Reflecting On Project Management Software Stocks’ Q3 Earnings: Atlassian (NASDAQ:TEAM)
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 Atlassian (NASDAQ:TEAM), 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. Inflation (despite slowing) has investors prioritizing near-term cash flows, but project management software stocks held their ground better than others, with the share prices up 16% on average since the previous earnings results.
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, topping 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.
“Our R&D engine continues to deliver incredible innovation and value to customers. We launched Compass, our new developer experience platform that helps increase developer productivity, and AI-powered virtual agent capabilities in Jira Service Management to help support teams provide lightning-fast service at scale, along with a host of other features powered by Atlassian Intelligence,” said Mike Cannon-Brookes, Atlassian’s co-founder and co-CEO.
Atlassian delivered the weakest performance against analyst estimates of the whole group. The stock is up 33.2% since the results and currently trades at $241.71.
Is now the time to buy Atlassian? 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 good quarter for the company, with a decent beat of analysts' revenue estimates but its net revenue retention rate in jeopardy.
Monday.com delivered 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 46.1% since the results and currently trades at $205.
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 $166.5 million, up 17.7% year on year, exceeding 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 in the group. The company added 564 enterprise customers paying more than $5,000 annually to reach a total of 21,346. The stock is down 18.3% since the results and currently trades at $19.04.
Read our full analysis of Asana's results here.
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 $245.9 million, up 23.2% year on year, surpassing 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.
The company added 358 enterprise customers paying more than $5,000 annually to reach a total of 19,389. The stock is up 2.9% since the results and currently trades at $46.25.
Read our full, actionable report on Smartsheet here, it's free.
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The author has no position in any of the stocks mentioned
