Productivity Software Stocks Third Quarter Highlights: Dropbox (NASDAQ:DBX)

The end of earnings season is always a good time to take a step back and look at who’s excelling (and who’s not so good). Let’s take a look at how productivity software stocks fared in the third quarter, starting with Dropbox (NASDAQ:DBX).

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 third quarter. As a group, revenues exceeded analyst consensus expectations by 2.6%, while revenue expectations for the next quarter were in line.

Amid this news, companies’ stock prices have gone through a rough patch. On average, they are down 5.5% since the last earnings results.

Originally named for its founders’ penchant for “dropping” files into a shared folder, Dropbox (NASDAQ:DBX) offers a content collaboration platform that lets individuals and teams store, organize, share and work on files anywhere.

Dropbox reported revenue of $634.4 million, flat year-over-year. This print exceeded analyst expectations by 1.7%. Despite the revenue growth, it was still a mixed quarter for the company, with solid improvement in analyst EBITDA estimates but slowing customer growth.

Dropbox total revenue

Dropbox achieved the slowest revenue growth of the entire group. The company lost 60,000 customers and ended up with a total of 18.07 million. Unsurprisingly, the stock is down 6.1% since reporting and is currently trading at $26.94.

Is Now the Time to Buy Dropbox? See our full analysis of the revenue results here. This is free for active Edge members.

With a Center-out Business Architecture approach that transcends organizational silos, Pegasystems (NASDAQ:PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Pegasystems reported revenue of $381.4 million, up 17.3% year over year, beating analyst expectations by 8.5%. The company had a stunning quarter with an impressive rise in analyst expectations and a solid increase in analyst EBITDA estimates.

Pegasystems achieved the highest analyst profit forecast among its peers. However, the results were likely priced into the stock as it has been trading sideways since reporting. Shares are currently trading at $57.09.

Is Now the Time to Buy Pegasystems? 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 $42.05 million, up 67.6% year over year, beating analyst expectations by 2.7%. Still, it was a weaker quarter as analysts’ EBITDA and billing estimates were significantly missed.

As expected, the stock has fallen 26.1% since the results and is currently trading at $10.61.

Read our full analysis of SoundHound AI’s results here.

Microsoft (NASDAQ:MSFT), originally called “Micro-soft” for microcomputer software, is a global technology company that develops software, cloud services, devices and AI solutions for consumers, businesses and organizations around the world when it was founded in 1975.

Microsoft reported revenue of $77.67 billion, up 18.4% year over year. This print exceeded analyst expectations by 2.9%. It was a very strong quarter as it also delivered a narrow analyst earnings estimate, as Intelligent Cloud and Business Services gains trumped the Personal Computing miss and a solid analyst earnings estimate.

The stock is down 13% since reporting and is currently trading at $473.29.

Read our full, actionable report on Microsoft here. It’s free for active Edge members.

Born from founders’ frustration with the inefficiencies of email-based collaboration on Facebook, Asana (NYSE:ASAN) offers a work management platform that allows organizations to track projects, set goals and manage workflows in a centralized digital workspace.

Asana reported revenue of $201 million, up 9.3% year over year. This figure exceeded analyst expectations by 1.1%. Overall, it was a strong quarter, as earnings estimates for the next quarter exceeded analysts’ expectations and solidly exceeded analysts’ EBITDA estimates.

The company added 407 business customers paying more than $5,000 annually, bringing the total to 25,413. The stock is down 3.5% since reporting and is currently trading at $12.97.

Read our full, actionable report on Asana here. It’s free for active Edge members.

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