Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Appian (NASDAQ: APPN) 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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 5.9% while next quarter’s revenue guidance was in line.

Luckily, automation software stocks have performed well with share prices up 11% on average since the latest earnings results.

Appian (NASDAQ: APPN)

Founded by Matt Calkins and his three friends out of an apartment in Northern Virginia, Appian (NASDAQ: APPN) sells a software platform that lets its users build applications without using much code, allowing them to create new software more quickly.

Appian reported revenues of $166.4 million, up 11.1% year on year. This print exceeded analysts’ expectations by 2%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.

“In Q1, Appian continued to demonstrate our earnings potential, with narrowing net losses, our third straight quarter of positive adjusted EBITDA, and $45 million in operating cash flow,” said Matt Calkins, CEO & Founder.

Appian delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 4.2% since reporting and currently trades at $29.09.

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

Best Q1: 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 $475.6 million, up 44.1% year on year, outperforming analysts’ expectations by 33.1%. The business had an incredible quarter with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

Pegasystems scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 49% since reporting. It currently trades at $51.26.

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

Weakest Q1: 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 $29.13 million, up 151% year on year, falling short of analysts’ expectations by 4.4%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates.

SoundHound AI delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 17.3% since the results and currently trades at $11.41.

Read our full analysis of SoundHound AI’s results here.

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 $3.09 billion, up 18.6% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ current remaining performance obligation estimates.

The stock is up 17.9% since reporting and currently trades at $960.

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

Jamf (NASDAQ: JAMF)

Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ: JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.

Jamf reported revenues of $167.6 million, up 10.2% year on year. This print surpassed analysts’ expectations by 0.8%. Aside from that, it was a mixed quarter as it also recorded full-year revenue guidance topping analysts’ expectations but annual recurring revenue in line with analysts’ estimates.

Jamf scored the highest full-year guidance raise among its peers. The stock is down 26.9% since reporting and currently trades at $8.30.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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