Asana Stock Plummets Following Q2 Results and Weak Guidance

Asana Stock Falls After Q2 Results; Q3, FY Guidance Below Estimates - Asana (NYSE:ASAN)

Quarterly revenue comes in at $179.212 million, beating the $177.654 million consensus estimate. Asana, Inc. ASAN reported its second-quarter financial results after Tuesday's closing bell. Here's a look at the details from the report. The Details: Asana reported quarterly losses of five cents per share, which beat the analyst estimate of losses of eight cents per share. Quarterly revenue clocked in at $179.212 million, beating the $177.654 million consensus estimate. Core customers, or customers spending $5,000 or more on an annualized basis, grew to 10% year-over-year. Revenues from Core customers grew 11%year-over-year in the quarter. The number of customers spending $100,000 or more on an annualized basis grew to 649, an increase of 17% year-over-year. Overall dollar-based net retention rate was 98%. Dollar-based net retention rate for Core customers was 99%. Dollar-based net retention rate for customers spending $100,000 or more on an annualized basis was 103%. Asana also announced the appointment of Sonalee Parekh as CFO effective Sept. 11, 2024. Parekh will succeed Tim Wan, who will remain with the company in an advisory position to support the transition. "In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI. We're seeing momentum in key areas, including 17% growth in customers spending over $100,000, success in key verticals, and a record number of multi-year deals," said Dustin Moskovitz, CEO of Asana. "We're at a pivotal moment where AI has enormous potential to revolutionize work management. We are clearly moving in the right direction and are well-positioned to capitalize on the consolidation opportunity in the enterprise market." Read Next: What's Going On With Lululemon Stock After Earnings? Outlook: Asana sees third-quarter losses of seven cents per share, versus the loss of four cents per share estimate, and quarterly revenue in a range of $180 million to $181 million, versus the $182.28 million estimate. The company expects fiscal year losses of between 20 cents and 19 cents per share, versus the loss of 20 cents per share estimate, and full-year revenue in a range of $719 million to $721 million, versus the $722.85 million estimate. ASAN Price Action: According to Benzinga Pro, Asana shares are down 14.90% after-hours at $11.31 after falling 5.48% in regular trading Tuesday. Read Also: Why Intuitive Machines Stock Is Soaring To The Moon Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Asana's revenue outlook falls short as shares decline 13% after Q2 results - SiliconANGLE

Asana's revenue outlook falls short as shares decline 13% after Q2 results Shares in Asana Inc. were down nearly 13% in late trading today after the work management software company reported earnings and revenue beats in its fiscal 2025 second quarter but fell short of expectations on revenue outlook for its third quarter and full fiscal year. For the quarter that ended on July 31, Asana reported an adjusted earnings per share loss of five cents per share, up from a four cents per share loss in the same quarter of the previous year, on revenue of $179.2 million, up 10% year-over-year. Both were beats, as analysts had expected to see a loss of eight cents per share on revenue of $177.67 million. Through the quarter, Asana saw the number of customers spending $5,000 or more annually grew to 22,948, up 10% year-over-year and customers spending $100,000 or more annually growing to 649, up $17% year-over-year. Cash flow from activities in the quarter came in at $15.9 million and Asana ended the quarter with $219.4 million in cash and cash equivalents on hand. Business highlights in the quarter included the June launch of AI Teammates, a suite of generative artificial intelligence-enabled bots that can advise workers on priorities, generate workflows and automatically complete complex tasks on demand, taking the burden of mundane drudgery out of the hands of employees. The AI Teammates service can also adapt to the unique needs of employees and teams based on work context. "In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI," Dustin Moskovitz, co-founder and chief executive officer of Asana, said in the company's earnings release. "We're seeing momentum in key areas, including 17% growth in customers spending over $100,000, success in key verticals and a record number of multi-year deals." For its fiscal third quarter, Asana expects an adjusted earnings per share loss of seven cents revenue of $180 million to $181 million. Both fell short of the three cents per share loss and revenue of $182.29 million expected by analysts. For the full fiscal year, the company expects to see an adjusted earnings per share loss of 19 cents to 20 cents on revenue of $719 million to $721 million. Analysts had expected a loss of 20 cents per share on revenue of $722.85 million.

