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 Q4. Today we are looking at the vertical software stocks, starting with Doximity (NYSE:DOCS).
Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, there are industries that have very specific needs. Whether it is life-sciences, education or banking, the demand for so called vertical software, addressing industry specific workflows, is growing, fueled by the pressures on improving productivity and quality of offerings.
The 17 vertical software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.94%, while on average next quarter revenue guidance was 3.73% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but vertical software stocks held their ground better than others, with share prices down 3.84% since the previous earnings results, on average.
Doximity (NYSE:DOCS)
Founded in 2010 and named for a combination of “docs” and “proximity”, Doximity (NYSE: DOCS) is the leading social network for U.S. medical professionals.
Doximity reported revenues of $115.3 million, up 17.8% year on year, beating analyst expectations by 3.4%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
“Our clinical workflow tools saw record use last quarter, including our telehealth platform which served 375,000 unique active clinicians,” said Jeff Tangney, co-founder and CEO at Doximity.
The stock is down 12.5% since the results and currently trades at $31.86.
Is now the time to buy Doximity? Access our full analysis of the earnings results here, it's free.
Best Q4: ANSYS (NASDAQ:ANSS)
Used to help design the Mars Rover, Ansys (NASDAQ:ANSS) offers a software-as-a-service platform that enables simulation for engineering and design.
ANSYS reported revenues of $694.1 million, up 5.86% year on year, beating analyst expectations by 6.87%. It was a very strong quarter for the company, with very optimistic guidance for the next quarter and full year.
ANSYS delivered the highest full year guidance raise among its peers. The stock is up 23.2% since the results and currently trades at $329.17.
Is now the time to buy ANSYS? Access our full analysis of the earnings results here, it's free.
Slowest Q4: Q2 Holdings (NYSE:QTWO)
Founded in 2004 by Hank Seale, Q2 (NYSE:QTWO) offers software as a service that enables small banks provide online banking and consumer lending services to their clients.
Q2 Holdings reported revenues of $146.5 million, up 11.1% year on year, missing analyst expectations by 1.87%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
Q2 Holdings had the weakest performance against analyst estimates in the group. The stock is down 23.9% since the results and currently trades at $24.15.
Read our full analysis of Q2 Holdings's results here.
Autodesk (NASDAQ:ADSK)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Autodesk reported revenues of $1.32 billion, up 8.78% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming guidance for the next year.
The stock is down 6.14% since the results and currently trades at $207.57.
Read our full, actionable report on Autodesk here, it's free.
Matterport (NASDAQ:MTTR)
Founded in 2011 before any mass market VR headset was released, Matterport (NASDAQ:MTTR) provides the hardware and software necessary to turn real world spaces into 3D visualization.
Matterport reported revenues of $41.1 million, up 51.9% year on year, beating analyst expectations by 3.64%. Despite the strong topline growth, it was a slower quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
Matterport achieved the fastest revenue growth among the peers. The company added 44,000 customers to a total of 701,000. The stock is down 21.3% since the results and currently trades at $2.76.
Read our full, actionable report on Matterport here, it's free.
The author has no position in any of the stocks mentioned