Why Asana Stock Is Soaring Today

Asana Inc ASAN shares are trading higher Thursday after the company reported better-than-expected financial results and issued strong guidance.

Q2 Results: Asana said second-quarter revenue increased 51% year-over-year to $134.9 million, which beat average analyst estimates of $127.24 million, according to Benzinga Pro. The company reported an adjusted net loss of 34 cents per share, which beat average analyst estimates for a loss of 39 cents per share.

"Growth was driven by large enterprise deals and momentum in the US, with the number of customers spending $100,000 or more on an annualized basis up 105 percent," said Dustin Moskovitz, co-founder and CEO of Asana.

Outlook: Asana expects third-quarter revenue to be between $138.5 million and $139.5 million versus the estimate of $137.64 million. Full-year revenue is expected to be between $544 million and $547 million versus the estimate of $535.32 million.

The company expects a third-quarter net loss between 32 cents and 33 cents per share versus the estimate for a loss of 32 cents per share. 

Analyst Assessment: Multiple analysts raised price targets on the stock following the company's quarterly results. 

• Piper Sandler analyst Brent Bracelin maintained Asana with an Overweight and raised the price target from $22 to $28.
• RBC Capital analyst Rishi Jaluria maintained Asana with an Underperform and raised the price target from $13 to $15.
• Citigroup analyst Steven Enders maintained Asana with a Neutral and raised the price target from $23 to $24.

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Asana provides a platform for work management that helps teams orchestrate work, from daily tasks to cross-functional strategic initiatives.

ASAN Price Action: Asana has a 52-week high of $76.93 and a 52-week low of $16.19.

The stock was up 22.6% at $23.34 at time of publication.

Photo: Lukas from Pixabay.