Asana shares plummet 17% as guidance disappoints By Investing.com

SAN FRANCISCO - Asana Inc. (NYSE:ASAN) reported better-than-expected second quarter results on Thursday, but shares plummeted 17% in after-hours trading as the company's guidance fell short of expectations. The work management platform provider posted a non-GAAP loss of $0.05 per share for the quarter ended July 31, beating the consensus estimate of a $0.08 loss. Revenue grew 10% YoY to $179.2 million, surpassing analysts' projections of $177.68 million. However, Asana's outlook for the current quarter and full fiscal year failed to impress investors. For Q3, the company expects revenue between $180 million and $181 million, representing 8-9% YoY growth. This implies a deceleration from the 10% growth seen in Q2. "We're at a pivotal moment where AI has enormous potential to revolutionize work management," said CEO Dustin Moskovitz. "We are clearly moving in the right direction and are well-positioned to capitalize on the consolidation opportunity in the enterprise market." Asana's full-year revenue forecast of $719-$721 million suggests growth will remain around 10%. The company highlighted some positive trends, including 17% YoY growth in customers spending over $100,000 annually. Asana also generated $15.9 million in operating cash flow and $12.8 million in free cash flow during the quarter.

Asana's revenue outlook falls short as shares decline 13% - SiliconANGLE

Shares in Asana Inc. fell nearly 13% in late trading today after the work management software company reported earnings and revenue beats in its fiscal second quarter but fell short of expectations on revenue outlook for its third quarter and full fiscal year. For the quarter ended July 31, Asana reported an adjusted earnings per share loss of five cents per share, up from a four-cent-per-share loss in the same quarter of the previous year, on revenue of $179.2 million, up 10% year-over-year. Both were beats, as analysts had expected to see a loss of eight cents per share on revenue of $177.67 million. Through the quarter, the number of customers spending $5,000 or more annually on Asana grew 10% from a year ago, to 22,948, and customers spending $100,000 or more annually rose 17%, to 649. Cash flow from activities in the quarter came in at $15.9 million and Asana ended the quarter with $219.4 million in cash and cash equivalents on hand. Business highlights in the quarter included the June launch of AI Teammates, a suite of generative artificial intelligence-enabled bots that can advise workers on priorities, generate workflows and automatically complete complex tasks on demand, taking the burden of mundane drudgery out of the hands of employees. The AI Teammates service can also adapt to the unique needs of employees and teams based on work context. "In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI," Dustin Moskovitz, co-founder and chief executive of Asana, said in the company's earnings release, citing momentum in key areas such and a record number of multiyear deals. For its third quarter, Asana expects adjusted earnings of seven cents per share, revenue of $180 million to $181 million. Both fell short of the three-cent-per-share loss and revenue of $182.29 million expected by analysts. For the full fiscal year, the company expects to see adjusted loss of 19 to 20 cents per share on revenue of $719 million to $721 million. Analysts had expected a loss of 20 cents per share on revenue of $722.85 million.

Why Shares of Asana Were Falling Today | The Motley Fool

Shares of Asana (ASAN -5.91%) were sliding today after the cloud productivity software company posted disappointing guidance in its fiscal 2025 second-quarter earnings report. The stock was down 6.3% as of 1:17 p.m. ET on the news. Asana stock is still down roughly 90% from its pandemic peak, and the latest round of results shows the company is struggling, with revenue up 10% to $179.2 million, which edged out estimates at $177.7 million. The company reported 17% growth in customers spending more than $100,000, a possible sign of momentum in high-value customers. Further down the income statement, its generally accepted accounting principles (GAAP) operating loss expanded from $73.4 million to $76.8 million, showing the company is still struggling to move toward break-even. On the bottom line, Asana reported an adjusted per-share loss of $0.05, which was worse than the loss of $0.04 in the quarter a year ago but better than expectations at a loss of $0.08. Despite the sell-off, CEO Dustin Moskovitz expressed optimism about the direction of the business, saying, "In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI. We're seeing momentum in key areas, success in key verticals, and a record number of multi-year deals." Despite the optimism, Asana's guidance was disappointing as the company called for revenue of $180 million-$181 million in the third quarter, up 8%-9% and worse than the consensus at $182.3 million. On the bottom line, it sees an adjusted loss per share of $0.07, compared to estimates at a $0.04 per-share loss. It also lowered its full-year revenue guidance from $719 million-$724 million to $719 million-$721 million, below the consensus of $722.9 million. Single-digit revenue and consistent adjusted losses aren't a recipe for success on the stock market, and it's not surprising to see Asana stock falling again on an underwhelming earnings update.

