VEEV) and the rest of the vertical software inventory

As first-quarter earnings season ends, let’s take a look at the quarter’s best and worst performers in the vertical software industry, including Veeva Systems (NYSE:VEEV) and its competitors.

Software is devouring the world, and while a large number of solutions such as project management software or video conferencing software can be useful in many industries, some have very specific needs. As a result, vertical software that incorporates industry-specific workflows is growing and driven by pressure to improve productivity, whether it’s a life sciences, education or banking company.

16 software companies we monitor reported a slower first quarter; revenues were higher than analyst estimates by an average of 0.9%. while revenue guidance for the next quarter was 2.3% 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 have led to uncertainty about interest rate cuts, and industrial software stocks have held more or less steady through it all, with share prices up an average of 0% compared to previous earnings results.

Veeva Systems (NYSE:VEEV)

Built on Salesforce as one of the first vertically-oriented cloud platforms, Veeva (NYSE:VEEV) provides data and customer relationship management (CRM) software for life sciences organizations.

Veeva Systems reported revenue of $650.3 million, up 23.6% year-over-year, beating analyst expectations by 1.3%. It was a weak quarter for the company as full-year revenue forecasts missed analyst expectations and misrepresented analyst estimates for billing.

Since the earnings release, the company’s stock has dropped 7.8% and is currently trading at $179.02.

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

Best Q1: Toast (NYSE:TOST)

Founded by three MIT engineers in a local Cambridge bar, Toast (NYSE:TOST) provides integrated point-of-sale (POS) hardware, software and payment solutions.

The story continues

Toast reported revenue of $1.08 billion, up 31.3% year-over-year, or 3.3% above analyst expectations. It was a very good quarter for the company, with significant improvement in gross margin and solid growth in analyst estimates.

Toast experienced the fastest revenue growth among its competitors. Since the results were released, the company’s shares are up 1.5% and are currently trading at $24.1.

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

Weakest Quarter 1: ANSYS (NASDAQ:ANSS)

Used to design the Mars Rover, Ansys (NASDAQ:ANSS) offers a software-as-a-service platform that enables simulation for engineering and design.

ANSYS reported revenue of $466.6 million, down 8.4% year-over-year, or 15.9% below analyst expectations. It was a weak quarter for the company, with a decline in gross margin and a lack of analyst estimates of the average value of contracts.

ANSYS achieved the weakest result compared to analyst estimates in the group. Since the results were released, the company’s shares are up 1.2% and are currently trading at $325.13.

Read our full analysis of ANSYS results here.

Procore Technologies (NYSE: PCOR)

Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore Technologies (NYSE: PCOR) offers a software-as-a-service platform for project, financial and quality management for the construction industry.

Procore Technologies reported revenue of $269.4 million, up 26.2% year-over-year, beating analyst expectations by 2.5%. It was a mixed quarter for the company, with analysts missing billing estimates and slowing customer growth.

The company added 231 customers, reaching a total of 16,598 customers. Since the earnings release, the company’s stock has dropped 4.9% and is currently trading at $64.92.

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

Start (NASDAQ:UPST)

Founded by former Google corporate chief Dave Girouard, Upstart ( NASDAQ:UPST ) is an AI-powered lending platform that helps banks better assess the risk of lending money to an individual and provide loans to more customers.

Upstart reported revenue of $127.8 million, up 24.2% year-over-year, beating analyst expectations by 2.4%. It was a slower quarter for the company, with disappointing revenue forecasts for the next quarter and a decline in gross margin.

Since the earnings release, the company’s shares have fallen 8.6% and are currently trading at $22.36.

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

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