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Unpacking Q3 Earning: Smartsheet (NYSE:SMAR) In The Context Of Other Project Management Software Stocks


Jabin Bastian /
2022/01/17 9:08 am EST
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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 Smartsheet (NYSE:SMAR), 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 very strong Q3; on average, revenues beat analyst consensus estimates by 6.55%, while on average next quarter revenue guidance was 6.55% above consensus. The whole tech sector has been facing a sell-off since late last year and project management software stocks have not been spared, with share price down 27.7% since earnings, on average.

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 $144.6 million, up 46.1% year on year, beating analyst expectations by 3.35%. It was a strong quarter for the company, with an exceptional revenue growth and an optimistic guidance for the next quarter.

“This was a record quarter for Smartsheet on multiple financial and operational levels, including closing the highest number of large deals in a quarter and seeing the best bookings performance in our company’s history,” said Mark Mader, President and CEO of Smartsheet.

Smartsheet Total Revenue

Smartsheet delivered the smallest earnings surprise this quarter and weakest full year guidance update of the whole group. The company added 808 enterprise customers paying more than $5,000 annually to a total of 14,228. The stock is up 3.23% since the results and currently trades at $62.81.

We think Smartsheet is a good business, but is it a buy today? Read our full report here, it's free.

Best Q3: 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 $83 million, up 94.9% year on year, beating analyst expectations by 11.1%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.

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 143 enterprise customers paying more than $50,000 annually to a total of 613. The high-flying stock is down 51.9% since the results and currently trades at $214.

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

Slowest Q3: 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 $614 million, up 33.6% year on year, beating analyst expectations by 4.84%. It was an OK quarter for the company, with a decent beat of analyst estimates but decelerating customer growth.

The company added 11,746 net new customers and ended up with a total of 216,500. The stock is down 28.5% since the results and currently trades at $298.

Read our full analysis of Atlassian's results here.

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 $100.3 million, up 70.3% year on year, beating analyst expectations by 6.85%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter.

The company added 1,337 enterprise customers paying more than $5,000 annually to a total of 14,143. The stock is down 33.7% since the results and currently trades at $60.25.

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

The author has no position in any of the stocks mentioned