Group 1 - Dustin Moskovitz is retiring from Asana, the software company he founded in 2008 [1] - Asana announced his retirement as part of the company's fiscal fourth-quarter earnings report [1] - Moskovitz plans to transition to a chair role when a new CEO is appointed [1] Group 2 - Asana has raised over $450 million in venture funding from various investors before going public in 2020 [2] - Notable investors include G Squared, Founders Fund, and 8VC [2] - Prior to founding Asana, Moskovitz was a co-founder at Meta, formerly known as Facebook [2]

Core Viewpoint - Asana, Inc. reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.01, and showing improvement from a loss of $0.04 per share a year ago, indicating a significant earnings surprise of 100% [1] Financial Performance - Asana posted revenues of $188.33 million for the quarter ended January 2025, exceeding the Zacks Consensus Estimate by 0.12%, and reflecting a year-over-year increase from $171.14 million [2] - The company has consistently surpassed consensus EPS estimates over the last four quarters, achieving this milestone four times [2] Stock Performance and Outlook - Asana shares have declined approximately 10% since the beginning of the year, contrasting with the S&P 500's decline of 1.9% [3] - The future performance of Asana's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on recent earnings and future expectations [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is -$0.02 on projected revenues of $190.53 million, while the estimate for the current fiscal year is breakeven on revenues of $805.76 million [7] - The estimate revisions trend for Asana is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Asana belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Asana (ASAN) Q4 2025 Earnings Call March 10, 2025 04:30 PM ET Company Participants Eva Leung - Head - IRDustin Moskovitz - Co-Founder & Chief Executive OfficerAnne Raimondi - COO & Head of BusinessSonalee Parekh - CFO and Head of FinancePinjalim Bora - Executive DirectorArsenije Matovic - Senior Equity Research AssociateBrent Thill - Tech Sector Leader, Software/Internet Research Conference Call Participants Michael Funk - AnalystRob Oliver - Senior Research AnalystBrent Bracelin - Sr. Research AnalystSteve ...

Core Insights - Dustin Moskovitz, CEO of Asana and co-founder of Facebook, is retiring from Asana, with plans to transition to the role of Chair once a new CEO is appointed [1][2] - Asana reported a 10% year-over-year increase in fourth-quarter sales, reaching $188.3 million, aligning with analyst expectations [2] - The company's adjusted earnings per share for the fourth quarter were breakeven, surpassing analyst predictions of a one-cent loss per share [3] - Asana's projected revenue for the fiscal first quarter is between $184.5 million and $186.5 million, which is below analyst expectations of $191 million [3] - Following the earnings report, Asana's stock price fell over 25% in after-hours trading [3]

