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.
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.
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