As Q2 earnings season comes to a close, let’s take a look at this quarter’s best and worst performers in the productivity software industry, including Atlassian (NASDAQ:TEAM) and its peers.
Rising workforce costs and the shift to more remote work have increased the ever-present pressure to improve business productivity, which in turn has driven rising demand for productivity software that enables remote work, streamlines project management and automates business tasks.
The seventeen productivity software stocks we track reported a strong second quarter. As a group, revenues exceeded analyst consensus expectations by 4.6%, while revenue expectations for the next quarter were in line.
Fortunately, productivity software stocks have done well, with share prices up an average of 12.1% since the last earnings results.
Founded by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ:TEAM) provides software tools that help teams within organizations plan, track, collaborate and share knowledge.
Atlassian reported revenue of $1.38 billion, up 22.3% year over year. This print exceeded analyst expectations by 2.1%. Despite the revenue growth, it was still a mixed quarter for the company, with a solid gain in analyst EBITDA estimates, but revenue expectations for the next quarter lagging slightly behind analyst expectations.
“We ended FY25 with more than $5.2 billion in revenue, generated more than $1.4 billion in free cash flow and reached 2.3 million monthly AI active users,” said Mike Cannon-Brookes, CEO and co-founder of Atlassian.
Total revenue of Atlassian
Unsurprisingly, the stock is down 6.6% since reporting and is currently trading at $159.25.
Is Now the Time to Buy Atlassian? See our full analysis of the revenue results here. This is free for active Edge members.
Born from the idea that machines should understand human speech as naturally as humans, SoundHound AI (NASDAQ:SOUN) develops speech recognition and conversational intelligence technology that allows companies to integrate voice assistants into their products and services.
SoundHound AI reported revenue of $42.68 million, up 217% year over year, and exceeded analyst expectations by 31.2%. The company had an incredible quarter with an impressive rise in analyst expectations and a solid increase in analyst EBITDA estimates.
SoundHound AI Total revenue
SoundHound AI scored the highest earnings forecast among analysts and the fastest revenue growth among its peers. The market seems pleased with the results, as the stock is up 67.2% since reporting. It is currently trading at $17.97.
Is Now the Time to Buy SoundHound AI? See our full analysis of the revenue results here. This is free for active Edge members.
Named after its founding year (1987), with “8×8” representing the binary code for communications, 8×8 (NASDAQ:EGHT) offers cloud-based contact center and unified communications solutions that allow companies to manage customer interactions and internal communications through a single platform.
8×8 reported revenue of $181.4 million, up 1.8% year over year, beating analyst expectations by 2.2%. Still, it was a slower quarter as revenue expectations for the next quarter fell slightly short of analyst expectations and analysts’ EBITDA estimates were significantly missed.
As expected, the stock has fallen 3.4% since the results and is currently trading at $1.86.
Read our full analysis of 8×8 results here.
Box (NYSE:BOX), known as the “Content Cloud” for managing the 90% of enterprise data that exists as unstructured files and documents, provides a cloud-based platform that allows organizations to securely manage, share and collaborate on their content from anywhere on any device.
Box reported revenue of $294 million, up 8.9% year over year. This figure exceeded analyst expectations by 1.1%. Let’s take a step back: It was a mixed quarter, as it also delivered a decent profit versus analyst expectations, but earnings estimates for the next quarter fell slightly short of analyst expectations.
Box had the weakest full-year guidance update among its peers. The stock is up 1.6% since reporting and is currently trading at $31.67.
Read our full, actionable report on Box here. It’s free for active Edge members.
Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath (NYSE:PATH) offers an AI-powered business automation platform that allows organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.
UiPath reported revenue of $361.7 million, up 14.4% year over year. This result exceeded analyst expectations by 4.1%. More broadly, it was a satisfying quarter, as it also posted an impressive increase in analyst EBITDA estimates, but a significant miss in analyst billing estimates.
The stock is up 48.2% since reporting and is currently trading at $16.03.
Read our full, actionable report on UiPath here, it’s free for active Edge members.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has fallen from its frothy post-pandemic levels. Overall price growth for goods and services has been trending toward the Fed’s 2% target lately, which is good news. The higher interest rates that combated inflation also did not slow economic activity enough to catalyze a recession. A soft landing so far. This, combined with recent interest rate cuts (half a percent in September 2024 and a quarter of a percent in November 2024) has led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the US presidential election in early November, sending major indices to record highs in the week after the election. Still, debates remain about the health of the economy and the impact of potential rate cuts and corporate tax cuts, leaving a lot of uncertainty around 2025.
Do you want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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