Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Monday.com (NASDAQ:MNDY (NASDAQ:MNDY)) and the best and worst performers in the project management software industry.
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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Luckily, project management software stocks have performed well with share prices up 11.4% on average since the latest earnings results.
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 platform that helps teams plan and track work efficiently.Monday.com reported revenues of $236.1 million, up 34.4% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ ARR (annual recurring revenue) estimates.
“monday.com delivered a strong second quarter, and we’re very encouraged by the progress we continue to make against both our short- and long-term financial goals,” said Eliran Glazer, monday.com CFO.
Monday.com pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The company added 222 enterprise customers paying more than $50,000 annually to reach a total of 2,713. Unsurprisingly, the stock is up 31.9% since reporting and currently trades at $297.71.
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Smartsheet (NYSE: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 $276.4 million, up 17.3% year on year, in line with analysts’ expectations. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and optimistic earnings guidance for the full year.
The market seems happy with the results as the stock is up 14.2% since reporting. It currently trades at $56.31.
Weakest Q2: Asana (NYSE: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 $179.2 million, up 10.3% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted an impressive beat of analysts’ EBITDA estimates but underwhelming earnings guidance for the next quarter.
Asana delivered the slowest revenue growth in the group. The company added 786 enterprise customers paying more than $5,000 annually to reach a total of 22,948. As expected, the stock is down 10% since the results and currently trades at $11.95.
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 $1.13 billion, up 20.5% year on year. This print was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but underwhelming revenue guidance for the next quarter.
Atlassian had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is up 9.6% since reporting and currently trades at $190.
This content was originally published on Stock Story
