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

January 13, 2025 at 04:01 AM EST

TEAM Cover Image

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 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.

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.

Smartsheet delivered the weakest performance against analyst estimates in the group. The company added 232 enterprise customers paying more than $5,000 annually to reach a total of 20,430. The stock is flat since the results and currently trades at $56.32.

Read our full analysis of Smartsheet’s results here.

Monday.com (NASDAQ: MNDY)

Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ: MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.

Monday.com reported revenues of $251 million, up 32.7% year on year. This number surpassed analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and a narrow beat of analysts’ annual recurring revenue estimates.

Monday.com scored the fastest revenue growth and highest full-year guidance raise among its peers. The company added 194 enterprise customers paying more than $50,000 annually to reach a total of 2,907. The stock is down 33.4% since reporting and currently trades at $216.06.

Read our full, actionable report on Monday.com here, it’s free.

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. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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