Earnings results often indicate what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at UiPath (NYSE:PATH) and its peers.

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 5 automation software stocks we track reported a strong Q4; on average, revenues beat analyst consensus estimates by 5.2%. while next quarter's revenue guidance was 1.8% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the automation software stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.1% on average since the previous earnings results.

UiPath (NYSE:PATH)

Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks.

UiPath reported revenues of $405.3 million, up 31.3% year on year, topping analyst expectations by 5.6%. It was a solid quarter for the company: UiPath soared past analysts' estimates across all key metrics, including revenue, gross margin, EPS, and free cash flow. Its net retention rate and full-year 2024 annualized recurring revenue guidance of $1.73 billion also came in better than expected.

“We delivered a strong close to the fiscal year with fourth quarter ARR growing 22 percent year-over-year to $1.464 billion, underscoring the meaningful outcomes our Business Automation Platform delivers for our customers,” said Rob Enslin, UiPath Chief Executive Officer.

UiPath achieved the fastest revenue growth and highest full-year guidance raise of the whole group. The stock is down 23.4% since the results and currently trades at $18.72.

We think UiPath is a good business, but is it a buy today? Read our full report here, it's free.

Best Q4: 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 $474.2 million, up 19.6% year on year, outperforming analyst expectations by 14.2%. It was an incredible quarter for the company, with an impressive beat of analysts' billings estimates and a significant improvement in its gross margin.

Pegasystems pulled off the biggest analyst estimates beat among its peers. The stock is up 14.7% since the results and currently trades at $58.15.

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

Weakest Q4: Jamf (NASDAQ:JAMF)

Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.

Jamf reported revenues of $150.6 million, up 15.6% year on year, exceeding analyst expectations by 1.4%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and management forecasting growth to slow.

Jamf had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 7.1% since the results and currently trades at $18.51.

Read our full analysis of Jamf's results here.

Appian (NASDAQ:APPN)

Founded by Matt Calkins and his three friends out of an apartment in Northern Virginia, Appian (NASDAQ:APPN) sells a software platform that lets its users build applications without using much code, allowing them to create new software more quickly.

Appian reported revenues of $145.3 million, up 15.5% year on year, surpassing analyst expectations by 3.2%. It was a strong quarter for the company, with a solid beat of analysts' billings estimates and a significant improvement in its gross margin.

Appian had the slowest revenue growth among its peers. The stock is up 5.9% since the results and currently trades at $35.24.

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

ServiceNow (NYSE:NOW)

Founded by Fred Luddy, who wrote the code for the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) offers a software-as-a-service platform that helps companies become more efficient by allowing them to automate workflows across IT, HR, and customer service.

ServiceNow reported revenues of $2.44 billion, up 25.6% year on year, surpassing analyst expectations by 1.5%. It was an impressive quarter for the company, with a decent beat of analysts' ARR (annual recurring revenue) estimates and accelerating growth in large customers.

The company added 108 enterprise customers paying more than $1m annually to reach a total of 1,897. The stock is down 5.5% since the results and currently trades at $723.06.

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

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.