What's Going On With Asana Shares Wednesday? - Asana (NYSE:ASAN)

The company reported sales of $179.21 million beating analysts estimate of $177.65 million. Asana, Inc. ASAN stock is trading lower on Wednesday after the company reported 2025 fiscal year second quarter results on Tuesday and issued third quarter guidance below estimates. The Details: The company reported a loss of five cents beating analysts estimate of a loss of eight cents per share and sales of $179.21 million beating analysts estimate of $177.65 million. Asana reported that the number of Core customers, that is customers spending $5,000 or more on an annualized basis, grew to 22,948 during the quarter. Furthermore, revenue from these customers grew 11% year-over-year. In addition, customers spending $100,000 or more on an annualized basis grew to 649. This represents a 17% year-over-year growth. "We're at a pivotal moment where AI has enormous potential to revolutionize work management. We are clearly moving in the right direction and are well-positioned to capitalize on the consolidation opportunity in the enterprise market," said Dustin Moskovitz, co-founder and CEO of Asana. Guidance: The company issued guidance for the third quarter and the 2025 fiscal year. Q3: Asana expects revenue between $180 million and $181 million versus analysts estimate of $182.28 million and a loss of seven cents per share versus analysts estimate of a loss of four cents per share. FY25: The company expects revenue between $719 million and $721 million versus analysts estimate of $722.85 million. Also, Asana expects a loss of 20 to 19 cents per share versus analysts estimate of a loss of 20 cents per share. Analyst Changes: Following the earnings report, several analysts issued price target adjustments. RBC Capital analyst Rishi Jaluria reiterated an Underperform rating on Asana and maintained a $10 price target. Oppenheimer analyst Ittai Kidron maintained a Outperform rating on Asana and lowered the price target from $23 to $20. UBS analyst Taylor McGinnis maintained a Neutral rating on Asana and lowered the price target from $17 to $13. Related Link: AI-Linked US Semiconductor Stocks Brace For Red Wednesday As Analyst Downgrades Dutch Chipmaker ASML ASAN Price Action: As of Wednesday morning, Asan shares are trading 7.07% lower at $12.35, according to data from Benzinga Pro. Image: Photo by FellowNeko via Shutterstock Market News and Data brought to you by Benzinga APIs

Asana Reports Mixed Q2 Results, Management Guidance 'Disappointing Overall,' Says Analyst, Implies Lower 2H Growth - Asana (NYSE:ASAN)

The company's FY25 guidance implies a downward revision in growth to 9% y/y. Asana Inc ASAN shares tanked in early trading on Wednesday, even after the company reported upbeat second-quarter results. The company reported its results amid an exciting earnings season. Here are some key analyst takeaways. JMP Securities On Asana Analyst Patrick Walravens maintained a Market Outperform rating while cutting the price target from $27 to $21. Asana reported mixed quarterly results, with a non-GAAP loss of five cents per share coming in better than consensus of a loss of eight cents per share, Walravens said in a note. He added, however, the company's revenue growth decelerated to 10% year-on-year, from the previous quarter's 13%, with dollar-based net retention declining to 98%, from 100% in the prior quarter. Management's guidance was "disappointing overall," with projections of a non-GAAP loss of seven cents per share for the fiscal third quarter, higher than the consensus of a loss of four per share, the analyst stated. While the company's go-to-market is "slowly improving under CRO Ed McDonnell and CMO Shannon Duffy," there seems to be room for new CFO Sonalee Parekh to cut costs "with more than $360M in Sales & Marketing spend this year and only about $70M in net new revenue," he further wrote. KeyBanc Capital Markets On Asana Analyst Jackson Ader reaffirmed an Underweight rating while reducing the price target from $12 to $10. "Deals slipped out of the quarter, large customers are renewing at lower commitment levels, the tech sector continues to weigh on the overall business, and a new CFO is coming in," Ader wrote in a note. While some of the issues the company faced were new, like the increasingly back-end weighted quarters, "but for the most part, things remain the same," the analyst stated. "The level of expenses for the amount of revenue booked remains elevated, and we are now entering a period where expense growth is flirting with outpacing revenue growth," he added. Check out other analyst stock ratings. Piper Sandler On Asana Analyst Brent Bracelin reiterated a Neutral rating while cutting the price target from $14 to $12. Asana grew revenue 10% year-on-year to $179.2 million, delivering a beat of $2 million to the midpoint of its guidance, Bracelin said. "Calculated billings growth decelerated to 7% vs. 9% last Q," he added. Although the company reported a record number of multi-year deals and "improvement in certain non-tech verticals (e.g. retail, consumer goods)," it also witnessed deals decline sequentially into the fiscal third quarter and "consistent macro headwinds vs. Q1," the analyst stated. "Management lowered the 2H implied growth guidance to 9% y/y from 10%," he further wrote. Oppenheimer On Asana Analyst Ittai Kidron maintained an Outperform rating while lowering the price target from $23 to $20. Although Asana reported better-than-expected results for the fiscal second quarter, "ongoing macro headwinds on seat expansion and deal push-outs" led to a miss in the third-quarter guidance, Kidron said. The company's "strategic focus on up-market enterprise gains (649 >$100K customer, +17.4% YoY)" was a positive in the quarter, he added. The disappointing third-quarter guidance reflects "continued macro/renewal headwinds (longer sales cycles, IT budget scrutiny, seat downgrades) and some deal push-outs (some close in August)," the analyst wrote. "While noting the near-term hurdles, we remain engaged on the longer-term AI and work-management opportunity, and the efforts already made to realign Asana's sales/GTM motion," he further stated. RBC Capital Markets On Asana Analyst Rishi Jaluria reiterated an Underperform rating and price target of $10. Asana's quarterly results were "disappointing across the board, marked by a skinny revenue beat, a billings miss, significant NRR compression, and minimal margin upside," Jaluria wrote in a note. With persisting renewal headwinds faced by the tech vertical and a number of delayed deals, the company lowered its full-year revenue guidance to between $719 million and 721 million, from the prior projection of $719 million to 724 million, the analyst stated. "Asana announced a CFO transition, and while a replacement has been named, a transition adds risks," Jaluria added. ASAN Price Action: Shares of Asana had declined by 5.94% to $12.50 at the time of publication on Wednesday. Read Next: * Stocks Rebound, Chipmakers Halt Bloodbath As Traders Upgrade Rate Cut Wagers; Tesla Rises, Dollar Tree In Free Fall: What's Driving Markets Wednesday? Photo by FellowNeko via Shutterstock Market News and Data brought to you by Benzinga APIs

