After posting quarterly results, software stocks moved wildly. nCino’s guidance hike is a welcome change after the stock underperformed for months.
nCino (NASDAQ:NCNO) won an operating system software deal with Wells Fargo (NYSE"WFC). It also posted Q2 revenue growing by 36% to $66.5 million. Subscription revenues rose by 37% to $53.9 million. NCNO lost two cents a share (non-GAAP).
In Q3, nCino expects to lose no more than 7 cents a share. Revenue is in the range of $66 - $67 million.
C3.ai (NYSE:AI) posted an unimpressive first quarter. Its revenue rose by 30% Y/Y to $52.41 million. It lost 37 cents a share. In Q2, the company expects revenue as high as $58 million. For the year, it will post $243 million to $247 million in revenue. These figures are too low relative to the ~ $5.5 billion market capitalization.
Investors should exercise caution with AI stock.
Cybersecurity star CrowdStrike (NASDAQ:CRWD) posted an adjusted EPS of 11 cents. Its revenue grew by 70% Y/Y to $337.7 million. It added 1,660 net new subscribers and now has 13,080, up 81% Y/Y.
The demand for cybersecurity solutions will only grow. CrowdStrike offers excellent solutions for customers. The firm drove leverage and operated with high capital efficiency. The stock is a good long-term hold.
