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Reflecting On Automation Software Stocks’ Q3 Earnings: Appian (NASDAQ:APPN)


Kayode Omotosho /
2022/01/25 5:42 am EST
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As we reflect back on the just completed Q3 automation software sector earnings season, we dig into the relative performance of Appian (NASDAQ:APPN) and its peers.

The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.

The 5 automation software stocks we track reported a decent Q3; on average, revenues beat analyst consensus estimates by 2.78%, while on average next quarter revenue guidance was 1.16% above consensus. Tech stocks have been under pressure since the end of last year and automation software stocks have not been spared, with share price down 36.2% since earnings, on average.

Appian (NASDAQ:APPN)

Founded by Matt Calkins and his three friends out of an apartment in Northern Virginia, Appian (NASDAQ:APPN) sells a software platform that lets its users build applications without using much code, allowing them to create new software more quickly.

Appian reported revenues of $92.4 million, up 19.5% year on year, beating analyst expectations by 1.49%. It was a mixed quarter for the company, with a significant improvement in gross margin but a decline in net revenue retention rate.

“Appian's cloud subscription revenue grew 36%, which is above the top end of our guidance. Appian is an 'engine for change' that is unifying process mining, workflow, and automation within a single low-code platform. Companies are choosing Appian to adapt quickly to the increasing pace of change,” said Matt Calkins, CEO & Founder.

Appian Total Revenue

Appian delivered the smallest earnings surprise, slowest revenue growth, and weakest full year guidance update of the whole group. The stock is down 49.4% since the results and currently trades at $52.21.

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

Best Q3: UiPath (NYSE:PATH)

Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks.

UiPath reported revenues of $220.8 million, up 49.9% year on year, beating analyst expectations by 5.53%. It was a strong quarter for the company, with an exceptional revenue growth and revenue guidance for the next quarter roughly in line with what analysts were expecting.

UiPath Total Revenue

UiPath achieved the strongest analyst estimates beat and fastest revenue growth among its peers. The stock is down 24.5% since the results and currently trades at $36.

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

Jamf (NASDAQ:JAMF)

Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.

Jamf reported revenues of $95.6 million, up 35.8% year on year, beating analyst expectations by 2.01%. It was a mixed quarter for the company, with an exceptional revenue growth but a decline in gross margin.

The stock is down 18.5% since the results and currently trades at $33.63.

Read our full analysis of Jamf's results here.

ServiceNow (NYSE:NOW)

Founded by Fred Luddy who wrote the code for the initial prototype on a single flight from San Francisco to London, ServiceNow (NYSE:NOW) offers software as a service platform that helps companies become more efficient by allowing them to automate workflows across IT, HR and Customer Service.

ServiceNow reported revenues of $1.51 billion, up 31.2% year on year, beating analyst expectations by 2.25%. It was a decent quarter for the company, with a strong top line growth.

The company added 65 enterprise customers paying more than $1m annually to a total of 1,266. The stock is down 21% since the results and currently trades at $525.25.

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

Everbridge (NASDAQ:EVBG)

Founded as a reaction to the catastrophic events of 9/11, Everbridge (NASDAQ:EVBG) supplies software that helps governments and businesses keep people and infrastructure safe in emergencies.

Everbridge reported revenues of $96.7 million, up 35.7% year on year, beating analyst expectations by 2.61%. It was a decent quarter for the company, with an exceptional revenue growth but decelerating customer growth.

Everbridge scored the highest full year guidance raise among the peers. The company added 120 customers to a total of 6,010. The stock is down eye-watering 67.7% since the results and currently trades at $51.29.

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

The author has no position in any of the stocks mentioned