On average, software companies beat Q2 revenue estimates by 2% and profitability expectations by 5%, RBC analyst Matthew Hedberg said.
Q3 was guided lower for both revenue and profitability while stocks moved on average 2.1% higher the day following earnings.
While his attention shifted quickly to off-quarter software, he came out of the on-quarter cycle feeling okay about the durability of software and, to a greater extent, the ability to protect margins.
Thematically, he saw better-than-expected results from Ad-tech and Design-based software, somewhat expected solid results from Security, while Application software was weaker.
He came out of on-quarter earnings feeling better about trends from Dynatrace, Inc (NYSE: DT), HubSpot, Inc (NYSE: HUBS), Informatica Inc (NYSE: INFA), Microsoft Corp (NASDAQ: MSFT), ServiceNow, Inc (NYSE: NOW), PTC Inc (NASDAQ: PTC), PowerSchool Holdings, Inc (NYSE: PWSC), Xometry, Inc (NASDAQ: XMTR) and ZoomInfo Technologies Inc (NASDAQ: ZI) and have incremental questions about Fastly, Inc (NYSE: FSLY), Olo Inc (NYSE: OLO), Palantir Technologies Inc (NYSE:
Related tickers: PING, NOW, TWLO, OLO, ZI, ALTR, FSLY, ANSS, NET, CHKP, DDOG, INFA, PLTR, MSFT, XMTR, BSY, NABL, DT, PWSC, SWI, FTNT, QLYS, VRNS, PTC, HUBS, RPD.
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