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Spotting Winners: Yext (NYSE:YEXT) And Sales And Marketing Software Stocks In Q3

YEXT Cover Image

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 Q3, starting with Yext (NYSE:YEXT).

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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.6% above.

Luckily, sales and marketing software stocks have performed well with share prices up 11% on average since the latest earnings results.

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 $114 million, up 12.7% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ annual recurring revenue and billings estimates.

“Our fiscal third quarter results demonstrate our continued ability to drive operating efficiencies, make significant margin improvements and generate bottom-line growth,” said Mike Walrath, Yext Chairman and CEO.

Yext Total Revenue

Unsurprisingly, the stock is down 24.8% since reporting and currently trades at $6.40.

Is now the time to buy Yext? Access our full analysis of the earnings results here, it’s free.

Best Q3: Zeta (NYSE:ZETA)

Co-founded by former Apple CEO John Scully, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.

Zeta reported revenues of $268.3 million, up 42% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

Zeta Total Revenue

Zeta pulled off the fastest revenue growth and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 49% since reporting. It currently trades at $18.74.

Is now the time to buy Zeta? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Sprinklr (NYSE:CXM)

Initially focused only on social media management, Sprinklr (NYSE: CXM) is a leading provider of unified customer experience management software.

Sprinklr reported revenues of $200.7 million, up 7.7% 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.

Interestingly, the stock is up 3.7% since the results and currently trades at $8.95.

Read our full analysis of Sprinklr’s results here.

Wix (NASDAQ:WIX)

Founded in 2006 in Tel Aviv, Wix.com (NASDAQ:WIX) offers a free and easy to operate website building platform.

Wix reported revenues of $444.7 million, up 12.9% year on year. This number was in line with analysts’ expectations. Overall, it was a satisfactory quarter as it also produced a decent beat of analysts’ EBITDA estimates.

The stock is up 22.9% since reporting and currently trades at $225.96.

Read our full, actionable report on Wix here, it’s free.

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 $390.6 million, up 3.8% year on year. This number met analysts’ expectations. Aside from that, it was a mixed quarter as it failed to impress in some other areas of the business.

The stock is up 8.8% since reporting and currently trades at $201.48.

Read our full, actionable report on VeriSign here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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