The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Dropbox (NASDAQ:DBX) and the rest of the productivity software stocks fared in Q4.
Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.
The 17 productivity software stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.3% 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 12.4% since the latest earnings results.
Dropbox (NASDAQ:DBX)
Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox (NASDAQ:DBX) provides a file hosting cloud platform that helps organizations collaborate and share documents.
Dropbox reported revenues of $643.6 million, up 1.4% year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a slower quarter for the company with decelerating customer growth and a miss of analysts’ billings estimates.
“We delivered solid results in 2024 and made a lot of progress bringing our AI-powered product, Dash for Business, to market and restructuring our core business to be even more efficient,” said Dropbox Co-Founder and Chief Executive Officer Drew Houston.
The stock is down 15.5% since reporting and currently trades at $26.94.
Read our full report on Dropbox here, it’s free.
Best Q4: SoundHound AI (NASDAQ:SOUN)
Founded in 2005, SoundHound AI (NASDAQ:SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers.
SoundHound AI reported revenues of $34.54 million, up 101% year on year, outperforming analysts’ expectations by 2.3%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.
SoundHound AI achieved the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4% since reporting. It currently trades at $8.84.
Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 around work documents in the cloud.
Box reported revenues of $279.5 million, up 6.3% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 5.4% since the results and currently trades at $31.70.
Read our full analysis of Box’s results here.
Monday.com (NASDAQ:MNDY)
Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.
Monday.com reported revenues of $268 million, up 32.3% year on year. This print surpassed analysts’ expectations by 2.5%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a significant improvement in its net revenue retention rate.
The company added 294 enterprise customers paying more than $50,000 annually to reach a total of 3,201. The stock is down 2% since reporting and currently trades at $253.50.
Read our full, actionable report on Monday.com here, it’s free.
UiPath (NYSE:PATH)
Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks.
UiPath reported revenues of $423.6 million, up 4.5% year on year. This number was in line with analysts’ expectations. However, it was a slower quarter as it produced a significant miss of analysts’ billings estimates and full-year guidance of slowing revenue growth.
UiPath had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 9.1% since reporting and currently trades at $10.79.
Read our full, actionable report on UiPath here, it’s free.
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