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 software stocks fared in Q3, starting with HubSpot (NYSE:HUBS).
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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
Luckily, sales software stocks have performed well with share prices up 13.6% on average since the latest earnings results.
Started in 2006 by two MIT grad students, HubSpot (NYSE:HUBS) is a software-as-a-service platform that helps small and medium-sized businesses market themselves, sell, and get found on the internet.
HubSpot reported revenues of $669.7 million, up 20.1% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
HubSpot achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. The company added 10,074 customers to reach a total of 238,128. Unsurprisingly, the stock is up 29.7% since reporting and currently trades at $775.50.
We think HubSpot is a good business, but is it a buy today? Read our full report here, it’s free.
Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses.
Freshworks reported revenues of $186.6 million, up 21.5% year on year, outperforming analysts’ expectations by 2.8%. The business had a strong quarter with an impressive beat of analysts’ annual recurring revenue and EBITDA estimates.
Freshworks achieved the fastest revenue growth among its peers. The company added 615 enterprise customers paying more than $5,000 annually to reach a total of 22,359. The market seems happy with the results as the stock is up 43.6% since reporting. It currently trades at $18.79.
Is now the time to buy Freshworks? Access our full analysis of the earnings results here, it’s free.
Launched in 1999 from a rented one-bedroom apartment in San Francisco by Marc Benioff and his three co-founders, Salesforce (NYSE:CRM) is a software-as-a-service platform that helps companies access, manage, and share sales information such as leads.
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