Q2 Earnings Outperformers: Veeva Systems (NYSE:VEEV) And The Rest Of The Vertical Software Stocks

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 Veeva Systems and the rest of the vertical software stocks fared in Q2.

Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.

The 14 vertical software stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 1.9% on average since the latest earnings results.

Veeva Systems

Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.

Veeva Systems reported revenues of $789.1 million, up 16.7% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a satisfactory quarter for the company with EPS guidance for next quarter beating analysts’ expectations but a miss of analysts’ billings estimates.

Unsurprisingly, the stock is down 3.8% since reporting and currently trades at $283.

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

Best Q2: Olo

Processing over two million orders daily across 80,000 restaurant locations nationwide, Olo provides an enterprise-grade SaaS platform that powers digital ordering, delivery, and payment systems for restaurant brands across the United States.

Olo reported revenues of $85.72 million, up 21.6% year on year, outperforming analysts’ expectations by 4.2%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $10.28.

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

Weakest Q2: Agilysys

With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.

Agilysys reported revenues of $76.68 million, up 20.7% year on year, exceeding analysts’ expectations by 3.1%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.

Agilysys delivered the weakest full-year guidance update in the group. As expected, the stock is down 2.8% since the results and currently trades at $113.90.

Read our full analysis of Agilysys’s results here.

Autodesk

Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.

Autodesk reported revenues of $1.76 billion, up 17.1% year on year. This number beat analysts’ expectations by 2.3%. It was a very strong quarter as it also produced an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 13% since reporting and currently trades at $326.41.

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

Doximity

With over 80% of U.S. physicians as members of its digital community, Doximity operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.

Doximity reported revenues of $145.9 million, up 15.2% year on year. This result surpassed analysts’ expectations by 4.5%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

The stock is up 19.1% since reporting and currently trades at $69.90.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.