Asana Shares Tumble Despite Revenue Beat — 3 Analysts Deep Dive Into Q3 Print

Shares of Asana Inc ASAN tanked in early trading on Wednesday, even after the company reported better-than-expected third-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

• Piper Sandler analyst Brent Bracelin maintained an Underweight rating and price target of $16.
• Oppenheimer analyst George Iwanyc reiterated an Outperform rating and price target of $28
• KeyBanc Capital Markets analyst Jason Celino reaffirmed a Sector Weight rating on the stock.

Check out other analyst stock ratings.

Piper Sandler: Asana’s growth decelerated for the ninth consecutive quarter, to 18% in the third quarter, from 20% in the prior quarter and 41% last year, Bracelin said.

“We remain cautious on eroding fundamentals and profitability remains elusive with operating expenses increasing sequentially,” he added. “The growth outlook of further moderation to 11-12% suggests that challenges could persist into next year."

Oppenheimer: Asana generated better-than-expected results for the third quarter, with its news business stabilizing and tight cost discipline, Iwanyc said. He added that continued macro challenges led to another quarter of DBNRR (dollar-based net retention rate) decline and moderating billings growth.

“We believe this could keep the shares range bound until Asana begins to lap KPI headwinds and stronger expansion is delivered,” the analyst further stated.

KeyBanc: “Asana posted a modest F3Q revenue beat and much better OM on continued cost discipline, though billings growth of 10% came in well below the Street's 14% and overall NRR downticked again to 100% (from 105%),” Celino wrote in a note.

“More importantly, Asana sees renewal activity to remain pressured in F4Q and F1H25, before reaccelerating in F2H25 as the Company begins to lap tough comps and see more material contributions from recent pricing and packaging changes,” he added.

ASAN Price Action: Shares of Asana had tumbled 16.19% to $19.57 at the time of publication on Wednesday.

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