Productivity Software Stocks Q3 Highlights: Asana (NYSE:ASAN)

Let’s dig into the relative performance of Asana (NYSE:ASAN) and its peers as we unravel the now-completed Q3 productivity software earnings season.

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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.6% 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 11.1% since the latest earnings results.

Asana (NYSE:ASAN)

Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE:ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.

Asana reported revenues of $201 million, up 9.3% year on year. This print exceeded analysts’ expectations by 1.1%. 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 13.9% since reporting and currently trades at $11.58.

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

Best Q3: Pegasystems (NASDAQ:PEGA)

With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ:PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Pegasystems reported revenues of $381.4 million, up 17.3% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Pegasystems scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.7% since reporting. It currently trades at $53.22.

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

Weakest Q3: SoundHound AI (NASDAQ:SOUN)

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ:SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.

SoundHound AI reported revenues of $42.05 million, up 67.6% year on year, exceeding analysts’ expectations by 2.7%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ billings estimates.

As expected, the stock is down 23.5% since the results and currently trades at $10.99.

Read our full analysis of SoundHound AI’s results here.

monday.com (NASDAQ:MNDY)

With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ:MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.

monday.com reported revenues of $316.9 million, up 26.2% year on year. This number surpassed analysts’ expectations by 1.4%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

The company added 291 enterprise customers paying more than $50,000 annually to reach a total of 3,993. The stock is down 29.5% since reporting and currently trades at $133.75.

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

Atlassian (NASDAQ:TEAM)

Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ:TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.

Atlassian reported revenues of $1.43 billion, up 20.6% year on year. This print topped analysts’ expectations by 2.2%. More broadly, it was a slower quarter as it logged full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ billings estimates.

Atlassian had the weakest full-year guidance update among its peers. The stock is down 20% since reporting and currently trades at $128.58.

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

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