Latest news with #HowardLerman
Yahoo
7 days ago
- Business
- Yahoo
Q1 Earnings Roundup: ON24 (NYSE:ONTF) And The Rest Of The Sales And Marketing Software Segment
Let's dig into the relative performance of ON24 (NYSE:ONTF) and its peers as we unravel the now-completed Q1 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 satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 2.5% while next quarter's revenue guidance was in line. In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results. 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 $34.73 million, down 7.9% year on year. This print exceeded analysts' expectations by 1.5%. Despite the top-line beat, it was still a slower quarter for the company with full-year EPS guidance missing analysts' expectations. The stock is up 17.4% since reporting and currently trades at $5.53. Read our full report on ON24 here, it's free. 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 $109.5 million, up 14.1% year on year, outperforming analysts' expectations by 1.8%. The business had an exceptional quarter with a solid beat of analysts' annual recurring revenue estimates and an impressive beat of analysts' billings estimates. The market seems happy with the results as the stock is up 30.4% since reporting. It currently trades at $8.88. Is now the time to buy Yext? Access our full analysis of the earnings results here, it's free. Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns. Braze reported revenues of $162.1 million, up 19.6% year on year, exceeding analysts' expectations by 2.2%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts' expectations. As expected, the stock is down 17.1% since the results and currently trades at $29.96. Read our full analysis of Braze's results here. 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 $402.3 million, up 4.7% year on year. This result was in line with analysts' expectations. Taking a step back, it was a mixed quarter as it failed to impress in some other areas of the business. The stock is up 11.8% since reporting and currently trades at $282.30. Read our full, actionable report on VeriSign 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 $196.3 million, up 18.9% year on year. This number beat analysts' expectations by 2.1%. It was a strong quarter as it also put up accelerating growth in large customers and a solid beat of analysts' EBITDA estimates. The company added 717 enterprise customers paying more than $5,000 annually to reach a total of 23,275. The stock is up 8.4% since reporting and currently trades at $15.55. Read our full, actionable report on Freshworks here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
03-06-2025
- Business
- Yahoo
Yext (NYSE:YEXT) Exceeds Q1 Expectations, Provides Encouraging Quarterly Revenue Guidance
Online reputation and search platform Yext (NYSE:YEXT) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 14.1% year on year to $109.5 million. Guidance for next quarter's revenue was better than expected at $111.3 million at the midpoint, 1.7% above analysts' estimates. Its non-GAAP profit of $0.12 per share was in line with analysts' consensus estimates. Is now the time to buy Yext? Find out in our full research report. Revenue: $109.5 million vs analyst estimates of $107.6 million (14.1% year-on-year growth, 1.8% beat) Adjusted EPS: $0.12 vs analyst estimates of $0.11 (in line) Adjusted EBITDA: $24.68 million vs analyst estimates of $21.79 million (22.5% margin, 13.3% beat) Revenue Guidance for Q2 CY2025 is $111.3 million at the midpoint, above analyst estimates of $109.4 million Adjusted EPS guidance for the full year is $0.53 at the midpoint, beating analyst estimates by 5% EBITDA guidance for the full year is $104 million at the midpoint, above analyst estimates of $101.2 million Operating Margin: 1%, up from -5.7% in the same quarter last year Free Cash Flow Margin: 33.9%, similar to the previous quarter Billings: $87.8 million at quarter end, up 27.2% year on year Market Capitalization: $833.5 million 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. A company's long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Yext's sales grew at a weak 3% compounded annual growth rate over the last three years. This was below our standard for the software sector and is a tough starting point for our analysis. This quarter, Yext reported year-on-year revenue growth of 14.1%, and its $109.5 million of revenue exceeded Wall Street's estimates by 1.8%. Company management is currently guiding for a 13.7% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4% over the next 12 months, similar to its three-year rate. This projection is underwhelming and indicates its newer products and services will not catalyze better top-line performance yet. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Yext's billings punched in at $87.8 million in Q1, and over the last four quarters, its growth was impressive as it averaged 20.6% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Yext's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a competitive market and must continue investing to grow. We were impressed by how significantly Yext blew past analysts' billings and EBITDA expectations this quarter. We were also excited its full-year guidance topped estimates. Zooming out, we think this was a solid print. The stock remained flat at $6.82 immediately following the results. Yext put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-04-2025
