Let’s dig into the relative performance of Asana (NYSE:ASAN) and its peers as we unravel the now-completed Q2 project management software earnings season.
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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
In light of this news, project management software stocks have held steady with share prices up 2.6% on average since the latest earnings results.
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 $179.2 million, up 10.3% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ billings estimates and full-year revenue guidance missing analysts’ expectations.
“In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI. We're seeing momentum in key areas, including 17% growth in customers spending over $100,000, success in key verticals, and a record number of multi-year deals,” said Dustin Moskovitz, co-founder and chief executive officer of Asana.
Asana delivered the slowest revenue growth of the whole group. The company added 786 enterprise customers paying more than $5,000 annually to reach a total of 22,948. Unsurprisingly, the stock is down 7.2% since reporting and currently trades at $12.32.
Read our full report on Asana here, it’s free.
Best Q2: 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 platform that helps teams plan and track work efficiently.
Monday.com reported revenues of $236.1 million, up 34.4% year on year, outperforming analysts’ expectations by 3%. The business had a strong quarter with a solid beat of analysts’ ARR (annual recurring revenue) estimates and full-year revenue guidance topping analysts’ expectations.
Monday.com scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The company added 222 enterprise customers paying more than $50,000 annually to reach a total of 2,713. The market seems happy with the results as the stock is up 21.3% since reporting. It currently trades at $273.83.
Is now the time to buy Monday.com? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $1.13 billion, up 20.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted underwhelming revenue guidance for the next quarter and management forecasting growth to slow.
Atlassian delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 7% since the results and currently trades at $161.19.
Read our full analysis of Atlassian’s results here.
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 $276.4 million, up 17.3% year on year. This number was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also recorded accelerating growth in large customers but full-year revenue guidance missing analysts’ expectations.
The company added 221 enterprise customers paying more than $5,000 annually to reach a total of 20,198. The stock is up 3.4% since reporting and currently trades at $51.01.
Read our full, actionable report on Smartsheet here, it’s free.
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