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.

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.