Asana dips as soft guidance outweighs Q2 beat

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Asana dips as soft guidance outweighs Q2 beat
Credit: © Reuters.

Asana Inc (NYSE: ASAN ) reported its financial results for the second quarter, with the stock falling nearly 6% in the aftermath.

The company reported a loss per share of $0.04, which is $0.07 better than the analyst estimate. Moreover, Asana's revenue for the quarter amounted to $162.5 million, exceeding the consensus estimate of $157.9M.

“Asana’s Q2 results beat expectations on the top and bottom line. Revenue growth was better than our guidance, operating margin improved 37 percentage points, and we posted positive free cash flow,” said Dustin Moskovitz, co-founder and chief executive officer of Asana.

Asana expects a Q3 EPS in the range of -$0.11 to -$0.10, compared to the consensus estimate of -$0.15. The company also anticipates third-quarter revenue to be in the range of $163.5M to $164.5M, surpassing the consensus estimate of $162.8M.

For FY24, Asana forecasts an EPS between -$0.42 and -$0.39, outperforming the consensus estimate of -$0.52. The company also expects full-year revenue to be in the range of $642M to $648M, slightly exceeding the consensus estimate of $644.4M.

Wolfe Research analysts commented that “demand trends continue to be solid outside of tech, with the majority of incremental large deal activity in other verticals, while geographically, the company noted meaningful bookings strength in EMEA & APAC.”

“We believe that management is now embedding additional conservatism around new GTM initiatives both domestically and globally in planning assumptions for FY25,” they added in a note on ASAN.

Morgan Stanley analysts remain cautious on the stock “until we garner conviction on growth floor timing & degree.”

 

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