The idea of digital transformation has evolved from a buzzword to a critical and accelerating reality during the Covid-19 pandemic. Changes featured in this week's batch of earnings reports. A report cited by TechCrunch noted the focus on private companies, with public companies being watched in the tech world because they often provide hints, notes, and other indicators of how startups might succeed.
The report added that many startups have told them for several quarters now that their markets are gaining momentum as customers change their buying behavior with a distinct advantage for companies helping customers transition to the digital space, and the company's public results now confirm the startup perspective. The accelerating digital transformation is real, and we have the data to back this point up.
Here's a summary of the feedback on recent earnings results from Box, Sprout Social, Yext, Snowflake, and Salesforce, we'll handle each one individually to save time. Coming to Yext, the company beat expectations in its last quarter, shares rose 18%, and a call with CEO Howard Lerman confirmed our overall thesis on accelerating digital transformation.
In short, Yext's evolution from a company that connects company information to external search engines to building and selling the search technology itself has resonated with the market. Many like startups are looking to companies like Yext that provide technology to better answer customer inquiries in a digital format, it is easy to use and can save companies money because call centers are expensive.
The change in behavior accelerated by the pandemic has forced companies to adapt, prompting them to buy more digital technologies like these. This underscores that the shift does not have to be dramatic to have very strong effects on how businesses sell and buy online.