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 Asana (NYSE:ASAN) 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 slower Q4; on average, revenues beat analyst consensus estimates by 3.82%, while on average next quarter revenue guidance was 0.46% above consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows, but project management software stocks held their ground better than others, with the share prices up 6.38% since the previous earnings results, 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 $150.2 million, up 34.2% year on year, beating analyst expectations by 3.52%. It was a weaker quarter for the company, with underwhelming guidance for the next year and a decline in net revenue retention rate.
“Revenues for the fiscal year were up 45 percent year over year and we reported significant improvement in operating margins,” said Dustin Moskovitz, co-founder and chief executive officer of Asana.
The stock is up 14.9% since the results and currently trades at $20.45.
Read our full report on Asana here, it's free.
Best Q4: 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 $149.9 million, up 56.9% year on year, beating analyst expectations by 5.85%. It was a decent quarter for the company, with exceptional revenue growth but underwhelming guidance for the next year.
monday.com scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 151 enterprise customers paying more than $50,000 annually to a total of 1,474. The stock is up 3.66% since the results and currently trades at $135.79.
Is now the time to buy monday.com? Access our full analysis of the earnings results here, it's free.
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 $872.7 million, up 26.7% year on year, beating analyst expectations by 2.74%. It was a mixed quarter for the company, with a decent beat of analyst estimates but decelerating customer growth.
Atlassian had the weakest performance against analyst estimates and slowest revenue growth in the group. The company added 4,004 customers to a total of 253,177. The stock is down 16.1% since the results and currently trades at $153.
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 $212.3 million, up 34.9% year on year, beating analyst expectations by 3.16%. It was a weak quarter for the company, with full year revenue guidance missing analysts' expectations and decelerating customer growth.
Smartsheet had the weakest full year guidance update among the peers. The company added 647 enterprise customers paying more than $5,000 annually to a total of 18,093. The stock is up 23% since the results and currently trades at $47.12.
Read our full, actionable report on Smartsheet here, it's free.
The author has no position in any of the stocks mentioned