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Productivity Software Stocks Q1 Earnings Teardown: Box (NYSE:BOX) Vs The Rest


Adam Hejl /
2022/06/22 4:18 am EDT
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As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today we are looking at the productivity software stocks, 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 16 productivity software stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 3.36%, while on average next quarter revenue guidance was 1.53% above consensus. The technology sell-off has been putting pressure on stocks since November and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share price declining 11.9% 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 $238.4 million, up 17.7% year on year, beating analyst expectations by 1.68%. It was a decent quarter for the company, with a meaningful improvement in gross margin.

“Our strong first quarter results demonstrate the continued execution of our growth strategy as we execute against a $74 billion market opportunity,” said Aaron Levie, co-founder and CEO of Box.

Box Total Revenue

The stock is down 8.18% since the results and currently trades at $23.90.

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

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 $108.4 million, up 83.9% year on year, beating analyst expectations by 7.09%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

monday.com Total Revenue

monday.com pulled off the fastest revenue growth and highest full year guidance raise among its peers. The company added 167 enterprise customers paying more than $50,000 annually to a total of 960. The stock is down 5.74% since the results and currently trades at $104.

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

Weakest Q1: RingCentral (NYSE:RNG)

Founded in 1999 during the dot-com era, RingCentral (NYSE:RNG) provides software as a service that unifies phone, text, fax, video calls and chat in one platform.

RingCentral reported revenues of $467.6 million, up 32.7% year on year, beating analyst expectations by 2.02%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations and a decline in gross margin.

RingCentral had the weakest full year guidance update in the group. The stock is down 26.2% since the results and currently trades at $50.77.

Read our full analysis of RingCentral'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 $168.3 million, up 43.7% year on year, beating analyst expectations by 3.54%. It was a mixed quarter for the company, with an exceptional revenue growth but decelerating growth in large customers.

The company added 729 enterprise customers paying more than $5,000 annually to a total of 15,879. The stock is down 28.6% since the results and currently trades at $29.

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

Atlassian (NASDAQ:TEAM)

Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ:TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.

Atlassian reported revenues of $740.4 million, up 30.2% year on year, beating analyst expectations by 5.2%. It was a solid quarter for the company, with a very optimistic guidance for the next quarter.

The company added 8,054 customers to a total of 234,575. The stock is down 30.7% since the results and currently trades at $180.

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

The author has no position in any of the stocks mentioned