TEAM) First quarter results lead the way

The end of earnings season can be a great time to discover new stocks and evaluate how companies are performing in the current business environment. Let’s take a look at how Atlassian ( NASDAQ:TEAM ) and the rest of the productivity software companies performed in the first quarter.

Rising employee costs and the shift to more remote work have increased the pervasive pressure to improve enterprise productivity, which in turn is driving the growing demand for productivity software that enables remote work, streamlines project management and automates business tasks.

12 productivity software companies we monitor reported a slower first quarter; revenues were higher than analyst estimates by an average of 1.5%. while revenue forecasts for the next quarter were in line with the consensus. Valuation multiples for many growth stocks have not yet returned to the highs of early 2021, but the market was bullish at the end of 2023 due to falling inflation. The start of 2024 was a different story as mixed signals led to market volatility, and the productivity software company’s shares held more or less steady through it all, with share prices up an average of 0.4% compared to previous profit results.

Top Q1: 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 helps large teams of developers manage projects, particularly in software development.

Atlassian reported revenue of $1.19 billion, up 29.9% year-over-year, beating analyst expectations by 8.1%. It was a very good quarter for the company, with an impressive increase in analyst estimates.

“This was a breakthrough quarter for Atlassian,” said Mike Cannon-Brookes, co-founder and CEO.

Atlassian had the highest analyst estimate of the group. Since the results were released, the company’s shares have fallen 14.9% and are currently trading at $169.

We think Atlassian is a good business, but is it worth buying today? Read our full report here, it’s free.

The story continues

Monday.com (NASDAQ:MNDY)

Founded in Israel in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) creates software as service platforms that help teams effectively plan and track work.

Monday.com reported revenue of $216.9 million, up 33.7% year-over-year, which beat analyst expectations by 3%. It was a good quarter for the company, with solid growth in analyst estimates for ARR (annual recurring revenue) and decent growth in analyst estimates for billings.

Monday.com achieved the fastest revenue growth and the highest full-year revenue growth among its competitors. The company added 196 enterprise customers paying more than $50,000 annually, bringing its total to 2,491 customers. Since the results were released, the company’s shares are up 34.2% and are currently trading at $243.66.

Is now the time to buy Monday.com? Access our full earnings performance analysis here, it’s free.

Weakest Quarter 1: Pegasystems (NASDAQ:PEGA)

Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform for automating and optimizing customer service and engagement workflows.

Pegasystems reported revenue of $330.1 million, up 1.4% year-over-year, or 2.1% below analyst expectations. It was a weak quarter for the company, with analyst revenue estimates missing and gross margin declining.

The worst performance in the Pegasystems group compared to analyst estimates. Since the results were released, the company’s shares are up 1.1% and are currently trading at $59.50.

Read our full analysis of Pegasystems’ performance here.

Five9 (NASDAQ:FIVN)

Founded in 2001, Five9 (NASDAQ: FIVN) offers software as a service that helps companies set up and efficiently run call centers and offer more personalized customer service.

Five9 reported revenue of $247 million, up 13.1% year-over-year, beating analyst expectations by 2.9%. It was a weaker quarter for the company, and revenue forecasts for the next quarter were disappointing.

Since the results were released, the company’s shares have fallen 13.5% and are currently trading at $49.

Read our full hands-on report on Five9 here. It is free of charge.

Appian (NASDAQ:APPN)

Founded by Matt Calkins and three friends in their Northern Virginia apartment, Appian ( NASDAQ:APPN ) sells a software platform that allows users to create applications without a lot of code, allowing them to create new software faster.

Appian reported revenue of $149.8 million, up 10.8% year-over-year, in line with analyst expectations. It was a weak quarter for the company, with disappointing revenue forecasts for the next quarter and a lack of analyst estimates for earnings.

Since the earnings release, the company’s stock has dropped 18.6% and is currently trading at $29.89.

Read our full hands-on report on Appian here, it’s free.

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