As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q3. Today we are looking at the automation software stocks, starting with Appian (NASDAQ:APPN).
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 slower Q3; on average, revenues beat analyst consensus estimates by 1.08%, while on average next quarter revenue guidance was 1.03% under consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again, but automation software stocks held their ground better than others, with the share prices up 5.56% since the previous earnings results, on average.
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 $117.8 million, up 27.5% year on year, beating analyst expectations by 1.1%. It was a slower quarter for the company, with revenue guidance for the next quarter and full year missing analysts' expectations.
“In Q3, total revenue exceeded guidance. On a constant currency basis, both cloud subscription revenue and total revenue grew more than 30% year-over-year. Adjusted EBITDA loss was higher due to pull forward hiring and a sharp drop in attrition. We have a plan to reduce losses to 10% of revenue by the second half of 2023,” said Matt Calkins, CEO & Founder.
Appian delivered the weakest full year guidance update of the whole group. The stock is down 15.1% since the results and currently trades at $40.08.
Read our full report on Appian 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 $262.7 million, up 18.9% year on year, beating analyst expectations by 2.65%. It was a decent quarter for the company, with a meaningful improvement in gross margin.
UiPath delivered the strongest analyst estimates beat among its peers. The stock is up 14.4% since the results and currently trades at $14.8.
Is now the time to buy UiPath? Access our full analysis of the earnings results here, it's free.
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 $124.5 million, up 30.2% year on year, beating analyst expectations by 2.15%. It was a weaker quarter for the company, with a decline in gross margin and underwhelming revenue guidance for the next quarter.
Jamf scored the fastest revenue growth and highest full year guidance raise in the group. The stock is down 6.85% since the results and currently trades at $18.62.
Read our full analysis of Jamf's results here.
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 $1.83 billion, up 21% year on year, missing analyst expectations by 1.11%. Despite the stock rising on the results, it was a weaker quarter for the company, with a miss of the top line analyst estimates.
ServiceNow had the weakest performance against analyst estimates among the peers. The company added 67 enterprise customers paying more than $1m annually to a total of 1,530. The stock is up 18.1% since the results and currently trades at $433.
Read our full, actionable report on ServiceNow here, it's free.
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 $111.4 million, up 15.1% year on year, in line with analyst expectations. It was a slower quarter for the company, with decelerating customer growth and slow revenue growth.
Everbridge had the slowest revenue growth among the peers. The company added 72 customers to a total of 6,417. The stock is up 17.1% since the results and currently trades at $29.19.
Read our full, actionable report on Everbridge here, it's free.
The author has no position in any of the stocks mentioned