As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the automation software industry, 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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 3.2% on average since the latest earnings results.
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 $159.3 million, up 11.7% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.
Jamf pulled off the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 1.3% since reporting and currently trades at $14.79.
Is now the time to buy Jamf? Access our full analysis of the earnings results here, it’s free.
Best Q3: Microsoft (NASDAQ:MSFT)
Short for microcomputer software, Microsoft (NASDAQ:MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services.
Microsoft reported revenues of $65.59 billion, up 16% year on year, outperforming analysts’ expectations by 1.6%. The business had a strong quarter with an impressive beat of analysts’ operating income estimates.
The market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $439.19.
Is now the time to buy Microsoft? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: 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 $325.1 million, down 2.9% year on year, falling short of analysts’ expectations by 0.8%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and billings estimates.
Pegasystems delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 37.1% since the results and currently trades at $95.60.
Read our full analysis of Pegasystems’s results here.
UiPath (NYSE:PATH)
Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks.
UiPath reported revenues of $354.7 million, up 8.8% year on year. This number surpassed analysts’ expectations by 2%. Zooming out, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.
UiPath scored the biggest analyst estimates beat among its peers. The stock is down 12.4% since reporting and currently trades at $13.08.
Read our full, actionable report on UiPath here, it’s free.
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 $154.1 million, up 12.4% year on year. This print beat analysts’ expectations by 1.3%. Aside from that, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
Appian had the weakest full-year guidance update among its peers. The stock is down 13.7% since reporting and currently trades at $35.
Read our full, actionable report on Appian here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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