What happened 

Shares of tech stock Asana (NYSE:ASAN) jumped as much as 14.7% in trading Thursday after the company reported third-quarter 2020 results. Shares slid some as the day went on, but they were still up 8% at 3 p.m. EST. 

So what

The work management platform's revenue jumped 55% in the quarter to $58.9 million, and net loss ballooned to $73.3 million, or $0.65 per share. On an adjusted basis, net loss was $0.34 per share, which was three cents better than analysts were expecting.

Illustration of productivity apps and a person sitting at a desk

Image source: Getty Images.

A growth stock like Asana isn't going to be judged based on losses at this point in time, so investors are focused entirely on top-line growth. And the revenue growth was impressive, bolstered by a 58% jump in customers spending over $5,000 per year to 8,938 and a 104% increase in those spending over $50,000 to 318 customers. 

Now what

Asana's product certainly has traction in the market, and its revenue growth is impressing investors already. But I'm concerned that losses as a percentage of revenue are growing instead of decreasing as the company gets bigger. That's why I'm skeptical of the pop today as much as I like Asana's products long term. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.