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Why Shares of Asana Were Falling Today
ASANAsana(ASAN) The Motley Fool·2024-09-04 18:57

Core Viewpoint - Asana's disappointing earnings report and guidance have led to a significant decline in its stock price, reflecting ongoing struggles with growth and profitability [1][5]. Financial Performance - Asana reported a revenue increase of 10% to 179.2million,slightlysurpassingestimatesof179.2 million, slightly surpassing estimates of 177.7 million [2]. - The company experienced a 17% growth in customers spending over 100,000,indicatingpotentialmomentuminhigh−valuecustomersegments[2].−GAAPoperatinglosswidenedfrom100,000, indicating potential momentum in high-value customer segments [2]. - GAAP operating loss widened from 73.4 million to 76.8million,highlightingcontinuedchallengesinachievingbreakeven[2].−Theadjustedper−sharelosswas76.8 million, highlighting continued challenges in achieving breakeven [2]. - The adjusted per-share loss was 0.05, which was worse than the 0.04lossfromthesamequarterlastyearbutbetterthantheexpectedlossof0.04 loss from the same quarter last year but better than the expected loss of 0.08 [2]. Future Guidance - Asana's guidance for Q3 revenue is projected to be between 180millionand180 million and 181 million, representing an 8%-9% increase, but falling short of the consensus estimate of 182.3million[4].−Thecompanyanticipatesanadjustedlosspershareof182.3 million [4]. - The company anticipates an adjusted loss per share of 0.07, compared to estimates of a 0.04loss[4].−Full−yearrevenueguidancewasloweredfrom0.04 loss [4]. - Full-year revenue guidance was lowered from 719 million-724millionto724 million to 719 million-721million,belowtheconsensusof721 million, below the consensus of 722.9 million [4]. Management Outlook - Despite the disappointing results, CEO Dustin Moskovitz expressed optimism regarding the company's enterprise transition and advancements in AI, noting momentum in key areas and a record number of multi-year deals [3].