Asana stock jumped after the software maker reported third quarter earnings and revenue that topped views while guidance met expectations.
The company reported October quarter results after the market close on Thursday. On the stock market today, shares jumped more than 24% to 19.24 in early trading.
"Asana reported a better-than-feared quarter against a low bar," said RBC Capital analyst Rishi Jaluria in a report. "Revenue beat ahead of recent trends, as growth stabilized, but billings missed. Fiscal 2025 guidance was raised by roughly Q3 upside. Also, Asana outlined ambitious goals for its newly announced AI Studio product to one day surpass the current revenue base, but monetization remains beyond the near-term."
In the Asana earnings report, the software maker reported a 2-cent profit on an adjusted basis vs. a 4-cent loss in the year-ago period. Analysts had predicted a loss of 7 cents per share. Revenue rose 10% to 183.9 million, topping views of $180.6 million.
For the quarter ending in January, Asana forecast revenue of $188 million vs. estimates of $187.8 million.
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 was down 18% in 2024. Asana stock owned an IBD Relative Strength Rating of 56 out of a best-possible 99, according to IBD Stock Check-up.
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