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 productivity software stocks have fared in Q3, starting with Dropbox (NASDAQ:DBX).
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 16 productivity software stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 1.3%, while on average next quarter revenue guidance was 1.66% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but productivity software stocks held their ground better than others, with the share prices up 11.2% since the previous earnings results, on average.
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 $591 million, up 7.41% year on year, in line with analyst expectations. It was a weaker quarter for the company, with slow revenue growth and decelerating customer growth.
"We delivered another strong quarter amidst an increasingly challenging macroeconomic backdrop," said Dropbox Co-Founder and Chief Executive Officer Drew Houston.
The stock is up 10.9% since the results and currently trades at $22.69.
Best Q3: 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 $136.8 million, up 64.8% year on year, beating analyst expectations by 4.94%. It was a strong quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates.
monday.com achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 163 enterprise customers paying more than $50,000 annually to a total of 1,323. The stock is up 23.2% since the results and currently trades at $117.27.
Is now the time to buy monday.com? Access our full analysis of the earnings results here, it's free.
Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud.
Box reported revenues of $249.9 million, up 11.5% year on year, missing analyst expectations by 0.61%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
The stock is up 13.1% since the results and currently trades at $31.00.
Founded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.
8x8 reported revenues of $187.3 million, up 23.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with accelerating growth in large customers but underwhelming revenue guidance for the next quarter.
The company added 14 enterprise customers paying more than $100,000 annually to a total of 1,291. The stock is up 30.1% since the results and currently trades at $4.42.
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 the full year missing analysts' expectations.
The stock is down 24.9% since the results and currently trades at $35.45.
The author has no position in any of the stocks mentioned