Asana's 10% Revenue Jump Was Bright Spot in Q2 | The Motley Fool

Asana reported mixed Q2 fiscal 2025 results, showing revenue growth but increased losses. Work management platform provider Asana (ASAN -7.00%) reported fiscal 2025 second-quarter earnings on Tuesday that showed a 10% year-over-year growth in revenue to $179.2 million. However, the company also reported increased generally accepted accounting principles (GAAP) operating and net losses year over year. The quarter showed mixed results overall, with strategic developments in AI and customer acquisition as well as continuing profitability challenges. Source: Asana. Note: Management expectations are based on guidance provided on May 30, 2024. Asana specializes in providing a work management platform that allows teams to organize, track, and manage their work. The company's competitive edge lies in its unique technology, especially the Asana Work Graph, which maps how work is done within organizations. Recently, the company focused on integrating artificial intelligence (AI) capabilities, significantly enhancing its platform. Customer acquisition has been robust, particularly among high-revenue clients. Asana's second-quarter revenue topped management expectations. This growth reflects solid market adoption and successful customer acquisition strategies. Asana reported a 17% year-over-year increase in customers spending $100,000 or more annually, reaching 649 customers. Providing services to all those added customers helped boost the company's GAAP operating loss to $76.8 million from $73.4 million a year ago. The non-GAAP operating loss of $15.7 million came in below the anticipated $21 million to $23 million, showing improved operational efficiency. However, GAAP net loss rose slightly to $72.2 million, indicating challenges in controlling overall losses. The company also faced a reduction in free cash flow to $12.8 million from $14.6 million the previous year, showing stress in operational cash generation. Asana's integration of AI into its platform was a key focus this quarter. The launch of "Asana AI teammates" aims to leverage AI to enhance productivity. This initiative is part of its broader strategy to embed cutting-edge technology into its work management solutions. Separately, Asana announced the appointment of Sonalee Parekh as Chief Financial Officer. Parekh will take over on Sept. 11, succeeding Tim Wan, who has served in the role since 2017. Wan will remain with the company in an advisory position to support the transition. For fiscal 2025's Q3, Asana projects revenue between $180 million to $181 million, representing an 8% to 9% growth year over year. The company anticipates a non-GAAP operating loss between $18 million to $19 million and has projected a non-GAAP net loss per share of $0.07. Asana lowered the high end of its previous full-year revenue guidance to $721 million from $724 million while maintaining the low end at $719 million. That still suggests annual growth of about 10% at the midpoint. Investors should focus on the company's ability to manage costs and drive further AI innovations to sustain competitive advantages.