The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how project management software stocks fared in Q3, starting with Asana (NYSE:ASAN).
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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Luckily, project management software stocks have performed well with share prices up 13.3% on average since the latest earnings results.
Best Q3: 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 $183.9 million, up 10.4% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
“The launch of AI Studio is the birth of a new category, unlocking a massive Total Addressable Market (TAM) and growth opportunity for the company,” 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 661 enterprise customers paying more than $5,000 annually to reach a total of 23,609. Interestingly, the stock is up 44.1% since reporting and currently trades at $22.28.
Is now the time to buy Asana? Access our full analysis of the earnings results here, it’s free.
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 work efficiently.
Monday.com reported revenues of $251 million, up 32.7% year on year, outperforming analysts’ expectations by 1.9%. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and a significant improvement in its net revenue retention rate.
Monday.com achieved the fastest revenue growth and highest full-year guidance raise among its peers. The company added 194 enterprise customers paying more than $50,000 annually to reach a total of 2,907. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 27.6% since reporting. It currently trades at $230.
Is now the time to buy Monday.com? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $286.9 million, up 16.7% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a mixed quarter as it posted a miss of analysts’ billings estimates.
Smartsheet delivered the weakest performance against analyst estimates in the group. The company added 232 enterprise customers paying more than $5,000 annually to reach a total of 20,430. The stock is flat since the results and currently trades at $56.
Read our full analysis of Smartsheet’s results here.
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 21.5% year on year. This result topped analysts’ expectations by 2.8%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
Atlassian achieved the biggest analyst estimates beat among its peers. The stock is up 38.4% since reporting and currently trades at $260.88.
Read our full, actionable report on Atlassian here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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