Asana (ASAN) AI Stock Analysis

1,878 Followers

Top Page

Asana

(NYSE:ASAN)

58Neutral

Asana's strong revenue growth and strategic focus on AI are promising, but ongoing profitability challenges and technical bearish trends weigh on the stock. The CEO transition is a positive strategic move, but valuation concerns remain with a negative P/E ratio. Overall, the stock presents a mixed outlook with significant potential, but also substantial risks.

Positive Factors

Financial Performance

ASAN reported 4Q25 results that beat consensus on revenue by 0.1% and adjusted operating income by $4.3 million.

Leadership and Management

New CFO Sonalee Parekh has a strong track record of expense management and is focused on greater efficiency through sales and marketing, research and development, and general and administrative expenses.

Strategic Initiatives

Asana offers a differentiated collaboration solution for the enterprise that can orchestrate work across multiple AI agents and human teams.

Negative Factors

Leadership Transition

Co-founder, CEO and Chair of Asana, Dustin Moskovitz, will retire from the CEO position upon the appointment of a successor.

Market Sentiment

ASAN trades to ~5x CY26 sales in the after-hours, a discount to the SaaS average at 6x, warranted given lower margins at ASAN.

Revenue Guidance

FY26 revenue growth guidance fell short of consensus.

Asana (ASAN) vs. S&P 500 (SPY)

Market Cap

$3.79B

Dividend YieldN/A

Average Volume (3M)4.01M

Price to Earnings (P/E)―

Beta (1Y)1.85

Revenue Growth10.94%

EPS Growth4.54%

CountryUS

Employees1,819

SectorTechnology

Sector Strength40

IndustrySoftware - Application

Share Statistics

EPS (TTM)-1.11

Shares Outstanding147,663,350

10 Day Avg. Volume3,418,203

30 Day Avg. Volume4,009,103

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)4.65

Price to Cash Flow (P/CF)53.10

P/FCF Ratio53.10

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$15.50

Price Target Upside0.13% Upside

Rating ConsensusHold

Number of Analyst Covering14

Asana Business Overview & Revenue Model

Company DescriptionAsana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. The company's platform enables teams to orchestrate work from daily tasks to cross-functional strategic initiatives; and manages product launches, marketing campaigns, and organization-wide goal settings. It serves customers in industries, such as technology, retail, education, non-profit, government, healthcare, media, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

How the Company Makes MoneyAsana makes money primarily through a subscription-based revenue model. The company offers several pricing tiers, including Basic, Premium, Business, and Enterprise, each with a different set of features tailored to the needs of different organizations. Users can access the Basic plan for free, while the Premium, Business, and Enterprise plans require a monthly or annual subscription fee. The pricing structure is based on the number of users within an organization, allowing Asana to scale its revenue with its clients' growth. Additionally, Asana collaborates with various technology partners to enhance its platform capabilities and expand its reach, further contributing to its revenue streams. Factors such as the increasing demand for remote work solutions and digital transformation initiatives across industries have also positively impacted Asana's earnings.

Asana Financial Statement Overview

Summary

Asana shows strong revenue growth, a positive indicator in the software industry, but struggles with profitability and cash flow. The balance sheet indicates moderate leverage but limited equity coverage, highlighting potential financial vulnerabilities.

Income Statement

Positive

Asana shows solid revenue growth with a TTM increase of 8.3% and a past annual growth trend, indicating strong demand in the software industry. However, the company struggles with profitability, evidenced by negative net and EBIT margins in the TTM, reflecting sustained operating losses.

Balance Sheet

Neutral

The balance sheet reveals a moderate debt-to-equity ratio of 0.96 TTM, suggesting balanced leverage but potential financial strain. Equity ratio is low at 27.37% TTM, indicating limited asset backing by equity, while negative ROE highlights profitability challenges.

Cash Flow

Neutral

Cash flow analysis shows negative free cash flow growth, but improvements in cash flow to net income ratios suggest better cash management. However, the negative operating cash flow indicates operational cash challenges.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
723.88M	652.50M	547.21M	378.44M	227.00M	142.61M
	Gross Profit
646.68M	587.98M	490.65M	339.54M	198.26M	122.72M
	EBIT
-266.74M	-270.00M	-407.83M	-265.18M	-175.57M	-119.63M
	EBITDA
-237.94M	-235.03M	-388.22M	-256.72M	-154.12M	-116.03M
	Net Income Common Stockholders
-255.54M	-257.03M	-407.77M	-288.34M	-211.71M	-118.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
455.31M	519.46M	529.30M	312.03M	386.27M	351.31M
	Total Assets
874.16M	961.96M	954.96M	707.03M	731.12M	421.69M
	Total Debt
229.08M	277.88M	271.54M	255.61M	585.86M	225.18M
	Net Debt
32.31M	41.22M	-255.02M	15.20M	325.98M	-80.84M
	Total Liabilities
634.89M	635.56M	598.39M	503.19M	743.91M	567.01M
	Stockholders Equity
239.27M	326.40M	356.57M	203.84M	-12.79M	-145.31M
Cash Flow		Free Cash Flow
6.57M	-31.09M	-167.22M	-126.50M	-151.18M	-47.40M
	Operating Cash Flow
14.93M	-17.93M	-160.06M	-83.78M	-92.87M	-40.14M
	Investing Cash Flow
-6.13M	-289.13M	64.49M	27.56M	-158.94M	12.65M
	Financing Cash Flow
-58.09M	16.78M	381.39M	37.21M	201.00M	311.60M

Asana Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price15.48

Price Trends

50DMA

17.90

Negative

100DMA

18.74

Negative

200DMA

15.84

Negative

Market Momentum

MACD

-1.08

Negative

RSI

44.22

Neutral

STOCH

71.72

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAN, the sentiment is Neutral. The current price of 15.48 is above the 20-day moving average (MA) of 14.70, below the 50-day MA of 17.90, and below the 200-day MA of 15.84, indicating a neutral trend. The MACD of -1.08 indicates Negative momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 71.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASAN.

