Let’s take a look at the relative performance of Asana (NYSE:ASAN) and peers as we analyze the project management software’s recently completed quarterly earnings results.
The future of work requires teams to collaborate across departments and remote offices. Project management software is both driving and benefiting from this change. While the trend of collaborative work management has been strong for some time, the Covid pandemic has definitely accelerated the demand for tools that enable remote work.
The 4 project management software stocks we track reported mixed second quarters. As a group, revenues topped analysts’ consensus estimates by 1.2%, while revenue guidance for the next quarter was in line.
The Fed cut its policy rate by 50 bps (half a percent) in September 2024, the first in about four years. This marks the end of its most targeted anti-inflation campaign since the 1980s. While CPI (inflation) numbers have been supportive of late, the employment measures have bordered on worrisome. Markets will judge whether the timing of this rate cut (and more potential cuts in 2024 and 2025) is ideal to support the economy or a bit too late for a macro that has already cooled too much.
In light of this news, project management software stocks have remained stable, with share prices up an average of 2.6% since the last earnings report.
Asana (NYSE:ASAN)
Founded in 2008 by Facebook co-founder Dustin Moskovitz, Asana (NYSE:ASAN) is a cloud-based project management software that lets you plan and assign tasks to employees, and monitor and discuss work progress.
Asana reported revenue of $179.2 million, up 10.3% year over year. The print was in line with analysts’ expectations, but overall it was a slower quarter for the company, with a miss on analysts’ billing estimates and a full-year revenue forecast that missed analysts’ expectations.
“In Q2, Asana continued to execute on our enterprise transition and made significant progress in AI. We saw momentum in key areas, including 17% growth in customer spend over $100,000, success in key verticals, and a record number of multi-year deals,” said Dustin Moskovitz, co-founder and CEO of Asana.
Asana delivered the slowest revenue growth of the group. The company added 786 business customers paying more than $5,000 annually, for a total of 22,948. Unsurprisingly, the stock has fallen 7.2% since the report, currently trading at $12.32.
Read our full report on Asana here, it’s free.
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) creates software-as-a-service platforms that help teams plan and track work efficiently.
Monday.com reported revenue of $236.1 million, up 34.4% year over year, beating analysts’ expectations by 3%. The company had a strong quarter, solidly beating analysts’ annual recurring revenue (ARR) estimates and delivering a full-year revenue forecast that topped analysts’ expectations.
Monday.com scored the highest analyst estimates, fastest revenue growth and highest annual guidance increase among its peers. The company added 222 corporate clients who pay more than $50,000 annually, bringing the total to 2,713. The market seems pleased with the results, as the stock is up 21.3% since the report. It is currently trading at $273.83.
Is now the time to buy Monday.com? Check out our full earnings analysis here, it’s free.
Weakest Q2: Atlassian (NASDAQ:TEAM)
Founded in 2002 by Australian CEOs Mike Cannon-Brookes and Scott Farquhar, Atlassian (NASDAQ:TEAM) provides software as a service that enables large teams of software developers to more easily manage projects, particularly in software development.
Atlassian reported revenue of $1.13 billion, up 20.5% year-over-year, in line with analyst expectations. It was a slower quarter, as it issued a disappointing revenue forecast for the next quarter and management predicted that growth would slow.
Atlassian delivered the weakest performance against analyst estimates and the weakest full-year forecast update of the group. As expected, the stock has fallen 7% since the results and is currently trading at $161.19.
Read our full analysis of Atlassian’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 work.
Smartsheet reported revenue of $276.4 million, up 17.3% year-over-year. The figure was in line with analyst expectations. It was a mixed quarter more broadly, as it also saw accelerating growth in large accounts, but its full-year revenue forecast fell short of analyst expectations.
The company added 221 corporate clients who pay more than $5,000 annually, bringing the total to 20,198. The stock has risen 3.4% since the report and is currently trading at $51.01.
Read our full, actionable report on Smartsheet here. It’s free.
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