Looking back on vertical software stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Doximity (NYSE: DOCS) and its peers.

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 16.5% since the latest earnings results.

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 print exceeded analysts’ expectations by 9.6%. Overall, it was a very strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations.

“We’re proud to deliver another quarter of record engagement in Q3, with over 610,000 unique providers using our clinical workflow tools,” said Jeff Tangney, co-founder and CEO of Doximity.

The stock is down 7.6% since reporting and currently trades at $54.

We think Doximity is a good business, but is it a buy today? Read our full report 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 delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 40.4% since reporting. It currently trades at $40.11.

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 23.1% since the results and currently trades at $145.77.

Read our full analysis of PTC’s results here.

Agilysys (NASDAQ: AGYS)

Originally a subsidiary of Pioneer-Standard Electronics that distributed electronic components, Agilysys (NASDAQ: AGYS) offers a software-as-service platform that helps hotels, resorts, restaurants, and other hospitality businesses manage their operations and workflows.

Agilysys reported revenues of $69.56 million, up 14.9% year on year. This result came in 5.2% below analysts' expectations. It was a slower quarter as it also recorded full-year revenue guidance missing analysts’ expectations.

Agilysys had the weakest performance against analyst estimates among its peers. The stock is down 44.1% since reporting and currently trades at $70.38.

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

Q2 Holdings (NYSE: QTWO)

Founded in 2004 by Hank Seale, Q2 (NYSE: QTWO) offers software-as-a-service that enables small banks to provide online banking and consumer lending services to their clients.

Q2 Holdings reported revenues of $183 million, up 12.9% year on year. This print surpassed analysts’ expectations by 1.7%. It was a very strong quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations.

The stock is down 15.9% since reporting and currently trades at $77.39.

Read our full, actionable report on Q2 Holdings 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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.