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 Asana (NYSE:ASAN) 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 solid Q1; on average, revenues beat analyst consensus estimates by 3.8%. while next quarter's revenue guidance was 0.8% above consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but project management software stocks have shown resilience, with share prices up 8.5% on average since the previous earnings results.
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 $172.4 million, up 13.1% year on year, exceeding analysts' expectations by 2.2%. Overall, it was an ok quarter for the company with a decent beat of analysts' billings estimates but underwhelming revenue guidance for the next quarter.
“AI is transforming how we work, and Asana is delivering the ideal platform for this new era where people and AI collaborate to reach new levels of productivity and innovation," said Dustin Moskovitz, co-founder and chief executive officer of Asana.
Asana delivered the slowest revenue growth and weakest full-year guidance update of the whole group. The company added 516 enterprise customers paying more than $5,000 annually to reach a total of 22,162. The stock is up 3% since reporting and currently trades at $13.52.
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Best Q1: 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 $1.19 billion, up 29.9% year on year, outperforming analysts' expectations by 8.1%. It was a very strong quarter for the company with an impressive beat of analysts' billings estimates and decent sales guidance for the next quarter.
Atlassian achieved the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 10.5% since reporting. It currently trades at $177.66.
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 $263 million, up 19.6% year on year, exceeding analysts' expectations by 1.9%. It was a slower quarter for the company with decelerating growth in large customers and a miss of analysts' billings estimates.
Smartsheet posted the weakest performance against analyst estimates in the group. The company added 159 enterprise customers paying more than $5,000 annually to reach a total of 19,977. Interestingly, the stock is up 14.1% since the results and currently trades at $43.09.
Monday.com (NASDAQ:MNDY (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 $216.9 million, up 33.7% year on year, surpassing analysts' expectations by 3%. Overall, it was a strong quarter for the company with a solid beat of analysts' ARR (annual recurring revenue) estimates and a decent beat of analysts' billings estimates.
Monday.com scored the fastest revenue growth and highest full-year guidance raise among its peers. The company added 196 enterprise customers paying more than $50,000 annually to reach a total of 2,491. The stock is up 27.2% since reporting and currently trades at $231.
This content was originally published on Stock Story
