The end of the earnings season is always an excellent time to take a step back and evaluate who shone (and who didn’t so much). Let’s dive into how project management software stocks fared in Q3, starting with Smartsheet (NYSE:SMAR).
The Future Of Work Requires Collaboration
The future of work demands teams to collaborate across departments and remote offices. Project management software is driving this change and benefiting from it. While the trend of collaborative work management has been strong for a while, the Covid pandemic has undoubtedly accelerated the demand for tools that allow work to be done remotely.
Project Management Software Stocks’ Q3 Performance
As we track four project management software stocks, they reported a robust Q3. As a group, revenues exceeded analysts’ consensus estimates by 1.9%, and next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient, with an average increase of 7.7% since the latest earnings results.
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-over-year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
Smartsheet Total Revenue
Smartsheet delivered the weakest performance against analyst estimates among the group. The company added 232 enterprise customers paying more than $5,000 annually to reach a total of 20,430. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $56.02.
Is Now The Time To Buy Smartsheet?
Access our full analysis of the earnings results here; it’s free.
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-over-year, outperforming analysts’ expectations by 1.8%. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
Asana Total Revenue
The market seems happy with the results as the stock is up 33.8% since reporting. It currently trades at $20.69.
Is Now The Time To Buy Asana?
Access our full analysis of the earnings results here; it’s free.
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.
Story Continues
Atlassian reported revenues of $1.19 billion, up 21.5% year-over-year, exceeding analysts’ expectations by 2.8%. It was a satisfactory quarter as it also posted a solid beat of analysts’ EBITDA estimates but missed on billings.
The stock is currently trading at $235.01.
Monday.com (NASDAQ:MNDY)
Founded in 2015, Monday.com (NASDAQ:MNDY) is a cloud-based work operating system that enables teams to manage and track their tasks, projects, and workflows.
Key Highlights
- Revenue growth: +54% year-over-year
- EBITDA margin: 23.6%
- User acquisition costs: $2.4 million per user
The company has been expanding its product offerings to cater to various industries, including finance, healthcare, and e-commerce.
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.
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