Core Insights - Dustin Moskovitz, CEO of Asana and co-founder of Facebook, is retiring from Asana, with plans to transition to the role of Chair once a new CEO is appointed [1][2] - Asana reported a 10% year-over-year increase in fourth-quarter sales, reaching $188.3 million, aligning with analyst expectations [2] - The company's adjusted earnings per share for the fourth quarter were breakeven, surpassing analyst predictions of a one-cent loss per share [3] - Asana's projected revenue for the fiscal first quarter is between $184.5 million and $186.5 million, which is below analyst expectations of $191 million [3] - Following the earnings report, Asana's stock price fell over 25% in after-hours trading [3]

Financial Performance - Q4 revenue was $188.3 million, a 10% year-over-year increase, and $189.1 million when adjusted for foreign exchange impact, reflecting a 10.5% increase[4] - GAAP operating loss for Q4 was $63.6 million, or 34% of revenues, improved from a loss of $67.9 million, or 40% of revenues, in Q4 of fiscal 2024[4] - Non-GAAP operating margin improved by 820 basis points year-over-year in Q4, with a non-GAAP operating loss of $1.7 million, or 1% of revenues[4] - Asana achieved positive free cash flow of $12.3 million in Q4, compared to a negative $17.0 million in the same quarter of fiscal 2024[4] - The net loss for the three months ended January 31, 2025, was $62,299,000, slightly lower than the net loss of $62,398,000 in the prior year[27] - GAAP net loss for Q1 2025 was $62.30 million, slightly improved from a net loss of $62.40 million in Q1 2024[35] - Non-GAAP net loss for the twelve months ended January 31, 2025, was $29.59 million, compared to $45.13 million in the previous year, indicating a reduction of 34.5%[35] Customer Metrics - The number of Core customers grew to 24,062 in Q4, an increase of 11% year-over-year, with revenues from Core customers also growing by 11%[7] - The dollar-based net retention rate for Core customers in Q4 was 97%[7] - Asana's dollar-based net retention rate is expected to fluctuate due to factors such as revenue growth and customer retention capabilities[22] Future Guidance - For Q1 FY26, Asana expects revenues between $184.5 million and $186.5 million, representing year-over-year growth of 7% to 8%[7] - Asana anticipates a non-GAAP operating profit of $2.0 million to $3.0 million for Q1 FY26, with an operating margin of 1% to 2%[7] - The company expects FY26 revenues between $782.0 million and $790.0 million, indicating year-over-year growth of 8% to 9%[8] - Non-GAAP net income per share for FY26 is projected to be between $0.19 and $0.20, assuming approximately 247 million diluted weighted average shares outstanding[8] Operating Expenses - Total operating expenses for the three months ended January 31, 2025, were $232,319,000, compared to $221,691,000 in the same quarter of the previous year, reflecting a 4.9% increase[27] - Asana's research and development expenses for the twelve months ended January 31, 2025, were $341,467,000, compared to $324,688,000 in the previous year, showing a commitment to innovation[27] - The company expects to continue investing in sales and marketing, which accounted for $102,261,000 in the most recent quarter[27] Cash and Equity - Cash and cash equivalents decreased to $184,728,000 as of January 31, 2025, down from $236,663,000 a year earlier[30] - The company had a total stockholders' equity of $227,523,000 as of January 31, 2025, a decrease from $326,396,000 in the prior year[30] Revenue and Profitability - Asana reported revenues of $188,334,000 for the three months ended January 31, 2025, representing a 10.3% increase from $171,135,000 in the same period of the prior year[27] - The gross profit for the same quarter was $168,730,000, up from $153,743,000, indicating a gross margin improvement[27] - GAAP gross profit for Q1 2025 was $168.73 million, up from $153.74 million in Q1 2024, representing an increase of 9.7%[33] - Non-GAAP gross profit for the twelve months ended January 31, 2025, was $648.10 million, compared to $589.57 million in the previous year, reflecting a growth of 9.9%[33] - Non-GAAP operating margin for Q1 2025 was -0.9%, an improvement from -9.1% in Q1 2024[33] - The company reported a GAAP operating loss of $63.59 million for Q1 2025, compared to a loss of $67.95 million in Q1 2024, showing a decrease of 6.5%[33]

