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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 Smartsheet (NYSE:SMAR).
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.
Thankfully, share prices of the companies have been resilient as they are up 7.7% on average 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 on 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 delivered the weakest performance against analyst estimates of the whole 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 on 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.
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.