Asana shares surge nearly 30% on strong earnings beat and solid outlook

Asana shares surge nearly 30% on strong earnings beat and solid outlook

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Shares in  Asana Inc. surged nearly 30% in late trading after the work management software company surprised with earnings and revenues beats and a mostly better-than-expected outlook.

For the quarter that ended Jan. 31, Asana reported a non-generally accepted accounting principles loss of $33.2 million or 15 cents per share, compared to a loss of $46.9 million or 25 cents per share in the same quarter of last year. Revenue came in at $150.2 million, up 34% year-over-year. Analysts had been expecting a loss of 27 cents per share on revenue of $144.85 million.

Highlights in the quarter included the number of Asana customers spending $5,000 per more on an annualized basis growing to 19,432, up 26% year-over-year, with revenue from these customers growing 42% over the time period. The number of customers spending $100,000 or more increased 49% to 506.

Asana’s overall dollar-based net retention rate in the fourth quarter was over 115%, with the figures improving to 120% and 135% for customers spending $5,000 or more and $100,000 or more, respectively.

For its full fiscal year 2023, Asana reported a non-GAAP loss of $207.2 million or $1.04 per share, compared to a loss of $162.9 million or 92 cents per share in fiscal 2022. Revenue for the year came in at $547.2 million, up 45% year-over-year.

“We are grateful to work alongside some of the largest, most innovative enterprises in the world,” Dustin Moskovitz, co-founder and chief executive officer of Asana, said in the company’s earnings release. “This offers us unique insights into their complex business needs, which helps to inform our product strategies and investments in areas that can shape the future of work management.”

Looking forward, Asana said it expected a non-GAAP net loss per share of 18 cents to 19 cents in the first quarter of fiscal 2024 on revenue of $150 million to $151 million. Analysts were expecting earnings per share loss of 22 cents on revenue of $150.32 million.

For the full fiscal year 2024, the company expects an EPS loss of 55 cents to 59 cents on revenue of $638 million to $648 million, compared to an expected 75 cents and $652.1 million.

The full-year revenue outlook was a miss in terms of analyst expectations, but with beats in revenue, earnings, first-quarter outlook and fiscal year EPS, investors were impressed, with Asana shares up 28.03% as of 6:40 p.m. EST.

Image: Asana

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