2201

Automation Software Stocks Q4 Earnings Recap: Benchmarking ServiceNow (NYSE:NOW)


Radek Strnad /
2022/04/15 7:47 am EDT
Add to Watchlist

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 Q4.

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 mixed Q4; on average, revenues beat analyst consensus estimates by 3.42%, while on average next quarter revenue guidance was 2.08% under consensus. Tech stocks have been under pressure since the end of last year , but automation software stocks held their ground better than others, with share price down 1.89% since earnings, on average.

ServiceNow (NYSE:NOW)

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 and a decent top line growth.

“We once again reported results that significantly beat the high end of expectations," said ServiceNow President and CEO Bill McDermott.

ServiceNow Total Revenue

ServiceNow delivered the weakest performance against analyst estimates of the whole group. The company added 93 enterprise customers paying more than $1m annually to a total of 1,359. The stock is up 4.95% since the results and currently trades at $507.40.

We think ServiceNow is a good business, but is it a buy today? Read our full report here, it's free.

Best Q4: Appian (NASDAQ:APPN)

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 $104.9 million, up 28.6% year on year, beating analyst expectations by 10.1%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a full year guidance above analysts' expectations.

Appian Total Revenue

Appian scored the strongest analyst estimates beat and highest full year guidance raise, but had the slowest revenue growth among its peers. The stock is up 10.5% since the results and currently trades at $54.49.

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

Weakest Q4: Everbridge (NASDAQ:EVBG)

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 $102.8 million, up 36% year on year, in line with analyst expectations. It was a weak quarter for the company, with full year guidance missing analysts' expectations.

The stock is up 7.44% since the results and currently trades at $49.80.

Read our full analysis of Everbridge's results here.

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 $289.6 million, up 39.3% year on year, beating analyst expectations by 2.27%. It was a weaker quarter for the company, with the guidance for both the next quarter and the full year missing analyst estimates.

UiPath scored the fastest revenue growth but had the weakest full year guidance update among the peers. The stock is down 34.6% since the results and currently trades at $18.99.

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

Jamf (NASDAQ:JAMF)

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 $103.8 million, up 35.8% year on year, beating analyst expectations by 3.37%. It was a solid quarter for the company, with a full year guidance beating analysts' expectations.

The stock is up 2.14% since the results and currently trades at $33.85.

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

The author has no position in any of the stocks mentioned