The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Atlassian (NASDAQ:TEAM) and the rest of the project management software stocks fared in Q4.
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 and while some of the project management software stocks have fared somewhat better, they have not been spared, with share price declining 10.1% since earnings, on average.
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.
“Q2 was another strong quarter for Atlassian with over 10,000 net new customers this quarter, 98% of which were in the Cloud,” said Scott Farquhar, Atlassian’s co-founder and co-CEO.
Atlassian delivered the slowest (although still strong) revenue growth of the whole group. The company added 10,021 customers to a total of 226,521. The stock is down 7.24% since the results and currently trades at $269.35.
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.
monday.com scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 180 enterprise customers paying more than $50,000 annually to a total of 793. The stock is down 20.8% since the results and currently trades at $140.34.
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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 mixed quarter for the company, with an exceptional revenue growth but slowing customer growth.
The stock is down 29.9% since the results and currently trades at $34.20.
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 the net revenue retention rate improving to 134%, which indicates customers' increasing satisfaction with the software.
Smartsheet had the smallest earnings surprise 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 17.8% since the results and currently trades at $51.27.
The author has no position in any of the stocks mentioned