The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how DocuSign (NASDAQ:DOCU) and the rest of the productivity software stocks fared in Q3.
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 11.3% since the previous earnings results, on average.
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 $645.4 million, up 18.3% year on year, beating analyst expectations by 2.88%. It was a mixed quarter for the company, with a meaningful improvement in gross margin but underwhelming revenue guidance for the next quarter.
"We delivered solid third quarter results, and are pleased with the continued progress against our critical priorities," said Allan Thygesen, CEO of DocuSign.
The stock is up 32.1% since the results and currently trades at $57.72.
Is now the time to buy DocuSign? Access our full analysis of the earnings results here, it's free.
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 scored 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 26.6% since the results and currently trades at $120.53.
Is now the time to buy monday.com? Access our full analysis of the earnings results here, it's free.
Slowest Q3: Box (NYSE:BOX)
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 12.8% since the results and currently trades at $30.91.
Read our full analysis of Box's results here.
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.
The stock is up 7.42% since the results and currently trades at $13.89.
Read our full, actionable report on UiPath here, it's free.
Founded in 2005, Smartsheet (NYSE:SMAR) is a software as a service platform that helps companies plan, manage and report on work.
Smartsheet reported revenues of $199.5 million, up 37.9% year on year, beating analyst expectations by 2.5%. It was a decent quarter for the company, with exceptional revenue growth but a decline in net revenue retention rate.
The company added 764 enterprise customers paying more than $5,000 annually to a total of 17,446. The stock is up 31.1% since the results and currently trades at $42.83.
Read our full, actionable report on Smartsheet here, it's free.
The author has no position in any of the stocks mentioned