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Q4 Earnings Highs And Lows: Agora (NASDAQ:API) Vs The Rest Of The Software Development Stocks


Radek Strnad /
2022/03/30 7:04 am EDT
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The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Agora (NASDAQ:API) and the rest of the software development stocks fared in Q4.

Software is eating the world, as Marc Andreessen says, and there is virtually no industry left that has been untouched by it. That in turn drives increasing demand for tools that help software developers do their jobs, whether it is monitoring critical cloud infrastructure, integrating audio and video functionality or ensuring smooth streaming of content.

The 13 software development stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 5.08%, while on average next quarter revenue guidance was 1.67% above consensus. Technology stocks have been hit hard on fears of higher interest rates, but software development stocks held their ground better than others, with the share price up 4.69% since earnings, on average.

Agora (NASDAQ:API)

Founded in 2014 by former engineers at WebEx and based in China, Agora (NASDAQ:API) provides a cloud platform that makes it easy for developers to integrate real-time audio and video functionalities in their apps.

Agora reported revenues of $40.3 million, up 21.4% year on year, beating analyst expectations by 6.41%. It was a weaker quarter for the company, with the guidance for the full year below analyst estimates.

“We closed the year with strong fourth-quarter results. The adoption of the Agora real-time engagement platform continues to grow, with our SDKs now installed globally in more applications than any of our competitors,” said Tony Zhao, founder, chairman, and CEO of Agora.

Agora Total Revenue

The stock is up 10.3% since the results and currently trades at $11.05.

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

Best Q4: 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 $77.7 million, up 76.2% year on year, beating analyst expectations by 10.6%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

GitLab Total Revenue

GitLab scored the highest full year guidance raise among its peers. The stock is up 74% since the results and currently trades at $57.63.

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

Weakest Q4: Bandwidth (NASDAQ:BAND)

Started in 1999 by David Morken who was later joined by Henry Kaestner as co-founder in 2001, Bandwidth (NASDAQ:BAND) provides thousands of customers with a software platform that uses its own global network to provide phone numbers, voice, and text connectivity.

Bandwidth reported revenues of $126.1 million, up 11.5% year on year, beating analyst expectations by 6.72%. It was a weak quarter for the company, with the guidance for both the next quarter and the full year below analyst estimates

Bandwidth had the weakest full year guidance update in the group. The company added 55 customers to a total of 3,228. The stock is down 26.1% since the results and currently trades at $34.31.

Read our full analysis of Bandwidth's results here.

JFrog (NASDAQ:FROG)

With the name chosen due to the founders' fondness for frogs, JFrog (NASDAQ:FROG) provides software as a service platform that makes developing and releasing software easier and faster, especially for large teams.

JFrog reported revenues of $59.2 million, up 38.7% year on year, beating analyst expectations by 2.06%. It was a very strong quarter for the company, with accelerating growth in large customers and guidance for the next quarter above analyst estimates.

The company added 71 enterprise customers paying more than $100,000 annually to a total of 537. The stock is down 2.98% since the results and currently trades at $26.01.

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

Twilio (NYSE:TWLO)

Founded in 2008 by Jeff Lawson, a former engineer at Amazon, Twilio (NYSE:TWLO) is a software as a service platform that makes it really easy for software developers to use text messaging, voice calls and other forms of communication in their apps.

Twilio reported revenues of $842.7 million, up 53.7% year on year, beating analyst expectations by 9.53%. It was a mixed quarter for the company, with a very optimistic guidance for the next quarter but a decline in gross margin.

The company added 6,000 customers to a total of 256,000. The stock is down 15% since the results and currently trades at $171.70.

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

The author has no position in any of the stocks mentioned