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Productivity Software Stocks Q3 Recap: Benchmarking Box (NYSE:BOX)


Jabin Bastian /
2022/01/21 7:17 am EST
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Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q3 now behind us, let’s have a look at Box (NYSE:BOX) and its peers.

Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.

The 16 productivity software stocks we track reported a solid Q3; on average, revenues beat analyst consensus estimates by 3.89%, while on average next quarter revenue guidance was 2.94% above consensus. There has been a stampede out of high valuation technology stocks and productivity software stocks have not been spared, with share price down 30.5% since earnings, on average.

Box (NYSE:BOX)

Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud.

Box reported revenues of $224 million, up 14.3% year on year, beating analyst expectations by 2.48%. It was an OK quarter for the company, with a strong sales guidance for the next quarter but a slow revenue growth.

“Our strong third quarter results show the continued momentum of our long-term growth strategy, as more customers are turning to the Box Content Cloud to deliver secure content management and collaboration built for the new way of working,” said Aaron Levie, co-founder and CEO of Box.

Box Total Revenue

The stock is up 7.5% since the results and currently trades at $25.21.

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

Best Q3: Monday.com (NASDAQ:MNDY)

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

Monday.com reported revenues of $83 million, up 94.9% year on year, beating analyst expectations by 11.1%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.

Monday.com Total Revenue

Monday.com pulled off the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 143 enterprise customers paying more than $50,000 annually to a total of 613. The stock is down 51.9% since the results and currently trades at $214.

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

Weakest Q3: 8x8 (NYSE:EGHT)

Founded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.

8x8 reported revenues of $151.5 million, up 17.3% year on year, beating analyst expectations by 2.39%. It was a weaker quarter for the company, with a meaningful improvement in gross margin but decelerating growth in large customers.

The stock is down 32.5% since the results and currently trades at $15.61.

Read our full analysis of 8x8's results here.

Smartsheet (NYSE:SMAR)

Founded in 2005, Smartsheet (NYSE:SMAR) is a software as a service platform that helps companies plan, manage and report on work.

Smartsheet reported revenues of $144.6 million, up 46.1% year on year, beating analyst expectations by 3.35%. It was a very strong quarter for the company, with an exceptional revenue growth.

The company added 808 enterprise customers paying more than $5,000 annually to a total of 14,228. The stock is down 4.09% since the results and currently trades at $58.35.

Dropbox (NASDAQ:DBX)

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

Dropbox reported revenues of $550.2 million, up 12.8% year on year, beating analyst expectations by 1%. It was a weaker quarter for the company, with a slow revenue growth.

Dropbox had the weakest performance against analyst estimates and slowest revenue growth among the peers. The company added 350,000 customers to a total of 16,490,000. The stock is down 21.6% since the results and currently trades at $24.29.

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

The author has no position in any of the stocks mentioned