Quarterly results are a good time to check a company’s progress, especially compared to peers in the same sector. Today we look at SoundHound AI (NASDAQ:SOUN) and the best and worst performers in the automation software industry.
The whole purpose 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 has evolved from simple one- or two-step workflows to more complex processes that are integral to enterprises. The result is an increasing demand for modern automation software.
The seven automation software stocks we track reported a very strong second quarter. As a group, revenues exceeded analyst consensus expectations by 8.4%, while revenue expectations for the next quarter were in line.
Fortunately, automation software stocks have done well, with share prices up an average of 23% since the last earnings results.
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. This print exceeded analyst expectations by 31.2%. Overall, it was an incredible quarter for the company, with an impressive rise in analyst expectations and a solid increase in analyst EBITDA estimates.
SoundHound AI achieved the highest earnings estimates from analysts and the fastest revenue growth of the entire group. Unsurprisingly, the stock is up 78.5% since reporting and is currently trading at $19.19.
We think SoundHound AI is a good company, but is it a buy today? Read our full report here, it’s free for active Edge members.
Built on a single code base that processes more than 4 billion workflow transactions every day, ServiceNow (NYSE:NOW) offers a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
ServiceNow reported revenue of $3.22 billion, up 22.4% year over year, and exceeded analyst expectations by 2.9%. The company had an exceptional quarter with an impressive performance of analyst expectations and EBITDA estimates.
Although it has had a good quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.3% since reporting. It is currently trading at $904.50.
Is Now the Time to Buy ServiceNow? See our full analysis of the revenue results here. This is 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, beating analyst expectations by 4.1%. It was a satisfying quarter as it also showed a solid improvement in analyst EBITDA estimates, but a significant miss in analyst billing estimates.
UiPath delivered the weakest full-year outlook update in the group. Interestingly, the stock is up 44.5% since the results and is currently trading at $15.64.
Read our full analysis of UiPath’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 $76.44 billion, up 18.1% year over year. This result exceeded analyst expectations by 3.5%. Overall, it was an exceptional quarter as it also delivered an impressive analyst earnings estimate and a small analyst earnings estimate, while Personal Computing, Intelligent Cloud and Business Services all outperformed.
The stock is flat since reporting and is currently trading at $514.26.
Read our full, actionable report on Microsoft here. It’s 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 $384.5 million, up 9.5% year over year. This figure exceeded analyst expectations by 5.9%. It was a strong quarter as it also saw a solid increase in analyst EBITDA estimates and an impressive increase in analyst revenue estimates.
Pegasystems had the slowest revenue growth among its peers. The stock is up 4.7% since reporting and is currently trading at $53.36.
Read our full, actionable report on Pegasystems 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.
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