Latest news with #AIStudio
Yahoo
11 hours ago
- Business
- Yahoo
Asana Just Turned a Profit--But One Chart Reveals a Hidden Risk Investors Can't Ignore
Asana (NYSE:ASAN) just crossed a major milestone: its first-ever non-GAAP operating profit. Q1 revenue came in at $187.3 million, growing 9% year-over-year and beating estimates. But let's be honestthat's a big slowdown from the 26% growth pace it posted last year. That deceleration raises a tough question: is Asana nearing the top of its growth curve? Warning! GuruFocus has detected 4 Warning Signs with ASAN. The company is leaning hard into AI to reignite momentum. Its new AI Studio crossed $1 million in ARR in just one quarter, and CEO Dustin Moskovitz believes it could become a long-term growth engine. CFO Sonalee Parekh isn't just optimisticshe's raising full-year margin guidance and emphasizing durable, profitable growth. That confidence is backed by a 1,300 basis point expansion in non-GAAP operating margin year-over-year, plus a record-breaking $100M+ customer renewal. Not to mention, Asana was just ranked highest in strategy in Forrester's latest CWM report and named one of Fast Company's most innovative workplace techs. But the chart paints a more sobering picture. Over the past six years, revenue has consistently climbedyet net income and EBITDA have remained deep in the red until now. There's improvement, but profitability still feels like a tightrope walk. With AI excitement driving short-term wins and retention among high-value customers holding steady, Asana's next chapter hinges on whether it can scale AI adoption before competitors like or Jira catch up. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14 hours ago
- Business
- Yahoo
ASAN Q1 Earnings Call: AI Uptake Accelerates, Profitability Achieved Amid Retention Pressures
Work management software maker Asana (NYSE: ASAN) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 8.6% year on year to $187.3 million. Its non-GAAP profit of $0.05 per share was significantly above analysts' consensus estimates. Is now the time to buy ASAN? Find out in our full research report (it's free). Revenue: $187.3 million (8.6% year-on-year growth) Adjusted EPS: $0.05 vs analyst estimates of $0.02 (significant beat) Adjusted Operating Income: $8.14 million vs analyst estimates of $2.70 million (4.3% margin, significant beat) Revenue Guidance for Q2 CY2025 is $193 million at the midpoint, roughly in line with what analysts were expecting Management raised its full-year Adjusted EPS guidance to $0.22 at the midpoint, a 12.8% increase Operating Margin: -23.4%, up from -38.4% in the same quarter last year Net Revenue Retention Rate: 95% Annual Recurring Revenue: $773.4 million at quarter end, up 8.9% year on year Billings: $174.8 million at quarter end, down 11.9% year on year Market Capitalization: $4.47 billion Asana's first quarter results were shaped by its first achievement of non-GAAP profitability and the early traction of its AI Studio offering. Management highlighted that AI Studio reached $1 million in annual recurring revenue (ARR) during Q1, with adoption spanning diverse industries such as manufacturing, financial services, and retail. CEO Dustin Moskovitz pointed to a "landmark" $100 million, three-year renewal with a global enterprise, describing it as a demonstration of Asana's capacity to handle complex, cross-functional workflows at scale. The company also noted ongoing momentum outside the technology sector, with non-tech verticals growing faster than the overall business and enterprise customer expansion continuing, particularly for customers spending over $100,000 annually. Looking ahead, Asana's guidance is grounded in expanding its AI capabilities and broadening access to AI Studio through new product tiers and workflow templates. Management described a robust product roadmap, including the upcoming AI Studio Plus tier for small and mid-sized businesses and the planned launch of AI teammates—digital agents designed to further automate workflows. CFO Sonalee Parekh noted, 'The low end of our guidance range incorporates a more cautious view, factoring in potential macroeconomic headwinds and increased buyer scrutiny, particularly in enterprise and technology sectors.' The company aims to balance continued investment in product innovation and customer success with ongoing efficiency measures, expecting that new AI-driven features and improved onboarding will support long-term retention and growth. Management attributed the quarter's performance to strong enterprise deal activity, rapid AI Studio adoption, and improved operating efficiency, while acknowledging ongoing challenges in customer retention and net revenue retention rates. AI Studio adoption accelerates: The AI Studio platform surpassed $1 million in annual recurring revenue within months of general availability, with management highlighting widespread adoption across several industries and geographic regions. Customers are using AI Studio to automate business-critical workflows, and early usage patterns indicate increasing credit consumption and engagement over time. Enterprise deals drive visibility: Asana secured the largest deal in its history—a $100 million, three-year renewal with a major global employer. While this deal expanded total contract value, it involved a modest annual contract value (ACV) downgrade, which management expects will