Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at JFrog (NASDAQ:FROG), and the best and worst performers in the software development group.
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 12 software development stocks we track reported a weaker Q1; on average, revenues beat analyst consensus estimates by 2.07%, while on average next quarter revenue guidance was 1.78% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but software development stocks held their ground better than others, with the share prices up 11.9% 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 $79.8 million, up 25.3% year on year, beating analyst expectations by 1.81%. It was a mixed quarter for the company, with accelerating growth in large customers but a decline in net revenue retention rate.
“JFrog's first quarter revenue and non-GAAP profitability exceeded our guidance range, driven by improved usage of our cloud services, solid execution by our direct enterprise sales team, and a growing co-sell motion with our partners amidst a challenging macro environment,” said Shlomi Ben Haim, JFrog CEO and Co-founder.
The stock is up 55.2% since the results and currently trades at $27.42.
Is now the time to buy JFrog? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $314.5 million, up 24.5% year on year, beating analyst expectations by 3.23%. It was a strong quarter for the company, with revenue guidance for the next quarter and full year beating analysts' expectations.
Dynatrace pulled off the highest full year guidance raise among its peers. The stock is up 10.7% since the results and currently trades at $51.84.
Is now the time to buy Dynatrace? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $103.2 million, up 20.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue guidance for the next quarter and full year missing analysts' expectations.
PagerDuty had the weakest full year guidance update in the group. The company lost 155 customers and ended up with a total of 15,089. The stock is down 20.1% since the results and currently trades at $22.18.
Read our full analysis of PagerDuty's results here.
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 $138 million, up 36.8% year on year, beating analyst expectations by 3.65%. It was a weak quarter for the company, with revenue guidance for the next quarter and full year missing analysts' expectations.
The company added 32 enterprise customers paying more than $100,000 annually to a total of 830. The stock is down 24.2% since the results and currently trades at $26.37.
Read our full, actionable report on HashiCorp here, it's free.
GitLab (NASDAQ:GTLB)
Founded as an open-source project in 2011, GitLab (NASDAQ:GTLB) is a leading software development tools platform.
GitLab reported revenues of $126.9 million, up 45.2% year on year, beating analyst expectations by 7.7%. It was a solid quarter for the company, with an impressive beat of analyst estimates and strong sales guidance for the next quarter.
GitLab scored the strongest analyst estimates beat and fastest revenue growth among the peers. The stock is up 39.1% since the results and currently trades at $49.25.
Read our full, actionable report on GitLab here, it's free.
The author has no position in any of the stocks mentioned