Asana reported fourth-quarter earnings and revenue that edged by consensus estimates. But the software maker's fiscal 2026 revenue guidance for Asana stock came in well below expectations, sending shares down.
Asana's co-founder and chief executive, Dustin Moskovitz, plans to retire, the company said.
The company reported January-quarter results after the market close on Monday. On the stock market today, Asana stock plunged 28.1% to near 12.
In the Asana earnings report, the software maker broke even on an adjusted basis vs. a 4-cent loss in the year-ago period. Analysts had predicted a loss of 1 cent per share. Revenue rose 10% to $188.3 million, topping views of $188.1 million.
For fiscal 2026, which starts with the April quarter, Asana forecast revenue of $786 million at the midpoint of guidance vs. estimates of $803.5 million.
"While AI Studio has an encouraging start and improving profitability is welcome, fiscal 2026 has a lot of moving parts against an uncertain macro (economy)," said Jefferies analyst Brent Thill in a report.
The company also forecast a bigger-than-expected loss. Asana said it expects a loss in a range of 19 cents to 20 cents per share vs. estimates for a break-even year.
Further, Moskovitz will stay on as CEO until a successor is found. Also, Moskovitz will remain chairman of Asana's board of directors.
Asana's work management platform helps users orchestrate work, from daily tasks to cross-functional strategic initiatives. Smartsheet is a competitor.
Heading into the Asana earnings report, the software stock was down 14% in 2024. Asana stock owns an IBD Relative Strength Rating of 84 out of a best-possible 99, according to IBD Stock Checkup.
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