Looking back on design software stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including PTC (NASDAQ:PTC) and its peers.
The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.
The 6 design software stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.1% since the latest earnings results.
Weakest Q4: PTC (NASDAQ:PTC)
Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC’s (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing.
PTC reported revenues of $565.1 million, up 2.7% year on year. This print exceeded analysts’ expectations by 1.9%. Despite the top-line beat, it was still a softer quarter for the company with full-year EPS guidance missing analysts’ expectations.
"In Q1'25, we delivered solid year-over-year constant currency ARR growth of 11% and cash flow growth above 25%, which was in-line with our guidance. Our differentiated strategy leverages our unique portfolio to help product companies accelerate their time to market and manage increasing complexity. It's an exciting time because our products are at the epicenter of driving business transformation at our customers," said Neil Barua, President and CEO, PTC.
PTC delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 17.2% since reporting and currently trades at $156.95.
Is now the time to buy PTC? Access our full analysis of the earnings results here, it’s free.
Best Q4: Autodesk (NASDAQ:ADSK)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Autodesk reported revenues of $1.64 billion, up 11.6% year on year, in line with analysts’ expectations. The business had a very strong quarter with full-year guidance of accelerating revenue growth and a solid beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.5% since reporting. It currently trades at $250.01.
Is now the time to buy Autodesk? Access our full analysis of the earnings results here, it’s free.
Adobe (NASDAQ:ADBE)
One of the most well-known Silicon Valley software companies around, Adobe (NASDAQ:ADBE) is a leading provider of software as service in the digital design and document management space.
Adobe reported revenues of $5.71 billion, up 10.3% year on year, exceeding analysts’ expectations by 1%. Still, it was a mixed quarter as it posted EPS guidance for next quarter meeting analysts’ expectations.
As expected, the stock is down 4.5% since the results and currently trades at $418.84.
Read our full analysis of Adobe’s results here.
Cadence (NASDAQ:CDNS)
With the name chosen to reflect the idea of a repeating pattern or rhythm in electronic design, Cadence Design Systems (NASDAQ:CDNS) offers a software-as-a-service platform for semiconductor engineering and design.
Cadence reported revenues of $1.36 billion, up 26.9% year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also produced an impressive beat of analysts’ billings estimates but full-year revenue guidance slightly missing analysts’ expectations.
Cadence pulled off the fastest revenue growth among its peers. The stock is down 20.5% since reporting and currently trades at $238.96.
Read our full, actionable report on Cadence here, it’s free.
Unity (NYSE:U)
Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE:U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences.
Unity reported revenues of $457.1 million, down 25% year on year. This result topped analysts’ expectations by 5.9%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ billings estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Unity achieved the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is down 1.3% since reporting and currently trades at $21.21.
Read our full, actionable report on Unity here, it’s free.
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