Wrapping up Q3 earnings, we look at the numbers and key takeaways for the vertical software stocks, including nCino (NASDAQ:NCNO) and its peers.
Software (ETR:SOWGn) is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.
The 15 vertical software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.4% while next quarter’s revenue guidance was 0.7% above.
Thankfully, share prices of the companies have been resilient as they are up 8.6% on average since the latest earnings results.
nCino (NASDAQ:NCNO)
Founded in 2011 in North Carolina, nCino (NASDAQ:NCNO) makes cloud-based operating systems for banks and provides that software-as-a-service.nCino reported revenues of $138.8 million, up 13.8% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.
"We are very pleased with our third quarter results, once again exceeding expectations for both revenues and non-GAAP operating income," said Pierre Naudé, Chairman and CEO at nCino.
Unsurprisingly, the stock is down 18.5% since reporting and currently trades at $34.66.
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Best Q3: Upstart (NASDAQ:UPST)
Founded by the former head of Google (NASDAQ:GOOGL)'s enterprise business, Upstart (NASDAQ:UPST) is an AI-powered lending platform facilitating loans for banks and consumers.Upstart reported revenues of $162.1 million, up 20.5% year on year, outperforming analysts’ expectations by 7.9%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 14.9% since reporting. It currently trades at $63.73.
Weakest Q3: Adobe (NASDAQ:ADBE)
One of the most well-known Silicon Valley software companies around, Adobe (NASDAQ:ADBE) is a leading provider of software as service in the digital design and document management space.Adobe reported revenues of $5.61 billion, up 11.1% year on year, exceeding analysts’ expectations by 1.2%. Still, it was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations and a miss of analysts’ billings estimates.
As expected, the stock is down 21.6% since the results and currently trades at $431.18.
Agilysys (NASDAQ:AGYS)
Originally a subsidiary of Pioneer-Standard Electronics that distributed electronic components, Agilysys (NASDAQ:AGYS) offers a software-as-service platform that helps hotels, resorts, restaurants, and other hospitality businesses manage their operations and workflows.Agilysys reported revenues of $68.28 million, up 16.5% year on year. This print surpassed analysts’ expectations by 1.1%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance topping analysts’ expectations.
The stock is up 15.1% since reporting and currently trades at $128.16.
Procore (NYSE:PCOR)
Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry.Procore reported revenues of $295.9 million, up 19.4% year on year. This number topped analysts’ expectations by 2.9%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and accelerating customer growth.
The company added 225 customers to reach a total of 16,975. The stock is up 26% since reporting and currently trades at $78.97.
Market Update
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This content was originally published on Stock Story
