Asana Stock Falls After Q2 Results; Q3, FY Guidance Below Estimates

Asana, Inc. ASAN reported its second-quarter financial results after Tuesday's closing bell. Here's a look at the details from the report. 

The Details: Asana reported quarterly losses of five cents per share, which beat the analyst estimate of losses of eight cents per share. Quarterly revenue clocked in at $179.212 million, beating the $177.654 million consensus estimate.

• Core customers, or customers spending $5,000 or more on an annualized basis, grew to 10% year-over-year.
• Revenues from Core customers grew 11%year-over-year in the quarter.
• The number of customers spending $100,000 or more on an annualized basis grew to 649, an increase of 17% year-over-year.
• Overall dollar-based net retention rate was 98%.
• Dollar-based net retention rate for Core customers was 99%.
• Dollar-based net retention rate for customers spending $100,000 or more on an annualized basis was 103%.

Asana also announced the appointment of Sonalee Parekh as CFO effective Sept. 11, 2024. Parekh will succeed Tim Wan, who will remain with the company in an advisory position to support the transition.

“In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI. We’re seeing momentum in key areas, including 17% growth in customers spending over $100,000, success in key verticals, and a record number of multi-year deals,” said Dustin Moskovitz, CEO of Asana.

“We’re at a pivotal moment where AI has enormous potential to revolutionize work management. We are clearly moving in the right direction and are well-positioned to capitalize on the consolidation opportunity in the enterprise market.”

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Outlook: Asana sees third-quarter losses of seven cents per share, versus the loss of four cents per share estimate, and quarterly revenue in a range of $180 million to $181 million, versus the $182.28 million estimate. The company expects fiscal year losses of between 20 cents and 19 cents per share, versus the loss of 20 cents per share estimate, and full-year revenue in a range of $719 million to $721 million, versus the $722.85 million estimate.

ASAN Price Action: According to Benzinga Pro, Asana shares are down 14.90% after-hours at $11.31 after falling 5.48% in regular trading Tuesday.

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