Q1 Summary: Box (NYSE:BOX) vs. Other Productivity Software Companies

Let’s take a look at the relative performance of Box (NYSE:BOX) and its peers as we explore the first-quarter productivity software earnings season that just ended.

Rising employee costs and the shift to more remote work have increased the pervasive pressure to improve enterprise productivity, which in turn is driving the growing demand for productivity software that enables remote work, streamlines project management and automates business tasks.

16 productivity software companies we track reported a slower first quarter; revenues were higher than analyst estimates by an average of 1.5%. while revenue guidance for the next quarter was 1.1% below consensus. Stocks – especially those trading at higher multiples – had a strong end to 2023, but 2024 saw periods of volatility. Mixed signals on inflation led to uncertainty over interest rate cuts, and while some productivity software companies performed slightly better than others, they fell overall, with share prices down an average of 4.8% compared to previous performance profits.

Box (NYSE:BOX)

Founded in 2005 by Aaron Levi and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate on work documents in the cloud.

Box reported revenue of $264.7 million, up 5.1% year-over-year, beating analyst expectations by 1%. It was a weak quarter for the company as analyst estimates for the earnings were not reported and full-year revenue forecasts fell short of analyst expectations.

“With the power of artificial intelligence, the role of unstructured data in the enterprise has exploded, and Box Intelligent Content Cloud is perfectly positioned to help companies realize the full value of their content,” said Aaron Levie, co-founder and CEO of Box.

Since the results were released, the company’s shares are up 5.4% and are currently trading at $26.4.

Read our full report on Box here, it’s free.

Top Q1: Atlassian (NASDAQ:TEAM)

Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ:TEAM) provides software as a service that helps large teams of developers manage projects, particularly in software development.

Atlassian reported revenue of $1.19 billion, up 29.9% year-over-year, which beat analyst expectations by 8.1%. It was a very good quarter for the company, with impressive analyst estimates and strong sales forecasts for the next quarter.

Atlassian was the highest in analyst estimates among its peers. Since the results were released, the company’s shares have fallen 18.4% and are currently trading at $162.

Is now the time to buy Atlassian? Access our full earnings performance analysis here, it’s free.

Weakest Quarter 1: Pegasystems (NASDAQ:PEGA)

Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform for automating and optimizing customer service and engagement workflows.

Pegasystems reported revenue of $330.1 million, up 1.4% year-over-year, or 2.1% below analyst expectations. It was a weak quarter for the company, with a decline in gross margin and a lack of analyst estimates on its billings.

The worst performance in the Pegasystems group compared to analyst estimates. Since the results were released, the company’s shares have fallen 0.5% and are currently trading at $58.56.

Read our full analysis of Pegasystems’ performance here.

DocuSign (NASDAQ:DOCU)

Founded by Seattle entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is a pioneer of electronic signatures and offers software as a service that enables individuals and organizations to sign legally binding documents electronically.

DocuSign reported revenue of $709.6 million, up 7.3% year over year, in line with analyst expectations. It was a good quarter for the company, with a solid increase in analyst estimates but a decline in gross margin.

Since the results were released, the company’s shares have fallen 6.5% and are currently trading at $51.08.

Read our full hands-on report on DocuSign here – it’s free.

Smart Sheet (NYSE:SMAR)

Founded in 2005, Smartsheet (NYSE:SMAR) is a software-as-a-service platform that helps companies plan, manage and report on work.

Smartsheet reported revenue of $263 million, up 19.6% year-over-year, beating analyst expectations by 1.9%. It was a slower quarter for the company, with slowing growth for large accounts and a lack of analyst estimates for billing.

The company added 159 enterprise customers paying more than $5,000 annually, bringing its total to 19,977 customers. Since the results were released, the company’s shares are up 15.8% and are currently trading at $43.73.

Read our full hands-on report on Smartsheet here. It is free of charge.

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