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Q1 Rundown: ServiceNow (NYSE:NOW) Vs Other Automation Software Stocks


Radek Strnad /
2022/06/16 4:17 am EDT
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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 Q1.

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 Q1; on average, revenues beat analyst consensus estimates by 4.13%, while on average next quarter revenue guidance was 1.19% above consensus. Tech stocks have had a rocky start in 2022, but automation software stocks held their ground better than others, with share price down 0.33% 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 $1.72 billion, up 26.6% year on year, beating analyst expectations by 1.34%. It was a mixed quarter for the company, with a meaningful improvement in gross margin but decelerating growth in large customers.

“ServiceNow delivered another outstanding performance that beat expectations across the board,” 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 42 enterprise customers paying more than $1m annually to a total of 1,401. The stock is up 0.91% since the results and currently trades at $470.50.

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

Best Q1: 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 $114.2 million, up 28.5% year on year, beating analyst expectations by 6.6%. Despite the stock dropping on the results, it was a strong quarter for the company, with a solid beat of analyst estimates and a very optimistic guidance for the next quarter.

Appian Total Revenue

Appian scored the highest full year guidance raise among its peers. The stock is down 8.46% since the results and currently trades at $43.23.

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

Slowest Q1: 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 $100.3 million, up 22% year on year, beating analyst expectations by 1.57%. It was a mixed quarter for the company, with a decent beat of analyst estimates but decelerating customer growth.

Everbridge had the slowest revenue growth and weakest full year guidance update in the group. The company added 89 customers to a total of 6,224. The stock is down 15.2% since the results and currently trades at $30.31.

Read our full analysis of Everbridge's results here.

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 $108.2 million, up 33.3% year on year, beating analyst expectations by 2.38%. It was a solid quarter for the company, with a strong top line growth, and revenue guidance for the next quarter above analysts' estimates.

Jamf scored the fastest revenue growth among the peers. The stock is up 7.2% since the results and currently trades at $25.58.

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

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 $245 million, up 31.6% year on year, beating analyst expectations by 8.76%. It was a mixed quarter for the company, with an impressive beat of analyst estimates but a decline in gross margin.

UiPath pulled off the strongest analyst estimates beat among the peers. The stock is up 13.8% since the results and currently trades at $19.18.

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

The author has no position in any of the stocks mentioned