The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how sales and marketing software stocks fared in Q2, starting with Semrush (NYSE:SEMR).
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 22 sales and marketing software stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Semrush (NYSE:SEMR)
Born from the need to make sense of the complex digital marketing landscape, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps companies improve their online visibility, analyze digital marketing efforts, and optimize content across search engines and social media.
Semrush reported revenues of $108.9 million, up 19.7% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with decelerating customer growth and a slight miss of analysts’ annual recurring revenue estimates.
“We posted strong revenue growth in the second quarter and were especially pleased by the accelerated adoption of our AI and Enterprise products,” said Bill Wagner, CEO.
Semrush delivered the weakest full-year guidance update of the whole group. The company lost 2,000 customers and ended up with a total of 116,000. Unsurprisingly, the stock is down 17.5% since reporting and currently trades at $7.63.
Is now the time to buy Semrush? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: Shopify (NASDAQ:SHOP)
Starting with just three people selling snowboards online in 2004, Shopify (NYSE:SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Shopify reported revenues of $2.68 billion, up 31.1% year on year, outperforming analysts’ expectations by 5.2%. The business had an exceptional quarter with a solid beat of analysts’ gross merchandise volume estimates and an impressive beat of analysts’ EBITDA estimates.
Shopify delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 29.5% since reporting. It currently trades at $164.60.
Is now the time to buy Shopify? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q2: AppLovin (NASDAQ:APP)
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
AppLovin reported revenues of $1.26 billion, up 16.5% year on year, falling short of analysts’ expectations by 1.2%. It was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations.
AppLovin delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 46.6% since the results and currently trades at $573.51.
Read our full analysis of AppLovin’s results here.
Salesforce (NYSE:CRM)
With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE:CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.
Salesforce reported revenues of $10.24 billion, up 9.8% year on year. This print topped analysts’ expectations by 1%. Zooming out, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
The stock is down 4.2% since reporting and currently trades at $245.75.
Read our full, actionable report on Salesforce here, it’s free for active Edge members.
Braze (NASDAQ:BRZE)
With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ:BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.
Braze reported revenues of $180.1 million, up 23.8% year on year. This result beat analysts’ expectations by 5%. It was an exceptional quarter as it also logged an impressive beat of analysts’ billings estimates and accelerating customer growth.
Braze delivered the highest full-year guidance raise among its peers. The company added 80 customers to reach a total of 2,422. The stock is up 6% since reporting and currently trades at $29.35.
Read our full, actionable report on Braze here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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