As we reflect back on the just completed Q4 productivity software sector earnings season, we dig into the relative performance of DocuSign (NASDAQ:DOCU) and its peers.
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 decent Q4; on average, revenues beat analyst consensus estimates by 4.07%, while on average next quarter revenue guidance was 2.22% above consensus. Tech stocks have been under pressure since the end of last year , but productivity software stocks held their ground better than others, with share price down 1.75% since earnings, on average.
Weakest Q4: DocuSign (NASDAQ:DOCU)
Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically.
DocuSign reported revenues of $580.8 million, up 34.7% year on year, beating analyst expectations by 3.42%. It was a weaker quarter for the company, with the guidance for both the next quarter and the full year below analysts' estimates.
"In fiscal 2022, we grew revenues by 45% and billings by 37% year-over year, while generating record operating and cash flow margins. While the year unfolded differently than expected, we are proud of the ongoing performance and resilience of our team as we scaled to become a multi-billion dollar company. Together, we helped another 280,000 new customers begin digitizing how they agree as we surpassed 1.17 million total customers overall, " said Dan Springer, CEO of DocuSign.
DocuSign delivered the weakest full year guidance update of the whole group. While the stock is up 12.8% since the results, it is still down more than 63% since its all time highs, and currently trades at $105.87.
Is now the time to buy DocuSign? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $688.5 million, up 37.3% year on year, beating analyst expectations by 7.16%. It was an impressive quarter for the company, with accelerating customer growth and a very optimistic guidance for the next quarter.
The stock is up 3.37% since the results and currently trades at $300.19.
Is now the time to buy Atlassian? Access our full analysis of the earnings results 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 $102.8 million, up 36% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a decline in gross margin and guidance for the next quarter below analysts' estimates.
The stock is down 8.97% since the results and currently trades at $42.19.
Started in 2001, Five9 (NASDAQ: FIVN) offers software as a service that makes it easier for companies to set up and efficiently run call centers, and offer more tailored customer support.
Five9 reported revenues of $173.5 million, up 35.7% year on year, beating analyst expectations by 4.94%. It was a mixed quarter for the company, with a significant decline in gross margin and guidance for the next year above analysts' expectations.
The stock is up 2.26% since the results and currently trades at $106.50.
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 $233.3 million, up 17.3% year on year, beating analyst expectations by 2.08%. It was a solid quarter for the company, with a very strong guidance for the next year.
The stock is up 7.89% since the results and currently trades at $28.
The author has no position in any of the stocks mentioned