The stock of software company Asana (ASAN) has plunged 27% on news that CEO Dustin Moskovitz is retiring.
Moskovitz, who is one of the original founders of Facebook, has run Asana since creating the company in 2008. His retirement was announced along Asana’s Fiscal fourth-quarter earnings report. The board of directors said it has retained an executive search firm to help choose a new CEO. Moskovitz plans to transition to the role of board chair once a new CEO for Asana is selected.
“As I reflect on my journey since co-founding Asana nearly 17 years ago, I’m filled with immense gratitude,” Moskovitz said in a written statement. “Creating and leading Asana has been more than just building a company — it’s been a profound privilege to work alongside some of the most talented minds in the industry.” Asana’s software helps teams organize, track, and manage their work.
Quarterly Results
In addition to news of the CEO retiring, Asana announced that its fourth-quarter sales rose 10% year-over-year to $188.3 million, which was in-line with analyst estimates. The company said its earnings per share (EPS) was breakeven, which was slightly ahead of analyst estimates that called for a loss of -$0.01.
Asana forecast Fiscal first-quarter revenue of $184.5 million to $186.5 million, below analyst expectations of $191 million. Moskovitz owns about 53% of Asana’s stock. He has increased his ownership since the company went public in 2020. Forbes magazine estimates Moskovitz’s net worth at more than $16 billion, mostly from his Facebook stake.
ASAN stock has fallen 10% this year and is down 37% over the last five years.
Is ASAN Stock a Buy?
The stock of Asana has a consensus Hold rating among five Wall Street analysts. That rating is based on two Buy, two Hold, and one Sell recommendations issued in the last three months. The average ASAN price target of $21.20 implies 27.10% upside from current levels. These ratings are likely to change after the company’s financial results.
