1. Qualtrics International Inc. (NASDAQ:XM)
Number of Hedge Fund Holders: 32
Qualtrics International Inc. (NASDAQ:XM) is an American company that operates an experience management platform to manage customer, employee, product, and brand experiences. On July 20, Qualtrics International Inc. (NASDAQ:XM) reported a Q2 revenue of $356.37 million, up about 43% year over year, topping market estimates by $11.52 million.
HSBC analyst Antonin Baudry on August 9 reiterated a Buy rating on Qualtrics International Inc. (NASDAQ:XM) but lowered the price target on the shares to $20 from $40. The company’s momentum remained solid in Q2 and its 30% discount to cloud peers seems unjustified, the analyst told investors. He noted that Qualtrics International Inc. (NASDAQ:XM)’s earnings for the first half of 2022 was ahead of consensus and visibility on Q3 supports guidance for the full year.
According to Insider Monkey’s data, 32 hedge funds were long Qualtrics International Inc. (NASDAQ:XM) at the end of Q2 2022, up from 30 funds in the last quarter. Silver Lake Partners is the biggest stakeholder of the company, with roughly 25 million shares valued at $312.5 million.
Here is what VGI Partners has to say about Qualtrics International Inc. (NASDAQ:XM) in its Q4 2021 investor letter:
“Our analysis shows Qualtrics is the world leader in experience management (EM) software. EM software is a category that has been turbocharged by the pandemic as corporations and governments are striving to better understand their customers and employees in order to improve satisfaction, retention and in turn maximize the dollar return on each customer. Customer experience was previously assessed via surveys and other forms of analog feedback. Today Qualtrics allows its clients to assess their customers’ feedback and improve the experience with more sophisticated tools (e.g. Net Promoter Scores) and in real time via multiple data feeds which include call center conversations, emails, online chatbots, social media feeds and so on.
A good example of a Qualtrics customer is JetBlue Airlines, a major American low-cost airline. JetBlue uses the platform to analyze customer feedback and in turn better tailor pricing for flights and also improve the in-flight experience, in order to expand Net Promoter Scores (NPS) and increase customer retention through this real-time feedback. For example, by combining flight frequency and pricing studies, JetBlue found that 82% of their passengers didn’t care about free bags and instead preferred cheaper ticket prices. JetBlue responded by rolling out different rate structures and pricing options for passengers, which were well received. By taking a deep dive into passengers’ feedback in Philadelphia, JetBlue was able to trace dissatisfaction to the lack of airport shops and amenities open early in the morning, where JetBlue responded quickly by simply passing out water, juice, and coffee at the gate to boost customer satisfaction.
Large corporations are accelerating their usage of Qualtrics software with 85% of the Fortune 100 using the platform. The incremental spend with Qualtrics by existing customers is impressive and continues to grow in excess of 20%. This is underpinned by expanding usage along with the adoption of additional modules which allow clients to gain greater depth and breadth of data from the Qualtrics platform. In addition, new customers add to the growth of existing customers resulting in what we believe will be revenue growth of over 30% p.a. over the coming years…” (Click here to see the full text)
You can also take a look at Best and Reliable High Dividend REITs to Buy Now and Best Warehouse and Self-Storage Stocks to Buy.
