Wrapping up Q1 earnings, we look at the numbers and key takeaways for the productivity software stocks, 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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 3% 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 2% on average 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 $187.3 million, up 8.6% year on year. This print exceeded analysts’ expectations by 0.9%. 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.
Unsurprisingly, the stock is down 23.4% since reporting and currently trades at $14.53.
Is now the time to buy Asana? Access our full analysis of the earnings results here, it’s free.
Best Q1: Pegasystems (NASDAQ:PEGA)
Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement.
Pegasystems reported revenues of $475.6 million, up 44.1% year on year, outperforming analysts’ expectations by 33.1%. The business had an incredible quarter with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
Pegasystems pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 48.5% since reporting. It currently trades at $51.08.
Is now the time to buy Pegasystems? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $29.13 million, up 151% year on year, falling short of analysts’ expectations by 4.4%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates.
SoundHound AI delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 30.3% since the results and currently trades at $12.68.
Read our full analysis of SoundHound AI’s results here.
Jamf (NASDAQ:JAMF)
Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.
Jamf reported revenues of $167.6 million, up 10.2% year on year. This result beat analysts’ expectations by 0.8%. More broadly, it was a mixed quarter as it also logged full-year revenue guidance topping analysts’ expectations but annual recurring revenue in line with analysts’ estimates.
Jamf achieved the highest full-year guidance raise among its peers. The stock is down 27.6% since reporting and currently trades at $8.22.
Read our full, actionable report on Jamf here, it’s free.
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 $282.3 million, up 30.1% year on year. This number surpassed analysts’ expectations by 2.3%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.
The company added 243 enterprise customers paying more than $50,000 annually to reach a total of 3,444. The stock is up 4.4% since reporting and currently trades at $290.01.
Read our full, actionable report on Monday.com 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.
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