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Q4 Earnings Outperformers: UiPath (NYSE:PATH) And The Rest Of The Automation Software Stocks


Radek Strnad /
2022/04/08 7:54 am EDT
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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at UiPath (NYSE:PATH), and the best and worst performers in the automation software group.

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. 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 0.59% since earnings, on average.

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.

“The UiPath team delivered a strong finish to fiscal year 2022 with fourth quarter net new ARR reaching a record $107 million, an increase of 72 percent year-over-year. We believe this is a testament to our highly differentiated end-to-end platform,” said Daniel Dines, UiPath Co-Founder and Chief Executive Officer.

UiPath Total Revenue

UiPath scored the fastest revenue growth but had the weakest full year guidance update of the whole group. The stock is down 27.1% since the results and currently trades at $21.15.

Is now the time to buy UiPath? Access our full analysis of the earnings results 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 expectations.

Appian Total Revenue

Appian pulled off the strongest analyst estimates beat and highest full year guidance raise, but had the slowest revenue growth among its peers. The stock is up 14% since the results and currently trades at $56.20.

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 a decline in gross margin compared to the previous year and full year guidance missing analysts' expectations.

The stock is up 2.48% since the results and currently trades at $47.50.

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

The stock is up 3.59% since the results and currently trades at $34.33.

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

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.

ServiceNow had the weakest performance against analyst estimates among the peers. The company added 93 enterprise customers paying more than $1m annually to a total of 1,359. The stock is up 10% since the results and currently trades at $532.

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

The author has no position in any of the stocks mentioned