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Q2 Rundown: Asana (NYSE:ASAN) Vs Other Project Management Software Stocks


Radek Strnad /
2022/09/19 3:18 am EDT
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As we reflect back on the just completed Q2 project management software sector earnings season, we dig into the relative performance of 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 solid Q2; on average, revenues beat analyst consensus estimates by 4.73%, while on average next quarter revenue guidance was 1.81% 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 price up 13.6% 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 $134.8 million, up 50.7% year on year, beating analyst expectations by 5.99%. It was a strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.

“This quarter we beat our revenue guidance by 6 percent and non-GAAP operating loss guidance by 14 percent," said Dustin Moskovitz, co-founder and chief executive officer of Asana.

Asana Total Revenue

Asana pulled off the strongest analyst estimates beat and highest full year guidance raise of the whole group. The company added 1,351 enterprise customers paying more than $5,000 annually to a total of 18,040. The stock is up 26.1% since the results and currently trades at $24.08.

Is now the time to buy Asana? Access our full analysis of the earnings results 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 platforms that helps teams plan and track work efficiently.

monday.com reported revenues of $123.7 million, up 75.2% year on year, beating analyst expectations by 4.65%. It was a strong quarter for the company, with an exceptional revenue growth and a very optimistic guidance for the next quarter.

monday.com Total Revenue

monday.com scored the fastest revenue growth among its peers. The company added 200 enterprise customers paying more than $50,000 annually to a total of 1,160. The stock is up 4.78% since the results and currently trades at $134.

Is now the time to buy monday.com? Access our full analysis of the earnings results here, it's free.

Slowest Q2: 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 $186.6 million, up 41.7% year on year, beating analyst expectations by 3.39%. It was a mixed quarter for the company, with an exceptional revenue growth but an underwhelming revenue guidance for the next quarter.

Smartsheet had the weakest performance against analyst estimates and weakest full year guidance update in the group. The company added 803 enterprise customers paying more than $5,000 annually to a total of 16,682. The stock is up 17.6% since the results and currently trades at $36.31.

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 $759.8 million, up 35.7% year on year, beating analyst expectations by 4.91%. 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 8,048 customers to a total of 242,623. The stock is up 5.89% since the results and currently trades at $243.99.

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

The author has no position in any of the stocks mentioned