What happened
Shares of Asana (ASAN 1.25%), a software-as-a-service company for work collaboration, skyrocketed today after it reported better-than-expected fiscal second-quarter results, which ended July 31. The company beat analysts' consensus top- and bottom-line estimates and issued guidance ahead of Wall Street's expectations.
As a result, the tech stock was up by 29.5% as of 11:39 a.m. ET.
So what
Asana reported revenue of $134.9 million, up 51% from the year-ago quarter, which beat analysts' average estimate of $127.2 million. The company's non-GAAP (adjusted) loss per share widened in the quarter to $0.34, from a loss of $0.23 in the year-ago quarter, but was still ahead of Wall Street's consensus estimate of a loss of $0.39 per share.
Image source: Getty Images.
Asana co-founder and CEO Dustin Moskovitz said in a press release that the company's growth in the quarter was fueled by large enterprise deals, and added that customers spending $100,000 or more with Asana rose 105% from the year-ago quarter.
Asana also highlighted the fact that it now has 131,000 paying customers, an increase of 22% from the year-ago quarter.
Now what
Investors were clearly happy with Asana's latest results. They were also glad to see that the company's third-quarter revenue guidance outpaced Wall Street's consensus estimates.
Asana's management expects fiscal third-quarter sales in the range of $138.5 million to $139.5 million, which represents a 39% increase compared to the year-ago quarter, at the midpoint of guidance.
With the company's top and bottom lines exceeding analysts' average estimates and the company's third-quarter sales outlook outpacing Wall Street's consensus estimate, it's no surprise to see Asana's stock rising today.
