Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q2 now behind us, let’s have a look at New Relic (NYSE:NEWR) and its peers.

Software is eating the world, increasing organizations’ reliance on digital-only solutions. As more workloads and applications move to the cloud, the reliability of the underlying cloud infrastructure becomes ever more critical and ever more complex. To solve this challenge, companies and their engineering teams have turned to a range of cloud monitoring tools that provide them with the visibility to troubleshoot issues in real-time.

The 4 cloud monitoring stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 1.83% while next quarter's revenue guidance was 0.01% below consensus. There has been a stampede out of high-valuation technology stocks as higher interest rates encourage investors to value profits over growth, and while some of the cloud monitoring stocks have fared somewhat better than others, they have not been spared, with share prices declining 7.91% on average since the previous earnings results.

New Relic (NYSE:NEWR)

With the name being an anagram of its founder, Lew Cirne, New Relic (NYSE:NEWR) makes a monitoring software that collects, scores, and analyzes performance data about a client's IT stack.

New Relic reported revenues of $242.6 million, up 12.1% year on year, topping analyst expectations by 1.33%. It was a decent quarter for the company,

New Relic delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is up 13% since the results and currently trades at $83.7.

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

Best Q2: PagerDuty (NYSE:PD)

Started by three former Amazon engineers, PagerDuty (NYSE:PD) is a software-as-a-service platform that helps companies respond to IT incidents quickly, ensuring that downtime is minimized.

PagerDuty reported revenues of $107.6 million, up 19.2% year on year, outperforming analyst expectations by 2.59%. It was a strong quarter for the company, with accelerating customer growth and a decent beat of analysts' revenue estimates.

PagerDuty pulled off the strongest analyst estimates beat among its peers. The company added 57 customers to a total of 15,146. The stock is down 18.4% since the results and currently trades at $21.

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