Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Pegasystems (NASDAQ:PEGA) and the best and worst performers in the automation software industry.
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 5 automation software stocks we track reported a decent Q2. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was in line.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, automation software stocks have held steady amidst all this with share prices up 1.3% on average since the latest earnings results.
Best 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 $351.2 million, up 17.7% year on year. This print exceeded analysts’ expectations by 8.1%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ billings estimates and an improvement in its gross margin.
“Our approach to statistical AI and generative AI continues to be a significant differentiator,” said Alan Trefler, founder and CEO.
Pegasystems achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 12.5% since reporting and currently trades at $68.79.
Is now the time to buy Pegasystems? Find out by reading the original article on StockStory, it’s free. ServiceNow (NYSE:NYSE:NOW)Founded by Fred Luddy, who wrote the code for the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) offers a software-as-a-service platform that helps companies become more efficient by allowing them to automate workflows across IT, HR, and customer service.
ServiceNow reported revenues of $2.63 billion, up 22.2% year on year, in line with analysts’ expectations. It was a strong quarter for the company with accelerating growth in large customers and a solid beat of analysts’ billings estimates.
ServiceNow scored the fastest revenue growth among its peers. The company added 55 enterprise customers paying more than $1m annually to reach a total of 1,988. The market seems happy with the results as the stock is up 12.8% since reporting. It currently trades at $824.98.
Weakest Q2: UiPath (NYSE:NYSE:PATH)Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks.
UiPath reported revenues of $316.3 million, up 10.1% year on year, exceeding analysts’ expectations by 4.1%. It was still a solid quarter for the company with an impressive beat of analysts’ billings estimates and full-year revenue guidance topping analysts’ expectations.
UiPath had the highest full-year guidance raise but had the slowest revenue growth in the group. As expected, the stock is down 6.4% since the results and currently trades at $11.92.
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 (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.
Jamf reported revenues of $153 million, up 13.3% year on year, in line with analysts’ expectations. More broadly, it was a mixed quarter for the company with a decent beat of analysts’ ARR (annual recurring revenue) estimates but a miss of analysts’ billings estimates.
The stock is up 7.2% since reporting and currently trades at $17.50.
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 $146.5 million, up 14.7% year on year, surpassing analysts’ expectations by 2.5%. Revenue aside, it was a weak quarter for the company with a miss of analysts’ billings estimates and full-year revenue guidance missing analysts’ expectations.
Appian had the weakest full-year guidance update among its peers. The stock is down 19.4% since reporting and currently trades at $29.80.
This content was originally published on Stock Story
