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Winners And Losers Of Q2: Smartsheet (NYSE:SMAR) Vs The Rest Of The Project Management Software Stocks


Radek Strnad /
2021/10/12 6:27 am EDT
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Earnings results often give us a good indication what direction will the company will take in the months ahead. With Q2 now behind us, let’s have a look at Smartsheet (NYSE:SMAR) 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 definitely accelerated the demand for tools that allow work to be done remotely.

The 4 project management software stocks we track reported a a very strong Q2; on average, revenues beat analyst consensus estimates by 8.49%, while on average next quarter revenue guidance was 8.85% above consensus. The market rewarded the results with the average return the day after earnings coming in at 17%.

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 $131.7 million, up 44.4% year on year, beating analyst expectations by 4.99%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

“Our strong results this quarter reflect the continued rapid adoption of our platform in new deals and expansion within existing customers,” said Mark Mader, President and CEO of Smartsheet.

Smartsheet Total Revenue

Smartsheet delivered the weakest performance against analyst estimates of the whole group. The company added 765 enterprise customers paying more than $5,000 annually to a total of 13,420. But the market expected more and the stock is down 22.7% since the results and currently trades at $64.05.

We think Smartsheet is a good business, but is it a buy today? Read our full report 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 makes software as a service platforms that helps teams plan and track work efficiently.

Monday.com reported revenues of $70.6 million, up 93.6% year on year, beating analyst expectations by 13.6%. It was a stunning quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

Monday.com Total Revenue

Monday.com delivered the strongest analyst estimates beat and fastest revenue growth, but had the weakest full year guidance update among its peers. The stock is up 40.6% since the results and currently trades at $344.75.

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 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 $559.5 million, up 29.9% year on year, beating analyst expectations by 6.51%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter.

Atlassian had the slowest revenue growth in the group. The stock is up 45.6% since the results and currently trades at $388.90.

Read our full analysis of Atlassian's results here.

Asana (NYSE:ASAN)

Founded in 2008 by Facebook’s co-founder Dustin Moskovitz, Asana 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 $89.4 million, up 71.9% year on year, beating analyst expectations by 8.77%. It was a very strong quarter for the company, with an exceptional revenue growth.

Asana delivered the highest full year guidance raise among the peers. The company added 1534 enterprise customers paying more than $5,000 annually to a total of 12,806. The stock is up 37.3% since the results and currently trades at $106.11.

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

The author has no position in any of the stocks mentioned