As we reflect back on the just completed Q1 project management software sector earnings season, we dig into the relative performance of Atlassian (NASDAQ:TEAM) 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 Q1; on average, revenues beat analyst consensus estimates by 2.48%, while on average next quarter revenue guidance was 0.26% above consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again, but project management software stocks held their ground better than others, with the share prices up 5.11% since the previous earnings results, on average.
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 $915.5 million, up 23.6% year on year, beating analyst expectations by 1.52%. It was a mixed quarter for the company, with accelerating customer growth but underwhelming revenue guidance for the next quarter.
“Connecting with the Atlassian community in-person at Team ’23 was incredible, and the enthusiasm for our product announcements, particularly Atlassian Intelligence, was unmatched,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO.
Atlassian delivered the slowest revenue growth of the whole group. The company added 6,598 customers to a total of 259,775. The stock is up 12% since the results and currently trades at $168.
Is now the time to buy Atlassian? Access our full analysis of the earnings results here, it's free.
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 $162.3 million, up 49.5% year on year, beating analyst expectations by 4.49%. It was a solid quarter for the company, with a decent beat of analyst estimates and strong sales guidance for the next quarter.
Monday.com scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 209 enterprise customers paying more than $50,000 annually to a total of 1,683. The stock is up 30.2% since the results and currently trades at $170.76.
Is now the time to buy Monday.com? 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 $219.9 million, up 30.6% year on year, beating analyst expectations by 2.67%. It was a slower quarter for the company, with decelerating growth in large customers and underwhelming revenue guidance for the next quarter.
Smartsheet had the weakest full year guidance update in the group. The company added 390 enterprise customers paying more than $5,000 annually to a total of 18,483. The stock is down 22.5% since the results and currently trades at $38.
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 $152.4 million, up 26.3% year on year, beating analyst expectations by 1.22%. It was a mixed quarter for the company, with revenue topping expectations for the quarter but a declining revenue retention rate.
Asana had the weakest performance against analyst estimates among the peers. The company added 432 enterprise customers paying more than $5,000 annually to a total of 19,864. The stock is up 0.7% since the results and currently trades at $23.
The author has no position in any of the stocks mentioned