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Q1 Project Management Software Earnings: monday.com (NASDAQ:MNDY) Impresses


Radek Strnad /
2022/06/27 4:31 am EDT
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As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today we are looking at the project management software stocks, starting with monday.com (NASDAQ:MNDY).

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 solid Q1; on average, revenues beat analyst consensus estimates by 5.16%, while on average next quarter revenue guidance was 3.03% above consensus. The technology sell-off has been putting pressure on stocks since November, but project management software stocks held their ground better than others, with share price down 7.41% since earnings, on average.

Best Q1: monday.com (NASDAQ:MNDY)

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 $108.4 million, up 83.9% year on year, beating analyst expectations by 7.09%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

“In the first quarter we made meaningful progress in capturing our large market opportunity with strong top line growth and increasing net dollar retention,” said monday.com founder and co-CEO, Roy Mann.

monday.com Total Revenue

monday.com achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The company added 167 enterprise customers paying more than $50,000 annually to a total of 960. The stock is up 14.2% since the results and currently trades at $126.03.

Read why we think that monday.com is one of the best project management software stocks, our full report is free.

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 $120.6 million, up 57.3% year on year, beating analyst expectations by 4.8%. It was a strong quarter for the company, with an exceptional revenue growth and accelerating customer growth.

Asana Total Revenue

The stock is down 9.05% since the results and currently trades at $22.

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

Weakest Q1: Smartsheet (NYSE:SMAR)

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 $168.3 million, up 43.7% year on year, beating analyst expectations by 3.54%. It was a mixed quarter for the company, with an exceptional revenue growth but decelerating growth in large customers.

Smartsheet had the weakest performance against analyst estimates and weakest full year guidance update in the group. The company added 729 enterprise customers paying more than $5,000 annually to a total of 15,879. The stock is down 14.5% since the results and currently trades at $34.76.

Read our full analysis of Smartsheet's results here.

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 $740.4 million, up 30.2% year on year, beating analyst expectations by 5.2%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and a solid beat of analyst estimates.

Atlassian had the slowest revenue growth among the peers. The company added 8,054 customers to a total of 234,575. The stock is down 20.3% since the results and currently trades at $207.12.

Read our full, actionable report on Atlassian here, it's free.

The author has no position in any of the stocks mentioned