Asana Reports First Operating Profit Amid AI Integration and Slowing Revenue Growth

Asana shares drop as Q1 results top estimates but revenue growth slows - SiliconANGLE

Asana shares drop as Q1 results top estimates but revenue growth slows Shares in Asana Inc. were down more than 7% in late trading today on investor concerns about slowing revenue growth, after the work management software company reported earnings and revenue ahead of expectations in its fiscal 2026 first quarter. For the quarter that ended on April 30, Asana reported adjusted earnings per share of five cents, up from a loss of six cents per share in the same quarter of the previous fiscal year, on revenue of $187.3 million, up 9% year-over-year. Both figures were ahead of the two cents per share and revenue of $185.5 million expected by analysts. Asana's better-than-expected figures were driven by customer growth, with the company having 24,297 "core customers," customers spending $5,000 or more annually as of the end of the quarter, up 10% year-over-year. The number of customers spending $100,000 or more per year was up 20% year-over-year to 728. Business highlights in the quarter included the full rollout of Asana AI Studio, a no-code builder that allows users to create smart workflows with embedded artificial intelligence agents. The platform allows teams to automate tasks such as triaging requests, summarizing content and integrating data from sources like Google Drive and SharePoint. Asana also enhanced its integration with Microsoft Teams, allowing users to receive real-time inbox notifications, access project views and take action on Asana tasks directly within the Teams desktop app. The quarter also saw Asana introduce a real-time data sync between Asana and Salesforce Inc. The integration allows teams to automate workflows by syncing Salesforce data into Asana for the creation of custom workflows and ensuring that sales and cross-functional teams have up-to-date information. "Just months after launching AI Studio, we've already crossed $1 million in ARR and head into Q2 with a robust, rapidly growing global pipeline," said Dustin Moskovitz, co‑founder and chief executive officer of Asana, in the company's earnings release. "With new offerings like the AI Studio Plus package and Smart Workflow Gallery, we're making these transformative AI capabilities even more accessible." For its fiscal 2026 second quarter, Asana expects adjusted earnings per share of four cents to five cents on revenue of $192 million to $194 million. Analysts were expecting four cents per share on revenue of $192.21 million. For its full fiscal year, the company expects adjusted earnings of 22 cents per share on revenue of $775 million to $790 million. Notably, the full-year outlook was revised up from a previous outlook of 19 cents to 20 cents per share. While there was nothing particularly wrong with the figures Asana reported, revenue growth of only 9% was down from a growth rate of 26% that Asana reported in the year-ago quarter. It was enough to spook investors and drive the after-hours share price decline.

Asana shares drop as earnings results top estimates but revenue growth slows - SiliconANGLE

Asana shares drop as earnings results top estimates but revenue growth slows Shares in Asana Inc. fell more than 7% in late trading today on investor concerns about slowing revenue growth, after the work management software company reported earnings and revenue ahead of expectations in its fiscal 2026 first quarter. For the quarter that ended on April 30, Asana reported adjusted earnings per share of five cents, up from a loss of six cents per share in the same quarter of the previous fiscal year, on revenue of $187.3 million, up 9% year-over-year. Both figures were ahead of the two cents per share and revenue of $185.5 million expected by analysts. Asana's better-than-expected figures were driven by customer growth, with the company having 24,297 "core customers," customers spending $5,000 or more annually as of the end of the quarter, up 10% year-over-year. The number of customers spending $100,000 or more per year was up 20% year-over-year to 728. Business highlights in the quarter included the full rollout of Asana AI Studio, a no-code builder that allows users to create smart workflows with embedded artificial intelligence agents. The platform allows teams to automate tasks such as triaging requests, summarizing content and integrating data from sources like Google Drive and SharePoint. Asana also enhanced its integration with Microsoft Teams, allowing users to receive real-time inbox notifications, access project views and take action on Asana tasks directly within the Teams desktop app. The quarter also saw Asana introduce a real-time data sync between Asana and Salesforce Inc. The integration allows teams to automate workflows by syncing Salesforce data into Asana for the creation of custom workflows and ensuring that sales and cross-functional teams have up-to-date information. "Just months after launching AI Studio, we've already crossed $1 million in ARR and head into Q2 with a robust, rapidly growing global pipeline," said Dustin Moskovitz, co‑founder and chief executive officer of Asana, in the company's earnings release. "With new offerings like the AI Studio Plus package and Smart Workflow Gallery, we're making these transformative AI capabilities even more accessible." For its fiscal 2026 second quarter, Asana expects adjusted earnings per share of four cents to five cents on revenue of $192 million to $194 million. Analysts were expecting four cents per share on revenue of $192.21 million. For its full fiscal year, the company expects adjusted earnings of 22 cents per share on revenue of $775 million to $790 million. Notably, the full-year outlook was revised up from a previous outlook of 19 cents to 20 cents per share. While there was nothing particularly wrong with the figures Asana reported, revenue growth of only 9% was down from a growth rate of 26% that Asana reported in the year-ago quarter. It was enough to spook investors and drive the after-hours share price decline.

