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The earnings season is drawing to a close, with state-owned tech companies finalizing their fourth and fourth quarter disclosures. We don’t care too much about the results of the bigger players here at TechCrunch, but the small tech companies we knew when they were small startups can provide startup-related data points worth digging in. So each quarter, The Exchange spends time chatting with a multitude of CEOs and CFOs, trying to figure out what’s going on so that we can relay the information to private companies.
Sometimes that’s helpful, as our discussion with the recent fintech Upstart IPO proved after we spoke with the company about the growing acceptance of AI in conservative banking.
This week we met the CEO of Yext Howard lerman and CEO of Smartsheet Mark Mader. Yext creates data products for small businesses and is betting its future on research products. Smartsheet is a software company that works in collaborative, no-code, future-of-work spaces.
They are quite different businesses, really. But what they have shared this time around in the earnings cycle are macro notes or details about their financial forecast and the economic conditions they anticipate. As a macro nerd this piqued my interest.
Yext cited a number of macroeconomic headwinds when releasing its fourth quarter results. And tying its future results somewhat to an uncertain macro picture, the company said it was “melting [its] advice on trade conditions [it sees for itself] and [its] clients currently, with the macro economy, which remains sluggish, and clients who remain cautious, ”according to a transcript.
Lerman told The Exchange it’s not clear when the world will open up – something that matters to Yext’s location-focused products – so the company is guiding for the year as if nothing is changing. Wall Street didn’t like it, but if the economy improves, Yext won’t have any big hurdles to jump through. This is a tactic a business can adopt when talking about direction.
Smartsheet took a slightly different approach, saying in its earnings call that its “forecast for fiscal year ’22 sees a gradual improvement in the macroeconomic environment in the second half of the year.” Mader said in an interview that his company doesn’t hire economists, it just listens to what others say.
He also said the macroeconomic climate is more important in saturated markets, which he doesn’t think Smartsheet is in; thus, its results should be more impacted by things like “the secular shift to the cloud and digital transformation”, to quote its call for results.
What the economy does this year means a lot to startups. An improving economy could raise interest rates, making money a little more expensive and bonds more attractive. Valuations could see slight downward pressure in this case. And venture capital could slow down slightly. But with Yext forecasting like it’s facing a flat road and Smartsheet not expecting things to pick up on Q3, it’s likely that what we have now is mostly what we have. will get.
And things are pretty good for startups and late-stage cash flow right now. So, good navigation ahead for startup-land? At least as far as our current perspective can tell.
We still have on hand the notes from Splunk CEO Douglas Merritt on how to turn an old-fashioned software company into a cloud-based one, and from Jamf CEO Dean Hager on the packaging of discrete software products. More to come from them in crises.
Miscellaneous and miscellaneous
There were big and small rounds this week. Companies like Squarespace have raised $ 300 million, while Airtable has raised $ 277 million. On the smaller side of the spectrum, my favorite ride of the week was a modest $ 2.9 million increase from Copy.ai.
But there have been other tricks that TechCrunch didn’t have access to that are still worth the effort. So here are a few more to explore this weekend:
- A so-called pre-series A ride for Lilli, a UK-based startup that uses sensors and other technology to track the well-being of people who might need help living on their own. Using technology to take care of people is always good for me. The deal was worth £ 4.5million, per UKTN.
- An IPO for Tuya, a Chinese software company that raised $ 915 million in its US debut. Chinese IPOs on US indices used to be a big deal. They are less common now. Surprised I missed this one, but, hey, a lot has happened.
- And the turn of the Republic, worth $ 36 million, which builds on the recently expanded US regulations on crowdfunding. Some startups have found success with this approach, including Juked.gg.
Next week is Y Combinator Demo Day week, so expect plenty of early coverage on the blog. Here is a preview. From The Exchange, we take a look back at insurtech (with data from WeFox and Insurify) and talk about Austin-based software startup AlertMedia’s decision to sell itself to private equity instead of raising more capital. traditional.
And to leave you with some reading material, be sure to read our look at free trade app ratings, issues with double-class stocks, the recent IPO for the New York scene, and how unequal the global business is. capital market really is.
In conclusion, this BigTechnology article was good, as was this Not Boring essay. Kisses and good rest,