As we reflect back on the just completed Q1 automation software sector earnings season, we dig into the relative performance of UiPath (NYSE:PATH) and its peers.
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. There has been a stampede out of high valuation technology stocks, but automation software stocks held their ground better than others, with the share price up 0.9% since earnings, on average.
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.
“We are pleased to have exceeded first quarter guidance across all metrics with ARR of $977 million growing 50 percent year-over-year. I want to thank the UiPath team for their hard work and dedication to our customers in the midst of such turbulent times,” said Daniel Dines, UiPath Co-Founder and Co-Chief Executive Officer.
UiPath scored the strongest analyst estimates beat of the whole group. The stock is up 13.3% since the results and currently trades at $19.09.
Is now the time to buy UiPath? 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 pulled off the highest full year guidance raise among its peers. The stock is down 4.72% since the results and currently trades at $45.
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 17.7% since the results and currently trades at $29.42.
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 1.33%. It was a mixed quarter for the company, with a meaningful improvement in gross margin but decelerating growth in large customers.
ServiceNow had the weakest performance against analyst estimates among the peers. The company added 42 enterprise customers paying more than $1m annually to a total of 1,401. The stock is up 3.6% since the results and currently trades at $483.06.
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 9.97% since the results and currently trades at $26.24.
The author has no position in any of the stocks mentioned