Spotting Winners: Veeva Systems (NYSE:VEEV) And Vertical Software Stocks In Q3

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at vertical software stocks, starting with Veeva Systems (NYSE:VEEV).

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, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.

The 14 vertical software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was in line.

While some vertical software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results.

Veeva Systems (NYSE:VEEV)

Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE:VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.

Veeva Systems reported revenues of $811.2 million, up 16% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a strong quarter for the company with full-year EPS guidance beating analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

The stock is down 11.2% since reporting and currently trades at $240.50.

We think Veeva Systems is a good business, but is it a buy today? Read our full report here, it’s free.

Best Q3: nCino (NASDAQ:NCNO)

Born from the internal technology needs of a community bank in 2011, nCino (NASDAQ:NCNO) provides cloud-based software that helps financial institutions streamline client onboarding, loan origination, and account opening processes.

nCino reported revenues of $152.2 million, up 9.6% year on year, outperforming analysts’ expectations by 3.3%. The business had an exceptional quarter with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $25.59.

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

Weakest Q3: Upstart (NASDAQ:UPST)

Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ:UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.

Upstart reported revenues of $277.1 million, up 70.9% year on year, falling short of analysts’ expectations by 1.3%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ transaction volume estimates.

Upstart delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 5.8% since the results and currently trades at $49.32.

Read our full analysis of Upstart’s results here.

Agilysys (NASDAQ:AGYS)

With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys (NASDAQ:AGYS) develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.

Agilysys reported revenues of $79.3 million, up 16.1% year on year. This print beat analysts’ expectations by 3.1%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance topping analysts’ expectations.

The stock is up 1.7% since reporting and currently trades at $117.11.

Read our full, actionable report on Agilysys here, it’s free.

Autodesk (NASDAQ:ADSK)

Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ:ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.

Autodesk reported revenues of $1.85 billion, up 18% year on year. This number surpassed analysts’ expectations by 2.4%. It was a very strong quarter as it also logged full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

The stock is down 6% since reporting and currently trades at $276.75.

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

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