As Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the design software stocks, including Unity (NYSE:U) and its peers.
The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.
The 8 design software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.81%, while on average next quarter revenue guidance was 0.08% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but design software stocks held their ground better than others, with share prices down 1.25% since the previous earnings results, on average.
Unity (NYSE:U)
Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE:U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences.
Unity reported revenues of $451 million, up 42.8% year on year, beating analyst expectations by 2.95%. It was a mixed quarter for the company, with accelerating growth in large customers but a full year guidance missing analysts' expectations.
Unity delivered the weakest full year guidance update of the whole group. The company added 265 enterprise customers paying more than $100,000 annually to a total of 1,340. The stock is down 20.3% since the results and currently trades at $30.15.
Is now the time to buy Unity? Access our full analysis of the earnings results here, it's free.
Best Q4: ANSYS (NASDAQ:ANSS)
Used to help design the Mars Rover, Ansys (NASDAQ:ANSS) offers a software-as-a-service platform that enables simulation for engineering and design.
ANSYS reported revenues of $694.1 million, up 5.86% year on year, beating analyst expectations by 6.87%. It was a very strong quarter for the company, with very optimistic guidance for the next quarter and very solid guidance for the next year.
ANSYS achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 20.5% since the results and currently trades at $321.99.
Is now the time to buy ANSYS? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Autodesk (NASDAQ:ADSK)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Autodesk reported revenues of $1.32 billion, up 8.78% year on year, in line with analyst expectations. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.
The stock is down 10.5% since the results and currently trades at $197.85.
Read our full analysis of Autodesk's results here.
Matterport (NASDAQ:MTTR)
Founded in 2011 before any mass market VR headset was released, Matterport (NASDAQ:MTTR) provides the hardware and software necessary to turn real world spaces into 3D visualization.
Matterport reported revenues of $41.1 million, up 51.9% year on year, beating analyst expectations by 3.64%. It was a slower quarter for the company, with revenue guidance for the next quarter and the full year guidance missing analysts' expectations.
Matterport achieved the fastest revenue growth among the peers. The company added 44,000 customers to a total of 701,000. The stock is down 27% since the results and currently trades at $2.56.
Read our full, actionable report on Matterport here, it's free.
Procore Technologies (NYSE:PCOR)
Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore Technologies (NYSE:PCOR) offers a software-as-service project, finance and quality management platform for the construction industry.
Procore Technologies reported revenues of $186.4 million, up 41.2% year on year, beating analyst expectations by 5.94%. It was a strong quarter for the company, with exceptional revenue growth.
The company added 683 customers to a total of 14,086. The stock is up 10.6% since the results and currently trades at $55.5.
Read our full, actionable report on Procore Technologies here, it's free.
The author has no position in any of the stocks mentioned