Spotting Winners: Box (NYSE:BOX) And Productivity Software Stocks In Q3
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Box (NYSE:BOX), and the best and worst performers in the productivity software group.
Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.
The 17 productivity software stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 2.1% while next quarter's revenue guidance was 0.6% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but productivity software stocks held their ground better than others, with the share prices up 18.2% on average since the previous earnings results.
Weakest Q3: Box (NYSE:BOX)
Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud.
Box reported revenues of $261.5 million, up 4.6% year on year, falling short of analyst expectations by 0.2%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.
Box delivered the weakest performance against analyst estimates of the whole group. The stock is down 2% since the results and currently trades at $26.15.
Read our full report on Box here, it's free.
Best 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 $334.6 million, up 23.6% year on year, outperforming analyst expectations by 12.8%. It was an incredible quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' revenue estimates.
Pegasystems delivered the biggest analyst estimates beat among its peers. The stock is up 24.8% since the results and currently trades at $47.45.
Is now the time to buy Pegasystems? Access our full analysis of the earnings results here, it's free.
8x8 (NASDAQ:EGHT)
Founded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.
8x8 reported revenues of $185 million, down 1.3% 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 a decline in its gross margin.
8x8 had the slowest revenue growth in the group. The stock is up 52% since the results and currently trades at $3.48.
Read our full analysis of 8x8's results here.
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 $137.1 million, up 16.3% year on year, surpassing analyst expectations by 1.3%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.
The stock is down 22.9% since the results and currently trades at $32.15.
Read our full, actionable report on Appian 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 $114.2 million, up 2.5% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and full-year revenue guidance missing analysts' expectations.
Everbridge had the weakest full-year guidance update among its peers. The company added 32 customers to reach a total of 405. The stock is up 8.8% since the results and currently trades at $21.95.
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
