As Q3 earnings season comes to a close, it’s time to take stock of this quarters’ best and worst performers amongst the vertical software stocks, including Veeva Systems (NYSE:VEEV) and its peers.
Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, there are industries that have very specific needs. Whether it is life-sciences, education or banking, the demand for so called vertical software, addressing industry specific workflows, is growing, fueled by the pressures on improving productivity and quality of offerings.
The 13 vertical software stocks we track reported a solid Q3; on average, revenues beat analyst consensus estimates by 4.23%, while on average next quarter revenue guidance was 3.87% above consensus. Tech stocks have been under pressure since the end of last year and vertical software stocks have not been spared, with share price down 29.8% since earnings, on average.
Veeva Systems (NYSE:VEEV)
Built on top of Salesforce as one of the first vertical-focused cloud platforms, Veeva (NYSE:VEEV) provides data and customer relationship management (CRM) software for organizations in the life sciences industry.
Veeva Systems reported revenues of $476.1 million, up 26.1% year on year, beating analyst expectations by 2.16%. It was a good quarter for the company, with a decent beat of analyst estimates.
"Innovation and consistent execution have us tracking ahead of our 2025 targets and set us up for significant growth beyond," said CEO Peter Gassner.
The stock is down 11.9% since the results and currently trades at $239.70.
Is now the time to buy Veeva Systems? Access our full analysis of the earnings results here, it's free.
Best Q3: Doximity (NYSE:DOCS)
Founded in 2010 and named for a combination of “docs” and “proximity”, Doximity (NYSE: DOCS) is the leading professional network for U.S. medical professionals.
Doximity reported revenues of $79.3 million, up 75.8% year on year, beating analyst expectations by 7.9%. It was a stunning quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.
Doximity pulled off the highest full year guidance raise among its peers. The stock is down 34% since the results and currently trades at $50.44.
Is now the time to buy Doximity? Access our full analysis of the earnings results here, it's free.
Slowest Q3: Adobe (NASDAQ:ADBE)
One of the most well-known Silicon Valley software companies around, Adobe (NASDAQ:ADBE) is a leading provider of software as service in the digital design and document management space.
Adobe reported revenues of $4.11 billion, up 20% year on year, in line with analyst expectations. It was not the strongest quarter for the company, with both full year and next sales quarter guidance missing analysts' expectations.
Adobe had the weakest full year guidance update in the group. The stock is down 15.6% since the results and currently trades at $531.81.
Read our full analysis of Adobe's results here.
nCino (NASDAQ:NCNO)
Founded in 2011 in North Carolina, nCino (NASDAQ:NCNO) makes cloud-based operating systems for banks and provides that software as a service.
nCino reported revenues of $70 million, up 29.1% year on year, beating analyst expectations by 5.12%. It was a solid quarter for the company, with a strong beat of analyst estimates.
The stock is down 14.1% since the results and currently trades at $50.79.
Read our full, actionable report on nCino here, it's free.
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 $286.3 million, up 42.6% year on year, beating analyst expectations by 7.49%. It was a strong quarter for the company, with accelerating growth in large customers.
The company added 85 enterprise customers paying more than $100,000 annually to a total of 973. The stock is down 24.3% since the results and currently trades at $129.64.
Read our full, actionable report on Unity here, it's free.
The author has no position in any of the stocks mentioned