Earnings results often give us a good indication what direction will the company take in the months ahead. With Q4 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 6 automation software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 5.65%, while on average next quarter revenue guidance was 0.74% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but automation software stocks held their ground better than others, with the share prices up 1.42% since the previous earnings results, 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 $308.5 million, up 6.51% year on year, beating analyst expectations by 10.7%. It was a solid quarter for the company, with an impressive beat of analyst estimates and a full year guidance beating analysts' expectations.
“We delivered a very strong close to fiscal year 2023. Fourth quarter fiscal 2023 ARR grew 30 percent year-over-year while revenue outperformance and disciplined cost management resulted in a record fourth quarter non-GAAP operating margin and positive non-GAAP adjusted free cash flow,” said Rob Enslin, UiPath Co-Chief Executive Officer.
UiPath achieved the highest full year guidance raise but had the slowest revenue growth of the whole group. The stock is up 11.5% since the results and currently trades at $16.36.
We think UiPath is a good business, but is it a buy today? Read our full report here, it's free.
Best Q4: Pegasystems (NASDAQ:PEGA)
Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement.
Pegasystems reported revenues of $396.5 million, up 25.4% year on year, beating analyst expectations by 18.8%. It was a strong quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.
Pegasystems pulled off the strongest analyst estimates beat among its peers. The stock is up 13% since the results and currently trades at $48.24.
Is now the time to buy Pegasystems? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $130.3 million, up 25.5% year on year, beating analyst expectations by 1.09%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
Jamf pulled off the fastest revenue growth but had the weakest full year guidance update in the group. The stock is down 8.77% since the results and currently trades at $19.36.
Read our full analysis of Jamf's results here.
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 $1.94 billion, up 20.2% year on year, missing analyst expectations by 0.01%. It was a solid quarter for the company, with accelerating growth in large customers.
ServiceNow had the weakest performance against analyst estimates among the peers. The company added 107 enterprise customers paying more than $1m annually to a total of 1,637. The stock is up 5.33% since the results and currently trades at $472.4.
Read our full, actionable report on ServiceNow here, it's free.
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 $117.1 million, up 13.9% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming guidance for the next quarter and full year.
The company added 96 customers to a total of 6,513. The stock is down 7.9% since the results and currently trades at $31.25.
Read our full, actionable report on Everbridge here, it's free.
The author has no position in any of the stocks mentioned