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Friends & Family Capital is pleased to share the Q3 2023 edition of “Seven Weeks in Seven Minutes.”

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

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

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

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

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Key theme for the quarter: “A Light at the End of the Tunnel?”

• Initial signs of demand and monetization for AI offerings begin to flow to more businesses
• Consolidation remains a priority across customer profiles with complete platforms winning deals
• Contraction is stabilizing and expansion is signaled yet budgets remain under scrutiny
• Growth in larger customer segments highlights relative strength at the enterprise level
• 80% of companies both beat estimates and had analysts raise estimates on revenue and EPS

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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.

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

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Market positioning and qualitative factors drove price performance in Q3. Both top movers and bottom movers in the Q3 earnings season displayed broadly comparable median strength in earnings fundamentals.

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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.

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Go-to-Market leadership and strategy changes were prevalent across our coverage list in Q3. A notable amount of companies announced organizational changes to sales, marketing, or revenue management roles and other initiatives.

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Strength in government business units was noted on many earnings calls. The end of the US federal government year, September 30, can lead to pipeline deals closing for both renewals and expansion.

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The full presentation is available for download here.