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Reflecting On Productivity Software Stocks’ Q2 Earnings: Zoom (NASDAQ:ZM)


Radek Strnad /
2021/09/29 7:10 am EDT
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As we reflect back on the just completed Q2 productivity software sector earnings season, we dig into the relative performance of Zoom (NASDAQ:ZM) and its peers.

The changing nature of work and growing wages have increased the ever-present pressure on improving corporate productivity, and have been the key drivers behind the growing demand for productivity software. This demand has in turn been the impetus for a range of software meant to enable remote work, streamline project management and automate business tasks.

The 14 productivity software stocks we track reported a strong Q2; on average, revenues beat analyst consensus estimates by 6.14%, while on average next quarter revenue guidance was 7.8% above consensus. The market rewarded the results with the average return the day after earnings coming in at 10%.

Zoom (NASDAQ:ZM)

Started in 2011 by Eric Yuan who once ran engineering for Cisco’s video conferencing business, Zoom (NASDAQ:ZM) offers an easy to use, cloud-based platform for video conferencing, audio conferencing and screen sharing.

Zoom reported revenues of $1.02 billion, up 53.9% year on year, beating analyst expectations by 3.15%. It was a decent quarter for the company, with an exceptional revenue growth but decelerating growth in large customer.

“In Q2, we achieved our first billion dollar revenue quarter while delivering strong profitability and cash flow,” said Zoom founder and CEO, Eric S. Yuan.

Zoom Total Revenue

The stock is down 16.6% since the results and currently trades at $264.67.

Is now the time to buy Zoom? Access our full analysis of the earnings results here, it's free.

Best Q2: Monday.com (NASDAQ:MNDY)

Founded in Israel in 2014, and named after the dreaded first day of the work week, Monday.com makes software as a service platforms that helps teams plan and track work efficiently.

Monday.com reported revenues of $70.6 million, up 93.6% year on year, beating analyst expectations by 13.6%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates and even more impressive revenue growth.

Monday.com Total Revenue

Monday.com scored the strongest analyst estimates beat and fastest revenue growth among its peers. The stock is up 45.6% since the results and currently trades at $340.

Is now the time to buy Monday.com? Access our full analysis of the earnings results here, it's free.

Weakest Q2: Dropbox (NASDAQ:DBX)

Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox provides a file hosting cloud platform that helps organizations collaborate and share documents.

Dropbox reported revenues of $530.6 million, up 13.5% year on year, beating analyst expectations by 1.29%. It was a weaker quarter for the company, with an improvement in gross margin but a slow revenue growth.

The stock is up 2.07% since the results and currently trades at $30.09.

Read our full analysis of Dropbox's results here.

Asana (NYSE:ASAN)

Founded in 2008 by Facebook’s co-founder Dustin Moskovitz, Asana is a cloud-based project management software, where you can plan and assign tasks to employees and monitor and discuss progress of work.

Asana reported revenues of $89.4 million, up 71.9% year on year, beating analyst expectations by 8.77%. It was a very strong quarter for the company, with a strong revenue growth.

Asana scored the fastest growth in large customers among the peers. The company added 1534 enterprise customers paying more than $5,000 annually to a total of 12,806. The stock is up 15.3% since the results and currently trades at $105.09.

Read our full, actionable report on Asana here, it's free.

Jamf (NASDAQ:JAMF)

Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.

Jamf reported revenues of $86.2 million, up 38.5% year on year, beating analyst expectations by 3.83%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter.

The stock is up 4.01% since the results and currently trades at $38.69.

Read our full, actionable report on Jamf here, it's free.

The author has no position in any of the stocks mentioned