Asana Risk Analysis

Asana disclosed 58 risk factors in its most recent earnings report. Asana reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Asana Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPFI	70 Outperform	$748.27M	45.08	33.59%	―	2.71%	―
FRSH	63 Neutral	$3.99B	―	-8.63%	―	20.79%	32.50%
ZETA	62 Neutral	$3.06B	―	-16.28%	―	38.02%	66.18%
FROG	61 Neutral	$3.61B	―	-9.53%	―	22.47%	-5.48%
ASAN	58 Neutral	$3.79B	―	-92.26%	―	10.94%	4.54%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%
GBTG	56 Neutral	$3.27B	―	-12.22%	―	5.81%	17.19%

* Technology Sector Average

Performance Comparison

ASAN

Asana

15.48

1.03

7.13%

FROG

JFrog

30.39

-8.21

-21.27%

OPFI

OppFi

8.33

5.26

171.34%

GBTG

Global Business Travel Group

6.64

0.81

13.89%

ZETA

Zeta Global Holdings Corp

11.71

-0.25

-2.09%

FRSH

Freshworks

12.57

-5.39

-30.01%

Asana Earnings Call Summary

Earnings Call Date: Mar 10, 2025 | % Change Since: -7.19% | Next Earnings Date: May 29, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong revenue growth, expansion in non-tech verticals, and significant early success with AI Studio. However, challenges in the tech vertical, macroeconomic impacts, and a decline in net retention for large customers were notable concerns. The transition to positive free cash flow and strategic channel expansions are promising, but headwinds remain.

Highlights

Revenue Growth and Profitability Milestone

Q4 revenues were up over 10% year-over-year, exceeding guidance. Non-GAAP operating margins improved by more than 800 basis points year-over-year. Asana reached positive free cash flow for fiscal year 2025, marking a significant milestone.

Enterprise and Non-Tech Vertical Growth

Enterprise customer acquisition showed strong progress, with customers spending $100,000 or more growing 20% year-over-year. Non-tech verticals grew 15% year-over-year, with manufacturing, energy, consumer retail, and media as fast-growing sectors.

AI Studio Momentum

AI Studio showed strong early adoption, with hundreds of large customers running smart workflows. A global media company reduced manual work by 60% and decreased processing time by 69% using AI Studio.

International Revenue Growth

International revenue grew 14% year-over-year, reflecting acceleration from the previous quarter.

Channel Expansion and Partner Growth

Significant wins through partners and strong growth in partner-sourced deals. Expanded partner community with large system integrators, increasing channel presence.

Lowlights

Challenges in Tech Vertical

The technology sector continued to be a drag on overall growth, impacting net retention rates and expansion. Several large churns and downgrades were observed in tech customers.

Macroeconomic Impact

Ongoing macroeconomic softness, particularly affecting the technology vertical and elongating decision timelines. The guidance assumes no material change but reflects current macro challenges.

Large Customer NRR Decline

Dollar-based net retention rate for customers spending $100,000 or more was 96%, marking a decline and coming in below core customer NRR.

Workforce Reduction

A 5% reduction in full-time workforce was implemented to align costs with strategic priorities, resulting in restructuring charges.

Company Guidance

During Asana's Fourth Quarter and Fiscal Year 2025 Earnings Conference Call, the company provided guidance on several key metrics. Asana reported a 10% year-over-year increase in total revenues for Q4, exceeding their guidance when adjusted for currency impacts. The company achieved a significant milestone with positive free cash flow for the fiscal year and expects non-GAAP profitability in Q1 of the next fiscal year. Asana's non-tech verticals grew by 15% year-over-year, with notable growth in manufacturing, energy, consumer retail, and media. The number of customers spending over $100,000 annually grew by 20% year-over-year. Asana's non-GAAP operating margin improved by over 800 basis points, moving from a 9% operating loss margin to a 1% loss margin. The company anticipates an over 1,000 basis point expansion in non-GAAP operating margin in fiscal year 2026. Asana is also focused on AI Studio, with expectations of significant customer demand and transformative potential. The company plans to evolve its pricing model to better align with the value delivered through AI Studio and other advanced capabilities, introducing a credit system to fuel AI workflows. Asana's fiscal year 2026 revenue guidance is set at $782 million to $790 million, representing an 8% to 9% growth year-over-year, with an expected non-GAAP operating margin of at least 5%.

Asana Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Asana CEO Transition: Moskovitz to Chair Board

Positive

Mar 10, 2025

On March 10, 2025, Asana announced that its Co-Founder and CEO, Dustin Moskovitz, will transition to the role of Chair of the Board once a new CEO is appointed. The Board has initiated a search for a successor, and Moskovitz will continue to focus on AI strategy and maintain his significant shareholdings in the company. This transition is part of Asana’s plan to usher in a new era of growth and profitability, leveraging its strong track record of innovation and recent AI advancements. Moskovitz, who co-founded Asana in 2008, has been instrumental in its growth, with the company now serving over 150,000 customers worldwide and generating over $700 million in annual revenue.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.