Asana, Inc. (ASAN) stock is experiencing a downward trend on Wednesday following the company’s release of its second-quarter fiscal year 2025 earnings report on Tuesday. While the results showed some positive signs, the company’s guidance for the upcoming quarter and full fiscal year fell short of analyst expectations, leading to a decline in share price.
The company reported a net loss of five cents per share, outperforming the analyst consensus estimate of a loss of eight cents. Revenue for the quarter reached $179.21 million, exceeding the anticipated $177.65 million. Asana highlighted a significant increase in its ‘Core’ customer base, those spending $5,000 or more annually, which grew to 22,948 during the quarter. These Core customers saw a 11% year-over-year revenue growth. Notably, the number of customers spending $100,000 or more annually also expanded to 649, representing a 17% increase from the previous year.
Asana’s co-founder and CEO, Dustin Moskovitz, emphasized the company’s strategic position in the evolving work management landscape, stating, “We’re at a pivotal moment where AI has enormous potential to revolutionize work management. We are clearly moving in the right direction and are well-positioned to capitalize on the consolidation opportunity in the enterprise market.”
However, Asana’s guidance for the upcoming period dampened investor sentiment. The company projected revenue between $180 million and $181 million for the third quarter, falling short of the analyst consensus estimate of $182.28 million. Additionally, they anticipate a loss of seven cents per share, compared to the estimated loss of four cents.
Looking ahead to the full fiscal year 2025, Asana expects revenue between $719 million and $721 million, again falling short of the analyst consensus estimate of $722.85 million. The company projects a loss of 20 to 19 cents per share, slightly better than the estimated loss of 20 cents.
Following the earnings announcement, several analysts adjusted their price targets for Asana shares. RBC Capital analyst Rishi Jaluria maintained an ‘Underperform’ rating and a $10 price target. Oppenheimer analyst Ittai Kidron kept an ‘Outperform’ rating but lowered the price target from $23 to $20. UBS analyst Taylor McGinnis downgraded the rating to ‘Neutral’ and lowered the price target from $17 to $13.
As of Wednesday morning, Asana shares are trading down 7.07% at $12.35.
