Looking back on software development stocks' Q1 earnings, we examine this quarter's best and worst performers, including HashiCorp (NASDAQ:HCP) and its peers.
As legendary VC investor Marc Andreessen says, "Software is eating the world", and it touches virtually every industry. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.
The 11 software development stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.7%. while next quarter's revenue guidance was in line with 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 software development stocks have held roughly steady amidst all this, with share prices up 0.5% on average since the previous earnings results.
HashiCorp (NASDAQ:HCP) Initially created as a research project at the University of Washington, HashiCorp (NASDAQ:HCP) provides software that helps companies operate their own applications in a multi-cloud environment.
HashiCorp reported revenues of $160.6 million, up 16.4% year on year, exceeding analysts' expectations by 4.8%. Despite the top-line beat, it was a slower quarter overall for the company with a miss of analysts' billings estimates and a decline in its gross margin.
HashiCorp scored the biggest analyst estimates beat of the whole group. The company added 21 enterprise customers paying more than $100,000 annually to reach a total of 918. The stock is flat since reporting and currently trades at $33.44.
Is now the time to buy HashiCorp? Find out by reading the original article on StockStory, it's free. Best Q1: Datadog (NASDAQ:DDOG (NASDAQ:DDOG))Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) is a software-as-a-service platform that makes it easier to monitor cloud infrastructure and applications.
Datadog reported revenues of $611.3 million, up 26.9% year on year, outperforming analysts' expectations by 3.3%. It was a strong quarter for the company with an impressive beat of analysts' ARR (annual recurring revenue) estimates and accelerating growth in large customers.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 4.1% since reporting. It currently trades at $121.74.
Weakest Q1: F5 (NASDAQ:FFIV)Initially started as a hardware appliances company in the late 1990s, F5 (NASDAQ:FFIV) makes software that helps large enterprises ensure their web applications are always available by distributing network traffic and protecting them from cyberattacks.
F5 reported revenues of $681.4 million, down 3.1% year on year, in line with analysts' expectations. It was a weak quarter for the company with underwhelming revenue guidance for the next quarter and a miss of analysts' billings estimates.
F5 had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $180.87.
JFrog (NASDAQ:FROG)Named after the founders' affinity for frogs, JFrog (NASDAQ:FROG) provides a software-as-a-service platform that makes developing and releasing software easier and faster, especially for large teams.
JFrog reported revenues of $100.3 million, up 25.7% year on year, surpassing analysts' expectations by 1.7%. More broadly, it was a slower quarter for the company with a miss of analysts' billings estimates and decelerating growth in large customers.
The company added 25 enterprise customers paying more than $100,000 annually to reach a total of 911. The stock is down 6.9% since reporting and currently trades at $37.86.
GitLab (NASDAQ:GTLB)Founded as an open-source project in 2011, GitLab (NASDAQ:GTLB) is a leading software development tools platform.
GitLab reported revenues of $169.2 million, up 33.3% year on year, surpassing analysts' expectations by 1.9%. Zooming out, it was a weak quarter for the company with a miss of analysts' billings estimates and a miss of analysts' ARR (annual recurring revenue) estimates.
GitLab scored the fastest revenue growth among its peers. The stock is up 18.5% since reporting and currently trades at $55.80.
This content was originally published on Stock Story
