In this report, the Baird team summarizes earnings trends data and provides insights into key themes driving earnings report trends in Q3:

  • Macro backdrop is causing narrower revenue beats and cautious outlooks
  • Sales cycles are elongating further into Q4 and limiting sales teams’ capacity to focus on new logo wins
  • Focus on net retention trends as seat expansion slows
  • Vendor consolidation points to purchasing trends leaning towards platform solutions
  • Customer-friendly payment terms are starting to emerge impacting free cash flow outlook
  • Product-led growth model is being tested in the first macro slowdown
  • Slowing free-to-paid conversions are impacting business outlook
  • High-growth consumption models are delivering volatile results

Baird welcomes the opportunity to connect and discuss these trends and Technology market activity. Contact Baird Equity Capital Markets Team to learn more.