As we reflect back on the just completed Q4 productivity software sector earnings season, we dig into the relative performance of 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 mixed Q4; on average, revenues beat analyst consensus estimates by 3.86%, while on average next quarter revenue guidance was 1.55% above consensus. The technology sell-off has been putting pressure on stocks since November, but productivity software stocks held their ground better than others, with share price down 1.67% since earnings, 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 $233.3 million, up 17.3% year on year, beating analyst expectations by 2.08%. It was a solid quarter for the company, with an increase in gross margin and a very strong guidance for the next year.
“In fiscal 2022, we achieved strong results across all of our financial metrics, executing on our vision for the Box Content Cloud while exceeding our guidance for growth and profitability,” said Aaron Levie, co-founder and CEO of Box.
The stock is up 22.1% since the results and currently trades at $31.69.
Is now the time to buy Box? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $688.5 million, up 37.3% year on year, beating analyst expectations by 7.16%. It was an impressive quarter for the company, with accelerating customer growth and a very optimistic guidance for the next quarter.
The stock is down 3.54% since the results and currently trades at $280.10.
Is now the time to buy Atlassian? Access our full analysis of the earnings results here, it's free.
Weakest Q4: DocuSign (NASDAQ:DOCU)
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 $580.8 million, up 34.7% year on year, beating analyst expectations by 3.42%. It was a weak quarter for the company, with the guidance for both the next quarter and the full year missing analyst estimates.
The stock is up 11.4% since the results and currently trades at $104.50.
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 $95.5 million, up 90.5% year on year, beating analyst expectations by 8.82%. 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 scored the fastest revenue growth and highest full year guidance raise among the peers. The company added 180 enterprise customers paying more than $50,000 annually to a total of 793. The stock is down 15.4% since the results and currently trades at $149.82.
Founded by Fred Luddy who wrote the code for the initial prototype on a single flight from San Francisco to London, ServiceNow (NYSE:NOW) offers software as a service platform that helps companies become more efficient by allowing them to automate workflows across IT, HR and Customer Service.
ServiceNow reported revenues of $1.61 billion, up 29% year on year, in line with analyst expectations. It was a solid quarter for the company, with accelerating growth in large customers.
ServiceNow had the weakest performance against analyst estimates among the peers. The company added 93 enterprise customers paying more than $1m annually to a total of 1,359. The stock is up 9.09% since the results and currently trades at $527.40.
The author has no position in any of the stocks mentioned