As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the productivity software industry, including Box (NYSE: BOX) and its peers.

Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.

The 17 productivity software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.

While some productivity software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1% since the latest earnings results.

Box (NYSE: BOX)

Known as the "Content Cloud" for managing the 90% of business data that exists as unstructured files and documents, Box (NYSE: BOX) provides a cloud-based platform that enables organizations to securely manage, share, and collaborate on their content from anywhere on any device.

Box reported revenues of $301.1 million, up 9.1% year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $30.08.

Read our full report on Box here, it’s free for active Edge members.

Best Q3: Pegasystems (NASDAQ: PEGA)

With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ: PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Pegasystems reported revenues of $381.4 million, up 17.3% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Pegasystems scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $62.46.

Is now the time to buy Pegasystems? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: SoundHound AI (NASDAQ: SOUN)

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ: SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.

SoundHound AI reported revenues of $42.05 million, up 67.6% year on year, exceeding analysts’ expectations by 2.7%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ billings estimates.

As expected, the stock is down 25.9% since the results and currently trades at $10.64.

Read our full analysis of SoundHound AI’s results here.

8x8 (NASDAQ: EGHT)

Named after its founding year (1987) with "8x8" representing binary code for communications, 8x8 (NASDAQ: EGHT) provides cloud-based contact center and unified communications solutions that enable businesses to manage customer interactions and internal communications through a single platform.

8x8 reported revenues of $184.1 million, up 1.7% year on year. This result surpassed analysts’ expectations by 3.1%. It was a very strong quarter as it also produced a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 11.8% since reporting and currently trades at $1.99.

Read our full, actionable report on 8x8 here, it’s free for active Edge members.

Microsoft (NASDAQ: MSFT)

Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft (NASDAQ: MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide.

Microsoft reported revenues of $77.67 billion, up 18.4% year on year. This number beat analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also put up a narrow beat of analysts’ revenue estimates, as the beat in Intelligent Cloud and Business Services trumped the miss in Personal Computing and an impressive beat of analysts’ revenue estimates.

The stock is down 10.4% since reporting and currently trades at $487.29.

Read our full, actionable report on Microsoft here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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