- Business
- Yahoo
3 Unprofitable Stocks with Questionable Fundamentals
Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth. Finding the right unprofitable companies is difficult, which is why we started StockStory - to help you navigate the market. Keeping that in mind, here are three unprofitable companiesto avoid and some better opportunities instead. Trailing 12-Month GAAP Operating Margin: -7.7% 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. Why Do We Avoid YEXT? Underwhelming ARR growth of 4% over the last year suggests the company faced challenges in acquiring and retaining long-term customers Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 6.2 percentage points At $6.46 per share, Yext trades at 1.8x forward price-to-sales. Read our free research report to see why you should think twice about including YEXT in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: -6.7% Founded by Noah Glass, who wanted to get a cup of coffee faster on his way to work, Olo (NYSE:OLO) provides restaurants and food retailers with software to manage food orders and delivery. Why Do We Think Twice About OLO? Sky-high servicing costs result in an inferior gross margin of 54.9% that must be offset through increased usage Operating losses show it sacrificed profitability while scaling the business Free cash flow margin is expected to remain in place over the coming year Olo's stock price of $6.28 implies a valuation ratio of 3.1x forward price-to-sales. To fully understand why you should be careful with OLO, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: -2.7% Founded in 1990 in Cincinnati, Ohio, Paycor (NASDAQ: PYCR) provides software for small businesses to manage their payroll and HR needs in one place. Why Are We Hesitant About PYCR? High servicing costs result in a relatively inferior gross margin of 66% that must be offset through increased usage Suboptimal cost structure is highlighted by its history of operating losses Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year Paycor is trading at $22.49 per share, or 5.2x forward price-to-sales. Check out our free in-depth research report to learn more about why PYCR doesn't pass our bar. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
Yahoo
17-04-2025
- Business
- Yahoo
3 Reasons to Sell YEXT and 1 Stock to Buy Instead
Yext trades at $6.11 per share and has moved almost in lockstep with the market over the last six months. The stock has lost 13.9% while the S&P 500 is down 8.9%. This might have investors contemplating their next move. Is there a buying opportunity in Yext, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Even with the cheaper entry price, we're swiping left on Yext for now. Here are three reasons why you should be careful with YEXT and a stock we'd rather own. 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. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. Yext's ARR came in at $435.7 million in Q4, and over the last four quarters, its year-on-year growth averaged 4%. This performance was underwhelming and suggests that increasing competition is causing challenges in securing longer-term commitments. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Yext's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a highly competitive environment where there is little differentiation between Yext's products and its peers. While many software businesses point investors to their adjusted profits, which exclude stock-based compensation (SBC), we prefer GAAP operating margin because SBC is a legitimate expense used to attract and retain talent. This metric shows how much revenue remains after accounting for all core expenses – everything from the cost of goods sold to sales and R&D. Looking at the trend in its profitability, Yext's operating margin decreased by 6.2 percentage points over the last year. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Yext's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. Its operating margin for the trailing 12 months was negative 7.7%. We see the value of companies addressing major business pain points, but in the case of Yext, we're out. After the recent drawdown, the stock trades at 1.7× forward price-to-sales (or $6.11 per share). While this valuation is reasonable, we don't see a big opportunity at the moment. There are more exciting stocks to buy at the moment. We'd recommend looking at one of Charlie Munger's all-time favorite businesses. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
Yahoo
14-04-2025
- Business
- Yahoo
Sales And Marketing Software Stocks Q4 In Review: Upland (NASDAQ:UPLD) Vs Peers
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. 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. 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. 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. 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. 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. 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. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
