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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 Procore (NYSE:PCOR) and the rest of the design software stocks fared in Q4.
The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.
The 6 design software stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.9% 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 6.8% since the latest earnings results.
Procore (NYSE:PCOR)
Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry.
Procore reported revenues of $302 million, up 16.2% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA estimates.
Procore achieved the highest full-year guidance raise of the whole group. The company added 113 customers to reach a total of 17,088. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $74.68.
Is now the time to buy Procore? Access our full analysis of the earnings results here, it’s free.
Best Q4: Autodesk (NASDAQ:ADSK)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Autodesk reported revenues of $1.64 billion, up 11.6% year on year, in line with analysts’ expectations. The business had a very strong quarter with full-year guidance of accelerating revenue growth and an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.3% since reporting. It currently trades at $267.43.
Is now the time to buy Autodesk? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: PTC (NASDAQ:PTC)
Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC’s (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing.