Asana surges 21% on earnings beat, CEO's plans to buy up to 30M of shares

Investing.com
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By Liz Moyer and Senad Karaahmetovic

Investing.com -- Asana Inc (NYSE:ASAN) beat expectations for fourth-quarter revenue as revenue from customers surged.

The project software company reported revenue of $150.2 million and an adjusted net loss per share of 15 cents. Analysts had expected fourth-quarter sales of $145M and a net loss of 27 cents a share. Revenue was up 34% from the same time a year earlier.

Shares are trading over 21% higher in pre-market Thursday.

For the full year, revenue rose 45% to $547.2M.

Asana said the number of customers spending $5,000 or more on an annualized basis in the fourth quarter grew to 19,432, an increase of 26% from a year earlier. Revenue from these customers in the fourth quarter grew 42% from the prior year. The number of customers spending $100,000 or more on an annualized basis in the fourth quarter grew to 506, an increase of 49% from the previous year.

For the first quarter, the company is forecasting revenue of $150.0M to $151.0M, which would be up 24% to 25% from last year. It’s expecting an adjusted loss per share of 18 cents to 19 cents.

For the year, it is forecasting revenue of $638.0M to $648.0M, which would be up 17% to 18%. And it sees an adjusted net loss per share of 55 cents to 59 cents.

KeyBanc analysts reiterated a Sector Weight rating on Asana stock, especially highlighting better operating margins.

"While we are constructive on the Company's increasing focus on expenses, we remain Sector Weight on the heightened execution risk," the analysts wrote in a note.

JMP analysts raised the price target to $28 per share on Asana. The analysts listed 4 reasons why he remains positive on ASAN story.

1) Asana has product superiority in the enterprise;

2) The company addresses a large TAM, estimated to be $50.7B by 2025;

3) The company is on track to be FCF positive at some point before the end of FY2024; and

4) Mr. Moskovitz purchased 19M shares of Asana stock in September 2022, and announced today an additional 30M share trading agreement, further demonstrating his faith in the company and removing any doubt surrounding Asana's liquidity.

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