Wrapping up Q3 earnings, we look at the numbers and key takeaways for the software development stocks, including HashiCorp (NASDAQ:HCP) 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 Q3; on average, revenues beat analyst consensus estimates by 2.92%, while on average next quarter revenue guidance was 0.04% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but software development stocks held their ground better than others, with the share prices up 9.18% since the previous earnings results, on average.
Best Q3: 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 $125.3 million, up 52.4% year on year, beating analyst expectations by 12.7%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and exceptional revenue growth.
HashiCorp achieved the strongest analyst estimates beat and highest full year guidance raise of the whole group. The company added 26 enterprise customers paying more than $100,000 annually to a total of 760. The stock is up 8.14% since the results and currently trades at $28.80.
Is now the time to buy HashiCorp? Access our full analysis of the earnings results 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 $78.9 million, up 27.3% year on year, beating analyst expectations by 6.4%. It was a very strong quarter for the company, with a significant improvement in gross margin and a solid beat of analyst estimates.
The stock is up 2.77% since the results and currently trades at $7.40.
Is now the time to buy Sumo Logic? Access our full analysis of the earnings results here, it's free.
Weakest Q3: 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 $40.9 million, down 8.99% year on year, missing analyst expectations by 7.83%. It was a weak quarter for the company, with full-year guidance missing analysts' expectations.
Agora had the weakest performance against analyst estimates, and weakest full year guidance update in the group. The company added 110 customers to a total of 2,987. The stock is up 31.5% since the results and currently trades at $4.40.
Founded in 2008 by Jeff Lawson, a former engineer at Amazon, Twilio (NYSE:TWLO) is a software as a service platform that makes it really easy for software developers to use text messaging, voice calls and other forms of communication in their apps.
Twilio reported revenues of $983 million, up 32.8% year on year, beating analyst expectations by 1.04%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.
The company added 5,000 customers to a total of 280,000. The stock is down 21% since the results and currently trades at $51.60.
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 $148.3 million, up 13.5% year on year, beating analyst expectations by 5.32%. It was a strong quarter for the company, with accelerating customer growth.
The company added 18 customers to a total of 3,380. The stock is up 82.5% since the results and currently trades at $22.49.
The author has no position in any of the stocks mentioned