Back to top

Image: Bigstock

Asana (ASAN) to Report Q2 Earnings: What's in the Cards?

Read MoreHide Full Article

Asana, Inc. (ASAN - Free Report) is set to release second-quarter 2022 results on Sep 1.

For the quarter, the company expects revenues between $81 million and $83 million, indicating year-over-year growth of 56% to 60%. The consensus mark for revenues is pegged at $82.39 million.

Non-GAAP net loss per share for the fiscal second quarter is expected between 26 cents and 27 cents. The Zacks Consensus Estimate for loss has remained steady at 26 cents per share over the past 30 days.

Let’s see how things have shaped up prior to this announcement.

Asana, Inc. Price and EPS Surprise

Asana, Inc. Price and EPS Surprise

Asana, Inc. price-eps-surprise | Asana, Inc. Quote

Factors Likely to Influence Q2 Results

The company’s second-quarter fiscal 2022 results are expected to reflect an expanded enterprise customer base as Asana’s Work Graph data model gains traction. Unlike other reporting tools, the Work Graph data model enables companies and team leaders to create reports by selecting particular projects, teams or portfolios across their entire organization and view their progress together in a single chart, not just across individual projects.

The number of customers spending $5,000 or more on an annualized basis grew to 11,272, an increase of 53% year over year in the fiscal first quarter. Moreover, the number of customers spending $50,000 or more on an annualized basis grew to 485, an increase of 92% year over year.

The company witnessed customer satisfaction rates, NPS scores and retention rates at or better than pre-pandemic levels in the fiscal first quarter, translating into continued strong net new paying customer growth and strong seed expansion for its SaaS-based work management platform. This momentum is expected to have continued in the to-be-reported quarter.

In the last reported quarter, the company added four new languages — Traditional Chinese, Russian, Dutch, and Polish.

Launch of Asana’s Channel Partner network across 75 countries is expected to have been a key growth driver in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Asana has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Designer Brands Inc. (DBI - Free Report) has an Earnings ESP of +23.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #2.

Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +2.28% and a Zacks Rank #2.