Looking back on automation software stocks' Q2 earnings, we examine this quarter's best and worst performers, including Jamf (NASDAQ:JAMF) and its peers.
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 allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.
The 6 automation software stocks we track reported a weak Q2; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 1.13% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and automation software stocks have not been spared, with share prices down 10.2% since the previous earnings results, on average.
Jamf (NASDAQ:JAMF)
Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.
Jamf reported revenues of $135.1 million, up 16.8% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.
“Our second quarter of 2023 represents the 13th consecutive quarter where Jamf outperformed expectations,” said Dean Hager, CEO.
The stock is down 9.73% since the results and currently trades at $17.9.
Is now the time to buy Jamf? Access our full analysis of the earnings results here, it's free.
Best Q2: Appian (NASDAQ:APPN)
Founded by Matt Calkins and his three friends out of an apartment in Northern Virginia, Appian (NASDAQ:APPN) sells a software platform that lets its users build applications without using much code, allowing them to create new software more quickly.
Appian reported revenues of $127.7 million, up 16% year on year, beating analyst expectations by 3.15%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but a decline in its gross margin.
Appian achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 6.62% since the results and currently trades at $45.
Is now the time to buy Appian? Access our full analysis of the earnings results here, it's free.
Weakest Q2: Pegasystems (NASDAQ:PEGA)
Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement.
Pegasystems reported revenues of $298.3 million, up 8.72% year on year, missing analyst expectations by 3.98%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and a decline in its gross margin.
Pegasystems had the weakest performance against analyst estimates in the group. The stock is down 22.5% since the results and currently trades at $42.72.
Read our full analysis of Pegasystems's results here.
ServiceNow (NYSE:NOW)
Founded by Fred Luddy who wrote the code for the initial prototype on a single flight from San Francisco to London, ServiceNow (NYSE:NOW) offers software as a service platform that helps companies become more efficient by allowing them to automate workflows across IT, HR and Customer Service.
ServiceNow reported revenues of $2.15 billion, up 22.7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a slight beat on revenue and a beat on non-GAAP operating income. Guidance for Q3 and full year subscription revenue was also ahead. However, cRPO (current remaining performance obligations, a leading indicator of revenue) guidance for next quarter of 21.5% year-on-year growth excluding currency impacts, was slightly below expectations of 22+%. Additionally gross margin declined and missed expectations.
ServiceNow delivered the fastest revenue growth among the peers. The company added 42 enterprise customers paying more than $1m annually to a total of 1,724. The stock is down 3.44% since the results and currently trades at $557.83.
Read our full, actionable report on ServiceNow here, it's free.
Everbridge (NASDAQ:EVBG)
Founded as a reaction to the catastrophic events of 9/11, Everbridge (NASDAQ:EVBG) supplies software that helps governments and businesses keep people and infrastructure safe in emergencies.
Everbridge reported revenues of $110.6 million, up 7.36% year on year, in line with analyst expectations. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations. Additionally, next quarter's revenue guidance missed Wall Street's expectations as well.
Everbridge had the slowest revenue growth and weakest full year guidance update among the peers. The stock is down 23.5% since the results and currently trades at $22.3.
Read our full, actionable report on Everbridge here, it's free.
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The author has no position in any of the stocks mentioned
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