Looking back at productivity software stocks’ fourth-quarter earnings, we examine the best and worst performers this quarter, including DocuSign ( NASDAQ:DOCU ) and its competitors.
Rising employee costs and the shift to remote work have increased the ever-present pressure to improve corporate productivity, which in turn has fueled increasing demand for productivity software that enables remote work, simplifies project management, and automates business tasks.
The 17 productivity software stocks we track reported a mixed Q4; on average, revenue beat analyst consensus estimates by 2.3%, while revenue guidance for the next quarter was 0.9% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-term gains less valuable, but productivity software stocks have held up better than others, with share prices down an average of 3.5% from previous earnings results.
DocuSign (NASDAQ:DOCU)
Founded by Seattle entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is an e-signature pioneer and offers software-as-a-service that enables people and organizations to electronically sign legally binding documents.
DocuSign reported revenue of $712.4 million, up 8% year-over-year, beating analysts’ expectations by 1.9%. It was a strong quarter for the company, with impressive free cash flow. Guidance was also good, and the revenue projection for the next quarter exceeded expectations.
“DocuSign ended fiscal 2024 with momentum in product innovation, customer growth and financial results, including more than doubling free cash flow year over year,” said Allan Thygesen, CEO of DocuSign.
The stock is up 11.3% since the results and is currently trading at $59.64.
Is now the time to buy DocuSign? Access our full earnings performance analysis here, it’s free.
Best Q4: Pegasystems (NASDAQ:PEGA)
Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize customer service and engagement workflows.
Pegasystems reported revenue of $474.2 million, up 19.6% year-over-year, beating analysts’ expectations by 14.2%. It was an incredible quarter for the company, impressively beating analysts’ charge estimates and significantly improving its gross margin.
Pegasystems achieved the highest number of analyst estimates among its competitors. The stock is up 23.5% since the results and is currently trading at $62.65.
Is now the time to buy Pegasystems? Access our full earnings performance analysis here, it’s free.
Weakest Q4: 8×8 (NASDAQ:EGHT)
Founded in 1987, 8×8 (NYSE:EGHT) provides software for organizations to effectively communicate and collaborate with their customers, employees and partners.
8×8 reported revenue of $181 million, down 1.8% year-over-year, missing analysts’ expectations of 1.3%. It was a weak quarter for the company, and revenue guidance for the next quarter fell short of analysts’ expectations.
8×8 had the weakest performance compared to analysts’ estimates and the slowest revenue growth in the group. The stock is down 23.1% since the results and is currently trading at $2.59.
Read our full analysis of the 8×8 results here.
Box (NYSE:BOX)
Founded in 2005 by Aaron Levie 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 $262.9 million, up 2.5% year over year, in line with analyst expectations. It was a decent quarter for the company, with a small increase in revenue and a more convincing EPS improvement. The guidance was relatively in line with expectations, showing that the company remains on track and represents a market without major surprises.
The stock is up 3.4% since the results and is currently trading at $28.16.
Read our full, actionable report on Box here, it’s free.
Everbridge (NASDAQ:EVBG)
Founded in response to the catastrophic events of 9/11, Everbridge (NASDAQ:EVBG) delivers software that helps governments and businesses protect people and infrastructure in emergencies.
Everbridge reported revenue of $115.8 million, down 1.2% year over year, in line with analyst expectations. It was a very good quarter for the company, impressively beating analysts’ billings estimates and narrowly beating analysts’ revenue estimates.
Everbridge has agreed to be taken private by Thoma Bravo for $28.60 per share in cash ($1.5 billion in total).
The stock is up 22.9% since the results and is currently trading at $34.82.
Read our full report on Everbridge here, it’s free.
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