The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the software development stocks have fared in Q4, starting with HashiCorp (NASDAQ:HCP).
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. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but software development stocks held their ground better than others, with share prices down 1.81% since the previous earnings results, on average.
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 $135.8 million, up 40.7% year on year, beating analyst expectations by 9.3%. It was a decent quarter for the company, with an impressive beat of analyst estimates but underwhelming guidance for the next year.
HashiCorp pulled off the strongest analyst estimates beat of the whole group. The company added 38 enterprise customers paying more than $100,000 annually to a total of 798. The stock is down 9.27% since the results and currently trades at $27.
Is now the time to buy HashiCorp? 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 scored 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 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 a full year 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.
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 $157 million, up 24.5% year on year, beating analyst expectations by 6.81%. It was a weaker quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
The company added 25 customers to a total of 3,405. The stock is down 40% since the results and currently trades at $14.29.
Read our full, actionable report on Bandwidth here, it's free.
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