2194

Winners And Losers Of Q4: Veeva Systems (NYSE:VEEV) Vs The Rest Of The Vertical Software Stocks


Kayode Omotosho /
2022/03/24 7:55 am EDT
Add to Watchlist

The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Veeva Systems (NYSE:VEEV) and the rest of the vertical software stocks fared in Q4.

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 mixed Q4; on average, revenues beat analyst consensus estimates by 4.65%, while on average next quarter revenue guidance was 0.52% above consensus. The whole tech sector has been facing a sell-off since late last year and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share price declining 14.8% 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 $485.4 million, up 22.3% year on year, beating analyst expectations by 1.06%. It was a slower quarter for the company, with revenue guidance for the next year below analysts' estimates.

"Our strong results in the quarter and the year reflect our continued outstanding execution and expanding position as a trusted partner to the industry," said CFO Brent Bowman.

Veeva Systems Total Revenue

The stock is down 14.6% since the results and currently trades at $197.26.

Is now the time to buy Veeva Systems? Access our full analysis of the earnings results here, it's free.

Best Q4: 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 $97.8 million, up 66.7% year on year, beating analyst expectations by 13.4%. It was an impressive quarter for the company, with a very strong beat of analyst estimates and an exceptional revenue growth.

Doximity Total Revenue

The stock is up 2.3% since the results and currently trades at $50.95.

Is now the time to buy Doximity? Access our full analysis of the earnings results here, it's free.

Weakest Q4: 2U (NASDAQ:TWOU)

Originally named 2tor after the founder's dog Tor, 2U (NASDAQ:TWOU) provides software for universities and colleges to deliver online degree programs and courses.

2U reported revenues of $243.6 million, up 13.1% year on year, in line with analyst expectations. It was a weak quarter for the company, with a decline in gross margin and an underwhelming guidance for the next year.

2U had the weakest full year guidance update in the group. The stock is down 33.2% since the results and currently trades at $11.99.

Read our full analysis of 2U's results here.

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 $1.21 billion, up 16.5% year on year, beating analyst expectations by 1.31%. It was a weaker quarter for the company, with revenue guidance missing analysts' expectations for both the full year and the next quarter.

The stock is down 4.42% since the results and currently trades at $208.46.

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

The author has no position in any of the stocks mentioned