Is Asana Choosing Growth Over Profits? 4 Analysts Drill Down Into Q4 Results

Shares of Asana Inc ASAN were tanking on Tuesday, even after the company reported upbeat fourth-quarter results.

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

DA Davidson On Asana

Analyst Gil Luria maintained a Neutral rating and price target of $20.

“Asana reported a solid quarter with management sounding upbeat about the opportunity for reacceleration of revenue moving forward,” Luria wrote in a note. AI was accretive to revenue growth in the quarter, with more than 20,000 customers adopting new tiers to access AI features, he added.

Asana's performance among non-tech large customers was strong, “with stabilizing net retention rates and ARR growth in the high teens,” the analyst stated.

JMP Securities On Asana

Analyst Patrick Walravens reiterated a Market Outperform rating and a price target of $27.

Asana reported better-than-expected quarterly results and its guidance was largely in line with expectations, Walravens said. Asana continues to face some macro pressure, particularly in its technology vertical, he added.

The application and its use cases “are well suited for augmentation through AI with examples including Smart Summaries, Smart Status, Smart Answers, and Smart Workflows,” the analyst wrote. AI features are now available in all of Asana’s paid plans, he added.

Check out other analyst stock ratings.

RBC Capital Markets On Asana

Analyst Rishi Jaluria reaffirmed an Underperform rating and price target of $10.

Asana’s “underwhelming profitability outlook” sent shares down 2% in after-hours trading on Monday, Jaluria said. “There was a clear shift in tone, seemingly shifting back to growth and away from reaching profitability,” he added.

While guiding to in-line revenue growth for fiscal 2025, management expressed optimism around an acceleration in the back half of the year, the analyst stated. The operating margin guidance missed consensus estimates and “management wouldn't commit to sustainable FCF generation,” he added.

Piper Sandler On Asana

Analyst Brent Bracelin maintained an Underweight rating and price target of $18.

“Growth further moderated to 14% during Q4 (vs 18% last quarter) against a challenging backdrop with elevated technology sector exposure,” Bracelin wrote in a note.

“The heightened cash burn of $17M during Q4 and margin guide set at (8%) for F2025 suggests the focus on internal investment remains a high priority,” he added.

The free cash flow guidance for fiscal 2025 “suggests headwinds may persist as the year progresses,” the analyst further wrote.

ASAN Price Action: Shares of Asana were down 11% to $16.72 at the time of publication on Tuesday.

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