Asana Posts Smaller-Than-Expected Quarterly Loss As Sales Outperform

Asana reported a better-than-feared loss in the fiscal fourth quarter (ended Jan. 31) and surpassed analysts’ expectations for revenues. Shares of the work management platform for teams rose nearly 3.5% in Wednesday’s extended trading session after closing almost 2.8% lower on the day.

Don't Miss Our Christmas Offers:

Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

Asana (ASAN) incurred a loss of $0.22 per share in 4Q, compared to the $0.26 loss per share estimated by analysts. The company recorded a loss of $0.27 per share in the same quarter last year.

Total revenue came in at $68.4 million, topping analysts’ expectations of $62.68 million and rising 57% year-over-year. (See Asana stock analysis on TipRanks)

Asana CEO Dustin Moskovitz said, “We now have over 93,000 paying customers and over 1.5 million paid users who trust Asana to provide the real-time clarity their teams need to do their best work.”

For the fiscal year 2022, the company anticipates total revenue of $309 million to $314 million, which would represent year-over-year growth of 36% to 38%.

For the fiscal 1Q, the company projects revenue to be in the range of $69.5 million to $70.5 million, versus the consensus estimate of $65.57 million. Adjusted loss per share is expected to land between $0.27 and $0.26, versus the loss of $0.26 per share estimated by analysts.

Following the fiscal 4Q results, Oppenheimer analyst Ittai Kidron maintained a Buy rating and a price target of $41 (28.5% upside potential) on the stock.

The analyst said, “Asana delivered a strong encore as a public company, with strong growth in large accounts and high retention rates.”

What’s more, “the company plans to invest heavily into their Enterprise GTM capabilities, and while this will pressure margins in the NT,” Kidron remains “encouraged by the opportunity Asana has going forward and remain bullish.”

The consensus rating among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average analyst price target stands at $38.25 and implies upside potential of almost 20% to current levels. Shares have gained nearly 11% over the past year.

Asana scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.