Wrapping up Q1 earnings, we look at the numbers and key takeaways for the productivity software stocks, including DocuSign (NASDAQ:DOCU) and its peers.
Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.
The 16 productivity software stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.5%. while next quarter's revenue guidance was 1.1% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and productivity software stocks have had a rough stretch, with share prices down 5.2% on average since the previous earnings results.
DocuSign (NASDAQ:DOCU) Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically.
DocuSign reported revenues of $709.6 million, up 7.3% year on year, in line with analysts' expectations. It was a very good quarter for the company with an impressive beat of analysts' ARR (annual recurring revenue) estimates and a solid beat of analysts' billings estimates.
"Docusign is off to a strong start in fiscal 2025. We launched a significant expansion to our company strategy with our announcement of the Docusign Intelligent Agreement Management platform," said Allan Thygesen, CEO of Docusign.
The stock is down 4.8% since reporting and currently trades at $52.
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Best Q1: Atlassian (NASDAQ:TEAM) Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ:TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.
Atlassian reported revenues of $1.19 billion, up 29.9% year on year, outperforming analysts' expectations by 8.1%. It was an very strong quarter for the company with an impressive beat of analysts' billings estimates and solid sales guidance for the next quarter.
Atlassian scored the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 10.2% since reporting. It currently trades at $178.19.
Weakest Q1: 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 $330.1 million, up 1.4% year on year, falling short of analysts' expectations by 2.1%. It was a weak quarter for the company with a decline in its gross margin and a miss of analysts' billings estimates.
Pegasystems posted the weakest performance against analyst estimates in the group. As expected, the stock is down 1.7% since the results and currently trades at $57.89.
Monday.com (NASDAQ:MNDY (NASDAQ:MNDY)) Founded in Israel in 2014, and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) makes software as a service platforms that helps teams plan and track work efficiently.
Monday.com reported revenues of $216.9 million, up 33.7% year on year, surpassing analysts' expectations by 3%. Looking more broadly, it was a very good quarter for the company with a solid beat of analysts' ARR (annual recurring revenue) estimates and a decent beat of analysts' billings estimates.
Monday.com scored the fastest revenue growth and highest full-year guidance raise among its peers. The company added 196 enterprise customers paying more than $50,000 annually to reach a total of 2,491. The stock is up 31.1% since reporting and currently trades at $238.
Five9 (NASDAQ:FIVN) Started in 2001, Five9 (NASDAQ: FIVN) offers software as a service that makes it easier for companies to set up and efficiently run call centers, and offer more tailored customer support.
Five9 reported revenues of $247 million, up 13.1% year on year, surpassing analysts' expectations by 2.9%. Looking more broadly, it was a mixed quarter for the company with a decent beat of analysts' billings estimates but full-year revenue guidance missing analysts' expectations.
The stock is down 26.3% since reporting and currently trades at $41.74.
This content was originally published on Stock Story
