Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Samsara (NYSE:IOT) and the best and worst performers in the data analytics industry.
Organizations generate a lot of data that is stored in silos, often in incompatible formats, making it slow and costly to extract actionable insights, which in turn drives demand for modern cloud-based data analysis platforms that can efficiently analyze the siloed data.
The 5 data analytics stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.
After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support the economy or a bit too late for a macro that has already cooled too much.
Luckily, data analytics stocks have performed well with share prices up 27.4% on average since the latest earnings results.
Samsara (NYSE:IOT)
One of the few public companies where Marc Andreessen is a Board member, Samsara (NYSE:IOT) provides software and hardware to track industrial equipment, assets, and fleets.
Samsara reported revenues of $300.2 million, up 36.9% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ billings estimates and a decent beat of analysts’ ARR (annual recurring revenue) estimates.
“We achieved another strong quarter of durable and efficient growth at a greater scale,” said Sanjit Biswas, CEO and co-founder of Samsara.
Samsara Total Revenue
Samsara pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 24.2% since reporting and currently trades at $48.13.
Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.
Palantir reported revenues of $678.1 million, up 27.2% year on year, outperforming analysts’ expectations by 3.9%. The business had a very strong quarter with an impressive beat of analysts’ billings estimates and optimistic revenue guidance for the next quarter.
Palantir Total Revenue
Palantir pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 54.3% since reporting. It currently trades at $37.17.
Founded by healthcare professionals Tom Burton and Steve Barlow in 2008, Health Catalyst (NASDAQ:HCAT) provides data and analytics technology to healthcare organizations, enabling them to improve care and lower costs.
Health Catalyst reported revenues of $75.9 million, up 3.7% year on year, exceeding analysts’ expectations by 1.2%. Still, it was a slower quarter as it posted a decline in its gross margin.
Health Catalyst delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 48% since the results and currently trades at $8.14.
Born out of a failed voice recognition startup by founder Spenser Skates, Amplitude (NASDAQ:AMPL) is data analytics software helping companies improve and optimize their digital products.
Amplitude reported revenues of $73.3 million, up 8.2% year on year. This result beat analysts’ expectations by 1.8%. It was a strong quarter as it also recorded an impressive beat of analysts’ billings estimates and a decent beat of analysts’ ARR (annual recurring revenue) estimates.
The company added 254 customers to reach a total of 3,224. The stock is up 12.5% since reporting and currently trades at $8.97.
Founded by Josh James after selling his former business Omniture to Adobe, Domo (NASDAQ:DOMO) provides business intelligence software that allows managers to access and visualize critical business metrics in real-time, using their smartphones.
Domo reported revenues of $78.41 million, down 1.6% year on year. This print topped analysts’ expectations by 2.4%. However, it was a weak quarter as it produced a miss of analysts’ billings estimates.
Domo had the slowest revenue growth among its peers. The stock is down 2.1% since reporting and currently trades at $7.55.
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