Wrapping up Q3 earnings, we look at the numbers and key takeaways for the vertical software stocks, including nCino (NASDAQ: NCNO) 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 14 vertical software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q3: nCino (NASDAQ: NCNO)

Born from the internal technology needs of a community bank in 2011, nCino (NASDAQ: NCNO) provides cloud-based software that helps financial institutions streamline client onboarding, loan origination, and account opening processes.

nCino reported revenues of $152.2 million, up 9.6% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

"I'm extremely proud of our team's strong execution in the third quarter, delivering results that exceeded expectations while advancing our AI leadership position," said Sean Desmond, CEO at nCino.

Unsurprisingly, the stock is down 1.8% since reporting and currently trades at $25.11.

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

Toast (NYSE: TOST)

Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE: TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.

Toast reported revenues of $1.63 billion, up 25.1% year on year, outperforming analysts’ expectations by 3%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

The market seems content with the results as the stock is up 1.9% since reporting. It currently trades at $36.31.

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

Weakest Q3: Upstart (NASDAQ: UPST)

Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.

Upstart reported revenues of $277.1 million, up 70.9% year on year, falling short of analysts’ expectations by 1.3%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ transaction volume estimates.

Upstart delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 8.5% since the results and currently trades at $50.57.

Read our full analysis of Upstart’s results here.

Autodesk (NASDAQ: ADSK)

Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ: ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.

Autodesk reported revenues of $1.85 billion, up 18% year on year. This number beat analysts’ expectations by 2.4%. It was a very strong quarter as it also put up full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

The stock is down 6% since reporting and currently trades at $276.96.

Read our full, actionable report on Autodesk here, it’s free.

Agilysys (NASDAQ: AGYS)

With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys (NASDAQ: AGYS) develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.

Agilysys reported revenues of $79.3 million, up 16.1% year on year. This print topped analysts’ expectations by 3.1%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance topping analysts’ expectations.

The stock is up 4.5% since reporting and currently trades at $120.28.

Read our full, actionable report on Agilysys here, it’s free.

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