Core Viewpoint - Asana Inc's stock has declined significantly following price target reductions by multiple Wall Street firms, despite reporting better-than-expected fourth-quarter revenue and earnings [1][2][7]. Financial Performance - Asana reported fourth-quarter revenue of $188.33 million, surpassing analyst estimates of $188.1 million, and achieved breakeven earnings, exceeding expectations of a loss of $0.01 per share [1]. - The company guided for first-quarter revenue between $184.5 million and $186.5 million, with an adjusted EPS of $0.02 [1][7]. Growth and Retention Metrics - The fourth quarter demonstrated stabilization in growth and retention metrics, with calculated billings slightly above expectations and accelerating into the low-double-digit growth range [3]. - The dollar-based net retention rate (DBNRR) remained stable at 96%, although it contracted by 3 percentage points for customers spending over $100K in annual contract value (ACV) [3][4]. Sector Performance - While non-tech verticals showed stability, there was continued weakness in the tech vertical, primarily due to a reduction in seats and customer churn, impacting the reported DBNRR [4]. AI Initiatives - Asana's AI studio has exceeded early expectations, generating a multi-million dollar pipeline and attracting paid customers, prompting the company to establish a dedicated sales team [5]. Guidance and Market Outlook - The guidance reflects conservatism, not accounting for potential improvements in net retention or tech vertical performance, and includes minimal contributions from the AI studio [6]. - Analysts project that Asana's growth will continue to lag behind peers, leading to potential underperformance in shares, with a focus shifting towards profitability and margin improvement [7].

Financial Data and Key Metrics Changes - In Q4 2025, total revenues increased by over 10% year-over-year, exceeding the top end of guidance when adjusted for currency [6][62] - Non-GAAP operating margins improved by more than 800 basis points year-over-year, from an operating loss margin of 9% to 1% [7][67] - The company achieved positive free cash flow for the full fiscal year 2025, with Q4 free cash flow at $12.3 million, representing a 7% margin [8][74] Business Line Data and Key Metrics Changes - Non-tech verticals grew by 15% year-over-year, outpacing overall growth for the quarter [8] - Customers spending $100,000 or more annually grew by 20% year-over-year, indicating strong enterprise customer acquisition [9][64] - Revenue from core customers grew by 11% year-over-year, representing 75% of total revenues in Q4 [63] Market Data and Key Metrics Changes - International revenue grew by 14% year-over-year, reflecting an acceleration in growth from the previous quarter [47] - The company noted strong demand across various industries, including manufacturing, healthcare, and technology [13][19] Company Strategy and Development Direction - The company aims to establish itself as the definitive platform for human-AI coordination, with a focus on AI Studio [10][15] - Strategic investments in enterprise customer acquisition and vertical-specific product use cases are expected to drive growth [42][44] - The company is evolving its pricing model to align with the value delivered through AI Studio, creating new monetization avenues [31][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the potential impact of macroeconomic conditions on growth but maintained a positive outlook for revenue and ARR growth [76][78] - The company expects to see incremental revenue benefits from resource reallocation and efficiency initiatives beginning in the second half of fiscal year 2026 [77] - Management expressed confidence in the transformative potential of AI Studio, despite early-stage adoption [14][78] Other Important Information - The company plans to transition its CEO role, with the current CEO moving to the board chair position to focus on AI product vision and strategy [34][39] - A restructuring charge of $4.5 million was incurred in Q4 due to workforce reduction, with an additional $2.5 million expected in Q1 [75][68] Q&A Session Summary Question: Guidance assumptions and NRR expectations - The CFO discussed the impact of currency and leap year on guidance, indicating that ARR growth is expected to outpace revenue growth [90][91] Question: AI Studio's contribution to growth - The CEO highlighted the uncertainty in quantifying AI Studio's impact due to varying customer adoption rates and consumption patterns [92][93] Question: Pricing and packaging strategy - The CEO explained that aligning pricing to value is crucial, especially in a cautious buying environment, and emphasized the importance of having a diverse menu of options [111][112] Question: Shift in focus from NRR to new business acquisition - The CEO clarified that the focus on new business acquisition reflects current market dynamics rather than a strategic shift [116][117] Question: Channel strategy and success metrics - The COO noted that the company recognizes under-penetration in the channel and is expanding partnerships to drive growth, particularly for AI Studio [124][125]

