Wrapping up Q4 earnings, we look at the numbers and key takeaways for the automation software stocks, including ServiceNow (NYSE: NOW) and its peers.

The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.

The 7 automation software stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.3% 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 13.6% since the latest earnings results.

ServiceNow (NYSE: NOW)

Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE: NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.

ServiceNow reported revenues of $2.96 billion, up 21.3% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ billings estimates.

“ServiceNow closed out the year exceeding Q4 expectations on top of our ‘beat and raise’ track record,” said ServiceNow Chairman and CEO Bill McDermott.

The stock is down 27.4% since reporting and currently trades at $830.40.

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

Best Q4: SoundHound AI (NASDAQ: SOUN)

Founded in 2005, SoundHound AI (NASDAQ: SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers.

SoundHound AI reported revenues of $34.54 million, up 101% year on year, outperforming analysts’ expectations by 2.3%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.

SoundHound AI scored the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.7% since reporting. It currently trades at $9.55.

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

Weakest Q4: UiPath (NYSE: PATH)

Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE: PATH) makes software that helps companies automate repetitive computer tasks.

UiPath reported revenues of $423.6 million, up 4.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ billings estimates and full-year guidance of slowing revenue growth.

UiPath delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 8.9% since the results and currently trades at $10.81.

Read our full analysis of UiPath’s results here.

Microsoft (NASDAQ: MSFT)

Short for microcomputer software, Microsoft (NASDAQ: MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services.

Microsoft reported revenues of $69.63 billion, up 12.3% year on year. This result surpassed analysts’ expectations by 1.1%. It was a strong quarter as it also recorded a miss of analysts’ revenue estimates and a solid beat of analysts’ operating income estimates.

The stock is down 13.2% since reporting and currently trades at $383.54.

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

Pegasystems (NASDAQ: PEGA)

Founded by Alan Trefler in 1983, Pegasystems (NASDAQ: PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement.

Pegasystems reported revenues of $490.8 million, up 3.5% year on year. This number topped analysts’ expectations by 4.4%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ billings estimates and full-year guidance of accelerating revenue growth.

Pegasystems delivered the biggest analyst estimates beat and highest full-year guidance raise, but had the slowest revenue growth among its peers. The stock is down 32.1% since reporting and currently trades at $71.99.

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

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