The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the productivity software stocks have fared in Q1, starting with Box (NYSE:BOX).
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 17 productivity software stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.77%, while on average next quarter revenue guidance was 0.1% above consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but productivity software stocks held their ground better than others, with the share prices up 18.7% since the previous earnings results, on average.
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 $251.9 million, up 5.65% year on year, beating analyst expectations by 1.03%. It was a slower quarter for the company, with full-year guidance missing analysts' expectations. While Box's revenue guidance for the full year was slightly lowered and missed analysts' expectations, it was due to FX; guidance for constant-currency revenue growth of 10% year on year was not lowered and was above expectations.
“In Q1 we delivered revenue, operating margin and EPS above our guidance ranges, a testament to the value of the Box Content Cloud platform and the execution we have been driving as a company,” said Aaron Levie, co-founder and CEO of Box.
Box delivered the weakest full year guidance update of the whole group. The stock is up 7.49% since the results and currently trades at $30.12.
Best Q1: 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 $162.3 million, up 49.5% year on year, beating analyst expectations by 4.49%. It was a solid quarter for the company, with a decent beat of analyst estimates and strong sales guidance for the next quarter.
Monday.com delivered the fastest revenue growth and highest full year guidance raise among its peers. The company added 209 enterprise customers paying more than $50,000 annually to a total of 1,683. The stock is up 35% since the results and currently trades at $176.68.
Is now the time to buy Monday.com? Access our full analysis of the earnings results here, it's free.
Slowest Q1: Pegasystems (NASDAQ:PEGA)
Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement.
Pegasystems reported revenues of $325.5 million, down 13.5% year on year, missing analyst expectations by 7.14%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a decline in gross margin.
Pegasystems had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 12.2% since the results and currently trades at $49.
Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically.
DocuSign reported revenues of $661.4 million, up 12.3% year on year, beating analyst expectations by 3.07%. It was a solid quarter for the company, with revenue guidance for the next quarter and the upcoming year exceeding analysts' expectations.
The stock is down 8.13% since the results and currently trades at $53.77.
Started in 2001, Five9 (NASDAQ: FIVN) offers software as a service that makes it easier for companies to set up and efficiently run call centers, and offer more tailored customer support.
Five9 reported revenues of $218.4 million, up 19.5% year on year, beating analyst expectations by 5.03%. It was a decent quarter for the company, with a solid beat of analyst estimates but a decline in gross margin.
The stock is up 35.5% since the results and currently trades at $76.43.
The author has no position in any of the stocks mentioned