A Look Back at Productivity Software Stocks’ Q2 Earnings: DocuSign (NASDAQ:DOCU) Vs The Rest Of The Pack

Let’s dig into the relative performance of DocuSign (NASDAQ:DOCU) and its peers as we unravel the now-completed Q2 productivity software earnings season.

Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.

The 16 productivity software stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 0.5% below.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some productivity software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.

DocuSign (NASDAQ:DOCU)

Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically.

DocuSign reported revenues of $736 million, up 7% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with in-line revenue guidance for the next quarter.

"Docusign continued its evolution with improved business stability and increased efficiency, resulting in record operating profit," said Allan Thygesen, CEO of Docusign.

Interestingly, the stock is up 3.2% since reporting and currently trades at $58.73.

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

Best Q2: 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 $351.2 million, up 17.7% year on year, outperforming analysts’ expectations by 8.1%. It was a stunning quarter for the company with an impressive beat of analysts’ billings estimates and an improvement in its gross margin.

Pegasystems pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 12.5% since reporting. It currently trades at $68.79.

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

Weakest Q2: 8x8 (NASDAQ:EGHT)

Founded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.

8x8 reported revenues of $178.1 million, down 2.8% year on year, in line with analysts’ expectations. It was a weak quarter for the company with underwhelming revenue guidance for the next quarter and a miss of analysts’ billings estimates.

8x8 had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 31.8% since the results and currently trades at $1.76.

Read our full analysis of 8x8’s results here.

Asana (NYSE:ASAN)

Founded in 2008 by Facebook’s co-founder Dustin Moskovitz, Asana (NYSE:ASAN) is a cloud-based project management software, where you can plan and assign tasks to employees and monitor and discuss progress of work.

Asana reported revenues of $179.2 million, up 10.3% year on year, in line with analysts’ expectations. More broadly, it was a weaker quarter for the company with a miss of analysts’ billings estimates and full-year revenue guidance missing analysts’ expectations.

The company added 786 enterprise customers paying more than $5,000 annually to reach a total of 22,948. The stock is down 11.3% since reporting and currently trades at $11.78.

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

Dropbox (NASDAQ:DBX)

Founded by the long-serving CEO Drew Houston and Arash Ferdowsi in 2007, Dropbox (NASDAQ:DBX) provides a file hosting cloud platform that helps organizations collaborate and share documents.

Dropbox reported revenues of $634.5 million, up 1.9% year on year, in line with analysts’ expectations. Taking a step back, it was a decent quarter for the company with accelerating customer growth but a miss of analysts’ billings estimates.

The company added 60,000 customers to reach a total of 18.22 million. The stock is up 6.4% since reporting and currently trades at $23.12.

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

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