The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how ServiceNow (NYSE:NOW) and the rest of the automation software stocks fared in Q3.
The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.
The 5 automation software stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 1.08%, while on average next quarter revenue guidance was 1.03% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and while some of the automation software stocks have fared somewhat better than others, they have not been spared, with share prices declining 8.62% since the previous earnings results, on average.
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 $1.83 billion, up 21% year on year, missing analyst expectations by 1.11%. Despite the stock soaring on the results, it was a weaker quarter for the company, with a miss of the top line analyst estimates.
“Once again, ServiceNow beat both our top and bottom-line goals,” said ServiceNow Chairman and CEO Bill McDermott.
ServiceNow delivered the weakest performance against analyst estimates of the whole group. The company added 67 enterprise customers paying more than $1m annually to a total of 1,530. The stock is up 0.03% since the results and currently trades at $366.53.
Is now the time to buy ServiceNow? Access our full analysis of the earnings results here, it's free.
Best Q3: UiPath (NYSE:PATH)
Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks.
UiPath reported revenues of $262.7 million, up 18.9% year on year, beating analyst expectations by 2.65%. It was a decent quarter for the company, with a meaningful improvement in gross margin.
UiPath scored the strongest analyst estimates beat among its peers. The stock is down 9.43% since the results and currently trades at $11.71.
Is now the time to buy UiPath? Access our full analysis of the earnings results here, it's free.
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%. Despite the strong topline growth, it was a weaker quarter for the company, with a decline in gross margin and underwhelming revenue guidance for the next quarter.
Jamf scored the fastest revenue growth and highest full year guidance raise in the group. The stock is down 9.95% since the results and currently trades at $18.00.
Founded as a reaction to the catastrophic events of 9/11, Everbridge (NASDAQ:EVBG) supplies software that helps governments and businesses keep people and infrastructure safe in emergencies.
Everbridge reported revenues of $111.4 million, up 15.1% year on year, in line with analyst expectations. It was a weaker quarter for the company, with decelerating customer growth and slow revenue growth.
Everbridge had the slowest revenue growth among the peers. The company added 72 customers to a total of 6,417. The stock is up 9.11% since the results and currently trades at $27.18.
Founded by Matt Calkins and his three friends out of an apartment in Northern Virginia, Appian (NASDAQ:APPN) sells a software platform that lets its users build applications without using much code, allowing them to create new software more quickly.
Appian reported revenues of $117.8 million, up 27.5% year on year, beating analyst expectations by 1.1%. It was a slower quarter for the company, with revenue guidance for the next quarter and full year missing analysts' expectations.
Appian had the weakest full year guidance update among the peers. The stock is down 32.8% since the results and currently trades at $31.70.
The author has no position in any of the stocks mentioned