Asana(ASAN) Benzinga·2025-03-11 17:59Core 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 188.1 million, and achieved breakeven earnings, exceeding expectations of a loss of 184.5 million and 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].