Press Release: Francisco Partners Completes Acquisition Of Jamf

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Jamf and the rest of the automation software stocks fared in Q3.

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 Q3. As a group, revenues beat analysts’ consensus estimates by 4.4% 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 11.7% since the latest earnings results.

Jamf

With its name playfully derived from "Just Another Management Framework," Jamf provides software that helps organizations deploy, manage, and secure Apple devices across their workforce while maintaining a seamless user experience.

Jamf reported revenues of $183.5 million, up 15.2% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Jamf delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 1.4% since reporting and currently trades at $13.04.

Best Q3: Pegasystems

With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Pegasystems reported revenues of $381.4 million, up 17.3% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Pegasystems pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8% since reporting. It currently trades at $52.47.

Weakest Q3: SoundHound AI

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.

SoundHound AI reported revenues of $42.05 million, up 67.6% year on year, exceeding analysts’ expectations by 2.7%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ billings estimates.

As expected, the stock is down 22.4% since the results and currently trades at $11.14.

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

UiPath

Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath provides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.

UiPath reported revenues of $411.1 million, up 15.9% year on year. This print surpassed analysts’ expectations by 4.7%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

The stock is down 4.9% since reporting and currently trades at $14.32.

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

ServiceNow

Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.

ServiceNow reported revenues of $3.41 billion, up 21.8% year on year. This number topped analysts’ expectations by 1.4%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

ServiceNow had the weakest performance against analyst estimates among its peers. The stock is down 30.2% since reporting and currently trades at $127.20.

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