Looking back on project management software stocks' Q4 earnings, we examine this quarters’ best and worst performers, including monday.com (NASDAQ:MNDY) and its peers.
The future of work requires teams to collaborate across departments and remote offices. Project management software is both driving this change and benefiting from it. While the trend of collaborative work management has been strong for a while, the Covid pandemic has definitively accelerated the demand for tools that allow work to be done remotely.
The 4 project management software stocks we track reported a very strong Q4; on average, revenues beat analyst consensus estimates by 6.56%, while on average next quarter revenue guidance was 4.34% above consensus. Technology stocks have been hit hard on fears of higher interest rates, but project management software stocks held their ground better than others, with share price down 8.6% since earnings, on average.
Founded in Israel in 2014, and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) makes software as a service platforms that helps teams plan and track work efficiently.
monday.com reported revenues of $95.5 million, up 90.5% year on year, beating analyst expectations by 8.82%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.
“We had another great quarter at monday.com and finished fiscal year 2021 exceptionally strong. Compared to last year, we delivered 91% revenue growth and 200% enterprise customer growth, while generating record free cash flow in Q4,” said monday.com founder and co-CEO, Roy Mann.
monday.com achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The company added 180 enterprise customers paying more than $50,000 annually to a total of 793. The stock is down 16.4% since the results and currently trades at $148.
Best Q4: Atlassian (NASDAQ:TEAM)
Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ:TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.
Atlassian reported revenues of $688.5 million, up 37.3% year on year, beating analyst expectations by 7.16%. It was an impressive quarter for the company, with accelerating customer growth and a very optimistic guidance for the next quarter.
Atlassian had the slowest revenue growth among its peers. The company added 10,021 customers to a total of 226,521. The stock is down 3.49% since the results and currently trades at $280.22.
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Weakest Q4: Asana (NYSE:ASAN)
Founded in 2008 by Facebook’s co-founder Dustin Moskovitz, Asana (NYSE:ASAN) is a cloud-based project management software, where you can plan and assign tasks to employees and monitor and discuss progress of work.
Asana reported revenues of $111.9 million, up 63.7% year on year, beating analyst expectations by 6.43%. It was a decent quarter for the company, with an exceptional revenue growth but an underwhelming guidance for the next year.
The stock is down 26.2% since the results and currently trades at $36.
Founded in 2005, Smartsheet (NYSE:SMAR) is a software as a service platform that helps companies plan, manage and report on work.
Smartsheet reported revenues of $157.3 million, up 43.2% year on year, beating analyst expectations by 3.81%. It was a strong quarter for the company, with an exceptional revenue growth and guidance for the next quarter above analysts' estimates.
Smartsheet had the weakest performance against analyst estimates and weakest full year guidance update among the peers. The company added 922 enterprise customers paying more than $5,000 annually to a total of 15,150. The stock is up 25.1% since the results and currently trades at $54.44.
The author has no position in any of the stocks mentioned