Earnings Season Summary Q2 2024

Friends & Family Capital is pleased to share the Q2 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: “Growth Will Soon Be Differentiated”
- Deal scrutiny & longer deal cycles are still present across the enterprise software universe
- New sales & GTM motions are being tested and implemented by companies with some early success
- Compute & datacenter build-out continues to advance with more capex expected next year
- AI success at the non-infrastructure layer is split amongst cases of value versus pre-monetization
- 67% 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 Q2 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.

The wave of AI innovation is beginning to show a bifurcation between companies that are able to drive value generation and revenue lift, and those that remain pre-monetization with their AI products and features.

The Q2 earnings season had a notably high number of announcements of CFO transitions within the F&FC coverage list.

The full presentation is available for download here.