Heading into the next earnings season, we look at the numbers and key takeaways for the design software stocks in Q2, 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 4 design software stocks we track reported a weaker Q2; on average, revenues missed analyst consensus estimates by 1.51%, while on average next quarter revenue guidance was 0.61% above consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable and design software stocks have not been spared, with share prices down 25.7% since the previous earnings results, on average.
Best Q2: 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 $28.4 million, down 3.47% year on year, missing analyst expectations by 6.22%. It was a mixed quarter for the company, with a very optimistic guidance for the next quarter but a revenue decline.
“We delivered another strong quarter, increasing our subscriber count by 52% to 616,000 subscribers. We expanded Spaces Under Management by 44% to over 8 million spaces,” said RJ Pittman, Chairman and Chief Executive Officer of Matterport.
Matterport pulled off the highest full year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. The company added 54,000 customers to a total of 616,000. The stock is down 35.2% since the results and currently trades at $3.36.
Is now the time to buy Matterport? Access our full analysis of the earnings results here, it's free.
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 $1.23 billion, up 16.7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an optimistic revenue guidance for the next quarter but a slow revenue growth.
Autodesk achieved the strongest analyst estimates beat and fastest revenue growth among its peers. The stock is down 7.99% since the results and currently trades at $197.10.
Is now the time to buy Autodesk? Access our full analysis of the earnings results here, it's free.
Unity (NYSE:U)
Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE:U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences.
Unity reported revenues of $297 million, up 8.58% year on year, missing analyst expectations by 0.67%. It was a weak quarter for the company, with guidance for both the next quarter and full year missing analysts' expectations. Unity previously announced that it has entered into an agreement to merge with ironSource.
Unity had the weakest full year guidance update in the group. The company added 2 enterprise customers paying more than $100,000 annually to a total of 1,085. The stock is down 40.7% since the results and currently trades at $29.70.
Read our full analysis of Unity's results here.
Adobe (NASDAQ:ADBE)
One of the most well-known Silicon Valley software companies around, Adobe (NASDAQ:ADBE) is a leading provider of software as service in the digital design and document management space.
Adobe reported revenues of $4.43 billion, up 12.6% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
The stock is down 19.1% since the results and currently trades at $300.40.
Adobe has announced it has entered into a definitive merger agreement to acquire Figma for ~$20 billion in cash and stock
Read our full, actionable report on Adobe here, it's free.
The author has no position in any of the stocks mentioned