As we reflect back on the just completed Q2 software development sector earnings season, we dig into the relative performance of F5 Networks (NASDAQ:FFIV) and its peers.
Software is eating the world, as Marc Andreessen says, and there is virtually no industry left that has been untouched by it. That in turn drives increasing demand for tools that help software developers do their jobs, whether it is monitoring critical cloud infrastructure, integrating audio and video functionality or ensuring smooth streaming of content.
The 14 software development stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 3.49%, while on average next quarter revenue guidance was 0.45% above consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and software development stocks have not been spared, with share prices down 15.5% since the previous earnings results, on average.
F5 Networks (NASDAQ:FFIV)
While the company initially started in the late 90s by selling hardware appliances, these days F5 (NASDAQ:FFIV) is making software that helps large enterprises ensure their web applications are always available, by distributing network traffic and protecting them from cyber attacks.
F5 Networks reported revenues of $674.4 million, up 3.52% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a slow revenue growth.
“Customers depend on F5 to secure and deliver extraordinary digital experiences that drive their businesses and fuel their brands,” said François Locoh-Donou, F5’s President and CEO.
The stock is down 6.92% since the results and currently trades at $143.54.
Read our full report on F5 Networks here, it's free.
Best Q2: HashiCorp (NASDAQ:HCP)
Initially created as a research project at the University of Washington, HashiCorp (NASDAQ:HCP) provides software that helps companies operate their own applications in a multi-cloud environment.
HashiCorp reported revenues of $113.8 million, up 51.5% year on year, beating analyst expectations by 11.2%. It was a stunning quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.
HashiCorp pulled off the strongest analyst estimates beat and highest full year guidance raise among its peers. The company added 30 enterprise customers paying more than $100,000 annually to a total of 734. The stock is down 1.81% since the results and currently trades at $29.7.
Is now the time to buy HashiCorp? Access our full analysis of the earnings results here, it's free.
Dynatrace (NYSE:DT)
Founded in Austria in 2005, Dynatrace (NYSE:DT) provides companies with software that allows them to monitor the performance of their full technology stack, from software applications to the infrastructure they run on.
Dynatrace reported revenues of $267.2 million, up 27.4% year on year, beating analyst expectations by 2.07%. It was a decent quarter for the company, with full-year guidance missing analysts' expectations and an underwhelming revenue guidance for the next quarter.
Dynatrace had the weakest full year guidance update in the group. The stock is down 9.44% since the results and currently trades at $34.69.
Read our full analysis of Dynatrace's results here.
Bandwidth (NASDAQ:BAND)
Started in 1999 by David Morken who was later joined by Henry Kaestner as co-founder in 2001, Bandwidth (NASDAQ:BAND) provides thousands of customers with a software platform that uses its own global network to provide phone numbers, voice, and text connectivity.
Bandwidth reported revenues of $136.4 million, up 13.1% year on year, beating analyst expectations by 2.18%. It was a weak quarter for the company, with decelerating customer growth and a decline in gross margin.
The company lost 10 customers and ended up with a total of 3,362. The stock is down 41% since the results and currently trades at $11.59.
Read our full, actionable report on Bandwidth here, it's free.
Akamai (NASDAQ:AKAM)
Founded in 1999 by two engineers from MIT, Akamai (NASDAQ:AKAM) provides software for organizations to efficiently deliver web content to their customers.
Akamai reported revenues of $903.3 million, up 5.92% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a slow revenue growth.
Akamai had the weakest performance against analyst estimates among the peers. The stock is down 16.2% since the results and currently trades at $79.64.
Read our full, actionable report on Akamai here, it's free.
The author has no position in any of the stocks mentioned