The end of earnings season is always a good time to take a step back and look at who shone (and who didn’t so much). Let’s take a look at how automation software stocks performed in Q1, starting with Jamf (NASDAQ:JAMF).
The whole point of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally enabling automation that is graduated from simple one- or two-step workflows to more complex processes that are an integral part of enterprises. The result is a growing demand for modern automation software.
The 5 automation software stocks we track reported a weak first quarter, with earnings on average in line with analysts’ consensus estimates, while revenue forecasts for the next quarter were 4.6% below consensus. Inflation rose to the Fed’s target of 2% by the end of 2023, leading to strong stock market performances. The start of 2024 has been a bumpy ride as the market alternates between optimism and pessimism around rate cuts amid mixed inflation numbers, and automation software stocks have had a rough patch, with share prices down an average of 10.8% since last earnings.
Best Q1: Jamf (NASDAQ:JAMF)
Jamf (NASDAQ:JAMF) was founded in 2002 by Zach Halmstad and Chip Pearson, just as Apple was beginning to dominate the personal computer market. The company provides software that helps businesses manage Apple devices such as Macs, iPads and iPhones.
Jamf reported revenue of $152.1 million, up 15.1% year over year, beating analysts’ expectations by 2%. It was a slower quarter for the company, with a miss on analysts’ billings estimates and a decline in gross margin.
Jamf topped analyst estimates and received the largest full-year guidance increase of the group. The stock has fallen 13.6% since the results, currently trading at $17.06.
Read our full report on Jamf here, it’s free.
ServiceNow (NYSE:NOW)
ServiceNow (NYSE:NOW) was founded by Fred Luddy, who wrote the code for the company’s first prototype on a flight from San Francisco to London. The company offers a software-as-a-service platform that enables companies to become more efficient by automating workflows across IT, HR and customer service.
ServiceNow reported revenue of $2.60 billion, up 24.2% year-over-year, in line with analyst expectations. It was a weak quarter for the company, with slowing growth in large customers and a miss on analysts’ ARR (annual recurring revenue) estimates.
ServiceNow achieved the fastest revenue growth among its peers, adding 36 enterprise customers paying more than $1 million annually, for a total of 1,933. The stock has risen 5.3% since the results and is currently trading at $785.92.
Is now the time to buy ServiceNow? Check out our full analysis of the earnings results here, it’s free.
Weakest Q1: Pegasystems (NASDAQ:PEGA)
Founded in 1983 by Alan Trefler, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows across customer service and engagement.
Pegasystems reported revenue of $330.1 million, up 1.4% year over year, which was 2.1% below analysts’ expectations. It was a weak quarter for the company, with a miss on analysts’ billings estimates.
Pegasystems had the weakest performance compared to analyst estimates and the slowest revenue growth in the group. The stock is down 0% since the results, currently trading at $58.88.
Read our full analysis of Pegasystems’ results here.
Appian (NASDAQ:APPN)
Appian (NASDAQ:APPN) was founded by Matt Calkins and three friends out of an apartment in Northern Virginia. The company sells a software platform that lets users build applications without using a lot of code, allowing them to create new software faster.
Appian reported revenue of $149.8 million, up 10.8% year over year, in line with analyst expectations. It was a weak quarter for the company, with a miss on analysts’ billings estimates.
The stock has fallen 16.5% since the results, currently trading at $30.65.
Read our full, actionable report on Appian here. It’s free.
UiPath (NYSE:PATH)
UiPath (NYSE:PATH) was founded in 2005 in Romania as a technology outsourcing company. The company makes software that enables businesses to automate repetitive computer tasks.
UiPath reported revenue of $335.1 million, up 15.7% year over year, in line with analyst expectations. It was a weak quarter for the company, with disappointing revenue forecasts for the next quarter.
UiPath had the weakest full-year guidance update among its peers. The stock has fallen 29.1% since the results, currently trading at $12.96.
Read our full, actionable report on UiPath here. It’s free.
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