Looking back on design software stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Adobe (NASDAQ: ADBE) and its peers.
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 5.2% since the latest earnings results.
Adobe (NASDAQ: ADBE)
One of the most well-known Silicon Valley software companies around, Adobe (NASDAQ: ADBE) is a leading provider of software as service in the digital design and document management space.
Adobe reported revenues of $5.61 billion, up 11.1% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ billings estimates and full-year EPS guidance slightly missing analysts’ expectations.
“Adobe delivered record FY24 revenue, demonstrating strong demand and the mission-critical role Creative Cloud, Document Cloud and Experience Cloud play in fueling the AI economy,” said Shantanu Narayen, chair and CEO, Adobe.
The stock is down 20.3% since reporting and currently trades at $438.30.
Is now the time to buy Adobe? 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 a solid 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 2.8% since reporting. It currently trades at $274.50.
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.
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.
PTC delivered the weakest full-year guidance update in the group. As expected, the stock is down 13.2% since the results and currently trades at $164.49.
Read our full analysis of PTC’s results here.
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 result beat analysts’ expectations by 1.4%. However, it was a slower quarter as it recorded full-year guidance of slowing revenue growth and a significant miss of analysts’ EBITDA estimates.
Procore scored the highest full-year guidance raise among its peers. The company added 113 customers to reach a total of 17,088. The stock is up 1.8% since reporting and currently trades at $76.47.
Read our full, actionable report on Procore here, it’s free.
Cadence (NASDAQ: CDNS)
With the name chosen to reflect the idea of a repeating pattern or rhythm in electronic design, Cadence Design Systems (NASDAQ: CDNS) offers a software-as-a-service platform for semiconductor engineering and design.
Cadence reported revenues of $1.36 billion, up 26.9% year on year. This number was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also logged a solid beat of analysts’ billings estimates but full-year revenue guidance slightly missing analysts’ expectations.
Cadence achieved the fastest revenue growth among its peers. The stock is down 16.6% since reporting and currently trades at $250.51.
Read our full, actionable report on Cadence here, it’s free.
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