4072

Project Management Software Stocks Q3 Highlights: Asana (NYSE:ASAN)


Kayode Omotosho /
2022/01/11 5:50 am EST
Add to Watchlist

Earnings results often give us a good indication what direction will the company will take in the months ahead. With Q3 now behind us, let’s have a look at Asana (NYSE:ASAN) 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 5 project management software stocks we track reported a very strong Q3; on average, revenues beat analyst consensus estimates by 7.82%, while on average next quarter revenue guidance was 7.17% above consensus. There has been a stampede out of high valuation technology stocks and project management software stocks have not been spared, with share price down 24.1% since earnings, on average.

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 $100.3 million, up 70.3% year on year, beating analyst expectations by 6.85%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

“Q3 was another strong quarter, led by record user adoption and large enterprise wins,” said Dustin Moskovitz, co-founder and chief executive officer of Asana.

Asana Total Revenue

The stock is down 32.9% since the results and currently trades at $61.

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

Slowest 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 $614 million, up 33.6% year on year, beating analyst expectations by 4.84%. It was a decent quarter for the company, with a solid growth in new customers.

Atlassian had the slowest revenue growth in the group (but to be fair, it is also much bigger than its peers). The company added 11,746 net new customers and ended up with a total of 216,500. The stock is down 24% since the results and currently trades at $317.04.

Read our full analysis of Atlassian's results here.

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 $83 million, up 94.9% year on year, beating analyst expectations by 11.1%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates.

Monday.com achieved the fastest revenue growth and highest full year guidance raise among the peers. The company added 143 enterprise customers paying more than $50,000 annually to a total of 613. The stock is down 45.4% since the results and currently trades at $243.

Read our full, actionable report on Monday.com 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 $144.6 million, up 46.1% year on year, beating analyst expectations by 3.35%. It was a very strong quarter for the company, with an exceptional revenue growth.

Smartsheet had the weakest performance against analyst estimates and weakest full year guidance update among the peers. The company added 808 enterprise customers paying more than $5,000 annually to a total of 14,228. The stock is actually up 0.67% since the results and currently trades at $61.25.

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

The author has no position in any of the stocks mentioned