Here's Why Asana is a Buy Stock for Growth-Oriented Investors

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$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$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]