Asana's Q3 Results and AI Studio Launch Spark Investor Optimism

Asana Shares Rally After Strong Q3 Results, Upbeat Guidance: Details - Asana (NYSE:ASAN)

Quarterly revenue comes in at $183.88 million, which beat the consensus estimate of $180.66 million. Asana, Inc. ASAN reported its third-quarter results after Thursday's closing bell. Here's a look at the details from the report. The Details: Asana reported quarterly losses of two cents per share, which beat the analyst consensus estimate for losses of seven cents. Quarterly revenue came in at $183.88 million, which beat the consensus estimate of $180.66 million and is an increase over sales of $166.5 million from the same period last year. The number of Core customers, or customers spending $5,000 or more on an annualized basis, grew to 23,609, an increase of 11% year-over-year. Revenues from Core customers grew 11% year-over-year. The number of customers spending $100,000 or more on an annualized basis grew to 683, an increase of 18%. Overall dollar-based net retention rate was 96%. Dollar-based net retention rate for Core customers was 98%. Dollar-based net retention rate for customers spending $100,000 or more on an annualized basis was 99%. Read Next: UnitedHealthcare CEO Brian Thompson Fatally Shot Outside NYC Hotel "The launch of AI Studio is the birth of a new category, unlocking a massive Total Addressable Market (TAM) and growth opportunity for the company," said Dustin Moskovitz, CEO of Asana. "While still early, we have seen significant demand, with customers experiencing meaningful productivity gains across their workflows. The productivity benefits and early traction not only validate the market demand for AI-powered work management solutions but also underscore Asana's leadership position in this space," Moskovitz added. Outlook: Asana sees fiscal 2025 adjusted losses of 15 cents to 14 cents per share, versus the loss of 19 cents estimate, and revenue of $723 million to $724 million, versus the $720.25 million estimate. ASAN Price Action: According to Benzinga Pro, Asana shares are up 20.44% after-hours at $18.62 at the time of publication Thursday. Read More: Art Cashin's Lessons: Cuban Crisis Trades To Timeless Wall Street Wit Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Asana Analysts Boost Their Forecasts After Upbeat Q3 Results - Asana (NYSE:ASAN)

Asana, Inc. ASAN reported better-than-expected third-quarter financial results and issued FY25 guidance above estimates on Thursday. Asana reported quarterly losses of two cents per share, which beat the analyst consensus estimate for losses of seven cents. Quarterly revenue came in at $183.88 million, which beat the consensus estimate of $180.66 million and is an increase over sales of $166.5 million from the same period last year. "The launch of AI Studio is the birth of a new category, unlocking a massive Total Addressable Market (TAM) and growth opportunity for the company," said Dustin Moskovitz, CEO of Asana. Asana sees fiscal 2025 adjusted losses of 15 cents to 14 cents per share, versus the loss of 19 cents estimate, and revenue of $723 million to $724 million, versus the $720.25 million estimate. Asana shares climbed 43.5% to trade at $22.16 on Friday. These analysts made changes to their price targets on Asana following earnings announcement. Piper Sandler analyst Brent Bracelin maintained Asana with a Neutral and raised the price target from $12 to $19. Baird analyst Rob Oliver maintained Asana with a Neutral and raised the price target from $13 to $19. JMP Securities analyst Patrick Walravens maintained the stock with a Market Outperform and boosted the price target from $21 to $25. Jefferies analyst Brent Thill maintained Asana with a Hold and raised the price target from $13 to $16. JP Morgan analyst Pinjalim Bora maintained the stock with an Underweight and boosted the price target from $13 to $15. Oppenheimer analyst Ittai Kidron maintained Asana with an Outperform and raised the price target from $20 to $22. Considering buying ASAN stock? Here's what analysts think: Read This Next: How To Earn $500 A Month From Oracle Stock Ahead Of Q2 Earnings Market News and Data brought to you by Benzinga APIs

Here's Why Asana Stock Absolutely Skyrocketed Today | The Motley Fool

Shares of enterprise software company Asana (ASAN 43.14%) absolutely skyrocketed on Friday after it reported financial results for its fiscal third quarter of 2025 -- results that had the investing world feeling quite optimistic about its future. As of 9:50 a.m. ET, Asana stock was up about 40% and hitting 52-week highs. Asana offers workplace management software. With it, its customers set goals and track progress. The company expected Q3 revenue of $180 million to $181 million. But it generated Q3 revenue of nearly $184 million. Beating the top end of guidance by 1% seems incompatible with a 40% gain in Asana's stock price. But as you might have guessed, there's a little more to the story. Since the company went public in 2020, Asana's growth rate has plunged at an alarming pace, as the chart below shows. However, with Q3 results, Asana's management highlighted the recent launch of its artificial intelligence (AI) product, AI Studio. In short, its customers love it and some are bypassing a pilot period and diving straight into a subscription. Investors are hopeful not only that this will reinvigorate Asana's growth, but also that it might even expand the company's addressable market. And these developments are what investors are celebrating today. In the upcoming fourth quarter, Asana's management expects to generate revenues of $187.5 million to $188.5 million, which would represent 10% year-over-year growth. That's the same as its growth rate in the second quarter and in Q3, which does suggest that its slowdown is reaching a bottom. Asana has negative free cash flow of $10 million through the first three quarters of its fiscal 2025. But management expects positive free cash flow in Q4. With a successful AI launch, stabilizing growth, and positive free cash flow on tap, investors are justified in their excitement about Asana stock today.