As we reflect back on the just completed Q4 project management software sector earnings season, we dig into the relative performance of 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 definitively accelerated the demand for tools that allow work to be done remotely.
The 4 project management software stocks we track reported a slower Q4; on average, revenues beat analyst consensus estimates by 3.82%, while on average next quarter revenue guidance was 0.46% above consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but project management software stocks held their ground better than others, with the share prices up 6.68% since the previous earnings results, 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 $212.3 million, up 34.9% year on year, beating analyst expectations by 3.16%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.
“Our Q4 results cap off a strong fiscal year in which we achieved the major milestone of positive free cash flow,” said Mark Mader, President and CEO of Smartsheet.
Smartsheet delivered the weakest full year guidance update of the whole group. The company added 647 enterprise customers paying more than $5,000 annually to a total of 18,093. The stock is up 21.6% since the results and currently trades at $46.59.
Is now the time to buy Smartsheet? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $149.9 million, up 56.9% year on year, beating analyst expectations by 5.85%. It was a decent quarter for the company, with exceptional revenue growth.
Monday.com achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 151 enterprise customers paying more than $50,000 annually to a total of 1,474. The stock is up 4.35% since the results and currently trades at $136.69.
Is now the time to buy monday.com? Access our full analysis of the earnings results here, it's free.
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 $150.2 million, up 34.2% year on year, beating analyst expectations by 3.52%. It was a weaker quarter for the company, with underwhelming guidance for the next year and a decline in net revenue retention rate.
The stock is up 13.4% since the results and currently trades at $20.18.
Read our full analysis of Asana'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 $872.7 million, up 26.7% year on year, beating analyst expectations by 2.74%. It was a mixed quarter for the company, with decelerating customer growth.
Atlassian had the weakest performance against analyst estimates and slowest revenue growth among the peers. The company added 4,004 customers to a total of 253,177. The stock is down 11.9% since the results and currently trades at $160.6.
Read our full, actionable report on Atlassian here, it's free.
The author has no position in any of the stocks mentioned