Q4 Earnings Outperformers: HashiCorp (NASDAQ:HCP) And The Rest Of The Software Development Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at HashiCorp (NASDAQ:HCP) and its peers.
As legendary VC investor Marc Andreessen says, “Software is eating the world”, and it touches virtually every industry. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.
The 11 software development stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 3%. while next quarter’s revenue guidance was 0.8% above consensus. Stocks–especially those trading at higher multiples–had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the software development stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.2% on average since the previous earnings results.
HashiCorp (NASDAQ:HCP)
Initially created as a research project at the University of Washington, HashiCorp (NASDAQ:HCP) provides software that helps companies operate their own applications in a multi-cloud environment.
HashiCorp reported revenues of $155.8 million, up 14.7% year on year, topping analyst expectations by 4.3%. It was a mixed quarter for the company, with an impressive beat of analysts’ billings estimates but full-year revenue guidance missing analysts’ expectations.
HashiCorp delivered the weakest full-year guidance update of the whole group. The company added 20 enterprise customers paying more than $100,000 annually to reach a total of 897. The stock is up 9.2% since the results and currently trades at $26.15.
Read our full report on HashiCorp here, it’s free.
Best Q4: Bandwidth (NASDAQ:BAND)
Started in 1999 by David Morken who was later joined by Henry Kaestner as co-founder in 2001, Bandwidth (NASDAQ:BAND) provides thousands of customers with a software platform that uses its own global network to provide phone numbers, voice, and text connectivity.
Bandwidth reported revenues of $165.4 million, up 5.4% year on year, outperforming analyst expectations by 7.4%. It was an exceptional quarter for the company, with a significant improvement in its net revenue retention rate and optimistic revenue guidance for the next quarter.
Bandwidth scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 47.4% since the results and currently trades at $17.94.
Is now the time to buy Bandwidth? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Akamai (NASDAQ:AKAM)
Founded in 1999 by two engineers from MIT, Akamai (NASDAQ:AKAM) provides software for organizations to efficiently deliver web content to their customers.
Akamai reported revenues of $995 million, up 7.2% year on year, falling short of analyst expectations by 0.5%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts’ revenue estimates.
Akamai had the weakest performance against analyst estimates in the group. The stock is down 15.6% since the results and currently trades at $105.63.
Read our full analysis of Akamai’s results here.
JFrog (NASDAQ:FROG)
Named after the founders’ affinity for frogs, JFrog (NASDAQ:FROG) provides a software-as-a-service platform that makes developing and releasing software easier and faster, especially for large teams.
JFrog reported revenues of $97.26 million, up 27.1% year on year, surpassing analyst expectations by 4.7%. It was a solid quarter for the company, with an impressive beat of analysts’ billings estimates and a decent beat of analysts’ revenue estimates.
The company added 38 enterprise customers paying more than $100,000 annually to reach a total of 886. The stock is up 8.4% since the results and currently trades at $40.25.
Read our full, actionable report on JFrog here, it’s free.
Twilio (NYSE:TWLO)
Founded in 2008 by Jeff Lawson, a former engineer at Amazon, Twilio (NYSE:TWLO) is a software as a service platform that makes it really easy for software developers to use text messaging, voice calls and other forms of communication in their apps.
Twilio reported revenues of $1.08 billion, up 5% year on year, surpassing analyst expectations by 3.2%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.
The company lost 1000 customers and ended up with a total of 305,000. The stock is down 15.7% since the results and currently trades at $61.
Read our full, actionable report on Twilio here, it’s free.
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