Latest news with #softwareindustry
Yahoo
12-07-2025
- Business
- Yahoo
Atlassian (NasdaqGS:TEAM) Reports Q3 Net Loss Of US$71 Million
Atlassian recently faced a stock price decline of approximately 6% over the last quarter, potentially influenced by multiple corporate developments. The sharp fall can be viewed alongside their Q3 earnings report, which revealed an increase in revenue contrasted by a net loss of $71 million, compared to a profit in the previous year. Additionally, executive board changes, with Karen Dykstra joining as a director following Enrique Salem's resignation, might have further impacted investor sentiment. Despite these shifts, the broader market remained flat in the short term, while annual forecasts predict earnings to grow by 15%. Be aware that Atlassian is showing 1 warning sign in our investment analysis. We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Atlassian's recent stock price decline of around 6% over the last quarter highlights potential investor concern linked to executive changes and financial results. With revenue climbing but a net loss of US$71 million compared to last year's profit, these developments have cast uncertainty over short-term prospects. Over the past five years, the company's total shareholder return, including dividends, was 8.19%, offering a broader context to recent stock movements. Over the past year, Atlassian underperformed the US Software industry, which returned 20.6%, alongside a market return of 13%, underscoring challenges in aligning with broader industry trends. News around AI integration and developments in cloud and government services are poised to influence revenue and earnings projections. Long-term revenue growth is anticipated through enhanced product adoption and enterprise uptake, yet near-term revenue trajectories may face hurdles due to elongated deal cycles and cloud migration timing. Analysts forecast Atlassian's earnings to transition into profitability over the next three years, but recent financial disclosures and board changes introduce risks that may impact these forecasts. Despite a current share price of US$219.36, the consensus price target remains higher at US$278.20, suggesting potential growth opportunity if the projected earnings materialize. The valuation report we've compiled suggests that Atlassian's current price could be quite moderate. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:TEAM. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-07-2025
- Business
- Yahoo
Some Investors May Be Worried About Radware's (NASDAQ:RDWR) Returns On Capital
When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in trouble. A business that's potentially in decline often shows two trends, a return on capital employed (ROCE) that's declining, and a base of capital employed that's also declining. This combination can tell you that not only is the company investing less, it's earning less on what it does invest. Having said that, after a brief look, Radware (NASDAQ:RDWR) we aren't filled with optimism, but let's investigate further. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Radware, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.0012 = US$577k ÷ (US$646m - US$183m) (Based on the trailing twelve months to March 2025). So, Radware has an ROCE of 0.1%. Ultimately, that's a low return and it under-performs the Software industry average of 9.7%. See our latest analysis for Radware Above you can see how the current ROCE for Radware compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Radware . We are a bit worried about the trend of returns on capital at Radware. Unfortunately the returns on capital have diminished from the 3.2% that they were earning five years ago. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on Radware becoming one if things continue as they have. All in all, the lower returns from the same amount of capital employed aren't exactly signs of a compounding machine. Despite the concerning underlying trends, the stock has actually gained 25% over the last five years, so it might be that the investors are expecting the trends to reverse. Either way, we aren't huge fans of the current trends and so with that we think you might find better investments elsewhere. If you want to know some of the risks facing Radware we've found 2 warning signs (1 is significant!) that you should be aware of before investing here. While Radware may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Forbes
17-06-2025
- Business
- Forbes
Preparing Finance Leaders For Software Pricing Changes
Scott Woody is the Cofounder & CEO of Metronome, a leading usage-based billing platform. When companies change how they price their product, everything in the company is impacted—especially the finance team. In the software industry, usage-based pricing, also known as UBP, is gaining popularity rapidly as AI and other rapidly growing software providers adopt it or offer it alongside more traditional subscription-based pricing models. With UBP, companies pay for software as they use it. Subscription means they pay per user or a flat fee. Almost half of software-as-a-service (SaaS) providers now use UBP or a hybrid approach, industry research shows. Our own research found that 77% of the largest software companies have some form of UBP. The first mistake companies can make when switching to UBP is to assume it is a simple change in revenue recognition. Nothing in pricing is simple. If a pricing change is not managed effectively, especially by the finance team, companies can experience increased billing errors, customer distress, missed opportunities and unmet revenue targets. Here are five key challenges that finance leaders will face during a transition from subscription to UBP, or to a hybrid approach, along with ways to mitigate them. Many companies still rely on manual tracking and reconciliation processes. This can be especially difficult with UBP. That's because billing amounts can vary by day, week, month and quarter as usage ebbs and flows. Without accurate tracking, revenue leakage and billing errors are more likely. Solution: Automate revenue recognition to minimize manual processes and reduce human errors. Whether a UBP solution is purchased or built in-house, integrate it with other financial systems to ensure accurate revenue tracking in real time. With subscription-based pricing, companies have a clear understanding of the revenue they can expect each month, quarter, or year. That enables them to plan ahead on how to invest that revenue and most traditional forecasting methods are built for predictable revenue. With UBP, revenue becomes highly variable. It depends a lot on the customers using the software, their success in the market, and other factors that the software provider doesn't control. Solution: To improve a CFO's ability to accurately predict revenue when using UBP, having a single source of truth for data pertaining to revenue and usage will be key. Also, machine learning and AI can help analyze factors that impact revenue, such as patterns around product use and broad economic factors, such as recession threats. Finally, teams need to share insights on the pace of sales, whether customers are expanding or shrinking use and updated forecasts. Legacy financial systems were probably not designed for high-volume, real-time and granular usage data. This can lead to data silos, reconciliation delays and operational inefficiencies. Solution: A data-first mindset is critical. Whether you buy