Financial Performance - Q4 revenue was $188.3 million, a 10% year-over-year increase, and $189.1 million when adjusted for foreign exchange impact, reflecting a 10.5% increase[4] - GAAP operating loss for Q4 was $63.6 million, or 34% of revenues, improved from a loss of $67.9 million, or 40% of revenues, in Q4 of fiscal 2024[4] - Non-GAAP operating margin improved by 820 basis points year-over-year in Q4, with a non-GAAP operating loss of $1.7 million, or 1% of revenues[4] - Asana achieved positive free cash flow of $12.3 million in Q4, compared to a negative $17.0 million in the same quarter of fiscal 2024[4] - The net loss for the three months ended January 31, 2025, was $62,299,000, slightly lower than the net loss of $62,398,000 in the prior year[27] - GAAP net loss for Q1 2025 was $62.30 million, slightly improved from a net loss of $62.40 million in Q1 2024[35] - Non-GAAP net loss for the twelve months ended January 31, 2025, was $29.59 million, compared to $45.13 million in the previous year, indicating a reduction of 34.5%[35] Customer Metrics - The number of Core customers grew to 24,062 in Q4, an increase of 11% year-over-year, with revenues from Core customers also growing by 11%[7] - The dollar-based net retention rate for Core customers in Q4 was 97%[7] - Asana's dollar-based net retention rate is expected to fluctuate due to factors such as revenue growth and customer retention capabilities[22] Future Guidance - For Q1 FY26, Asana expects revenues between $184.5 million and $186.5 million, representing year-over-year growth of 7% to 8%[7] - Asana anticipates a non-GAAP operating profit of $2.0 million to $3.0 million for Q1 FY26, with an operating margin of 1% to 2%[7] - The company expects FY26 revenues between $782.0 million and $790.0 million, indicating year-over-year growth of 8% to 9%[8] - Non-GAAP net income per share for FY26 is projected to be between $0.19 and $0.20, assuming approximately 247 million diluted weighted average shares outstanding[8] Operating Expenses - Total operating expenses for the three months ended January 31, 2025, were $232,319,000, compared to $221,691,000 in the same quarter of the previous year, reflecting a 4.9% increase[27] - Asana's research and development expenses for the twelve months ended January 31, 2025, were $341,467,000, compared to $324,688,000 in the previous year, showing a commitment to innovation[27] - The company expects to continue investing in sales and marketing, which accounted for $102,261,000 in the most recent quarter[27] Cash and Equity - Cash and cash equivalents decreased to $184,728,000 as of January 31, 2025, down from $236,663,000 a year earlier[30] - The company had a total stockholders' equity of $227,523,000 as of January 31, 2025, a decrease from $326,396,000 in the prior year[30] Revenue and Profitability - Asana reported revenues of $188,334,000 for the three months ended January 31, 2025, representing a 10.3% increase from $171,135,000 in the same period of the prior year[27] - The gross profit for the same quarter was $168,730,000, up from $153,743,000, indicating a gross margin improvement[27] - GAAP gross profit for Q1 2025 was $168.73 million, up from $153.74 million in Q1 2024, representing an increase of 9.7%[33] - Non-GAAP gross profit for the twelve months ended January 31, 2025, was $648.10 million, compared to $589.57 million in the previous year, reflecting a growth of 9.9%[33] - Non-GAAP operating margin for Q1 2025 was -0.9%, an improvement from -9.1% in Q1 2024[33] - The company reported a GAAP operating loss of $63.59 million for Q1 2025, compared to a loss of $67.95 million in Q1 2024, showing a decrease of 6.5%[33]

Core Insights - Asana Inc (NYSE:ASAN) experienced a strong finish in 2024 with a 43.6% gain post-earnings on December 6, indicating a need for continued positive price reactions in upcoming earnings reports [1] - The stock has seen a 9.5% decline in 2025 and is currently 34% below its three-year high of $27.77, although it is testing a significant ascending 126-day trendline [2] - The options market anticipates a larger than usual post-earnings move of 22.1%, compared to an average next-day move of 14.2% over the last two years [3] Market Sentiment - There is significant short squeeze potential for Asana, with 15.6% of the stock's float sold short, and bearish positions have increased by 5% recently [4] - Despite a 35.8% increase in the last six months, analyst sentiment remains pessimistic, with 11 out of 15 brokerages maintaining "hold" or "strong sell" ratings, suggesting that a positive earnings report could alter some bearish views [5]

Core Viewpoint - Asana, Inc. is set to release its fourth-quarter financial results on March 10, with expectations of a reduced quarterly loss and increased revenue compared to the previous year [1] Financial Performance - Analysts predict Asana will report a quarterly loss of 1 cent per share, an improvement from a loss of 4 cents per share a year ago [1] - The projected quarterly revenue is $188.13 million, up from $171.13 million in the same quarter last year [1] Recent Developments - On December 5, Asana reported better-than-expected third-quarter financial results and provided FY25 guidance that exceeded estimates [2] Stock Performance - Asana shares experienced a decline of 6.2%, closing at $17.78 [3] Analyst Ratings - Piper Sandler analyst Brent Bracelin has an Overweight rating with a price target of $27 [5] - Citigroup analyst Steven Enders maintains a Neutral rating, raising the price target from $16 to $20 [5] - Jefferies analyst Brent Thill holds a Hold rating, increasing the price target from $16 to $19 [5] - Morgan Stanley analyst Josh Baer has an Equal-Weight rating, raising the price target from $14 to $18 [5] - Oppenheimer analyst Ittai Kidron maintains an Outperform rating, increasing the price target from $20 to $22 [5]

