As Q3 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the productivity software stocks, including 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 slower Q3; on average, revenues beat analyst consensus estimates by 1.3%, while on average next quarter revenue guidance was 1.66% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but productivity software stocks held their ground better than others, with the share prices up 10.2% 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 $249.9 million, up 11.5% year on year, missing analyst expectations by 0.61%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
The stock is up 8.02% since the results and currently trades at $29.60.
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 $136.8 million, up 64.8% year on year, beating analyst expectations by 4.94%. It was a strong quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates.
monday.com delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 163 enterprise customers paying more than $50,000 annually to a total of 1,323. The stock is up 16.2% since the results and currently trades at $110.65.
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Zoom Video (NASDAQ:ZM)
Started 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 Video reported revenues of $1.1 billion, up 4.86% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
Zoom Video had the slowest revenue growth in the group. The company added 170 enterprise customers paying more than $100,000 annually to a total of 3,286. The stock is down 13% since the results and currently trades at $69.80.
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 $124.5 million, up 30.2% year on year, beating analyst expectations by 2.15%. It was a weaker quarter for the company, with a decline in gross margin and underwhelming revenue guidance for the next quarter.
The stock is down 0.7% since the results and currently trades at $19.85.
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 $807.3 million, up 31.4% 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 decelerating customer growth.
The company added 6,550 customers to a total of 249,173. The stock is down 15.9% since the results and currently trades at $146.34.
The author has no position in any of the stocks mentioned