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 mixed Q3; on average, revenues beat analyst consensus estimates by 2.1% while next quarter's revenue guidance was in line with consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but project management software stocks held their ground better than others, with the share prices up 14.1% on average since the previous earnings results.
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 $245.9 million, up 23.2% year on year, topping analyst expectations by 1.9%. It was a mixed quarter for the company, with accelerating growth in large customers but its net revenue retention rate in jeopardy. Guidance was solid, with full year guidance raised from the previous outlook.
“We exceeded expectations on the top and bottom lines this quarter,” said Mark Mader, CEO of Smartsheet.
The stock is up 6.5% since the results and currently trades at $47.83.
Is now the time to buy Smartsheet? Access our full analysis of the earnings results 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 $189.2 million, up 38.2% year on year, outperforming analyst expectations by 3.7%. It was a decent quarter for the company, with a solid beat of analysts' revenue estimates but its net revenue retention rate in jeopardy. Looking ahead, its full-year revenue guidance came in higher than Wall Street's estimates.
Monday.com pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The company added 185 enterprise customers paying more than $50,000 annually to reach a total of 2,077. The stock is up 38.9% since the results and currently trades at $195.
Is now the time to buy Monday.com? Access our full analysis of the earnings results here, it's free.
Weakest 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 $977.8 million, up 21.1% year on year, exceeding analyst expectations by 1.3%. It was a mixed quarter for the company, with a narrow beat of analysts' revenue estimates but underwhelming revenue guidance for the next quarter. For the full year, cloud revenue growth was reaffirmed and operating margin guidance was raised.
Atlassian had the weakest performance against analyst estimates in the group. The stock is up 32.7% since the results and currently trades at $240.68.
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 $166.5 million, up 17.7% year on year, surpassing analyst expectations by 1.5%. It was a mixed quarter for the company, with a narrow beat of analysts' revenue estimates but its net revenue retention rate in jeopardy.
Asana had the slowest revenue growth and weakest full-year guidance update among its peers. The company added 564 enterprise customers paying more than $5,000 annually to reach a total of 21,346. The stock is down 21.8% since the results and currently trades at $18.22.
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The author has no position in any of the stocks mentioned