Shares in Asana dipped on Friday after the software maker reported a narrower-than-expected loss for the first quarter while revenue edged by views. The company's own revenue outlook met expectations, but one analyst downgraded ASAN stock to neutral.
The company reported April-quarter results after the market close on Thursday. ASAN stock fell 2.8% to close at 22.20 on the stock market today.
"Asana started its year off fine, but revised guide shows worse second-half performance than previously expected," D.A. Davidson analyst Robert Simmons said in a note to clients. "We like the continued improved focus on costs and efficiency, and the work on generative AI is promising, but too early to bake materially into expectations."
ASAN Stock Guidance
In the Asana earnings report for the quarter ending April 30, the company lost 9 cents per share vs. a 30-cent loss in the year-ago period. Analysts had predicted a loss of 18 cents per share. Revenue rose 26% to $152.4 million, topping views of $150.5 million.
The number of customers spending $100,000 or more on an annualized basis during the quarter grew to 510, an increase of 31% year over year, Asana said.
For the quarter ending in July, Asana forecast revenue of $158 million, in line with analyst estimates.
"Asana reported a good start to the year with slight revenue upside and better than expected profitability," JP Morgan analyst Pinjalin Bora said in his note. "Calculated billings grew 20% year-over-year, landing 6 points above consensus. (It is) our understanding is that billings benefited disproportionately from the renewal of a very large customer, adjusting for which billings growth would have been in the low-to-mid teens range."
Asana Stock In IBD 50
The company's shares hold an entry point of 23.06. Meanwhile, ASAN stock has climbed 69% in 2023.
Asana's work management platform that helps users orchestrate work, from daily tasks to cross-functional strategic initiatives. Rivals include Smartsheet.
Heading into the Asana earnings report, the software stock owned an IBD Relative Strength Rating of 96 out of a best-possible 99, according to IBD Stock Check-up.
Asana stock ranks No. 14 in the IBD 50 roster of growth companies.
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