Financial Data and Key Metrics Changes - In Q4, total revenues reached $188.3 million, up 10% year-over-year, exceeding guidance when adjusted for currency [6][62] - Non-GAAP operating margins improved over 800 basis points year-over-year, from an operating loss margin of 9% to 1% [7][67] - The company achieved positive free cash flow for the full fiscal year 2025, with Q4 free cash flow at $12.3 million, representing a 7% margin [8][74] Business Line Data and Key Metrics Changes - Non-tech verticals grew 15% year-over-year, outpacing overall growth, with significant growth in manufacturing, energy, consumer retail, and media [8][9] - The number of customers spending $100,000 or more annually grew 20% year-over-year, indicating strong enterprise customer acquisition [9][64] - Revenue from core customers grew 11% year-over-year, representing 75% of total revenues in Q4 [63] Market Data and Key Metrics Changes - International revenue grew 14% year-over-year, reflecting an acceleration in growth from the previous quarter [47] - The company noted stabilization in the technology vertical, which has been a drag on overall growth [49] Company Strategy and Development Direction - The company aims to establish itself as a multi-product company with AI Studio, focusing on human-AI coordination [10][15] - Strategic investments in enterprise footprint and vertical-specific product use cases are expected to drive long-term profitable growth [42][44] - The company is reallocating resources to optimize go-to-market strategies and increase productivity [56][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the risk of a macroeconomic slowdown but assumed no material change in the current spending environment for guidance [76] - The company expects ARR growth to outpace revenue growth in fiscal year 2026, driven by AI Studio and improved efficiency initiatives [77][78] - Management is confident in achieving a non-GAAP operating margin of at least 5% for the full fiscal year 2026 [81] Other Important Information - The company plans to transition its CEO role, with the current CEO moving to board chair to focus on AI product vision and strategy [34][39] - A restructuring charge of $4.5 million was incurred in Q4 due to workforce reduction, with an additional $2.5 million expected in Q1 [75][68] Q&A Session Summary Question: Guidance assumptions and NRR expectations - Management explained that guidance includes a two percentage point impact from the leap year and FX, with expectations for ARR growth to outpace revenue growth [86][90] Question: AI Studio's contribution to growth - Management indicated that AI Studio's impact is uncertain, with potential for significant consumption from a small number of customers [92][99] Question: Pricing and packaging strategy - Management discussed the importance of aligning pricing to value, with expectations that successful adjustments could positively impact guidance [109][111] Question: Focus on new business acquisition - Management clarified that the shift towards new business acquisition reflects current market conditions and opportunities, particularly in non-tech verticals [116][118] Question: Channel strategy and success metrics - Management highlighted the underpenetration of the channel and the importance of expanding partnerships to drive growth, particularly for AI Studio [122][125]

Group 1 - Dustin Moskovitz is retiring from Asana, the software company he founded in 2008 [1] - Asana announced his retirement as part of the company's fiscal fourth-quarter earnings report [1] - Moskovitz plans to transition to a chair role when a new CEO is appointed [1] Group 2 - Asana has raised over $450 million in venture funding from various investors before going public in 2020 [2] - Notable investors include G Squared, Founders Fund, and 8VC [2] - Prior to founding Asana, Moskovitz was a co-founder at Meta, formerly known as Facebook [2]

Core Viewpoint - Asana, Inc. reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.01, and showing improvement from a loss of $0.04 per share a year ago, indicating a significant earnings surprise of 100% [1] Financial Performance - Asana posted revenues of $188.33 million for the quarter ended January 2025, exceeding the Zacks Consensus Estimate by 0.12%, and reflecting a year-over-year increase from $171.14 million [2] - The company has consistently surpassed consensus EPS estimates over the last four quarters, achieving this milestone four times [2] Stock Performance and Outlook - Asana shares have declined approximately 10% since the beginning of the year, contrasting with the S&P 500's decline of 1.9% [3] - The future performance of Asana's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on recent earnings and future expectations [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is -$0.02 on projected revenues of $190.53 million, while the estimate for the current fiscal year is breakeven on revenues of $805.76 million [7] - The estimate revisions trend for Asana is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Asana belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Asana (ASAN) Q4 2025 Earnings Call March 10, 2025 04:30 PM ET Company Participants Eva Leung - Head - IRDustin Moskovitz - Co-Founder & Chief Executive OfficerAnne Raimondi - COO & Head of BusinessSonalee Parekh - CFO and Head of FinancePinjalim Bora - Executive DirectorArsenije Matovic - Senior Equity Research AssociateBrent Thill - Tech Sector Leader, Software/Internet Research Conference Call Participants Michael Funk - AnalystRob Oliver - Senior Research AnalystBrent Bracelin - Sr. Research AnalystSteve ...

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]