Wrapping up Q1 earnings, we look at the numbers and key takeaways for the project management software stocks, including 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 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. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but project management software stocks held their ground better than others, with the share prices up 12.1% since the previous earnings results, on average.
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 retention rate.
“As organizations move rapidly to leverage the benefits of AI, our partnerships with some of the largest most strategic companies in the world will be instrumental in informing our product roadmap," said Dustin Moskovitz, co-founder and chief executive officer of Asana.
Asana delivered the weakest performance against analyst estimates of the whole group. The company added 432 enterprise customers paying more than $5,000 annually to a total of 19,864. The stock is up 9.46% since the results and currently trades at $25.
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 pulled off 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 34.8% since the results and currently trades at $176.71.
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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%. Despite the strong topline growth, it was a weaker 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 14.2% since the results and currently trades at $42.05.
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.
Atlassian had the slowest revenue growth among the peers. The company added 6,598 customers to a total of 259,775. The stock is up 18.5% since the results and currently trades at $177.8.
The author has no position in any of the stocks mentioned