The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how automation software stocks fared in Q3, starting with SoundHound AI (NASDAQ: SOUN).

The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.

The 7 automation software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.4% 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 11.7% since the latest earnings results.

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. This print exceeded analysts’ expectations by 2.7%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EBITDA and billings estimates.

SoundHound AI scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 8.2% since reporting and currently trades at $11.17.

Read our full report on SoundHound AI here, it’s free.

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 a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

Pegasystems achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.2% since reporting. It currently trades at $52.38.

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

UiPath (NYSE: PATH)

Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath (NYSE: PATH) provides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.

UiPath reported revenues of $411.1 million, up 15.9% year on year, exceeding analysts’ expectations by 4.7%. It was a satisfactory quarter as it also posted an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

As expected, the stock is down 4.8% since the results and currently trades at $14.33.

Read our full analysis of UiPath’s results here.

Appian (NASDAQ: APPN)

Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ: APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.

Appian reported revenues of $187 million, up 21.4% year on year. This number topped analysts’ expectations by 7.4%. It was a very strong quarter as it also put up an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 2.1% since reporting and currently trades at $28.70.

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

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 result beat analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also recorded a narrow beat of analysts’ revenue estimates, as the beat in Intelligent Cloud and Business Services trumped the miss in Personal Computing and a solid beat of analysts’ revenue estimates.

The stock is down 15.3% since reporting and currently trades at $460.52.

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

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