Once a buzzword, digital transformation is redefining markets – TechCrunch
The concept of digital the transformation has gone from a fashionable joke to a critical and accelerated fact during the COVID-19 pandemic. The changes brought about by a global shift to remote work and schooling are innumerable, but in the business arena they have resulted in a shift in business behavior and consumer expectations – changes that have manifested in a bushel. of earnings reports this week.
TechCrunch may tend to focus on private companies, but we’re keeping an eye out for public companies in the tech world as they often provide tips, notes, and other pointers on how startups can. get away. In this case, however, we are working in reverse; Startups have been telling us for several quarters that their markets are growing as customers change their buying behavior with a distinct advantage for companies helping customers enter the digital realm. And the results of public enterprises now confirm the perspective of startups.
The acceleration of digital transformation is real and we have the data to back it up.
The following is a digest of notes from recent earnings results from Box, Sprout Social, Yext, Snowflake, and Salesforce. We’ll tackle each on the microphone to save time, but as always, there is more to dig if you have the time. Let’s go!
Company revenues increase
Kick off with Yext, the company exceeded expectations in its final quarter. Today, its shares are up 18%. And a call with company CEO Howard Lerman underscored our overall thesis on accelerating digital transformation.
In short, the evolution of Yext, from a company that connected business information with external search engines to the creation and sale of search technology itself, has resonated in the marketplace. Why? Lerman explained that consumers increasingly expect digital service in response to their questions – “who wants to call a 1-800 number,” he rhetorically asked – forcing businesses to rethink the way they do business. deal with customer inquiries.
In turn, these companies are turning to companies like Yext that offer technology to better meet customer demands in a digital format. It is user friendly and could save businesses money as call centers are expensive. Behavioral change accelerated by the pandemic is forcing businesses to adapt, prompting them to buy more digital technologies like this.
It’s proof that a transformation doesn’t have to be dramatic to have a strong enough impact on the way businesses buy and sell online.