it or build it, having data in a centralized warehouse and having standardized data pipelines will help keep financial data consistent and accurate across all teams. With traditional subscription models, payment is upfront, so the risk to the software provider is low that they won't get paid. With UBP, companies pay after they use the software. That shift in cash flow introduces new risks and requires new safeguards. Solution: To guard against defaults, consider 'prepaid commit' features so companies pay for usage upfront and then draw down on that usage. If enterprise customers have strong creditworthiness, postpaid commit pricing—which means they agree to spend a minimum over a set period of time—also reduces risk. In AI-driven SaaS, prepaid models with automatic balance reload mechanisms have also helped prevent service disruptions while protecting against fraudulent consumption spikes. For virtually any business, products need to be well priced to meet customer expectations for value. Hitting this sweet spot involves a lot of moving pieces. UBP introduces new metrics that teams in finance, sales and product need to understand to keep the pricing/value recipe in sync. Being able to closely tie pricing to value and switch it as the equation changes is one of the big benefits of UBP. With subscription pricing, a software provider may not notice that their product isn't being used until it is too late to win the customer back. With UBP, falling usage can be spotted immediately. Everyone can be made aware and help resolve the problem. Solution: Educate all teams about key usage indicators, such as consumption trends and revenue per usage metric, that help align pricing with customer value. The same applies to prepaid commitment pricing, which can be strategically offered to enhance engagement. Also, clearly define KPIs and review cycles to keep your pricing in sync with customer value. Pricing can be a make-or-break moment for companies. The finance team plays a crucial role in ensuring success. By aligning financial operations with real-time customer data, companies can successfully navigate the shift to UBP, ensuring financial stability, customer trust and long-term scalability. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
12-06-2025
- Business
- Yahoo
GB Group Full Year 2025 Earnings: EPS Misses Expectations
Revenue: UK£282.7m (up 1.9% from FY 2024). Net income: UK£8.63m (up from UK£48.6m loss in FY 2024). Profit margin: 3.1% (up from net loss in FY 2024). The move to profitability was primarily driven by lower expenses. EPS: UK£0.034 (up from UK£0.19 loss in FY 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 27%. The primary driver behind last 12 months revenue was the Identity segment contributing a total revenue of UK£159.0m (56% of total revenue). The largest operating expense was General & Administrative costs, amounting to UK£126.0m (67% of total expenses). Explore how GBG's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Software industry in the United Kingdom. Performance of the British Software industry. The company's shares are down 9.8% from a week ago. Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We have a graphic representation of GB Group's balance sheet and an in-depth analysis of the company's financial position. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Fast Company
10-06-2025
- Business
- Fast Company
Breaking down the full stack: Why full stack developers are more critical than ever
The phrase 'every company is a software company' has never been more true than it is today. No matter what industry you are in, software is not only supporting your business but also driving it. At the center of this shift is a role that's becoming increasingly invaluable: the full-stack developer. But what exactly does full-stack development entail—and why are these developers so critical in a climate that demands reliability, speed, and efficiency? FULL-STACK DEVELOPMENT EXPLAINED Full-stack development means focusing on the software as a whole. It entails everything from the front-end user experience and interface to the back-end functionality and database. A full-stack developer's role is to seamlessly bridge this gap between the front-end and the back-end of the software. In the past, software was too complex and expensive for one to fully tackle on their own. While still complex, today's dynamic frameworks like Java and Ruby On Rails enable developers to write software more quickly, reliably, and cost-effectively than ever before. This complexity means that a full-stack developer must understand which technologies are trustworthy, how they integrate, and the risks associated. The good news is that you don't need to understand each aspect of the code, as you can combine yours with pre-written things like prepared libraries, technologies, and external APIs. Doing so allows you to focus on your part of the business. The key—always—is to find a balance. WHY HIRING A FULL-STACK DEVELOPER IS A GOOD IDEA The advantage of having someone on your team that can focus on your digital assets as a whole and who can understand and design with your front-end and back-end in mind will ultimately make the process more efficient. In my experience, there can be a false sense of 'writing software is easy' for some, as pre-written software like Ruby on Rails can make it seem like you are just dragging and dropping code. But the code is just the first step, and the real secret to the sauce is when you need to optimize a database, for example. If a component is meant to run on a laptop, can it run simultaneously for 1 million users? What about your app? What's on your website won't translate to your app and vice versa. Even when combining software that's pre-written, a full-stack developer is still needed to write the key components of your business software. While full-stack sounds great in theory, it's significantly more difficult and demanding of an undertaking than specializing in one facet. Even when you are firing on all cylinders and making the most of modern tools, complete mastery can still be too massive of an undertaking. That is why developers should take a 't-shaped' approach to software development—meaning they should strive to understand everything on the surface, while still diving deeper (but not too deep, as you could leave other aspects on the surface). Maintaining a delicate balance between the two is key in full-stack development. In this context, leveraging these two principles will help in prioritizing learning and development: 1) Occam's Razor (i.e., the simplest solution, with the fewest assumptions, is usually the best) and 2) the Pareto Principle (allocating 20% of your time to the things that will result in 80% of the outcome). Our company has utilized full-stack development using the Ruby on Rails framework, along with other well-known and proven libraries like Bootstrap. Bootstrap's front-end components—such as dropdown menus and navigation bars—enable our team to work more effectively and focus mainly on our customers and business needs. LOOKING AHEAD In an increasingly software-dependent business environment, full-stack developers will continue to be high in demand. The nature of a full-stack developer is to be adaptable and adjust as the market does. Having the ability to consistently deliver digital tools that meet your business objectives and customer needs is why having a full-stack developer on your team will ensure you remain agile in 2025 and beyond.
