Sales Software Stocks Q4 Earnings: HubSpot (NYSE:HUBS) Firing on All Cylinders

Looking back on sales software stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including HubSpot (NYSE:HUBS) and its peers.

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 strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.8% 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 4.5% on average since the latest earnings results.

Best Q4: 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 $846.7 million, up 20.4% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

HubSpot pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 33.9% since reporting and currently trades at $280.30.

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

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 $11.2 billion, up 12.1% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems content with the results as the stock is up 1.1% since reporting. It currently trades at $193.80.

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

Weakest Q4: Freshworks (NASDAQ:FRSH)

Starting as a customer service solution before expanding into a comprehensive software suite, Freshworks (NASDAQ:FRSH) provides AI-powered software-as-a-service solutions that help companies manage customer service, IT support, sales, and marketing functions.

Freshworks reported revenues of $222.7 million, up 14.5% year on year, exceeding analysts’ expectations by 1.8%. Still, it was a mixed quarter as it posted full-year EPS guidance missing analysts’ expectations significantly.

As expected, the stock is down 2.4% since the results and currently trades at $8.52.

Read our full analysis of Freshworks’s results here.

ZoomInfo (NASDAQ:GTM)

Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ:GTM) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.

ZoomInfo reported revenues of $319.1 million, up 3.2% year on year. This print surpassed analysts’ expectations by 3.2%. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ annual recurring revenue estimates but full-year guidance of slowing revenue growth.

ZoomInfo achieved the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is down 14.8% since reporting and currently trades at $6.24.

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

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