Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at ON24 (NYSE: ONTF) 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 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.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.2% since the latest earnings results.
ON24 (NYSE: ONTF)
Powering over 1,700 companies' virtual marketing efforts since 1998, ON24 (NYSE: ONTF) provides a cloud-based platform that enables businesses to create interactive digital experiences and capture actionable data from customer engagement.
ON24 reported revenues of $35.33 million, down 5.4% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 11.3% since reporting and currently trades at $5.29.
Is now the time to buy ON24? 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 a stunning 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 24.3% since reporting. It currently trades at $157.97.
Is now the time to buy Shopify? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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, in line with analysts’ expectations. It was a slower quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and revenue guidance for next quarter missing analysts’ expectations significantly.
As expected, the stock is down 22.4% since the results and currently trades at $7.18.
Read our full analysis of Semrush’s results here.
The Trade Desk (NASDAQ: TTD)
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
The Trade Desk reported revenues of $694 million, up 18.7% year on year. This print surpassed analysts’ expectations by 1.2%. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
The stock is down 43.1% since reporting and currently trades at $50.30.
Read our full, actionable report on The Trade Desk here, it’s free for active Edge members.
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 $760.9 million, up 19.4% year on year. This result topped analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
The company added 9,724 customers to reach a total of 267,982. The stock is down 11.2% since reporting and currently trades at $435.81.
Read our full, actionable report on HubSpot 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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