Reflecting On Project Management Software Stocks’ Q3 Earnings: Atlassian (NASDAQ:TEAM)

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Reflecting On Project Management Software Stocks’ Q3 Earnings: Atlassian (NASDAQ:TEAM)

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the project management software industry, including Atlassian (NASDAQ:TEAM) and its peers.

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.

In light of this news, share prices of the companies have held steady as they are up 4.6% on average since the latest earnings results.

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 print exceeded analysts’ expectations by 2.8%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.

Atlassian Total Revenue
Atlassian Total Revenue

Atlassian scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 28.1% since reporting and currently trades at $241.29.

Is now the time to buy Atlassian? 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.

Asana Total Revenue
Asana Total Revenue

The market seems happy with the results as the stock is up 23.6% since reporting. It currently trades at $19.11.

Is now the time to buy Asana? 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.


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