The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how monday.com (NASDAQ: MNDY) and the rest of the productivity software stocks fared in Q2.
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 4.6% while next quarter’s revenue guidance was 0.5% below.
Luckily, productivity software stocks have performed well with share prices up 11.9% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 1.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ annual recurring revenue estimates.
“This quarter demonstrated our relentless focus on driving highly efficient growth at scale, and I’m energized by the momentum in our business and the opportunities we see ahead,” said Eliran Glazer, monday.com CFO.
Unsurprisingly, the stock is down 18.9% since reporting and currently trades at $201.25.
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 58% since reporting. It currently trades at $16.99.
Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q2: 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, exceeding analysts’ expectations by 2.2%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ billings estimates.
Atlassian delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 9.2% since the results and currently trades at $175.51.
Read our full analysis of Atlassian’s results here.
Microsoft (NASDAQ: MSFT)
Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft (NASDAQ: MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide.
Microsoft reported revenues of $77.67 billion, up 18.4% year on year. This number topped analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ operating income estimates.
The stock is down 4.9% since reporting and currently trades at $516.11.
Read our full, actionable report on Microsoft here, it’s free for active Edge members.
Jamf (NASDAQ: JAMF)
With its name playfully derived from "Just Another Management Framework," Jamf (NASDAQ: JAMF) provides software that helps organizations deploy, manage, and secure Apple devices across their workforce while maintaining a seamless user experience.
Jamf reported revenues of $176.5 million, up 15.3% year on year. This result surpassed analysts’ expectations by 4.7%. It was a very strong quarter as it also produced an impressive beat of analysts’ annual recurring revenue estimates and a solid beat of analysts’ billings estimates.
The stock is up 74.5% since reporting and currently trades at $12.84.
Read our full, actionable report on Jamf here, it’s free for active Edge members.
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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