Automation Software Stock Earnings Review for Q1: Jamf (NASDAQ:JAMF) Shines

The end of earnings season is always a good time to pause and see who shined (and who didn’t). Let’s take a look at how automation software stocks performed in Q1, starting with Jamf (NASDAQ:JAMF).

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

5 automation software stocks we track had a weak first quarter; on average, revenue was in line with analyst estimates, while revenue forecasts for the next quarter were 4.6% below consensus. Inflation was trending toward the Fed’s 2% target at the end of 2023, leading to strong stock market performance. The start of 2024 was bumpier, as the market toggled between optimism and pessimism on interest rate cuts amid mixed inflation data, and automation software stocks had a tough time, with stocks down an average of 10.8% since their previous earnings results.

Top Q1: Jamf (NASDAQ:JAMF)

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

Jamf reported revenue of $152.1 million, up 15.1% year over year and beating analyst expectations by 2%. It was a slower quarter for the company, which missed analyst estimates on billings and saw its gross margin decline.

Jamf delivered the biggest beat on analyst estimates and the biggest full-year estimate hike of the group. Shares are down 13.6% since the results and are currently trading at $17.06.

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

ServiceNow (NYSE:NOW)

Founded by Fred Luddy, who coded 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, adding 36 enterprise customers paying more than $1 million annually, reaching a total of 1,933. Shares are up 5.3% since the results and are currently trading at $785.92.

Is it time to buy ServiceNow? Access our full earnings 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 automates and optimizes customer service and engagement workflows.

Pegasystems reported revenue of $330.1 million, up 1.4% year over year and falling 2.1% short of analyst expectations. It was a weak quarter for the company, which missed analyst estimates on billings.

Pegasystems had the weakest results vs. analyst estimates and the slowest revenue growth of the group. Shares are down 0% since the results and are currently trading at $58.88.

Read our full analysis of Pegasystems’ results here.

Appian (NASDAQ: APPN)

Appian (NASDAQ:APPN), founded by Matt Calkins and three friends in a Northern Virginia apartment, sells a software platform that lets users build apps without writing a lot of code, so they can 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 a billing that fell short of analysts.

The company’s shares have fallen 16.5% since the results were announced and are now trading at $30.65.

Read our full, actionable Appian white paper 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 guidance for the quarter ahead.

UiPath had the weakest full-year guidance update among its peers. Shares are down 29.1% since the results and are currently trading at $12.96.

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

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