2191

Spotting Winners: Autodesk (NASDAQ:ADSK) And Vertical Software Stocks In Q4


Adam Hejl /
2022/04/11 9:16 am EDT
Add to Watchlist

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 vertical software stocks have fared in Q4, starting with Autodesk (NASDAQ:ADSK).

Software 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, there are industries that have very specific needs. Whether it is life-sciences, education or banking, the demand for so called vertical software, addressing industry specific workflows, is growing, fueled by the pressures on improving productivity and quality of offerings.

The 12 vertical software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 4.86%, while on average next quarter revenue guidance was 2.18% above consensus. There has been a stampede out of high valuation technology stocks and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share price declining 17.5% since earnings, on average.

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 $1.21 billion, up 16.5% year on year, beating analyst expectations by 1.31%. It was a weaker quarter for the company, with a decline in gross margin and an underwhelming revenue guidance for the next quarter.

"By delivering greater value to our customers through the cloud and leading them to new ways of working, we are building enduring partnerships and shared growth," said Andrew Anagnost, Autodesk president and CEO.

Autodesk Total Revenue

The stock is down 7.86% since the results and currently trades at $200.96.

Is now the time to buy Autodesk? Access our full analysis of the earnings results here, it's free.

Best Q4: Doximity (NYSE:DOCS)

Founded in 2010 and named for a combination of “docs” and “proximity”, Doximity (NYSE: DOCS) is the leading professional network for U.S. medical professionals.

Doximity reported revenues of $97.8 million, up 66.7% year on year, beating analyst expectations by 13.4%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

Doximity Total Revenue

The stock is down 3.01% since the results and currently trades at $48.50.

Is now the time to buy Doximity? Access our full analysis of the earnings results here, it's free.

Weakest Q4: 2U (NASDAQ:TWOU)

Originally named 2tor after the founder's dog Tor, 2U (NASDAQ:TWOU) provides software for universities and colleges to deliver online degree programs and courses.

2U reported revenues of $243.6 million, up 13.1% year on year, in line with analyst expectations. It was a weak quarter for the company, with full year guidance missing analysts' expectations.

2U had the weakest full year guidance update in the group. The stock is down 32.1% since the results and currently trades at $12.19.

Read our full analysis of 2U'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 $4.26 billion, up 9.14% year on year, in line with analyst expectations. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

Adobe had the slowest revenue growth among the peers. The stock is down 5.89% since the results and currently trades at $440.44.

Read our full, actionable report on Adobe here, it's free.

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 $74.9 million, up 32.4% year on year, beating analyst expectations by 8.14%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter.

nCino scored the highest full year guidance raise among the peers. The stock is up 4.44% since the results and currently trades at $42.80.

Read our full, actionable report on nCino here, it's free.

The author has no position in any of the stocks mentioned