock is down 21.9% since reporting and currently trades at $4.74.
Read our full, actionable report on ON24 here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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