Let’s dig into the relative performance of Asana (NYSE: ASAN) and its peers as we unravel the now-completed Q2 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 Q2. As a group, revenues beat analysts’ consensus estimates by 4.5% while next quarter’s revenue guidance was in line.
Luckily, productivity software stocks have performed well with share prices up 10.1% on average 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 $196.9 million, up 9.9% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a very strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $14.10.
Is now the time to buy Asana? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $42.68 million, up 217% year on year, outperforming analysts’ expectations by 31.2%. The business had an incredible quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
SoundHound AI achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 95.6% since reporting. It currently trades at $21.03.
Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 8x8 (NASDAQ: EGHT)
Named after its founding year (1987) with "8x8" representing binary code for communications, 8x8 (NASDAQ: EGHT) provides cloud-based contact center and unified communications solutions that enable businesses to manage customer interactions and internal communications through a single platform.
8x8 reported revenues of $181.4 million, up 1.8% year on year, exceeding analysts’ expectations by 2.2%. Still, it was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 1.3% since the results and currently trades at $1.90.
Read our full analysis of 8x8’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 $299 million, up 26.6% year on year. This result beat analysts’ expectations by 1.8%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA and annual recurring revenue estimates.
The company added 258 enterprise customers paying more than $50,000 annually to reach a total of 3,702. The stock is down 24.6% since reporting and currently trades at $187.
Read our full, actionable report on monday.com here, it’s free for active Edge members.
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 $1.38 billion, up 22.3% year on year. This print topped analysts’ expectations by 2.1%. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
The stock is down 8% since reporting and currently trades at $156.85.
Read our full, actionable report on Atlassian here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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