Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q2 now behind us, let’s have a look at 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 Q2; on average, revenues beat analyst consensus estimates by 2.69%, while on average next quarter revenue guidance was 1.67% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows and while some of the automation software stocks have fared somewhat better that others, they have not been spared, with share prices declining 6.83% since the previous earnings results, on average.
Weakest Q2: 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 $242.2 million, up 23.8% year on year, beating analyst expectations by 5%. It was a weaker quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.
“We are pleased to report that ARR surpassed $1 billion in the second quarter fiscal 2023 to reach $1.043 billion, achieving this important milestone in just seven years. I am proud of the Company we have built and our unwavering commitment to innovation including the upcoming platform release, which we will unveil at our user conference, FORWARD 5, later this month,” said Daniel Dines, UiPath Co-Founder and Co-Chief Executive Officer.
UiPath delivered the weakest full year guidance update of the whole group. The stock is down 12% since the results and currently trades at $13.71.
Is now the time to buy UiPath? Access our full analysis of the earnings results here, it's free.
Best Q2: 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 $110 million, up 32.6% year on year, beating analyst expectations by 5.85%. It was a decent quarter for the company, with a solid beat of analyst estimates but a decline in gross margin.
Appian delivered the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 19.6% since the results and currently trades at $44.53.
Is now the time to buy Appian? Access our full analysis of the earnings results here, it's free.
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 $1.75 billion, up 24.3% year on year, missing analyst expectations by 0.62%. It was a mixed quarter for the company, with accelerating growth in large customers but a miss of the top line analyst estimates.
ServiceNow had the weakest performance against analyst estimates in the group. The company added 62 enterprise customers paying more than $1m annually to a total of 1,463. The stock is down 8.09% since the results and currently trades at $411.49.
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 $102.9 million, up 18.8% year on year, in line with analyst expectations. It was a decent quarter for the company, with accelerating customer growth.
Everbridge had the slowest revenue growth among the peers. The company added 121 customers to a total of 6,345. The stock is up 11.3% since the results and currently trades at $32.91.
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 $115.6 million, up 34% year on year, beating analyst expectations by 2.26%. It was a decent quarter for the company, with a strong top line growth.
Jamf achieved the fastest revenue growth among the peers. The stock is down 5.69% since the results and currently trades at $25.5.
The author has no position in any of the stocks mentioned