Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Doximity (NYSE:DOCS) and the best and worst performers in the vertical software industry.
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 Q1. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 8.1% on average since the latest earnings results.
Weakest Q1: Doximity (NYSE:DOCS)
Founded in 2010 and named for a combination of “docs” and “proximity”, Doximity (NYSE: DOCS) is the leading social network for U.S. medical professionals.
Doximity reported revenues of $138.3 million, up 17.1% year on year. This print exceeded analysts’ expectations by 3.5%. Despite the top-line beat, it was still a weaker quarter for the company with full-year guidance of slowing revenue growth and EBITDA guidance for next quarter missing analysts’ expectations.
“We closed out fiscal 2025 on a high note, with record engagement, strong profits, and 20% annual revenue growth,” said Jeff Tangney, co-founder and CEO of Doximity.
Unsurprisingly, the stock is down 4.2% since reporting and currently trades at $56.
Is now the time to buy Doximity? Access our full analysis of the earnings results here, it’s free.
Best Q1: Veeva Systems (NYSE:VEEV)
Built on top of Salesforce as one of the first vertical-focused cloud platforms, Veeva (NYSE:VEEV) provides data and customer relationship management (CRM) software for organizations in the life sciences industry.
Veeva Systems reported revenues of $759 million, up 16.7% year on year, outperforming analysts’ expectations by 4.2%. The business had an exceptional quarter with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Veeva Systems pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 20.9% since reporting. It currently trades at $284.28.
Is now the time to buy Veeva Systems? Access our full analysis of the earnings results 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 $435 million, down 5.5% year on year, exceeding analysts’ expectations by 4.4%. Still, it was a mixed quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations.
Unity delivered the slowest revenue growth in the group. Interestingly, the stock is up 13.6% since the results and currently trades at $24.23.
Read our full analysis of Unity’s results here.
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 $5.87 billion, up 10.6% year on year. This print surpassed analysts’ expectations by 1.5%. It was a strong quarter as it also recorded an impressive beat of analysts’ billings estimates and full-year EPS guidance slightly topping analysts’ expectations.
The stock is down 4% since reporting and currently trades at $397.50.
Read our full, actionable report on Adobe here, it’s free.
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 $636.4 million, up 5.5% year on year. This result beat analysts’ expectations by 5%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
The stock is up 11.2% since reporting and currently trades at $172.15.
Read our full, actionable report on PTC here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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