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 decent Q4; on average, revenues beat analyst consensus estimates by 2.1%. while next quarter’s revenue guidance was in line with consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and project management software stocks have had a rough stretch, with share prices down 18.8% 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 $171.1 million, up 13.9% year on year, topping analyst expectations by 1.9%. It was a solid quarter for the company, with an impressive beat of analysts’ billings expectations, which led to the company narrowly outperforming Wall Street’s estimates on the reported revenue line. On the other hand, while revenue guidance for next quarter the the full year was in line with expectations, Asana’s guidance for operating loss for those periods was worse than expectations.
“Asana’s Q4 and fiscal year results beat expectations on the top and bottom line. Overall revenue growth was better than our guidance, and operating margin improved significantly during the year, as we target to be free cash flow positive by the end of this year,” said Dustin Moskovitz, co-founder and chief executive officer of Asana.
Asana scored the highest full-year guidance raise but had the slowest revenue growth of the whole group. The company added 300 enterprise customers paying more than $5,000 annually to reach a total of 21,646. The stock is down 24.7% since the results and currently trades at $14.15.
Is now the time to buy Asana? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $1.06 billion, up 21.5% year on year, outperforming analyst expectations by 3.6%. It was a very strong quarter for the company, with an impressive beat of analysts’ revenue estimates. Full year guidance was also promising, with Cloud and Data Center revenue outlook raised. Higher growth is not hurting profits, as the outlook for full year non-GAAP operating margin was lifted as well.
Atlassian pulled off the biggest analyst estimates beat among its peers. The stock is down 21.9% since the results and currently trades at $199.06.
Is now the time to buy Atlassian? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $256.9 million, up 21% year on year, in line with analyst expectations. It was a weaker quarter for the company, with full-year revenue guidance missing analysts’ expectations and management forecasting growth to slow.
Smartsheet had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company added 429 enterprise customers paying more than $5,000 annually to reach a total of 19,818. The stock is down 7.7% since the results and currently trades at $37.21.
Read our full analysis of Smartsheet’s results here.
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 $202.6 million, up 35.1% year on year, surpassing analyst expectations by 2.4%. It was a mixed quarter for the company, with a decent beat of analysts’ ARR (annual recurring revenue) estimates but management forecasting growth to slow.
Monday.com scored the fastest revenue growth among its peers. The company added 218 enterprise customers paying more than $50,000 annually to reach a total of 2,295. The stock is down 21% since the results and currently trades at $186.67.
Read our full, actionable report on Monday.com here, it’s free.
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