Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Atlassian (NASDAQ:TEAM), and the best and worst performers in the project management software group.
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. Increasing interest rates hurt growth companies as investors search for near-term cash flows and while some of the project management software stocks have fared somewhat better than others, they have not been spared, with share prices declining 6.41% since the previous earnings results, on average.
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.
“We are proud of our Q1 results, growing subscription revenue 50 percent year-over-year, and we continue to have line of sight to $10 billion in annual revenue,” said Scott Farquhar, Atlassian’s co-founder and co-CEO.
Atlassian delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The company added 6,550 customers to a total of 249,173. The stock is down 23.4% since the results and currently trades at $133.36.
Is now the time to buy Atlassian? Access our full analysis of the earnings results here, it's free.
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.
monday.com delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 163 enterprise customers paying more than $50,000 annually to a total of 1,323. The stock is up 10.1% since the results and currently trades at $104.86.
Is now the time to buy monday.com? Access our full analysis of the earnings results here, it's free.
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%. Despite the strong topline result, 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 in the group. The company added 660 enterprise customers paying more than $5,000 annually to a total of 18,700. The stock is down 27.9% since the results and currently trades at $13.05.
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.
The company added 764 enterprise customers paying more than $5,000 annually to a total of 17,446. The stock is up 15.4% since the results and currently trades at $37.71.
The author has no position in any of the stocks mentioned