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 HashiCorp (NASDAQ:HCP) and the best and worst performers in the software development industry.

As legendary VC investor Marc Andreessen says, "Software is eating the world", and it touches virtually every industry. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.

The 11 software development stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.

Thankfully, software development stocks have been resilient with share prices up 9.1% on average since the latest earnings results.

HashiCorp (NASDAQ:HCP)

Initially created as a research project at the University of Washington, HashiCorp (NASDAQ:HCP) provides software that helps companies operate their own applications in a multi-cloud environment.

HashiCorp reported revenues of $165.1 million, up 15.3% year on year. This print exceeded analysts’ expectations by 5.1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates.

“The HashiCorp team delivered another solid performance in Q2 of FY25, with revenue growth of 15% year-over-year, and 10% growth in $100K customers year-over-year,” said Dave McJannet, CEO, HashiCorp.

HashiCorp pulled off the biggest analyst estimates beat of the whole group. The company added 16 enterprise customers paying more than $100,000 annually to reach a total of 934. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $33.84.

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

Best Q2: Bandwidth (NASDAQ:BAND)

Started in 1999 by David Morken who was later joined by Henry Kaestner as co-founder in 2001, Bandwidth (NASDAQ:BAND) provides thousands of customers with a software platform that uses its own global network to provide phone numbers, voice, and text connectivity.