As software development stocks’ Q2 earnings season wraps, let's dig into this quarter's best and worst performers, including GitLab (NASDAQ:GTLB) 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 0.03% above consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows and while some of the software development stocks have fared somewhat better than others, they have not been spared, with share prices declining 8.3% since the previous earnings results, on average.

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’s strong quarter is a result of our focus on creating a differentiated and innovative DevSecOps platform and executing on a strong go-to-market motion,” said Sid Sijbrandij, GitLab CEO and co-founder.

GitLab scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The stock is down 1.12% since the results and currently trades at $49.25.

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

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 stock is down 20.3% since the results and currently trades at $20.51.

Is now the time to buy PagerDuty? 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 17.9% since the results and currently trades at $87.3.

Read our full analysis of Datadog's results here.

JFrog (NASDAQ:FROG)

With the name chosen due to the founders' fondness for frogs, JFrog (NASDAQ:FROG) provides software as a service platform that makes developing and releasing software easier and faster, especially for large teams.

JFrog reported revenues of $84.2 million, up 24.1% year on year, beating analyst expectations by 1.41%. It was a slower quarter for the company, with decelerating growth in large customers and its net revenue retention rate in jeopardy.

The company added 28 enterprise customers paying more than $100,000 annually to a total of 813. The stock is down 16.9% since the results and currently trades at $23.57.

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

Bandwidth (NASDAQ:BAND)

Started in 1999 by David Morken who was later joined by Henry Kaestner as co-founder in 2001, Bandwidth (NASDAQ:BAND) provides thousands of customers with a software platform that uses its own global network to provide phone numbers, voice, and text connectivity.

Bandwidth reported revenues of $145.9 million, up 6.88% year on year, beating analyst expectations by 3.55%. It was a mixed quarter for the company, with full-year revenue guidance coming in higher than Wall Street's expectations. On the other hand, its slowing growth in net revenue retention wasn't great and while full year revenue guidance was raised, full year adjusted EBITDA guidance was maintained at the midpoint.

The stock is down 28% since the results and currently trades at $10.

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

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The author has no position in any of the stocks mentioned