Q4 Earnings Review: Vertical Software Stocks Led by Manhattan Associates (NASDAQ:MANH)

Looking back on vertical software stocks' Q4 earnings, we examine this quarter's best and worst performers, including Manhattan Associates (NASDAQ:MANH) and its peers.

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 4 vertical software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 1.4%. while next quarter's revenue guidance was 1.6% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but vertical software stocks held their ground better than others, with the share prices up 0.9% on average since the previous earnings results.

Best Q4: Manhattan Associates (NASDAQ:MANH)

Boasting major consumer staples and pharmaceutical companies as clients, Manhattan Associates (NASDAQ:MANH) offers a software-as-service platform that helps customers manage their supply chains.

Manhattan Associates reported revenues of $238.3 million, up 20.3% year on year, topping analyst expectations by 6.4%. It was a strong quarter for the company, with a solid beat of analysts' revenue estimates and a significant improvement in its gross margin.

Manhattan Associates achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The stock is up 8.7% since the results and currently trades at $243.26.

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

Alarm.com (NASDAQ:ALRM)

Founded in 2000 as a business unit within MicroStrategy, Alarm.com (NASDAQ:ALRM) is a software-as-a-service platform that enables users to control their security systems and smart home appliances from a single app.

Alarm.com reported revenues of $226.2 million, up 8.7% year on year, in line with analyst expectations. It was a decent quarter for the company, with optimistic revenue guidance for the next year.

The stock is up 1.2% since the results and currently trades at $70.68.

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

Weakest Q4: Guidewire (NYSE:GWRE)

Founded by two individuals involved in the development of leading procurement software Ariba, Guidewire (NYSE:GWRE) offers insurance companies a software-as-a-service platform to help sell their products and manage their workflows.

Guidewire reported revenues of $240.9 million, up 3.6% year on year, falling short of analyst expectations by 0.4%. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.

Guidewire had the slowest revenue growth and weakest full-year guidance update in the group. The stock is down 1.3% since the results and currently trades at $115.38.

Read our full analysis of Guidewire's results here.

Bentley (NASDAQ:BSY)

Founded by brothers Keith and Barry Bentley, Bentley Systems (NASDAQ:BSY) offers a software-as-a-service platform that addresses the lifecycle of infrastructure projects such as road networks, tunnel systems, and wastewater facilities.

Bentley reported revenues of $310.6 million, up 8.3% year on year, falling short of analyst expectations by 0.9%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and full-year revenue guidance falling below analysts' expectations.

Bentley had the weakest performance against analyst estimates among its peers. The stock is down 4.8% since the results and currently trades at $50.

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

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