Please ensure Javascript is enabled for purposes of website accessibility

Why Asana Stock Popped Today

By Evan Niu, CFA - Jun 4, 2021 at 12:12PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The workplace management specialist reported strong quarterly results and provided a rosy outlook.

What happened

Shares of Asana (ASAN 4.29%) popped by as much as 11% today after the company reported fiscal first-quarter earnings. The results topped expectations and guidance was strong. As of 11:15 a.m. EDT, the stock was up 7%.

So what

Revenue in the fiscal first quarter jumped 61% to $76.7 million, easily beating the consensus estimate of $70.1 million. That resulted in an adjusted net loss of $33.8 million, or $0.21 per share, which was better than the $0.28 per share in adjusted losses that Wall Street analysts were modeling for. The technology company, which operates an enterprise work management platform, reported a dollar-based net retention rate of 115%. That metric measures spending from existing customers.

Person walking up stairs at Asana headquarters

Image source: Asana.

"Whether teams are fully remote and working from home, or in offices coordinating work across departments and geographies, clarity on who is doing what by when is essential," CEO Dustin Moskovitz said in a statement. "More and more customers are turning to Asana and the Asana Work Graph to provide a scalable, cross-functional, and easy-to-adopt solution."

Now what

Guidance for the fiscal second quarter also came in better than analysts expected, with revenue forecast in the range of $81 million to $83 million. The consensus estimate currently calls for $74.1 million in sales this quarter. That revenue should translate into an adjusted net loss per share of $0.26 to $0.27, slightly better than the $0.28 per share in red ink that the market is expecting.

For the full fiscal year 2022, Asana's outlook calls for revenue of $336 million to $340 million.

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Asana, Inc. Stock Quote
Asana, Inc.
$28.46 (4.29%) $1.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.