The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the design software stocks have fared in Q4, starting with Autodesk (NASDAQ:ADSK).
The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.
The 8 design software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.81%, while on average next quarter revenue guidance was 0.08% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but design software stocks held their ground better than others, with the share prices up 0.44% since the previous earnings results, on average.
Weakest Q4: Autodesk (NASDAQ:ADSK)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Autodesk reported revenues of $1.32 billion, up 8.78% year on year, in line with analyst expectations. It was a weak quarter for the company, with full year revenue guidance missing analysts' expectations.
"As we deliver next-generation technology and services to our customers, the pace of transformation within and between the industries we serve will accelerate, generating large new growth opportunities for Autodesk," said Andrew Anagnost, Autodesk president and CEO.
The stock is down 9.09% since the results and currently trades at $201.05.
Read our full report on Autodesk here, it's free.
Best Q4: ANSYS (NASDAQ:ANSS)
Used to help design the Mars Rover, Ansys (NASDAQ:ANSS) offers a software-as-a-service platform that enables simulation for engineering and design.
ANSYS reported revenues of $694.1 million, up 5.86% year on year, beating analyst expectations by 6.87%. It was a very strong quarter for the company, with very optimistic guidance for the next quarter and the full year.
ANSYS scored the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 22.8% since the results and currently trades at $328.
Is now the time to buy ANSYS? Access our full analysis of the earnings results here, it's free.
PTC (NASDAQ:PTC)
Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC’s (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing.
PTC reported revenues of $465.9 million, up 1.79% year on year, in line with analyst expectations. It was a weaker quarter for the company, with slow revenue growth and a decline in gross margin.
PTC had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 9% since the results and currently trades at $125.68.
Read our full analysis of PTC's results here.
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 $4.66 billion, up 9.22% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a beat of topline metrics, including digital new media ARR and digital media revenue but slow revenue growth.
The stock is up 14.1% since the results and currently trades at $381.22.
Read our full, actionable report on Adobe here, it's free.
Unity (NYSE:U)
Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE:U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences.
Unity reported revenues of $451 million, up 42.8% year on year, beating analyst expectations by 2.95%. It was a mixed quarter for the company, with accelerating growth in large customers but a full year guidance missing analysts' expectations.
Unity had the weakest full year guidance update among the peers. The company added 265 enterprise customers paying more than $100,000 annually to a total of 1,340. The stock is down 22.7% since the results and currently trades at $29.26.
Read our full, actionable report on Unity here, it's free.
The author has no position in any of the stocks mentioned