As automation software stocks’ Q2 earnings season wraps, let's dig into this quarter's best and worst performers, including Appian and its peers.
This article was originally published on Stock Story
The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.
The 6 automation software stocks we track reported a weak Q2; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 1.13% below consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, and automation software stocks have not been spared, with share prices down 18.2% on average, since the previous earnings results.
Best Q2: Appian (NASDAQ:APPN)
Founded by Matt Calkins and his three friends out of an apartment in Northern Virginia, Appian (NASDAQ:APPN) sells a software platform that lets its users build applications without using much code, allowing them to create new software more quickly.
Appian reported revenues of $127.7 million, up 16% year on year, topping analyst expectations by 3.15%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but a decline in its gross margin.
“Appian is leading in AI-based process automation. Our practical and private approach to AI is garnering customer and media interest, differentiating us from the competition,” said Matt Calkins, CEO & Founder.
Appian achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. The stock is down 14.7% since the results and currently trades at $41.32.
UiPath (NYSE:PATH)
Started in 2005 in Romania as a tech outsourcing company, UiPath makes software that helps companies automate repetitive computer tasks.
UiPath (NYSE:PATH) reported revenues of $287.3 million, up 18.6% year on year, outperforming analyst expectations by 1.86%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but a decline in its gross margin.
The stock is down 4.19% since the results and currently trades at $15.52.
Weakest Q2: Pegasystems (NASDAQ:PEGA)
Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement.
Pegasystems reported revenues of $298.3 million, up 8.72% year on year, falling short of analyst expectations by 3.98%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and a decline in its gross margin.
Pegasystems had the weakest performance against analyst estimates in the group. The stock is down 28.8% since the results and currently trades at $39.25.
Jamf (NASDAQ:JAMF)
Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple (NASDAQ:AAPL) began to dominate the personal computing market, Jamf provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.
Jamf (NASDAQ:JAMF) reported revenues of $135.1 million, up 16.8% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year revenue guidance missing analysts' expectations.
The stock is down 21.6% since the results and currently trades at $15.54.
Everbridge (NASDAQ:EVBG)
Founded as a reaction to the catastrophic events of 9/11, Everbridge (NASDAQ:EVBG) supplies software that helps governments and businesses keep people and infrastructure safe in emergencies.
Everbridge reported revenues of $110.6 million, up 7.36% year on year, in line with analyst expectations. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
Everbridge had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 32.7% since the results and currently trades at $19.6.
The author has no position in any of the stocks mentioned