As design software stocks’ Q4 earnings season wraps, let's dig into this quarter's best and worst performers, including Matterport (NASDAQ:MTTR) and its peers.
The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.
The 8 design software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.81%, while on average next quarter revenue guidance was 0.08% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but design software stocks held their ground better than others, with the share prices up 0.19% since the previous earnings results, on average.
Matterport (NASDAQ:MTTR)
Founded in 2011 before any mass market VR headset was released, Matterport (NASDAQ:MTTR) provides the hardware and software necessary to turn real world spaces into 3D visualization.
Matterport reported revenues of $41.1 million, up 51.9% year on year, beating analyst expectations by 3.64%. Despite the solid beat of topline results, it was a slower quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
“We delivered record revenue again in the fourth quarter, as our subscriber base continued to grow and our spaces under management exceeded 9 million,” said RJ Pittman, Chairman and Chief Executive Officer of Matterport.
Matterport pulled off the fastest revenue growth of the whole group. The company added 44,000 customers to a total of 701,000. The stock is down 27% since the results and currently trades at $2.56.
Read our full report on Matterport here, it's free.
Best Q4: ANSYS (NASDAQ:ANSS)
Used to help design the Mars Rover, Ansys (NASDAQ:ANSS) offers a software-as-a-service platform that enables simulation for engineering and design.
ANSYS reported revenues of $694.1 million, up 5.86% year on year, beating analyst expectations by 6.87%. It was a very good quarter for the company, with very optimistic guidance for the next quarter and very strong guidance for the next year.
ANSYS delivered the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 20.5% since the results and currently trades at $321.99.
Is now the time to buy ANSYS? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Autodesk (NASDAQ:ADSK)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Autodesk reported revenues of $1.32 billion, up 8.78% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next year.
The stock is down 10.5% since the results and currently trades at $197.85.
Read our full analysis of Autodesk's results here.
Cadence (NASDAQ:CDNS)
With the name chosen to reflect the idea of a repeating pattern or rhythm in electronic design, Cadence Design Systems (NASDAQ:CDNS) offers a software-as-a-service platform for semiconductor engineering and design.
Cadence reported revenues of $899.9 million, up 16.4% year on year, beating analyst expectations by 1.77%. It was a decent quarter for the company, with very optimistic guidance for the next quarter but underwhelming guidance for the next year.
The stock is up 15% since the results and currently trades at $213.63.
Read our full, actionable report on Cadence here, it's free.
Procore Technologies (NYSE:PCOR)
Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore Technologies (NYSE:PCOR) offers a software-as-service project, finance and quality management platform for the construction industry.
Procore Technologies reported revenues of $186.4 million, up 41.2% year on year, beating analyst expectations by 5.94%. It was a strong quarter for the company, with exceptional revenue growth and guidance for the next quarter above analysts' estimates.
The company added 683 customers to a total of 14,086. The stock is up 10.6% since the results and currently trades at $55.5.
Read our full, actionable report on Procore Technologies here, it's free.
The author has no position in any of the stocks mentioned