Asana Posts Lower-than-Feared Q4 Loss; Shares Crash on Mixed Outlook

Asana (NYSE: ASAN) has reported a smaller-than-feared loss in the fourth quarter of Fiscal Year 2022 (ended January 31) and beat analysts’ revenue expectations. Meanwhile, the company provided mixed guidance. 

Following the update, shares of the web and mobile team work management platform plummeted 21.12% in Wednesday’s extended trading, session after closing 9.7% higher on the day. 

Results in Detail 

Asana incurred a loss of $0.25 per share in Q4, compared to the $0.28 loss per share estimated by analysts. The company recorded a loss of $0.22 per share in the same quarter last year.  

Total revenue came in at $111.9 million, surpassing analysts’ expectations of $105.16 million and surging 64% year-over-year. 

Additionally, the number of customers spending $5,000 or more on an annualized basis increased to 15,437 in the quarter, up 52% year-over-year. Remarkably, revenues from these customers were up 82%. 

Furthermore, the number of customers spending $50,000 or more on an annualized basis increased to 894, up 125% over the same period.

Fiscal Year 2022 Results 

For Fiscal 2022, Asana reported an adjusted loss of $0.92 per share, compared to the loss of $1.16 in Fiscal 2021. Revenue generated during the year stood at $378.4 million, up 67%, on the back of enterprise-strength and strong clients’ demand. 

The total number of paying customers ended the year with a total of more than 119,000. 

CFO’s Comments 

Looking forward, Asana CFO Tim Wan said, “Given the large untapped opportunity ahead and along with the success we’ve seen in fiscal year ’22…we are increasing our investments to expand the functionality required by large and complex enterprises and further investments in our go-to-market motion in the form of increasing our sales capacity and customer-facing teams to support adoption and expansion within many of our larger enterprise customers.” 

Guidance 

For Fiscal 2023, the company anticipates total revenue of $527 million to $531 million, which would represent year-over-year growth of 39% to 40%. The consensus estimate stood at $506.3 million. 

For Fiscal Q1, the company forecasts revenue in the range of $114.5 million to $115.5 million, versus the consensus estimate of $110.91 million. Adjusted loss per share is expected to land between $0.36 and $0.35, versus a loss of $0.27 per share estimated by analysts. 

Analyst Recommendations 

The Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating, based on an even split between the Buys and the Holds. The average Asana price target of $74.88 implies 53.41% upside potential. Shares have gained 52.91% over the past year. 

Bloggers Weigh In  

Bloggers seem enthused by the company’s earnings results. TipRanks data shows that financial blogger opinions are 82% Bullish on ASAN, compared to a sector average of 69%.

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