The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the software development stocks have fared in Q2, starting with Twilio (NYSE:TWLO).
Software is eating the world, as Marc Andreessen says, and there is virtually no industry left that has been untouched by it. That in turn drives increasing demand for tools that help software developers do their jobs, whether it is monitoring critical cloud infrastructure, integrating audio and video functionality or ensuring smooth streaming of content.
The 14 software development stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 3.49%, while on average next quarter revenue guidance was 0.45% above consensus. The technology sell-off has been putting pressure on stocks since November, but software development stocks held their ground better than others, with share price down 4.18% since earnings, on average.
Founded in 2008 by Jeff Lawson, a former engineer at Amazon, Twilio (NYSE:TWLO) is a software as a service platform that makes it really easy for software developers to use text messaging, voice calls and other forms of communication in their apps.
Twilio reported revenues of $943.3 million, up 41% year on year, beating analyst expectations by 2.43%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and decelerating customer growth.
“We closed a strong second quarter, delivering $943 million in revenue and 41% year-over-year growth, while also signing our largest Flex deal ever,” said Jeff Lawson, Twilio’s co-founder and CEO.
The stock is down 27.9% since the results and currently trades at $70.80.
Best Q2: HashiCorp (NASDAQ:HCP)
Initially created as a research project at the University of Washington, HashiCorp (NASDAQ:HCP) provides software that helps companies operate their own applications in a multi-cloud environment.
HashiCorp reported revenues of $113.8 million, up 51.5% year on year, beating analyst expectations by 11.2%. It was a stunning quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.
HashiCorp achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The company added 30 enterprise customers paying more than $100,000 annually to a total of 734. The stock is up 3.37% since the results and currently trades at $31.27.
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Slowest Q2: Dynatrace (NYSE:DT)
Founded in Austria in 2005, Dynatrace (NYSE:DT) provides companies with software that allows them to monitor the performance of their full technology stack, from software applications to the infrastructure they run on.
Dynatrace reported revenues of $267.2 million, up 27.4% year on year, beating analyst expectations by 2.07%. It was a weak quarter for the company, with guidance for both the next quarter and full year missing analysts' expectations.
Dynatrace had the weakest full year guidance update in the group. The stock is up 2.21% since the results and currently trades at $39.16.
Founded as an open-source project in 2011, GitLab (NASDAQ:GTLB) is a leading software development tools platform.
GitLab reported revenues of $101 million, up 73.8% year on year, beating analyst expectations by 6.99%. Despite the stock dropping on the results, it was a very strong quarter for the company, with exceptional revenue growth and guidance for the next quarter above analysts' estimates.
The stock is up 22.9% since the results and currently trades at $58.53.
Sumo Logic (NASDAQ:SUMO)
Founded in 2010 by Christian Beegden who went from driving a cab in Germany to landing an internship at Amazon, Sumo Logic (NASDAQ:SUMO) is software as a service data analytics platform that helps companies get insight into what is happening in their servers and applications.
Sumo Logic reported revenues of $74.1 million, up 25.9% year on year, beating analyst expectations by 3.57%. It was a strong quarter for the company, with a decent beat of analyst estimates and guidance for the next quarter above analysts' expectations.
The stock is up 1.06% since the results and currently trades at $8.54.
The author has no position in any of the stocks mentioned