Earnings Season Summary Q3 2024

Research & Frameworks
Earnings Season Summary

Friends & Family Capital is pleased to share the Q3 2024 edition of “Seven Weeks in Seven Minutes.”

This resource is a summary of condensed and actionable insights on what you need to know from the last seven weeks of earnings announcements.

It is intended for our Founders, CFOs, and friends in the community.

See below for the overview slides from the quarter. The full presentation is available for download here.

We welcome your feedback to help shape the relevance for your business in future quarters.

Key theme for the quarter: “The Ubiquitous AI Agent”

  • Macro environment continues to stabilize with signs of strength across our coverage universe
  • Many organizations begin to incorporate AI agents into their software to improve customer outcomes
  • User growth in AI use cases now positively impacts topline forecasts beyond the cloud providers
  • Platform updates to reignite growth are prevalent among application software firms
  • 82% of companies both beat estimates and had analysts raise estimates on revenue and EPS

Our public company universe includes 45 companies. We selected these businesses as leading business-to-business software companies plus the technology stalwarts. The customers served by these companies are also relevant for the Founders we help as they build companies in the private markets.

Market price moved up or down by 10% or more across several companies following their earnings.

Below are the top ten movers and bottom ten movers in the Q3 earnings season based on one-day share price reaction following their earnings announcement.

A timeless question of "Is it me? Or the market?" can be addressed through the commentary companies offer about their customers and go-to-market motion. We offer a few quotes below to help benchmark what you hear from account executives on your sales team.

Over the last year there has been a 300% increase in reference to AI Agents on earnings calls. At the same time, more companies now incorporate AI Agents into their software offerings to improve customer outcomes and drive new levels of productivity.

AI based enhancements and products are now translating from user growth and early adoption to revenue growth for select software companies.

The full presentation is available for download here.