Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Autodesk (NASDAQ:ADSK), and the best and worst performers in the design software group.
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 Q1; on average, revenues beat analyst consensus estimates by 2.98%, while on average next quarter revenue guidance was 1.06% under consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but design software stocks held their ground better than others, with the share prices up 20.1% since the previous earnings results, on average.
Weakest Q1: 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 $1.27 billion, up 8.46% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in gross margin.
"We are deploying next-generation technology and services and end-to-end digital transformation within and between the industries we serve and shifting Autodesk from products to capabilities," said Andrew Anagnost, Autodesk president and CEO.
Autodesk delivered the weakest performance against analyst estimates of the whole group. The stock is up 7.93% since the results and currently trades at $213.29.
Is now the time to buy Autodesk? Access our full analysis of the earnings results here, it's free.
Best Q1: Matterport (NASDAQ:MTTR)
Founded in 2011 before any mass market VR headset was released, Matterport (NASDAQ:MTTR) provides the hardware and software necessary to turn real world spaces into 3D visualization.
Matterport reported revenues of $38 million, up 33.3% year on year, beating analyst expectations by 8.13%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a full year guidance beating analysts' expectations.
Matterport scored the strongest analyst estimates beat and highest full year guidance raise among its peers. The company added 70,000 customers to a total of 771,000. The stock is up 8.55% since the results and currently trades at $2.92.
Is now the time to buy Matterport? Access our full analysis of the earnings results here, it's free.
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 $509.4 million, up 19.8% year on year, beating analyst expectations by 3.47%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in gross margin.
ANSYS had the weakest full year guidance update in the group. The stock is up 8.19% since the results and currently trades at $333.23.
Read our full analysis of ANSYS's results here.
Procore Technologies (NYSE:PCOR)
Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore Technologies (NYSE:PCOR) offers a software-as-service project, finance and quality management platform for the construction industry.
Procore Technologies reported revenues of $213.5 million, up 33.9% year on year, beating analyst expectations by 5.07%. It was a strong quarter for the company, with accelerating customer growth. Revenue guidance for the next quarter and full year also came in line with Consensus estimates.
The company added 601 customers to a total of 15,089. The stock is up 30% since the results and currently trades at $69.1.
Read our full, actionable report on Procore Technologies 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 $500.4 million, up 56.3% year on year, beating analyst expectations by 4.28%. It was a solid quarter for the company, with a decent beat of analyst estimates. Revenue guidance for the next quarter came in above Consensus, and the full year guidance was lifted. Adjusted EBITDA guidance also exceeded estimates for the next quarter and the full year.
Unity delivered the fastest revenue growth among the peers. The stock is up 37.1% since the results and currently trades at $39.39.
Read our full, actionable report on Unity here, it's free.
The author has no position in any of the stocks mentioned