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Project Management Software Stocks Q2 In Review: Atlassian (NASDAQ:TEAM) Vs Peers


Radek Strnad /
2021/10/19 8:55 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 Q2. Today we are looking at the project management software stocks, starting with Atlassian (NASDAQ:TEAM).

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 Q2; on average, revenues beat analyst consensus estimates by 8.49%, while on average next quarter revenue guidance was 8.85% above consensus. The market rewarded the results with the average return the day after earnings coming in at 17%.

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 $559.5 million, up 29.9% year on year, beating analyst expectations by 6.51%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and a solid beat of analyst estimates.

“Our Q4 was a ripper of a quarter - as we Aussies say - as we added over 23,000 new customers, grew subscription revenue 50 percent year-over-year, and continued to see cloud momentum build,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO.

Atlassian Total Revenue

Atlassian delivered the slowest revenue growth of the whole group. The company added 23,311 customers to a total of 236,118. The stock is up 55.3% since the results and currently trades at $414.77.

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

Best Q2: 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 $70.6 million, up 93.6% year on year, beating analyst expectations by 13.6%. It was a stunning quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

Monday.com Total Revenue

Monday.com scored the strongest analyst estimates beat and fastest revenue growth, but had the weakest full year guidance update among its peers. The stock is up 45.2% since the results and currently trades at $356.

Is now the time to buy Monday.com? Access our full analysis of the earnings results 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 $131.7 million, up 44.4% year on year, beating analyst expectations by 4.99%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter.

Smartsheet had the weakest performance against analyst estimates in the group. The company added 765 enterprise customers paying more than $5,000 annually to a total of 13,420. The stock is down 16% since the results and currently trades at $69.54.

Read our full analysis of Smartsheet'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 $89.4 million, up 71.9% year on year, beating analyst expectations by 8.77%. It was a very strong quarter for the company, with an exceptional revenue growth.

Asana scored the highest full year guidance raise among the peers. The company added 1,534 enterprise customers paying more than $5,000 annually to a total of 12,806. The stock is up 52.6% since the results and currently trades at $118.

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

The author has no position in any of the stocks mentioned