Software Development Stocks Q2 Results: Benchmarking F5 Networks (NASDAQ:FFIV)
Looking back on software development stocks' Q2 earnings, we examine this quarter's best and worst performers, including F5 Networks (NASDAQ:FFIV) and its peers.
As legendary VC investor Marc Andreessen says, "Software is eating the world", and it touches virtually every industry. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.
The 12 software development stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 2.54% while next quarter's revenue guidance was 0.03% above consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, and while some of the software development stocks have fared somewhat better than others, they have not been spared, with share prices declining 6.28% on average since the previous earnings results.
F5 Networks (NASDAQ:FFIV)
Initially started as a hardware appliances company in the late 1990s, F5 Networks (NASDAQ:FFIV) makes software that helps large enterprises ensure their web applications are always available by distributing network traffic and protecting them from cyber attacks.
F5 Networks reported revenues of $702.6 million, up 4.17% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.
F5 Networks delivered the weakest performance against analyst estimates of the whole group. The stock is up 1.84% since the results and currently trades at $152.98.
Read our full report on F5 Networks here, it's free.
Best Q2: GitLab (NASDAQ:GTLB)
Founded as an open-source project in 2011, GitLab (NASDAQ:GTLB) is a leading software development tools platform.
GitLab reported revenues of $139.6 million, up 38.2% year on year, outperforming analyst expectations by 7.55%. It was a strong quarter for the company, with an impressive beat of analysts' revenue estimates and full-year revenue guidance beating analysts' expectations.
GitLab delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 3.17% since the results and currently trades at $48.23.
Is now the time to buy GitLab? Access our full analysis of the earnings results here, it's free.
Weakest Q2: Datadog (NASDAQ:DDOG)
Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) is a software-as-a-service platform that makes it easier to monitor cloud infrastructure and applications.
Datadog reported revenues of $509.5 million, up 25.4% year on year, exceeding analyst expectations by 1.69%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
Datadog had the weakest full-year guidance update in the group. The company added 80 enterprise customers paying more than $100,000 annually to reach a total of 2,990. The stock is down 15.1% since the results and currently trades at $90.31.
Read our full analysis of Datadog's results here.
PagerDuty (NYSE:PD)
Started by three former Amazon engineers, PagerDuty (NYSE:PD) is a software-as-a-service platform that helps companies respond to IT incidents fast and make sure that any downtime is minimized.
PagerDuty reported revenues of $107.6 million, up 19.2% year on year, surpassing analyst expectations by 2.59%. It was a strong quarter for the company, with accelerating customer growth.
The company added 57 customers to reach a total of 15,146. The stock is down 18.4% since the results and currently trades at $21.
Read our full, actionable report on PagerDuty here, it's free.
JFrog (NASDAQ:FROG)
Named after the founders' fondness for frogs, JFrog (NASDAQ:FROG) provides a software-as-a-service platform that makes developing and releasing software easier and faster, especially for large teams.
JFrog reported revenues of $84.2 million, up 24.1% year on year, surpassing analyst expectations by 1.41%. It was a slower quarter for the company, with decelerating growth in large customers and its net revenue retention rate in jeopardy.
The company added 28 enterprise customers paying more than $100,000 annually to reach a total of 813. The stock is down 13.6% since the results and currently trades at $24.5.
Read our full, actionable report on JFrog here, it's free.
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The author has no position in any of the stocks mentioned
