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 GitLab (NASDAQ:GTLB), 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 13 software development stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 5.08%, while on average next quarter revenue guidance was 1.67% above consensus. The whole tech sector has been facing a sell-off since late last year, but software development stocks held their ground better than others, with share price down 7.43% since earnings, on average.
Best Q4: 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 $77.7 million, up 76.2% year on year, beating analyst expectations by 10.6%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.
“We are seeing continued strong momentum for customers adopting our DevOps platform, as revenue increased 69% year-over-year,” said Sid Sijbrandij, GitLab CEO.
GitLab pulled off the highest full year guidance raise of the whole group. The stock is up 50.2% since the results and currently trades at $49.75.
Is now the time to buy GitLab? Access our full analysis of the earnings results here, it's free.
Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) is a software as a service platform that makes it easier to monitor cloud infrastructure and applications.
Datadog reported revenues of $326.1 million, up 83.7% year on year, beating analyst expectations by 11.9%. It was an impressive quarter for the company, with a very strong beat of analyst estimates and an optimistic guidance for the next quarter.
Datadog scored the strongest analyst estimates beat and fastest revenue growth among its peers. The company added 210 enterprise customers paying more than $100,000 annually to a total of 2,010. The stock is down 12.5% since the results and currently trades at $136.15.
Is now the time to buy Datadog? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $126.1 million, up 11.5% year on year, beating analyst expectations by 6.72%. It was a weaker quarter for the company, with decelerating customer growth and revenue guidance missing analysts' expectations for both the full year and the next quarter.
Bandwidth had the weakest full year guidance update in the group. The company added 55 customers to a total of 3,228. The stock is down 34.2% since the results and currently trades at $30.53.
Read our full analysis of Bandwidth's results here.
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 $40.3 million, up 21.4% year on year, beating analyst expectations by 6.41%. It was a weaker quarter for the company, with a decline in net retention rate compared to the same quarter last year, and full-year guidance missing analysts' expectations.
The company added 106 customers to a total of 2,670. The stock is down 21.5% since the results and currently trades at $7.85.
Read our full, actionable report on Agora here, it's free.
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 $67 million, up 23.8% year on year, beating analyst expectations by 4.23%. It was a mixed quarter for the company, with a very strong guidance for the next year but an underwhelming revenue guidance for the next quarter.
The stock is up 1.3% since the results and currently trades at $10.88.
Read our full, actionable report on Sumo Logic here, it's free.
The author has no position in any of the stocks mentioned