Yahoo Finance A Look Back at Project Management Software Stocks' Q1 Earnings: Smartsheet (NYSE:SMAR) Vs The Rest Of The Pack
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Smartsheet (NYSE:SMAR) and the rest of the project management software stocks fared in Q1.
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 solid Q1; on average, revenues beat analyst consensus estimates by 3.8%. while next quarter's revenue guidance was 0.8% above consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but 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, but project management software stocks have shown resilience, with share prices up 9.8% on average since the previous earnings results.
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 $263 million, up 19.6% year on year, exceeding analysts' expectations by 1.9%. Despite the top-line beat, it was a slower quarter overall for the company with decelerating growth in large customers and a miss of analysts' billings estimates.
Smartsheet delivered the weakest performance against analyst estimates of the whole group. The company added 159 enterprise customers paying more than $5,000 annually to reach a total of 19,977. The stock is up 15.2% since reporting and currently trades at $43.50.
Is now the time to buy Smartsheet? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 29.9% year on year, outperforming analysts' expectations by 8.1%. It was a stunning quarter for the company with an impressive beat of analysts' billings estimates and strong sales guidance for the next quarter.
Atlassian achieved the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 8.8% since reporting. It currently trades at $181.
Is now the time to buy Atlassian? Access our full analysis of the earnings results here, it's free.
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 $172.4 million, up 13.1% year on year, exceeding analysts' expectations by 2.2%. It was an ok quarter for the company with a decent beat of analysts' billings estimates but underwhelming revenue guidance for the next quarter.
Asana had the slowest revenue growth and weakest full-year guidance update in the group. The company added 516 enterprise customers paying more than $5,000 annually to reach a total of 22,162. Interestingly, the stock is up 3.3% since the results and currently trades at $13.56.
Read our full analysis of Asana'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 $216.9 million, up 33.7% year on year, surpassing analysts' expectations by 3%. Overall, it was a strong quarter for the company with a solid beat of analysts' ARR (annual recurring revenue) estimates and a decent beat of analysts' billings estimates.
Monday.com achieved the fastest revenue growth and highest full-year guidance raise among its peers. The company added 196 enterprise customers paying more than $50,000 annually to reach a total of 2,491. The stock is up 29.4% since reporting and currently trades at $234.99.
Read our full, actionable report on Monday.com here, it's free.
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