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Q3 Project Management Software Earnings: monday.com (NASDAQ:MNDY) Earns Top Marks


Kayode Omotosho /
2023/01/18 4:19 am EST
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Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q3 now behind us, let’s have a look at 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 mixed Q3; on average, revenues beat analyst consensus estimates by 2.32%, while on average next quarter revenue guidance was 1.39% under consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows, but project management software stocks held their ground better than others, with the share prices up 7.11% since the previous earnings results, on average.

Best Q3: 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 $136.8 million, up 64.8% year on year, beating analyst expectations by 4.94%. It was a strong quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates.

“The strength of our Work OS platform and continued execution in the quarter resulted in strong top line growth, with revenue growing 65%,” 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 163 enterprise customers paying more than $50,000 annually to a total of 1,323. The stock is up 29.7% since the results and currently trades at $123.54.

We think monday.com is a good business, but is it a buy today? Read our full report here, it's free.

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 $199.5 million, up 37.9% year on year, beating analyst expectations by 2.5%. It was a decent quarter for the company, with exceptional revenue growth but a decline in net revenue retention rate.

Smartsheet Total Revenue

The stock is up 31.6% since the results and currently trades at $43.

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

Weakest Q3: 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 $807.3 million, up 31.4% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.

Atlassian had the weakest performance against analyst estimates and slowest revenue growth in the group. The company added 6,550 customers to a total of 249,173. The stock is down 12.4% since the results and currently trades at $152.5.

Read our full analysis of Atlassian's results here.

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 $141.4 million, up 40.9% year on year, beating analyst expectations by 1.73%. It was a slower quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.

Asana had the weakest full year guidance update among the peers. The company added 660 enterprise customers paying more than $5,000 annually to a total of 18,700. The stock is down 20.6% since the results and currently trades at $14.37.

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

The author has no position in any of the stocks mentioned