As productivity software stocks’ Q1 earnings season wraps, let's dig into this quarters’ best and worst performers, including 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 mixed Q1; on average, revenues beat analyst consensus estimates by 3.36%, while on average next quarter revenue guidance was 1.53% above consensus. There has been a stampede out of high valuation technology stocks, but productivity software stocks held their ground better than others, with share price down 1.15% since earnings, 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 $588.6 million, up 25.4% year on year, beating analyst expectations by 1.19%. It was a mixed quarter for the company, with a solid revenue growth but guidance for the next quarter below analysts' estimates.
"We delivered solid first-quarter results, growing revenue by 25% year-over-year and adding nearly 67,000 new customers, bringing our total global customer base to 1.24 million. We also bolstered our leadership team with key new hires who, together with our existing team, are ensuring we're well-positioned to grow and scale our business," said Dan Springer, CEO of DocuSign.
The stock is down 23.8% since the results and currently trades at $66.50.
Is now the time to buy DocuSign? Access our full analysis of the earnings results 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 $108.4 million, up 83.9% year on year, beating analyst expectations by 7.09%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.
monday.com achieved the fastest revenue growth and highest full year guidance raise among its peers. The company added 167 enterprise customers paying more than $50,000 annually to a total of 960. The stock is up 14.2% since the results and currently trades at $126.03.
Is now the time to buy monday.com? Access our full analysis of the earnings results here, it's free.
Weakest Q1: RingCentral (NYSE:RNG)
Founded in 1999 during the dot-com era, RingCentral (NYSE:RNG) provides software as a service that unifies phone, text, fax, video calls and chat in one platform.
RingCentral reported revenues of $467.6 million, up 32.7% year on year, beating analyst expectations by 2.02%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations and a decline in gross margin.
RingCentral had the weakest full year guidance update in the group. The stock is down 14.4% since the results and currently trades at $58.92.
Read our full analysis of RingCentral's results here.
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 $562.4 million, up 9.92% year on year, in line with analyst expectations. It was an ok quarter for the company, with slow revenue growth and topline results in-line with analysts' estimates.
Dropbox had the slowest revenue growth among the peers. The company added 300,000 customers to a total of 17,090,000. The stock is up 4.07% since the results and currently trades at $22.20.
Read our full, actionable report on Dropbox here, it's free.
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 $245 million, up 31.6% year on year, beating analyst expectations by 8.76%. It was a mixed quarter for the company, with an impressive beat of analyst estimates but a decline in gross margin.
UiPath delivered the strongest analyst estimates beat among the peers. The stock is up 30.6% since the results and currently trades at $22.
Read our full, actionable report on UiPath here, it's free.
The author has no position in any of the stocks mentioned