Let’s dig into the relative performance of Appian (NASDAQ:APPN) and its peers as we unravel the now-completed Q4 automation software earnings season.
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 strong Q4; on average, revenues beat analyst consensus estimates by 4.5% while next quarter’s revenue guidance was 1.8% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but automation software stocks held their ground better than others, with the share prices up 8.2% on average since the previous earnings results.
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 $145.3 million, up 15.5% year on year, topping analyst expectations by 3.2%. It was a solid quarter for the company, with a decent beat of analysts’ billings estimates and a significant improvement in its gross margin.
“Appian delivered our plan in 2023 and reached two milestones. Full year revenue exceeded half a billion dollars, and we achieved the highest quarterly gross margin in our public history,” said Matt Calkins, CEO & Founder.
The stock is up 17.2% since the results and currently trades at $39.01.
Is now the time to buy Appian? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $474.2 million, up 19.6% year on year, outperforming analyst expectations by 14.2%. It was an incredible quarter for the company, with an impressive beat of analysts’ billings estimates and a significant improvement in its gross margin.
Pegasystems scored the biggest analyst estimates beat among its peers. The stock is up 27.5% since the results and currently trades at $64.64.
Is now the time to buy Pegasystems? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $150.6 million, up 15.6% year on year, exceeding analyst expectations by 1.4%. It was a weak quarter for the company, with full-year revenue guidance missing analysts’ expectations and underwhelming revenue guidance for the next year.
Jamf had the weakest full-year guidance update in the group. The stock is down 9.8% since the results and currently trades at $17.98.
Read our full analysis of Jamf’s results here.
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 $115.8 million, down 1.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with an impressive beat of analysts’ billings estimates and a narrow beat of analysts’ revenue estimates.
Everbridge has agreed in to be taken private by Thoma Bravo for $28.60 a share in cash ($1.5B in total).
Everbridge had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 22% since the results and currently trades at $34.55.
Read our full, actionable report on Everbridge here, it’s free.
ServiceNow (NYSE:NOW)
Founded by Fred Luddy, who wrote the code for the company’s initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) offers a 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 $2.44 billion, up 25.6% year on year, surpassing analyst expectations by 1.5%. It was an impressive quarter for the company, with a decent beat of analysts’ revenue estimates and accelerating growth in large customers.
The company added 108 enterprise customers paying more than $1m annually to reach a total of 1,897. The stock is down 0.5% since the results and currently trades at $761.35.
Read our full, actionable report on ServiceNow here, it’s free.
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