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News flash: most of the time you spend at work is wasted.
Information workers — or employees who use a smartphone, PC, or tablet at least one hour every week for work (the modern “desk” job) — only spend about 40% of their work-time actually working.
What’re they doing the other 60% of the time?
Answering emails (28%).
Gathering information (19%).
Internal communications (14%).
All the busywork that’s totally necessary in order to get actual work done, but which isn’t part of the job description.
That’s all according to a new survey from McKinsey, which broadly found that because of inefficient workflow management and communication tools at the enterprise, employees are wasting most of their work time.
That same survey also offered up a very simple solution: workflow management platforms that automate and streamline all that busy work so that employees spend their work time… actually working.
Such workflow management platforms will increasingly become the ubiquitous norm across the enterprise over the next decade as companies remove wasted time and boost employee efficiency.
Yet… only 62% of companies today use workflow management platforms.
Which means that there’s a whole bunch of companies out there (38%, to be exact) who will inevitably transition to workflow management software in the 2020s…
And that, of course, means right now is a great time to buy stock in companies which provide these workflow management solutions.
Today, we will tell you about arguably the best of these companies — a freshly public, rapidly growing workflow management software provider that’s due for enormous share price returns in the 2020s.
The Market’s Best Solution, Best Management Team, & Best Business Model
There are a lot of workflow management platforms out there.
Monday.com. Smartsheet. Trello. Wrike. The list goes on and on.
But only one workflow management platform was founded by a former Facebook co-founder, has signed up two-thirds of the Fortune 500 as customers, and features a best-in-breed software ecosystem.
Readers, meet Asana (NYSE:ASAN) — the market’s best workflow management platform.
Asana was founded in 2008 by two head honchos at Facebook – Dustin Moskowitz, one of the co-founders alongside Mark Zuckerberg, and Justin Rosenstein, the guy who came up with the “Like” button – who left after they saw first-hand at Facebook that increased scale provided a wide array of productivity, communication, and collaboration challenges for businesses.
In the 12 years since then, Moskowitz and Rosenstein have leveraged their track record and reputations to attract a very talented, very enthusiastic team of software engineers that have built out the world’s best workflow management software.
What makes Asana so great?
A few things.
For starters, much like Facebook, the user interface is super intuitive, with a simple, fluid, easy-to-learn workflow across the whole ecosystem. Essentially, anyone with any background using a website (which is… all of us) can efficiently use Asana.
Asana was also one of the first companies in this space, and as a result, the platform offers an unparalleled number of integrations with other software platforms. Plus, Rosenstein and Moskowitz are — likely because of their Facebook days — mobile-obsessed, and have therefore designed Asana to be equally usable and effective on mobile.
Arguably most important, though, is that Asana operates on a unique freemium business model, in a market dominated by exclusively paid models.
That is, businesses can use Asana for free for up to 15 people.
Of course, this unique business model helps Asana attract tons of small-to-medium-sized businesses as free customers — and the value prop of the Asana platform itself helps convert a ton of those free customers into paid customers.
It’s no wonder that Asana has been named a leader in this market by Forrester… or that the company has 1.3 million paid users across 190 countries… or that nearly 70% of the Fortune 500 uses Asana… or that revenues grew more than 85% last year.
This is the market’s best workflow management software platform, with the industry’s most seasoned leadership team and most innovative business model.
That’s a winning combination which broadly implies that Asana stock can fly higher over the next decade as workflow management software becomes ubiquitous.
How much higher?
At least 6X higher. Probably closer to 10X or more.
Here’s the math.
The global labor force is marching towards 3.5 billion workers by 2030. Today, information workers represent 40% of that workforce (up from 16% in 2012). The continued proliferation of technology will push that number closer to 65% by 2030, implying 2.3 billion information workers.
By my calculations, only ~2% of information workers globally use Asana today (free and paid). As workflow management platforms become increasingly ubiquitous, you could easily see that share rise to 10%, or 230 million users by 2030.
Asana’s free-to-paid conversion rate hovers around 5%, which implies 11.5 million paying users… and at $20 per user per month, Asana’s revenues could round out to $2.8 billion by 2030.
Application software companies usually average 30% operating margins and a 35X forward multiple. Applying both to Asana in 2030, my numbers say Asana could net around $700 million in net profits and be worth around $25 billion by the end of the decade.
That’s up 6X from today’s $4 billion market cap. And it assumes 10% information worker market share. Boost that to 20%, and now you’re talking 12X-plus upside potential.
Either way, Asana stock has robust visibility to huge long-term gains… indeed, there’s enough visibility and momentum here that you should consider buying this freshly public stock today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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