Let’s take a look at the relative performance of ANSYS (NASDAQ:ANSS) and its peers as we unravel the now-completed third quarter earnings season for design software.
The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse may still be more of a buzzword than a real thing, the demand for the tools to create these experiences is real. are games, 3D tours or interactive films.
The six design software stocks we track reported a strong third quarter. As a group, revenues exceeded analyst consensus expectations by 4.4%, while revenue expectations for the next quarter were 2.9% below that.
In light of this news, the companies’ stock prices have remained stable. On average, they are relatively unchanged since the last earnings results.
Used to help design the Mars Rover, Ansys (NASDAQ:ANSS) provides a software-as-a-service platform that enables simulation for engineering and design.
ANSYS reported revenues of $601.9 million, up 31.2% year over year. This print exceeded analyst expectations by 14.9%. Overall, it was a stunning quarter for the company, with an impressive showing from analysts’ EBITDA and average contract value estimates.
ANSYS achieved the highest earnings expectations from analysts and the fastest revenue growth of the entire group. Unsurprisingly, the stock is up 3.9% since reporting and is currently trading at $346.20.
Is Now the Time to Buy ANSYS? See our full analysis of earnings results here. It’s free.
With the name chosen to capture the idea of a repeating pattern or rhythm in electronic design, Cadence Design Systems (NASDAQ:CDNS) offers a software-as-a-service platform for semiconductor engineering and design.
Cadence reported revenue of $1.22 billion, up 18.8% year over year, beating analyst expectations by 2.9%. The company had a very strong quarter with an impressive return on analyst expectations and EBITDA estimates.
The market seems pleased with the results, as the stock is up 17.5% since reporting. It is currently trading at $297.
Is Now the Time to Buy Cadence? See our full analysis of earnings results here. It’s free.
Adobe (NASDAQ:ADBE), one of Silicon Valley’s best-known software companies, is a leading provider of software as a service in digital design and document management.
Adobe reported revenue of $5.41 billion, up 10.6% year over year, in line with analyst expectations. It was a mixed quarter as revenue expectations for the next quarter were disappointing.
Adobe had the weakest performance compared to analyst estimates in the group. As expected, the stock has fallen 10.6% since the results and is currently trading at $525.
Read our full analysis of Adobe’s results here.
Founded as a game studio by three friends in an apartment in Copenhagen, 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 revenue of $446.5 million, down 18% year over year. This figure exceeded analyst expectations by 4.3%. Zooming out, it was a satisfying quarter as it also recorded an impressive increase in analyst expectations.
Unity had the slowest revenue growth and the weakest full-year guidance update among its peers. The stock is down 14% since reporting and is currently trading at $19.13.
Read our full, actionable report on Unity here. It’s free.
Used to manage the multi-year expansion of the Panama Canal, which began in 2007, Procore (NYSE:PCOR) provides a software-as-service project, financing and quality management platform for the construction industry.
Procore reported revenue of $295.9 million, up 19.4% year over year. This result exceeded analyst expectations by 2.9%. It was a strong quarter as it also delivered an impressive return on analyst EBITDA estimates and accelerated customer growth.
Procore achieved the highest full-year guidance increase among its peers. The company added 225 customers, reaching a total of 16,975. The stock is up 12.5% since reporting and is currently trading at $70.50.
Read our full, actionable report on Procore here. It’s free.
As expected, the Federal Reserve cut its policy interest rate by 25 basis points (a quarter of a percent) in November 2024, after Donald Trump triumphed in the US presidential elections. This marks the second easing of monetary policy by the central bank, following a major rate cut of 50 basis points two months earlier. Going forward, markets will debate whether these rate cuts (and more potential rate cuts in 2025) are the perfect time to support the economy or a bit too late for a macro that has already cooled too much. Compounding the difficulty is a new Republican administration that could make major changes to corporate taxes and previous efforts like the Inflation Reduction Act.
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