Automation Software Stocks Q2 Highlights: UiPath (NYSE:PATH)

Automation Software Stocks Q2 Highlights: UiPath (NYSE:PATH)
PATHSOUNPEGANOW

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at UiPathPATHand the best and worst performers in the automation software industry

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 Q2. As a group, revenues beat analysts’ consensus estimates by 4.8% while next quarter’s revenue guidance was 2% above

Luckily, automation software stocks have performed well with share prices up 12.3% on average since the latest earnings results

UiPathPATH

Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPathPATHprovides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes

UiPath reported revenues of $410.3 million, up 13.4% year on year. This print exceeded analysts’ expectations by 3.1%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ billings estimates

UiPath delivered the weakest guidance update and weakest full-year guidance update among its peers. The market seems disappointed with the results as the stock is down 30.7% since reporting and currently trades at $12.64

Best Q2: SoundHound AISOUN

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AISOUNdevelops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services

SoundHound AI reported revenues of $61.9 million, up 45% year on year, outperforming analysts’ expectations by 18.1%. The business had an incredible quarter with an impressive beat of analysts’ billings estimates

SoundHound AI achieved the biggest analyst estimate beat and fastest revenue growth of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.4% since reporting. It currently trades at $6.09

Weakest Q2: PegasystemsPEGA

With a “Center-out Business Architecture” approach that transcends organizational silos, PegasystemsPEGAdevelops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes

Pegasystems reported revenues of $420.7 million, up 9.4% year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted a significant miss of analysts’ billings estimates

Pegasystems delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 12.8% since the results and currently trades at $34.90

ServiceNowNOW

Built on a single code base that processes more than 80 billion workflows and 6.5 trillion transactions annually, ServiceNowNOWprovides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security

ServiceNow reported revenues of $3.99 billion, up 24% year on year. This number surpassed analysts’ expectations by 1.6%. It was a very strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ annual recurring revenue estimates

The stock is up 44.4% since reporting and currently trades at $137.85

Read our full, actionable report on ServiceNow here, it’s free

Microsoft
MSFT

Originally named “Micro-soft” for microcomputer software when founded in 1975, MicrosoftMSFTis a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide

Microsoft reported revenues of $90.01 billion, up 17.7% year on year. This result beat analysts’ expectations by 2.6%. It was an exceptional quarter as it also recorded a solid beat of analysts’ EPS estimates

The stock is up 26.9% since reporting and currently trades at $495.72

Read our full, actionable report on Microsoft here, it’s free

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