Core Insights - Asana Inc (NYSE:ASAN) experienced a strong finish in 2024 with a 43.6% gain post-earnings on December 6, indicating a need for continued positive price reactions in upcoming earnings reports [1] - The stock has seen a 9.5% decline in 2025 and is currently 34% below its three-year high of $27.77, although it is testing a significant ascending 126-day trendline [2] - The options market anticipates a larger than usual post-earnings move of 22.1%, compared to an average next-day move of 14.2% over the last two years [3] Market Sentiment - There is significant short squeeze potential for Asana, with 15.6% of the stock's float sold short, and bearish positions have increased by 5% recently [4] - Despite a 35.8% increase in the last six months, analyst sentiment remains pessimistic, with 11 out of 15 brokerages maintaining "hold" or "strong sell" ratings, suggesting that a positive earnings report could alter some bearish views [5]

Core Viewpoint - Asana, Inc. is set to release its fourth-quarter financial results on March 10, with expectations of a reduced quarterly loss and increased revenue compared to the previous year [1] Financial Performance - Analysts predict Asana will report a quarterly loss of 1 cent per share, an improvement from a loss of 4 cents per share a year ago [1] - The projected quarterly revenue is $188.13 million, up from $171.13 million in the same quarter last year [1] Recent Developments - On December 5, Asana reported better-than-expected third-quarter financial results and provided FY25 guidance that exceeded estimates [2] Stock Performance - Asana shares experienced a decline of 6.2%, closing at $17.78 [3] Analyst Ratings - Piper Sandler analyst Brent Bracelin has an Overweight rating with a price target of $27 [5] - Citigroup analyst Steven Enders maintains a Neutral rating, raising the price target from $16 to $20 [5] - Jefferies analyst Brent Thill holds a Hold rating, increasing the price target from $16 to $19 [5] - Morgan Stanley analyst Josh Baer has an Equal-Weight rating, raising the price target from $14 to $18 [5] - Oppenheimer analyst Ittai Kidron maintains an Outperform rating, increasing the price target from $20 to $22 [5]

Stock Performance - Asana (ASAN) shares surged 42.8% in the past six months, outperforming the Zacks Internet - Software industry's return of 20.1% and the Zacks Computer & Technology sector's growth of 6.6% [1] - The outperformance is attributed to the successful launch of AI Studio in Q3 fiscal 2025, which drove significant customer demand, increased multi-year deals, and expanded market presence across various industry verticals [1] Customer Growth - Asana's Core customers (spending $5,000 or more annually) rose to 23,609, up 11% year-over-year [2] - Customers spending $100,000 or more annually increased to 683, marking an 18% year-over-year growth [2] Strategic Partnerships - Asana's expanding clientele includes Datacom, MasterCard (MA), and Alphabet (GOOGL), which have been major growth drivers [3] - A partnership with Mastercard offers a 20% rebate on annual subscriptions to first-time Asana customers, enhancing value for businesses [3] - Alphabet has integrated Asana's work management program into the majority of its workplaces, improving team communication and organization [4] AI-Driven Innovation - Asana launched AI Studio in Q3 fiscal 2025, a no-code builder enabling teams to design AI-powered Smart workflows within its platform [5] - AI Studio automates project coordination, reduces busywork, and improves cross-functional collaboration by embedding AI agents across the project lifecycle [5] - Morningstar (MORN) leveraged Asana AI Studio to streamline project management, standardize work intake processes, and enhance operational efficiency [6] Financial Guidance - For Q4 fiscal 2025, Asana expects revenues between $187.5 million and $188.5 million, indicating a 10% year-over-year increase [7] - Non-GAAP net loss per share for Q4 is expected to be between $0.02 and $0.01 [7] - For fiscal 2025, Asana expects revenues between $723 million and $724 million, reflecting an 11% year-over-year increase [7] - Non-GAAP net loss per share for fiscal 2025 is expected to be between 15 cents and 14 cents [7] Earnings Estimates - The Zacks Consensus Estimate for Q4 fiscal 2025 revenues is $188.11 million, indicating 9.91% growth year-over-year [8] - The consensus mark for Q4 fiscal 2025 loss is 1 cent per share, unchanged over the past 30 days, reflecting a 92.31% year-over-year increase [9] - The Zacks Consensus Estimate for fiscal 2025 revenues is $722.99 million, indicating 10.80% growth year-over-year [9] - The consensus mark for fiscal 2025 loss is 14 cents per share, unchanged over the past 30 days, reflecting a 30% year-over-year increase [9] Valuation and Investment Opportunity - Asana's forward 12-month Price/Sales ratio is 5.83, higher than its median of 4.06 and the industry's 2.97, indicating a stretched valuation [11] - Despite the premium valuation, Asana's robust portfolio and expanding partner base make it attractive for long-term investors [11] - Asana stock carries a Zacks Rank 2 (Buy) and a Growth Score of B, offering a strong investment opportunity [12]

