Baird Releases Q3 Software Earnings Insights
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.
