Q1 Automation Software Stock Highlights: Appian (NASDAQ:APPN)

Quarterly earnings results are a good time to check in on a company’s progress, especially in comparison to its peers in the same sector. Today, we’ll take a look at Appian (NASDAQ:APPN) and the best and worst performers in the automation software industry.

The goal of software is to automate tasks to increase productivity. Today, new, innovative software techniques, often including artificial intelligence and machine learning, are finally enabling automation, which has moved from simple one- or two-step workflows to more complex processes that are an integral part of businesses. The result is a growing demand for modern automation software.

5 automation software stocks we track had a weak first quarter; on average, revenues were in line with analyst estimates. while revenue forecasts for the next quarter were 4.6% below the consensus. Inflation was trending toward the Fed’s 2% target in late 2023, leading to strong stock performance. It’s been a bumpier start to 2024 as the market has flipped between optimism and pessimism on interest rate cuts amid mixed inflation data, and automation software stocks have had a rough patch, with share prices down an average of 11.1% since previous results financial.

Appian (NASDAQ: APPN)

Founded by Matt Calkins and three friends in an apartment in Northern Virginia, Appian (NASDAQ:APPN) sells a software platform that lets users build apps without using much code, allowing them to build new software faster.

Appian reported revenue of $149.8 million, up 10.8% year-over-year, in line with analyst expectations. It was a weak quarter for the company, with it missing analysts’ earnings estimates and declining gross margin.

“Appian continues to push the technology boundaries in our industry, from AI-powered services to process mining. Organizations around the world are seeing the power and simplicity of the Appian platform,” said Matt Calkins, CEO and founder.

Since the earnings announcement, the company’s shares have fallen 16% and are currently trading at $30.86.

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

Top Q1: Jamf (NASDAQ:JAMF)

Founded in 2002 by Zach Halmstad and Chip Pearson, around the time Apple began dominating the personal computer market, Jamf (NASDAQ:JAMF) provides software for businesses to manage Apple devices such as Macs, iPads, and iPhones.

Jamf reported revenue of $152.1 million, up 15.1% year over year, or 2% ahead of analyst expectations. It was a mixed quarter for the company: Jamf slightly exceeded analyst expectations. On the other hand, billings fell short of analyst expectations, and gross margins declined.

History continues

Jamf achieved the highest analyst estimate and highest full-year guidance upgrade among its peers. Since the earnings release, the company’s stock has dropped 15.8% and is currently trading at $16.61.

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

Weakest Q1: Pegasystems (NASDAQ:PEGA)

Founded in 1983 by Alan Trefler, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform that enables the automation and optimization of customer service and engagement workflows.

Pegasystems reported revenue of $330.1 million, up 1.4% year-over-year and 2.1% below analyst expectations. It was a weak quarter for the company, due to a decline in gross margin and a discrepancy with analyst estimates for settlements.

Pegasystems performed the weakest compared to analysts’ estimates and had the slowest revenue growth in the group. Since the results were released, the company’s shares are up 1.3% and are currently trading at $59.66.

Read our full analysis of Pegasystems’ performance here.

ServiceNow (NYSE:NOW)

Founded by Fred Luddy, who wrote the code for the company’s first prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) offers a software-as-a-service platform that helps companies increase efficiency by enabling them to automate workflows across IT, HR and customer service.

ServiceNow reported revenue of $2.60 billion, up 24.2% year over year, in line with analyst expectations. It was a weak quarter for the company, with growth slowing among large accounts and missing analyst estimates for annualized recurring revenue (ARR).

ServiceNow achieved the fastest revenue growth among its peers. The company added 36 enterprise customers paying more than $1 million annually, bringing the total to 1,933. Shares are up 5.3% since the earnings were released, currently trading at $786.39.

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

UiPath (NYSE:PATH)

UiPath (NYSE:PATH) was founded in 2005 in Romania as a technology outsourcing company that creates software that helps companies automate repetitive computer tasks.

UiPath reported revenue of $335.1 million, up 15.7% year-over-year, in line with analyst expectations. It was a weak quarter for the company, with disappointing revenue forecasts for the next quarter and a decline in gross margin.

UiPath had the weakest full-year forecast update among its competitors. Shares are down 30.3% since the results and are currently trading at $12.74.

Read our full hands-on report on UiPath here, it’s free.

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