Asana Delivers Upbeat Q2 Results; Street Says Buy

Asana, Inc. (ASAN) has reported a lower-than-expected loss in the second quarter of Fiscal Year 2022. Meanwhile, the computer software company, which specializes in the fields of work management and productivity, also surpassed revenue expectations.

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Adjusted net loss per share came in at $0.23, lower than the estimated loss of $0.26. Also, it compares favorably with a loss of $0.34 in the last year’s quarter. (See Asana stock charts on TipRanks)

Asana reported Q2 revenues of $89.5 million, up 72% from the year-ago quarter. Also, it came above $82.3 million estimated by analysts. Markedly, the number of customers spending $5,000 or more annually grew 61% year-over-year to 12,806. Revenues generated from these customers rose 97%.

The Co-founder and CEO of Asana, Dustin Moskovitz, said, “Customers are adopting Asana everywhere: across our major geographies and across all sizes of teams. We saw particular strength in the enterprise, with the number of customers spending over $50,000 up 111 percent. Stay tuned for more enterprise announcements in October.”

For Fiscal Year 2022, Asana expects to report revenues between $357 million to $359 million, representing a year-over-year rise of 57% to 58%.

The company expects its third-quarter revenues to be in the range of $93 million to $94 million, up 58% to 60% year-over-year. Also, adjusted net loss per share is expected to be between $0.27 and $0.26.

On August 27, JMP Securities analyst Patrick Walravens reiterated a Buy rating on Asana and raised the price target to $82 from $50. The new price target implies upside potential of 6.1% from current levels.

Walravens remains positive on Asana because of its highly scalable platform, work graph data model and large total addressable market.

Consensus among analysts is a Strong Buy based on 8 Buys and 2 Holds. The average Asana price target stands at $65.40 and implies downside potential of 15.4% from current levels. Shares of the company have gained 166.5% so far this year.