Stock Performance - Asana (ASAN) shares surged 42.8% in the past six months, outperforming the Zacks Internet - Software industry's return of 20.1% and the Zacks Computer & Technology sector's growth of 6.6% [1] - The outperformance is attributed to the successful launch of AI Studio in Q3 fiscal 2025, which drove significant customer demand, increased multi-year deals, and expanded market presence across various industry verticals [1] Customer Growth - Asana's Core customers (spending $5,000 or more annually) rose to 23,609, up 11% year-over-year [2] - Customers spending $100,000 or more annually increased to 683, marking an 18% year-over-year growth [2] Strategic Partnerships - Asana's expanding clientele includes Datacom, MasterCard (MA), and Alphabet (GOOGL), which have been major growth drivers [3] - A partnership with Mastercard offers a 20% rebate on annual subscriptions to first-time Asana customers, enhancing value for businesses [3] - Alphabet has integrated Asana's work management program into the majority of its workplaces, improving team communication and organization [4] AI-Driven Innovation - Asana launched AI Studio in Q3 fiscal 2025, a no-code builder enabling teams to design AI-powered Smart workflows within its platform [5] - AI Studio automates project coordination, reduces busywork, and improves cross-functional collaboration by embedding AI agents across the project lifecycle [5] - Morningstar (MORN) leveraged Asana AI Studio to streamline project management, standardize work intake processes, and enhance operational efficiency [6] Financial Guidance - For Q4 fiscal 2025, Asana expects revenues between $187.5 million and $188.5 million, indicating a 10% year-over-year increase [7] - Non-GAAP net loss per share for Q4 is expected to be between $0.02 and $0.01 [7] - For fiscal 2025, Asana expects revenues between $723 million and $724 million, reflecting an 11% year-over-year increase [7] - Non-GAAP net loss per share for fiscal 2025 is expected to be between 15 cents and 14 cents [7] Earnings Estimates - The Zacks Consensus Estimate for Q4 fiscal 2025 revenues is $188.11 million, indicating 9.91% growth year-over-year [8] - The consensus mark for Q4 fiscal 2025 loss is 1 cent per share, unchanged over the past 30 days, reflecting a 92.31% year-over-year increase [9] - The Zacks Consensus Estimate for fiscal 2025 revenues is $722.99 million, indicating 10.80% growth year-over-year [9] - The consensus mark for fiscal 2025 loss is 14 cents per share, unchanged over the past 30 days, reflecting a 30% year-over-year increase [9] Valuation and Investment Opportunity - Asana's forward 12-month Price/Sales ratio is 5.83, higher than its median of 4.06 and the industry's 2.97, indicating a stretched valuation [11] - Despite the premium valuation, Asana's robust portfolio and expanding partner base make it attractive for long-term investors [11] - Asana stock carries a Zacks Rank 2 (Buy) and a Growth Score of B, offering a strong investment opportunity [12]

Group 1 - Asana's stock has recently rallied following its earnings release, driven by overall market enthusiasm for stocks [3] - The quarterly results of Asana were not particularly impressive, indicating that the rally may not be fundamentally supported [3] Group 2 - The article expresses the author's personal opinions and does not provide any investment recommendations or advice [2][3] - There is a disclosure that the author may initiate a long position in Asana or similar stocks within the next 72 hours [3]

Core Insights - Asana's stock has seen a recent increase, raising questions about whether this is due to genuine improvements or merely hype [1] - The company has faced challenges in achieving profitability since its IPO, which has negatively affected its long-term stock performance [1] Financial Performance - The stock price performance was notably impacted by the company's earnings report released last week [1] - The analysis suggests a need to evaluate if there are substantial changes in Asana's business model or if the recent stock movement is misleading [1]