The end of a profit season can be a good time to discover new shares and assess how companies deal with the current business environment. Let’s see how Bentley (Nasdaq: BSY) and the rest of the vertical software shares have challenged it in Q4.
Software eats the world, and although a large number of solutions such as project management or video conference software can be useful for a wide range of industries, some have very specific needs. As a result, vertical software is growing, which focuses on industry -specific workflows, due to the pressure to improve productivity, whether it is a life sciences, education or banking company.
The 4 vertical software shares that we follow reported a slower Q4. As a group, beat the income of the consensus of analysts by 0.9%, while the income guidance of the next quarter was in line.
In the midst of this news, the stock prices of the companies have had a rough piece. On average, they have fallen by 15.7% since the last win results.
Bentley Systems (Nasdaq: BSY), founded by brothers Keith and Barry Bentley, offers a software-as-service platform that tackles the life cycle of infrastructure projects such as road networks, tunnel systems and waste water facilities.
Bentley reported a turnover of $ 349.8 million, an increase of 12.6% year after year. This print was in line with the expectations of analysts, but in general it was a disappointing quarter for the company with the turnover guidance of the entire year somewhat the expectations of analysts and a considerable Miss from the EBITDA estimates of analysts.
CEO Nicholas Cumins said: “Our ARR growth on an annual basis on a constant currency was 12% in 24Q4 (12.5% excluding China). The global demand environment remains robust in various sectors and regions, and our users remain optimistic about final market conditions. This year we are enclosed in accordance with their priorities and well positioned to continue our strong performance in 2025 and then.
Bentley delivered the weakest performance against estimates of analysts of the entire group. The share has fallen by 10.7% since reporting and is currently being traded at $ 40.79.
Read our full report about Bentley here, it’s free.
Guidewire (NYSE: GWRE), founded by two people involved in the development of leading purchasing software Ariba, offers insurance companies a software-as-a-service platform to sell their products and manage their workflows.
Guidewire reported a turnover of $ 289.5 million, an increase of 20.2% year after year, which exceeds the expectations of analysts by 1.4%. The company had a strong quarter with an impressive beat of the estimates of analysts and a solid beat from the EBITDA estimates of analysts.
