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Q4 Earnings Roundup: ZoomInfo (NASDAQ:GTM) And The Rest Of The Sales Software Segment

GTM Cover Image

Let’s dig into the relative performance of ZoomInfo (NASDAQ: GTM) and its peers as we unravel the now-completed Q4 sales software earnings season.

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 4.7% on average since the latest earnings results.

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 exceeded analysts’ expectations by 3.2%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ annual recurring revenue estimates but full-year guidance of slowing revenue growth.

ZoomInfo Total Revenue

ZoomInfo achieved the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 30.7% since reporting and currently trades at $6.35.

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

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, outperforming analysts’ expectations by 2%. The business had a very strong quarter with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

HubSpot Total Revenue

HubSpot pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 30.7% since reporting. It currently trades at $273.51.

Is now the time to buy HubSpot? 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.

The stock is flat since the results and currently trades at $8.69.

Read our full analysis of Freshworks’s results here.

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. This number met analysts’ expectations. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Salesforce had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is up 2% since reporting and currently trades at $195.64.

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

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