Spotting Winners: Asana (NYSE:ASAN) And Productivity Software Stocks In Q4

Looking back on productivity software stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Asana (NYSE:ASAN) and its peers.

Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.

The 17 productivity software stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.9% since the latest earnings results.

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 $188.3 million, up 10% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

The stock is down 7.7% since reporting and currently trades at $15.43.

Is now the time to buy Asana? Access our full analysis of the earnings results here, it’s free.

Best Q4: SoundHound AI (NASDAQ:SOUN)

Founded in 2005, SoundHound AI (NASDAQ:SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers.

SoundHound AI reported revenues of $34.54 million, up 101% year on year, outperforming analysts’ expectations by 2.3%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.

SoundHound AI delivered the fastest revenue growth among its peers. The stock is down 14.3% since reporting. It currently trades at $7.89.

Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Box (NYSE:BOX)

Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE:BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud.

Box reported revenues of $279.5 million, up 6.3% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations.

As expected, the stock is down 11.4% since the results and currently trades at $29.70.

Read our full analysis of Box’s results here.

DocuSign (NASDAQ:DOCU)

Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically.

DocuSign reported revenues of $776.3 million, up 9% year on year. This number topped analysts’ expectations by 1.9%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ billings estimates.

The stock is up 4.3% since reporting and currently trades at $77.89.

Read our full, actionable report on DocuSign 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.

Atlassian reported revenues of $1.29 billion, up 21.4% year on year. This result beat analysts’ expectations by 3.4%. It was a very strong quarter as it also put up an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 21.7% since reporting and currently trades at $208.77.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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

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