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 Veeva Systems (NYSE:VEEV) and the rest of the vertical software stocks fared in Q2.
Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.
The 14 vertical software stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.9% on average since the latest earnings results.
Veeva Systems (NYSE:VEEV)
Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE:VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.
Veeva Systems reported revenues of $789.1 million, up 16.7% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a satisfactory quarter for the company with EPS guidance for next quarter beating analysts’ expectations but a miss of analysts’ billings estimates.
Unsurprisingly, the stock is down 3.8% since reporting and currently trades at $283.
Is now the time to buy Veeva Systems? Access our full analysis of the earnings results here, it’s free.
Best Q2: Olo (NYSE:OLO)
Processing over two million orders daily across 80,000 restaurant locations nationwide, Olo (NYSE:OLO) provides an enterprise-grade SaaS platform that powers digital ordering, delivery, and payment systems for restaurant brands across the United States.
Olo reported revenues of $85.72 million, up 21.6% year on year, outperforming analysts’ expectations by 4.2%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $10.28.
Is now the time to buy Olo? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Agilysys (NASDAQ:AGYS)
With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys (NASDAQ:AGYS) develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.
Agilysys reported revenues of $76.68 million, up 20.7% year on year, exceeding analysts’ expectations by 3.1%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.
Agilysys delivered the weakest full-year guidance update in the group. As expected, the stock is down 2.8% since the results and currently trades at $113.90.
Read our full analysis of Agilysys’s results here.
Autodesk (NASDAQ:ADSK)
Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ:ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.
Autodesk reported revenues of $1.76 billion, up 17.1% year on year. This number beat analysts’ expectations by 2.3%. It was a very strong quarter as it also produced an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 13% since reporting and currently trades at $326.41.
Read our full, actionable report on Autodesk here, it’s free.
Doximity (NYSE:DOCS)
With over 80% of U.S. physicians as members of its digital community, Doximity (NYSE:DOCS) operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.
Doximity reported revenues of $145.9 million, up 15.2% year on year. This result surpassed analysts’ expectations by 4.5%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
The stock is up 19.1% since reporting and currently trades at $69.90.
Read our full, actionable report on Doximity here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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