Looking back on software development stocks' Q2 earnings, we examine this quarter's best and worst performers, including Akamai (NASDAQ:AKAM) and its peers.

Software is eating the world, as Marc Andreessen says, and there is virtually no industry left that has been untouched by it. That in turn drives increasing demand for tools that help software developers do their jobs, whether it is monitoring critical cloud infrastructure, integrating audio and video functionality or ensuring smooth streaming of content.

The 12 software development stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 2.54%, while on average next quarter revenue guidance was roughly in line with consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again and while some of the software development stocks have fared somewhat better than others, they have not been spared, with share prices declining 6.29% since the previous earnings results, on average.

Akamai (NASDAQ:AKAM)

Founded in 1999 by two engineers from MIT, Akamai (NASDAQ:AKAM) provides software for organizations to efficiently deliver web content to their customers.

Akamai reported revenues of $935.7 million, up 3.59% year on year, in line with analyst expectations. It was a decent quarter for the company, with strong sales guidance for the next quarter.

"Akamai delivered excellent results in the second quarter driven by the strength of our security solutions and our continued improvements in operating efficiency," said Dr. Tom Leighton, Akamai's Chief Executive Officer.

Akamai delivered the slowest revenue growth of the whole group. The stock is up 13.2% since the results and currently trades at $107.55.

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

Best Q2: GitLab (NASDAQ:GTLB)

Founded as an open-source project in 2011, GitLab (NASDAQ:GTLB) is a leading software development tools platform.

GitLab reported revenues of $139.6 million, up 38.2% year on year, beating analyst expectations by 7.55%. It was a strong quarter for the company, with an impressive beat of analysts' revenue estimates and full-year revenue guidance beating analysts' expectations.

GitLab pulled off the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is down 9.93% since the results and currently trades at $44.86.

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

Weakest Q2: Datadog (NASDAQ:DDOG)

Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) is a software as a service platform that makes it easier to monitor cloud infrastructure and applications.

Datadog reported revenues of $509.5 million, up 25.4% year on year, beating analyst expectations by 1.69%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.

Datadog had the weakest full year guidance update in the group. The company added 80 enterprise customers paying more than $100,000 annually to a total of 2,990. The stock is down 16.9% since the results and currently trades at $88.44.

Read our full analysis of Datadog's results here.

PagerDuty (NYSE:PD)

Started by three former Amazon engineers, PagerDuty (NYSE:PD) is a software as a service platform that helps companies respond to IT incidents fast and make sure that any downtime is minimized.

PagerDuty reported revenues of $107.6 million, up 19.2% year on year, beating analyst expectations by 2.59%. It was a decent quarter for the company, with accelerating customer growth and a beat of analysts' revenue estimates. With regards to guidance, next quarter's revenue guidance was in line, while non-GAAP EPS guidance was slightly below. Full year guidance was largely maintained.

The company added 57 customers to a total of 15,146. The stock is down 12.2% since the results and currently trades at $22.6.

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

Twilio (NYSE:TWLO)

Founded in 2008 by Jeff Lawson, a former engineer at Amazon, Twilio (NYSE:TWLO) is a software as a service platform that makes it really easy for software developers to use text messaging, voice calls and other forms of communication in their apps.

Twilio reported revenues of $1.04 billion, up 10% year on year, beating analyst expectations by 5.12%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.

The company added 4,000 customers to a total of 304,000. The stock is up 1.29% since the results and currently trades at $59.11.

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

The author has no position in any of the stocks mentioned