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Asana (ASAN) Incurs Loss in Q3, User Expansion Aids Top Line

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Asana (ASAN - Free Report) reported third-quarter fiscal 2022 non-GAAP loss of 23 cents per share, which beat the Zacks Consensus Estimate by 11.54% and was narrower than 34 cents reported in the year-ago quarter.

Asana reported revenues of $100.4 million in the quarter, which beat the Zacks Consensus Estimate by 6.8% and jumped 70.4% year over year.

Quarter in Detail

Asana’s total number of paying customers grew by 7,000 in the reported quarter. At the end of the fiscal third quarter, the company had more than 114,000 paying customers.
 

Asana, Inc. Price, Consensus and EPS Surprise

Asana, Inc. Price, Consensus and EPS Surprise

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

 

The number of customers spending $5K or more on an annualized basis grew to 14,143, up 58% year over year. Revenues from these customers surged 96% year over year.

The number of customers spending $50K or more on an annualized basis grew to 739, an increase of 132% year over year.

Overall dollar-based net retention rate was more than 120%. Dollar-based net retention rate for customers with $5K or more in annualized spending was 130%. Dollar-based net retention rate for customers with $50K or more in annualized spending was more than 145%.

Non-GAAP gross margin expanded 290 basis points (bps) on a year-over-year basis to 90.6%.

Total operating expenses jumped 48.7% year over year to $132.2 million.

Non-GAAP operating loss was $41.3 million, wider than $37.3 million reported in the year-ago quarter.

Balance Sheet

As of Oct 31, 2021, cash and cash equivalents, and marketable securities were $343.4 million.

Guidance

For fourth-quarter fiscal 2022, revenues are expected in the range of $104.5-$105.5 million, indicating growth between 53% and 54%.

Non-GAAP operating loss is projected in the range of $51-$53 million.

Loss is expected between 27 cents per share and 28 cents per share.

For fiscal 2022, the company expects total revenues between $371 million and $372 million.

Non-GAAP operating loss for fiscal 2022 is projected in the range of $164-$166 million.

For fiscal 2022, loss is expected between 95 cents per share and 96 cents per share.

Zacks Rank & Stocks to Consider

Asana currently has a Zacks Rank #3 (Hold).

Asana shares are up 207.9%, outperforming the Zacks Internet Software industry’s decline of 22.2% and Computer & Technology sector’s return of 21.7% year to date.

Some of the better-ranked stocks in the Computer & Technology sector are Nova Measuring Instruments (NVMI - Free Report) , Advanced Micro Devices (AMD - Free Report) and Pinterest (PINS - Free Report)

Currently, Nova Measuring sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Long term earnings growth rate stands at 32.2%.

Nova Measuring shares have returned 83.3% year to date compared with the Zacks Electronics-Semiconductors industry’s growth of 34.6% and the Computer & Technology sector’s return of 21.7%.

Long-term earnings growth rate for AMD, a Zacks Rank #2 stock, is currently pegged at 46.2%.

AMD shares have returned 64.3% year to date, outperforming the Electronics-Semiconductors industry’s growth of 34.6% and the Computer & Technology sector’s return of 21.7%.

Pinterest, currently carrying a Zacks Rank #2 (Buy) has a long-term earnings growth rate of 52.7%.

PINS shares are down 43%, underperforming the Zacks Internet Software industry’s decline of 22.2% and Computer & Technology sector’s return of 21.7% year to date.


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