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 Manhattan Associates (NASDAQ:MANH), and the best and worst performers in the vertical software group.
Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.
The 4 vertical software stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 3.63% while next quarter's revenue guidance was 6.09% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but vertical software stocks held their ground better than others, with the share prices up 9.55% on average since the previous earnings results.
Best Q2: Manhattan Associates (NASDAQ:MANH)
Boasting major consumer staples and pharmaceutical companies as clients, Manhattan Associates (NASDAQ:MANH) offers a software-as-service platform that helps customers manage their supply chains.
Manhattan Associates reported revenues of $231 million, up 20.4% year on year, beating analyst expectations by 6.62%. It was a very strong quarter for the company, with a solid beat of analysts' revenue estimates and full-year revenue guidance exceeding analysts' expectations.
Manhattan Associates pulled off the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The stock is up 7.02% since the results and currently trades at $206.92.Is now the time to buy Manhattan Associates? Read our full report on Manhattan Associates here.
Founded in 2000 as a business unit within MicroStrategy, Alarm.com (NASDAQ:ALRM) is a software-as-a-service platform that enables users to control their security systems and smart home appliances from a single app.
Alarm.com reported revenues of $223.9 million, up 5.18% year on year, beating analyst expectations by 4.48%. It was a solid quarter for the company, with a decent beat of analysts' revenue estimates and full-year revenue guidance topping analysts' expectations.
Alarm.com had the slowest revenue growth among its peers. The stock is up 16.8% since the results and currently trades at $57.49.
Is now the time to buy Alarm.com? Access our full analysis of the earnings results here, it's free.
Slowest Q2: Guidewire (NYSE:GWRE)
Founded by two individuals involved in the development of leading procurement software Ariba, Guidewire (NYSE:GWRE) offers a software-as-a-service platform for insurance companies to manage, analyze and sell their products. to manage their workflows.
Guidewire reported revenues of $270 million, up 10.4% year on year, beating analyst expectations by 3.31%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
Guidewire had the weakest full year guidance update in the group. The stock is up 8.12% since the results and currently trades at $91.71.
Founded by brothers Keith and Barry Bentley, Bentley Systems (NASDAQ:BSY) offers a software-as-a-service platform that addresses the lifecycle of infrastructure projects such as road networks, tunnel systems, and wastewater facilities.
Bentley reported revenues of $296.7 million, up 10.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a decline in its gross margin.
Bentley had the weakest performance against analyst estimates among the peers. The stock is up 6.24% since the results and currently trades at $54.15.
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The author has no position in any of the stocks mentioned