Group 1 - Asana's stock has recently rallied following its earnings release, driven by overall market enthusiasm for stocks [3] - The quarterly results of Asana were not particularly impressive, indicating that the rally may not be fundamentally supported [3] Group 2 - The article expresses the author's personal opinions and does not provide any investment recommendations or advice [2][3] - There is a disclosure that the author may initiate a long position in Asana or similar stocks within the next 72 hours [3]

Core Insights - Asana's stock has seen a recent increase, raising questions about whether this is due to genuine improvements or merely hype [1] - The company has faced challenges in achieving profitability since its IPO, which has negatively affected its long-term stock performance [1] Financial Performance - The stock price performance was notably impacted by the company's earnings report released last week [1] - The analysis suggests a need to evaluate if there are substantial changes in Asana's business model or if the recent stock movement is misleading [1]

Financial Data and Key Metrics Changes - Total revenues increased by over 10% year-over-year, exceeding guidance and reflecting stabilization of the growth rate compared to the previous quarter [10][81] - Non-GAAP operating margins improved year-over-year from an operating loss margin of 6% to 4%, indicating progress towards non-GAAP profitability [12][62] - Q3 revenues were reported at $183.9 million, up 10% year-over-year, with revenues from core customers growing 11% [58][60] Business Line Data and Key Metrics Changes - Non-tech verticals grew faster than overall growth, up 15% year-over-year, and accounted for over two-thirds of the business [11][82] - Customer growth showed improving trends, with core customer base and customers spending $100,000 or more growing by 11% and 18% respectively [12][60] - The dollar-based net retention rate for core customers was 98%, and for customers spending $100,000 or more, it was 99% [60] Market Data and Key Metrics Changes - Significant customer demand was noted across various sectors including media, financial services, manufacturing, healthcare, professional services, and technology [7][80] - The company hosted nearly 1,000 attendees at the Work Innovation Summit, marking a 4x growth in attendance compared to the previous year [13][85] Company Strategy and Development Direction - The launch of AI Studio marks Asana's transition into a multi-product company, expected to create new revenue streams and enhance customer value [7][10] - The company aims to evolve from a seat-based pricing model to a flexible, value-aligned approach, incorporating consumption-based pricing from AI Studio [29][100] - Focus areas include improving financial efficiency, strategic investments in growth, and winning new customers in key verticals such as manufacturing and healthcare [32][103] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilization in revenue growth and early signs of potential re-acceleration, despite macroeconomic headwinds [68] - The company is committed to achieving positive free cash flow by the end of Q4 and is focused on expanding operating margins [33][66] - Management highlighted the importance of customer engagement and the transformative potential of AI Studio in reshaping the value delivered to customers [98][99] Other Important Information - Cash and marketable securities at the end of Q3 were approximately $455.3 million, with remaining performance obligations (RPO) up 21% year-over-year [63][64] - The company repurchased $55 million of its shares in Q3, indicating a commitment to managing dilution while returning capital to shareholders [65] Q&A Session Summary Question: What are the expectations for AI Studio's impact on revenue? - Management believes AI Studio has the potential to eclipse current revenue scales over time, with early access customers showing strong evidence of scaling beyond initial allocations [7][21][93] Question: How is the company addressing macroeconomic challenges? - Management noted that investments in the platform and go-to-market strategies are leading to stabilization in revenue growth, despite ongoing macroeconomic headwinds [68][70] Question: What are the key initiatives for the upcoming quarters? - Key initiatives include improving account engagement, focusing on strategic industry verticals, and streamlining sales processes to enhance efficiency and drive growth [119][120][122]

Core Viewpoint - Asana, Inc. reported a quarterly loss of $0.02 per share, outperforming the Zacks Consensus Estimate of a loss of $0.07, indicating a significant earnings surprise of 71.43% [1][2] Financial Performance - The company achieved revenues of $183.88 million for the quarter ended October 2024, exceeding the Zacks Consensus Estimate by 1.79% and showing an increase from $166.5 million in the same quarter last year [2] - Over the last four quarters, Asana has consistently surpassed consensus EPS estimates [2] Stock Performance - Asana shares have declined approximately 16.7% since the beginning of the year, contrasting with the S&P 500's gain of 27.6% [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $187.52 million, and for the current fiscal year, it is -$0.19 on revenues of $719.83 million [8] - The estimate revisions trend for Asana is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [7] Industry Context - The Internet - Software industry, to which Asana belongs, is currently ranked in the top 16% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________________ FORM 10-Q ___________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File N ...