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Q1 Earnings Highs And Lows: Asana (NYSE:ASAN) Vs The Rest Of The Project Management Software Stocks


Jabin Bastian /
2022/06/17 3:27 am EDT
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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Asana (NYSE:ASAN), and the best and worst performers in the project management software group.

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 solid Q1; on average, revenues beat analyst consensus estimates by 5.16%, while on average next quarter revenue guidance was 3.03% above consensus. The technology sell-off has been putting pressure on stocks since November and project management software stocks have not been spared, with share price down 27.9% 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 $120.6 million, up 57.3% year on year, beating analyst expectations by 4.8%. It was a strong quarter for the company, with an exceptional revenue growth and accelerating customer growth.

“We reported strong revenue growth in the first quarter and we set a new record for the largest deployment in the company’s history at over 100,000 seats,” said Dustin Moskovitz, co-founder and chief executive officer of Asana.

Asana Total Revenue

The stock is down 31% since the results and currently trades at $16.67.

Is now the time to buy Asana? 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 $108.4 million, up 83.9% year on year, beating analyst expectations by 7.09%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

monday.com Total Revenue

monday.com achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 167 enterprise customers paying more than $50,000 annually to a total of 960. The stock is down 12% since the results and currently trades at $96.99.

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 $168.3 million, up 43.7% year on year, beating analyst expectations by 3.54%. It was a mixed quarter for the company, with an exceptional revenue growth but decelerating growth in large customers.

Smartsheet had the weakest performance against analyst estimates and weakest full year guidance update in the group. The company added 729 enterprise customers paying more than $5,000 annually to a total of 15,879. The stock is down 32.5% since the results and currently trades at $27.45.

Read our full analysis of Smartsheet's results here.

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 $740.4 million, up 30.2% year on year, beating analyst expectations by 5.2%. It was a solid quarter for the company, with a very optimistic guidance for the next quarter.

Atlassian had the slowest revenue growth among the peers. The company added 8,054 customers to a total of 234,575. The stock is down 36.1% since the results and currently trades at $166.

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

The author has no position in any of the stocks mentioned