Why Shares of Asana Were Falling Today

Core Viewpoint - Asana's disappointing earnings report and guidance have led to a significant decline in its stock price, reflecting ongoing struggles with growth and profitability [1][5]. Financial Performance - Asana reported a revenue increase of 10% to $179.2 million, slightly surpassing estimates of $177.7 million [2]. - The company experienced a 17% growth in customers spending over $100,000, indicating potential momentum in high-value customer segments [2]. - GAAP operating loss widened from $73.4 million to $76.8 million, highlighting continued challenges in achieving breakeven [2]. - The adjusted per-share loss was $0.05, which was worse than the $0.04 loss from the same quarter last year but better than the expected loss of $0.08 [2]. Future Guidance - Asana's guidance for Q3 revenue is projected to be between $180 million and $181 million, representing an 8%-9% increase, but falling short of the consensus estimate of $182.3 million [4]. - The company anticipates an adjusted loss per share of $0.07, compared to estimates of a $0.04 loss [4]. - Full-year revenue guidance was lowered from $719 million-$724 million to $719 million-$721 million, below the consensus of $722.9 million [4]. Management Outlook - Despite the disappointing results, CEO Dustin Moskovitz expressed optimism regarding the company's enterprise transition and advancements in AI, noting momentum in key areas and a record number of multi-year deals [3].