As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today we are looking at the software development stocks, starting with JFrog (NASDAQ:FROG).
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 slower Q4; on average, revenues beat analyst consensus estimates by 3.04%, while on average next quarter revenue guidance was 1.28% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but software development stocks held their ground better than others, with share prices down 2.56% since the previous earnings results, on average.
JFrog (NASDAQ:FROG)
With the name chosen due to the founders' fondness for frogs, JFrog (NASDAQ:FROG) provides software as a service platform that makes developing and releasing software easier and faster, especially for large teams.
JFrog reported revenues of $76.5 million, up 29.2% year on year, missing analyst expectations by 0.58%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
“Our fourth quarter revenue results were in line with the guidance range we provided, and we met our commitments on profitability, despite macroeconomic headwinds increasing near the end of the year,” said Shlomi Ben Haim, JFrog Co-founder and CEO.
The stock is down 17.8% since the results and currently trades at $19.73.
Is now the time to buy JFrog? Access our full analysis of the earnings results here, it's free.
Best Q4: Sumo Logic (NASDAQ:SUMO)
Founded in 2010 by Christian Beegden who went from driving a cab in Germany to landing an internship at Amazon, Sumo Logic (NASDAQ:SUMO) is software as a service data analytics platform that helps companies get insight into what is happening in their servers and applications.
Sumo Logic reported revenues of $79 million, up 27.3% year on year, beating analyst expectations by 6.41%. It was a very strong quarter for the company, with a significant improvement in gross margin and a solid beat of analyst estimates.
Sumo Logic pulled off the highest full year guidance raise among its peers. The stock is up 64.9% since the results and currently trades at $11.87.
Sumo Logic has agreed to be sold to private equity firm Francisco Partners for about $1.7 billion.
Is now the time to buy Sumo Logic? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Agora (NASDAQ:API)
Founded in 2014 by former engineers at WebEx and based in China, Agora (NASDAQ:API) provides a cloud platform that makes it easy for developers to integrate real-time audio and video functionalities in their apps.
Agora reported revenues of $40.1 million, down 0.66% year on year, missing analyst expectations by 1.12%. It was a weak quarter for the company, with full year revenue guidance missing analysts' expectations and slow revenue growth.
Agora had the weakest performance against analyst estimates and slowest revenue growth in the group. The company added 79 customers to a total of 3,066. The stock is down 4.18% since the results and currently trades at $3.67.
Read our full analysis of Agora's results here.
PagerDuty (NYSE:PD)
Started by three former Amazon engineers, PagerDuty (NYSE:PD) is a software as a service platform that helps companies respond to IT incidents fast and make sure that any downtime is minimized.
PagerDuty reported revenues of $101 million, up 28.6% year on year, beating analyst expectations by 1.99%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.
The company lost 21 customers and ended up with a total of 15,244. The stock is up 12.5% since the results and currently trades at $31.33.
Read our full, actionable report on PagerDuty 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 $297.5 million, up 23.5% year on year, beating analyst expectations by 4.46%. It was a strong quarter for the company, with very optimistic guidance for the next quarter.
The stock is up 6.84% since the results and currently trades at $41.07.
Read our full, actionable report on Dynatrace here, it's free.
The author has no position in any of the stocks mentioned