Asana Inc. Reports Q2 Earnings

SAN FRANCISCO – Asana Inc. (NYSE: ASAN) reported better-than-expected second quarter results on Thursday, but shares plummeted 17% in after-hours trading due to disappointing guidance.

The work management platform provider posted a non-GAAP loss of $0.05 per share for the quarter ended July 31, beating the consensus estimate of a $0.08 loss. Revenue grew 10% year-over-year to $179.2 million, surpassing analysts’ projections of $177.68 million.

However, Asana’s outlook for the current quarter and full fiscal year failed to impress investors. For Q3, the company expects revenue between $180 million and $181 million, representing 8-9% year-over-year growth, indicating a slowdown from the 10% growth seen in Q2.

“We’re at a pivotal moment where AI has enormous potential to revolutionize work management,” said CEO Dustin Moskovitz. “We are clearly moving in the right direction and are well-positioned to capitalize on the consolidation opportunity in the enterprise market.”

Asana’s full-year revenue forecast of $719-$721 million suggests growth will remain around 10%.

The company highlighted some positive trends, including 17% year-over-year growth in customers spending over $100,000 annually. Asana also generated $15.9 million in operating cash flow and $12.8 million in free cash flow during the quarter.

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