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Asana Delivers Smaller-Than-Expected Q1 Loss, Revenue Beats Estimates

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Asana (ASAN) reported a smaller-than-expected loss in the fiscal first quarter of 2022 and beat revenue expectations. Asana is a web and mobile application designed to help teams organize, track, and manage their work.

Shares jumped 6.5% to close at $39.19 on June 4.

The company incurred a loss of $0.21 per share in 1Q, compared to the $0.27 loss per share estimated by analysts. A loss of $0.31 per share was reported in the same quarter last year.

Revenue generated in the quarter was $76.7 million, which grew 61% from the year-ago period and beat analysts’ expectations of $70.17 million.

Asana CEO Dustin Moskovitz said, “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. More and more customers are turning to Asana and the Asana Work Graph to provide a scalable, cross-functional, and easy-to-adopt solution.” (See Asana stock analysis on TipRanks)

For fiscal Q2, the company expects revenues in the range of $81 – $83 million, indicating growth of 56% – 60% year-over-year. The consensus estimate is pegged at $74 million. Non-GAAP net loss per share is expected in the range of $0.27 to $0.26, versus the consensus estimate for a loss of $0.27 per share.

For fiscal 2022, the company expects revenues to come in the range of $336 – $340 million, representing an increase of 48% – 50% year-over-year. The consensus estimate sits at $312.2 million.

On June 4, Oppenheimer analyst Ittai Kidron reiterated a Buy rating on the stock but increased his price target to $43.00 from $41.00. This implies 9.7% upside potential to current levels.

Kidron commented, “Asana delivered a strong overall quarter with encouraging new customer and expansion activity. While spending levels will continue to be elevated, we’re positive on the execution being shown and the long-term opportunity ahead.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 8 Buys, 2 Holds, 1 Sell. The average analyst price target of $41.09 implies 4.9% upside potential to current levels. Shares have increased 32% over the past six months.

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