Work management software maker Asana (NYSE: ASAN) will be reporting results tomorrow afternoon. Here’s what to expect.
Last quarter Asana reported revenues of $166.5 million, up 17.7% year on year, beating analyst revenue expectations by 1.5%. It was a mixed quarter for the company, with a miss of analysts’ billings estimates. Additionally, net revenue retention, an important metric that could give hints on customer satisfaction, willingness to increase spending, and even competition, fell and missed. On the other hand. guidance was good. Next quarter’s guidance was ahead and full year guidance was raised for revenue and non-GAAP operating income.The company added 564 enterprise customers paying more than $5,000 annually to a total of 21,346.
Is Asana buy or sell heading into the earnings? Read our full analysis here, it’s free.
This quarter analysts are expecting Asana’s revenue to grow 11.8% year on year to $168 million, slowing down from the 34.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St’s expectations, beating revenue estimates every single time over the past two years on average by 3.5%.
Looking at Asana’s peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Atlassian delivered top-line growth of 21.5% year on year, beating analyst estimates by 3.6% and Monday.com reported revenues up 35.1% year on year, exceeding estimates by 2.4%. Atlassian traded up 10.8% on the results, Monday.com was down 9%.
Read our full analysis of Atlassian’s results here and Monday.com’s results here.
Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share price declining 3.7% over the last month. Asana is down 3.6% during the same time, and is heading into the earnings with with analyst price target of $20.1, compared to share price of $18.91.
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