Asana Stock Climbs On Mixed Q1 Earnings: Earnings Beat, Revenues Miss - Asana (NYSE:ASAN)

Asana, Inc. ASAN released its first-quarter results after Tuesday's closing bell. Here's a look at the details from the report. The Details: Asana reported quarterly earnings of five cents per share, which beat the Street estimate of four cents. Quarterly revenue of $187.27 million missed the consensus estimate of $192.6 million. Read Next: Space Stocks Weekly Countdown: RocketLab Gets Analyst Love While Virgin Galactic Slides Into June For the first quarter of fiscal 2026, Asana reported: The number of Core customers, or customers spending $5,000 or more on an annualized basis, grew to 24,297, an increase of 10% year-over-year. Revenues from Core customers grew 10% year-over-year. The number of customers spending $100,000 or more on an annualized basis grew to 728, an increase of 20%. Overall dollar-based net retention rate was 95%. "Just months after launching AI Studio, we've already crossed $1 million in ARR and head into Q2 with a robust, rapidly growing global pipeline," said Dustin Moskovitz, CEO of Asana. "With new offerings like the AI Studio Plus package, and Smart Workflow Gallery, we're making these transformative AI capabilities even more accessible," Moskovitz added. Outlook: Asana sees second-quarter adjusted earnings of four cents to five cents per share, versus the four cent estimate, and revenue in a range of $192 million to $194 million, versus the $192.19 million analyst estimate. Asana raised its fiscal 2026 adjusted EPS guidance from a range of 19 cents to 20 cents to 22 cents, versus the 33 cent estimate, and widened its revenue outlook from a range of $782 million to $790 million to a new range of $775 million to $790 million, versus the $857.76 million estimate. ASAN Price Action: According to data from Benzinga Pro, Asana stock was down 2.63% at $18.50 in Tuesday's extended trading. Read Next: The Viral Student Loan Solution People Can't Stop Talking About Photo: Shutterstock ASANAsana Inc$20.6512.3%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum88.52Growth24.91QualityNot AvailableValue22.77Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Asana Achieves First Operating Profit | The Motley Fool

Asana (ASAN -1.32%) announced its Q1 FY2026 results on June 3, 2025, achieving its first non-GAAP operating profit and delivering revenue of $187.3 million. Revenue for the software developer focused on work management services was up 9% year over year, with non-GAAP operating margin improved by more than 1,300 basis points year over year. Strategic milestones included surpassing $1 million in annual recurring revenue (ARR) for AI Studio, the largest contract renewal in company history at over $100 million total contract value, and advancing artificial intelligence (AI)-driven product innovation. Gross margin remained robust at approximately 90%, while adjusted free cash flow margin improved by over 700 basis points to 5%. This marks Asana's inaugural quarter of positive non-GAAP operating income, reflecting stringent cost controls, including a shift in hiring to more cost-effective regions and disciplined spend on marketing and infrastructure. "As a result of driving productivity and efficiency gains, we had a positive operating income quarter for the first time in our company's history, delivering a 4% margin or $8.1 million of operating income, which represents an operating margin of 300 basis points above the midpoint of our guide and a more than 1,300 basis point improvement year over year." -- Sonalee Parekh, Chief Financial Officer This inflection point in profitability provides greater financial resilience and capital allocation flexibility, supporting the long-term investment case amid a challenging macroeconomic environment. AI Studio's ARR exceeded $1 million, with growing consumption patterns across diverse geographies and verticals, such as manufacturing, energy, and financial services, and early evidence of AI Studio ARR outpacing traditional seat-based ARR in select accounts. The launch of the Smart Workflow Gallery and introduction of the AI Studio Plus tier aims to broaden both SMB and enterprise adoption, reducing dependence on per-seat pricing. "We're even seeing instances where AI Studio ARR is exceeding seat-based ARR. This highlights how a few users leveraging AI Studio can drive outsized value, and it underscores our conviction that AI Studio has the potential to not only eclipse the revenue scale of seat-based licenses over time but also to reduce our overall reliance on per-seat monetization." -- Dustin Moskovitz, CEO This evolution in revenue streams addresses a core platform risk (seat count headwinds in slower gatekeeper-driven enterprise markets) and positions Asana to capture high-value, workflow-based usage tied to business impact, which may support higher net revenue retention over time. Asana closed a record-breaking three-year, $100 million-plus total contract value (TCV) renewal with a global technology enterprise, driving remaining performance obligation (RPO) up to approximately $521 million (adjusted, up 37% year over year) and providing forward revenue visibility through fiscal years 2027 and 2028. However, this contract involved a modest annual contract value (ACV) downgrade versus the prior agreement, presenting an anticipated drag on net revenue retention (NRR) in Q2 FY2026. "And whilst it was a significant expansion in TCV versus the previous contract, there was actually a modest downgrade on an ACV basis, so that will actually impact. Our overall net retention, particularly from Q2 as we look across the rest of the year. In terms of the contribution to AI Studio specifically from that renewal, there's nothing factored in in the guide right now. That is potential upside." -- Sonalee Parekh, Chief Financial Officer This scenario demonstrates management's prioritization of multi-year strategic relationships and platform entrenchment over short-term ACV maximization, while also highlighting upside potential from future AI Studio expansion into major enterprise contracts, as discussed during the quarter. Guidance for Q2 FY2026 calls for revenue of $192 million to $194 million (7%-8% growth year over year) and a non-GAAP operating margin of 4%-5%, with full-year revenue guidance for FY2026 is revised to $775 million to $790 million (7%-9% growth year over year). Management acknowledged that NRR is expected to be pressured in Q2 and future quarters due to the large enterprise renewal and ongoing downgrade activity, but reiterated an increased full-year non-GAAP operating margin target of at least 5.5% for FY2026. No explicit quantitative guidance was given for AI Studio adoption or revenue in future periods. However, management identified additional upside from expanded tiering, usage-based monetization, and broader rollout of AI-powered workflows to enterprise and SMB customers throughout the year.