As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at productivity software stocks, starting with Dropbox (NASDAQ:DBX).
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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.1% while next quarter’s revenue guidance was 0.9% above.
Luckily, productivity software stocks have performed well with share prices up 13.6% on average since the latest earnings results.
Dropbox (NASDAQ:DBX)
Originally named after the founders’ tendency to “drop” files into a shared folder, Dropbox (NASDAQ:DBX) provides a content collaboration platform that helps individuals and teams store, organize, share, and work on files from anywhere.
Dropbox reported revenues of $631.5 million, flat year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a narrow beat of analysts’ billings estimates.
Dropbox delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 6.4% since reporting and currently trades at $36.74.
Is now the time to buy Dropbox? Access our full analysis of the earnings results here, it’s free.
Best Q2: SoundHound AI (NASDAQ:SOUN)
Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ:SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.
SoundHound AI reported revenues of $61.9 million, up 45% year on year, outperforming analysts’ expectations by 18.1%. The business had an incredible quarter with an impressive beat of analysts’ billings estimates.
SoundHound AI delivered the biggest analyst estimate beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.7% since reporting. It currently trades at $5.94.
Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free.
