Q1 Rundown: Box (NYSE:BOX) Vs Other Productivity Software Stocks

Let's dig into the relative performance of Box (NYSE:BOX) and its peers as we unravel the now-completed Q1 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 slower Q1; on average, revenues beat analyst consensus estimates by 1.5%. while next quarter's revenue guidance was 1.1% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the productivity software stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.8% on average since the previous earnings results.

Box (NYSE:BOX)

Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud.

Box reported revenues of $264.7 million, up 5.1% year on year, topping analysts' expectations by 1%. It was a weak quarter for the company, with a miss of analysts' billings estimates and full-year revenue guidance missing analysts' expectations.

“With the power of AI, the role of unstructured data in enterprises has exploded and the Box Intelligent Content Cloud is in a prime position to help companies fully tap into the value of their content,” said Aaron Levie, co-founder and CEO of Box.

The stock is up 5.4% since the results and currently trades at $26.4.

Read our full report on Box here, it's free.

Best Q1: Atlassian (NASDAQ:TEAM)

Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ:TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.

Atlassian reported revenues of $1.19 billion, up 29.9% year on year, outperforming analysts' expectations by 8.1%. It was a very strong quarter for the company, with an impressive beat of analysts' billings estimates and strong sales guidance for the next quarter.

Atlassian achieved the biggest analyst estimates beat among its peers. The stock is down 18.4% since the results and currently trades at $162.

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

Weakest 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 $330.1 million, up 1.4% year on year, falling short of analysts' expectations by 2.1%. It was a weak quarter for the company, with a decline in its gross margin and a miss of analysts' billings estimates.

Pegasystems had the weakest performance against analyst estimates in the group. The stock is down 0.5% since the results and currently trades at $58.56.

Read our full analysis of Pegasystems's results here.

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 $709.6 million, up 7.3% year on year, in line with analysts' expectations. It was an ok quarter for the company, with a solid beat of analysts' billings estimates but a decline in its gross margin.

The stock is down 6.5% since the results and currently trades at $51.08.

Read our full, actionable report on DocuSign here, it's free.

Smartsheet (NYSE:SMAR)

Founded in 2005, Smartsheet (NYSE:SMAR) is a software as a service platform that helps companies plan, manage and report on work.

Smartsheet reported revenues of $263 million, up 19.6% year on year, surpassing analysts' expectations by 1.9%. It was a slower quarter for the company, with decelerating growth in large customers and a miss of analysts' billings estimates.

The company added 159 enterprise customers paying more than $5,000 annually to reach a total of 19,977. The stock is up 15.8% since the results and currently trades at $43.73.

Read our full, actionable report on Smartsheet here, it's free.

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