As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at vertical software stocks, starting with Manhattan Associates (NASDAQ: MANH).
Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.
The 4 vertical software stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15.2% since the latest earnings results.
Manhattan Associates (NASDAQ: MANH)
Boasting major consumer staples and pharmaceutical companies as clients, Manhattan Associates (NASDAQ: MANH) offers a software-as-service platform that helps customers manage their supply chains.
Manhattan Associates reported revenues of $255.8 million, up 7.4% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a weaker quarter for the company with full-year guidance of slowing revenue growth.
Manhattan Associates delivered the weakest full-year guidance update of the whole group. The stock is down 41.1% since reporting and currently trades at $173.85.
Read our full report on Manhattan Associates here, it’s free.
Best Q4: Guidewire (NYSE: GWRE)
Founded by two individuals involved in the development of leading procurement software Ariba, Guidewire (NYSE: GWRE) offers insurance companies a software-as-a-service platform to help sell their products and manage their workflows.
Guidewire reported revenues of $289.5 million, up 20.2% year on year, outperforming analysts’ expectations by 1.4%. The business had a strong quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
Guidewire delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.7% since reporting. It currently trades at $190.
Is now the time to buy Guidewire? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Bentley (NASDAQ: BSY)
Founded by brothers Keith and Barry Bentley, Bentley Systems (NASDAQ: BSY) offers a software-as-a-service platform that addresses the lifecycle of infrastructure projects such as road networks, tunnel systems, and wastewater facilities.
Bentley reported revenues of $349.8 million, up 12.6% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance slightly missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
Bentley delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.1% since the results and currently trades at $40.15.
Read our full analysis of Bentley’s results here.
Alarm.com (NASDAQ: ALRM)
Founded in 2000 as a business unit within MicroStrategy, Alarm.com (NASDAQ: ALRM) is a software-as-a-service platform that enables users to control their security systems and smart home appliances from a single app.
Alarm.com reported revenues of $242.2 million, up 7.1% year on year. This result beat analysts’ expectations by 1.4%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ billings estimates but full-year guidance of slowing revenue growth.
Alarm.com had the slowest revenue growth among its peers. The stock is down 9.2% since reporting and currently trades at $55.01.
Read our full, actionable report on Alarm.com here, it’s free.
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