Third Quarter Earnings Review: Monday.com (NASDAQ:MNDY) and the Rest of the Project Management Software Segment

Let’s take a look at the relative performance of Monday.com (NASDAQ:MNDY (NASDAQ:)) and its peers as we unravel the now-completed Q3 earnings season for project management software.

The future of work requires teams to collaborate across departments and remote offices. Project management software drives and benefits from this change. While the trend of collaborative work management has been strong for a while, the Covid pandemic has definitely accelerated the demand for tools that allow work to be done remotely.

The four project management software stocks we track reported a strong third quarter. As a group, revenues exceeded analyst consensus expectations by 1.9%, while revenue expectations for the next quarter were in line.

Fortunately, project management software shares have performed well, with share prices up an average of 13.5% since the last earnings results.

Monday.com (NASDAQ:MNDY)

Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track their work efficiently.

Monday.com reported revenue of $251 million, up 32.7% year over year. This print exceeded analyst expectations by 1.9%. Overall, it was a strong quarter for the company with solid improvement in analyst EBITDA estimates and significant improvement in net revenue retention rate.

“We are very pleased with our third quarter results, with solid revenue growth and profitability, as well as improving retention trends as we continue to expand to larger customers,” said Eliran Glazer, CFO of monday.com.

Monday.com scored the fastest revenue growth and the highest full-year expectation increase of the entire group. The company added 194 business customers paying more than $50,000 annually, bringing the total to 2,907. However, investor expectations were likely higher than Wall Street’s published projections, leaving some wanting even better results (analyst consensus estimates are those published by major banks and consulting firms, not by the investors who make buying and selling decisions). The stock has fallen 27.9% since reporting and is currently trading at $234.

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Best Third Quarter: Asana (NYSE:NYSE:)

Founded in 2008 by Facebook co-founder Dustin Moskovitz, Asana (NYSE:ASAN) is a cloud-based project management software that allows you to plan and assign tasks to employees and track and discuss work progress.

Asana reported revenue of $183.9 million, up 10.4% year over year, beating analyst expectations by 1.8%. The company had a strong quarter with an impressive showing of analyst EBITDA estimates and full-year earnings per share expectations exceeding analyst expectations.

The market seems pleased with the results, as the stock is up 47.3% since reporting. It is currently trading at $22.78.

Weakest Quarter 3: Smartsheet (NYSE:NYSE:)

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 $286.9 million, up 16.7% year over year, beating analyst expectations by 1.1%. Still, it was a mixed quarter as analyst expectations were missed.

Smartsheet had the weakest performance compared to analyst estimates in the group. The company added 232 business customers paying more than $5,000 annually, bringing the total to 20,430. The stock is flat since the results and is currently trading at $56.03.

Atlassian (NASDAQ:)

Founded in 2002 by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar, 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 revenue of $1.19 billion, up 21.5% year over year. This print exceeded analyst expectations by 2.8%. That aside, it was a satisfying quarter, as it also showed a solid improvement in analyst EBITDA estimates, but a miss in analyst billing estimates.

Atlassian achieved the highest analyst estimates among its peers. The stock is up 34.8% since reporting and is currently trading at $254.

Market update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs and is moving closer to the 2% target. This disinflation has occurred without serious consequences for economic growth, indicating a soft landing success. The stock market boomed in 2024, boosted by recent interest rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump’s victory in the presidential election in November, pushing the indices were pushed to historic highs. Nevertheless, the outlook for 2025 remains clouded by the pace and magnitude of future interest rate cuts and by potential changes to trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

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This content was originally published on Stock Story