As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at vertical software stocks, starting with Olo (NYSE: OLO).

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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 3.3% 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 17.8% since the latest earnings results.

Olo (NYSE: OLO)

Founded by Noah Glass, who wanted to get a cup of coffee faster on his way to work, Olo (NYSE: OLO) provides restaurants and food retailers with software to manage food orders and delivery.

Olo reported revenues of $76.07 million, up 20.7% year on year. This print exceeded analysts’ expectations by 4.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.

“Team Olo put together a fantastic 2024 that included strong financial performance, new and expansion deployments with marquee restaurant brands, and platform reliability and innovation that powered $29 billion in gross merchandise volume and $2.8 billion in gross payment volume for the year,” said Noah Glass, Olo’s Founder and CEO.

The stock is down 8.1% since reporting and currently trades at $6.06.

Is now the time to buy Olo? Access our full analysis of the earnings results here, it’s free.

Best Q4: Upstart (NASDAQ: UPST)

Founded by the former head of Google's enterprise business, Upstart (NASDAQ: UPST) is an AI-powered lending platform facilitating loans for banks and consumers.

Upstart reported revenues of $219 million, up 56.1% year on year, outperforming analysts’ expectations by 20.1%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.

Upstart pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 39% since reporting. It currently trades at $41.07.

Is now the time to buy Upstart? 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.

PTC reported revenues of $565.1 million, up 2.7% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations.

As expected, the stock is down 23% since the results and currently trades at $145.98.

Read our full analysis of PTC’s results here.

nCino (NASDAQ: NCNO)

Founded in 2011 in North Carolina, nCino (NASDAQ: NCNO) makes cloud-based operating systems for banks and provides that software-as-a-service.

nCino reported revenues of $141.4 million, up 14.3% year on year. This print met analysts’ expectations. However, it was a slower quarter as it produced full-year guidance of slowing revenue growth.

nCino had the weakest full-year guidance update among its peers. The stock is down 19.1% since reporting and currently trades at $22.75.

Read our full, actionable report on nCino here, it’s free.

Doximity (NYSE: DOCS)

Founded in 2010 and named for a combination of “docs” and “proximity”, Doximity (NYSE: DOCS) is the leading social network for U.S. medical professionals.

Doximity reported revenues of $168.6 million, up 24.6% year on year. This number beat analysts’ expectations by 9.6%. Overall, it was a very strong quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations.

The stock is down 8% since reporting and currently trades at $53.75.

Read our full, actionable report on Doximity here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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