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 Dropbox (NASDAQ:DBX), and the best and worst performers in the productivity software group.
Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.
The 17 productivity software stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.77%, while on average next quarter revenue guidance was 0.1% above consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but productivity software stocks held their ground better than others, with the share prices up 16.8% since the previous earnings results, on average.
Dropbox (NASDAQ:DBX)
Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox (NASDAQ:DBX) provides a file hosting cloud platform that helps organizations collaborate and share documents.
Dropbox reported revenues of $611.1 million, up 8.66% year on year, beating analyst expectations by 1.66%. It was a weaker quarter for the company, with decelerating customer growth.
“We’re pleased with our financial results in Q1, beating our guidance across all metrics," said Dropbox Co-Founder and Chief Executive Officer Drew Houston.
The stock is up 31.9% since the results and currently trades at $25.89.
Read our full report on Dropbox here, it's free.
Best Q1: Monday.com (NASDAQ:MNDY)
Founded in Israel in 2014, and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) makes software as a service platforms that helps teams plan and track work efficiently.
Monday.com reported revenues of $162.3 million, up 49.5% year on year, beating analyst expectations by 4.49%. It was a solid quarter for the company, with a decent beat of analyst estimates and strong sales guidance for the next quarter.
Monday.com achieved the fastest revenue growth and highest full year guidance raise among its peers. The company added 209 enterprise customers paying more than $50,000 annually to a total of 1,683. The stock is up 34.8% since the results and currently trades at $176.71.
Is now the time to buy Monday.com? Access our full analysis of the earnings results here, it's free.
Slowest Q1: Pegasystems (NASDAQ:PEGA)
Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement.
Pegasystems reported revenues of $325.5 million, down 13.5% year on year, missing analyst expectations by 7.14%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and a decline in gross margin.
Pegasystems had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 15% since the results and currently trades at $50.2.
Read our full analysis of Pegasystems's results here.
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 $132.2 million, up 22.1% year on year, beating analyst expectations by 2.19%. It was a weak quarter for the company, with a deterioration in gross margin. In addition, both revenue and adjusted operating profit guidance for the next quarter missed analysts' expectations.
The stock is up 10.8% since the results and currently trades at $19.85.
Read our full, actionable report on Jamf here, it's free.
Atlassian (NASDAQ:TEAM)
Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ:TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.
Atlassian reported revenues of $915.5 million, up 23.6% year on year, beating analyst expectations by 1.52%. It was a mixed quarter for the company, with accelerating customer growth but underwhelming revenue guidance for the next quarter.
The company added 6,598 customers to a total of 259,775. The stock is up 18.7% since the results and currently trades at $178.14.
Read our full, actionable report on Atlassian here, it's free.
The author has no position in any of the stocks mentioned