Three Software Stocks Face Trouble Amid Industry Decline

Industry
โดย StockStory·Read original
Summary · why it matters

StockStory identifies Commerce, Health Catalyst, and Teradata as software stocks that may face trouble. Commerce posted underwhelming annual recurring revenue growth of 2.5% and projected sales growth of 3.3%, with its free cash flow margin expected to shrink by 3.2 percentage points. Health Catalyst saw flat billings and a gross margin of 50.4%, one of the worst among software companies, alongside long payback periods on sales and marketing. Teradata recorded average billings growth of 3.7% and a 7.2 percentage point drop in operating margin, with its free cash flow margin projected to decline by 20.2 percentage points next year.

Impact on stocks 3

Artificial Intelligence▼ · 2 stocks
Commerce.com, Inc.
CMRC
▼ NegativeCapitalrelevance

Underwhelming ARR growth of 2.5%, projected sales growth of 3.3%, and expected free cash flow margin shrinkage of 3.2 percentage points.

Teradata Corp
TDC
▼ NegativeCapitalrelevance

Average billings growth of 3.7%, 7.2 percentage point drop in operating margin, and projected free cash flow margin decline of 20.2 percentage points next year.

Cloud & Digital Infrastructure▼ · 1 stocks
Health Catalyst Inc
HCAT
▼ NegativeCapitalrelevance

Flat billings, gross margin of 50.4% (one of worst among software companies), and long payback periods on sales and marketing.

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