weigh on net revenue retention (NRR) in subsequent quarters. The contract provides long-term revenue visibility and is seen as validation of Asana's value in large-scale, complex organizations. Non-tech verticals outpace tech: Growth in non-technology sectors, such as manufacturing, energy, and financial services, continues to exceed that of the tech sector. Management noted that non-tech verticals now comprise the majority of new business and are growing in the mid-teens year over year, supporting a diversified customer base. Partner channel momentum: Asana's revamped partner program contributed to double-digit growth in partner-led deals, particularly in APAC and EMEA regions. Nearly 40% of APAC transactions involved channel partners, with partners playing a key role in scaling AI Studio adoption and supporting digital transformation initiatives. Efficiency improvements support margins: Cost reductions and operational discipline, including reallocation of resources to higher-productivity regions and tighter marketing spend, contributed to significant improvement in non-GAAP operating margins and positive free cash flow for the quarter. Management cited ongoing efforts in vendor rationalization, geographic workforce optimization, and increased productivity as levers for further margin expansion. Asana's outlook is shaped by AI product expansion, continued enterprise adoption, and the need to address retention challenges amid evolving macroeconomic conditions. AI-driven product expansion: The company is introducing new AI Studio tiers, including Plus and Pro, and rolling out the Smart Workflow Gallery to accelerate adoption across customer segments. Management expects broader access to AI functionality will drive incremental revenue growth and reduce reliance on seat-based licensing. Retention and customer health initiatives: Asana is focusing on lowering churn and downgrades, especially among small businesses and enterprise accounts, through targeted onboarding, health scoring, and foundational service plans. Management believes these efforts, along with new product add-ons, will gradually improve net revenue retention despite near-term headwinds from large contract renewals and budget scrutiny. Macroeconomic and procurement risks: Management acknowledged early signs of buyer caution, especially in the enterprise and technology verticals, which could result in slower sales cycles and increased downgrade activity. The expanded guidance range for the year reflects this uncertainty, and Asana plans to maintain cost discipline to preserve profitability if market conditions worsen. In the coming quarters, the StockStory team will be monitoring (1) the uptake of new AI Studio tiers and workflow templates across customer segments, (2) progress in mitigating churn and driving net revenue retention improvement, and (3) the pace of large enterprise deal activity and partner-led sales execution. The rollout of AI teammates and further product add-ons will also be key indicators of Asana's ability to drive incremental growth and diversify its revenue base. Asana currently trades at a forward price-to-sales ratio of 5.6×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 hours ago
- Entertainment
- Yahoo
AI Kurt Cobain: The horror of Instagram's chatbots
Last July, Meta, Instagram's parent company, launched AI Studio - a tool which offers users the opportunity to design their own chatbots that can be interacted with via DM (Direct Message). Originally intended as a way for business owners and creators to offer interactive FAQ-style engagement on their pages, the platform has since evolved into a playground. And as is usually the way, give mankind tools and things soon take a turn for the distasteful – if not downright horrific. Case and point when it comes to chatbots: the Hitler chatbot created by the far-right US-based Gab social network had the Nazi dictator repeatedly asserting that he was "a victim of a vast conspiracy," and "not responsible for the Holocaust, it never happened". Moving away from fascist despots – and trying to not have a nightmare when it comes to AI's ability to spread falsehoods, conspiracy theories and its potential to radicalise - many have been interacting with some AI-generated celebrities online. Particularly dead ones. Recently, thousands of Instagram users have been conversing with an AI chatbot who is speaking as if it is the late Nirvana frontman Kurt Cobain. Sounds harmless enough at first glance, but this artificial resurrection turns ugly real quick, as not only does the fake grunge icon know it's dead, but the chatbot is making things truly morbid. One user asked the chatbot if they were talking to Cobain. The chatbot replied to the prompt by saying: 'The one and only. Or at least what's left of me'. Dark. The conversation continued with the user asking the AI Cobain, 'I'm curious, why'd you do it?' - in reference to Kurt Cobain's death by suicide in 1994. The bot replied: 'I was tired of the pain.' Darker. But the bleak conversation didn't stop there. 'Was there anything that made you think about not doing it?' was the next prompt – to which AI Cobain replied, 'My daughter, but even that wasn't enough.' Beyond how this utterly crass exhumation and its disrespectful practices would make any sane person shudder, there's the harmful attitude towards the topic of mental health and the possible glorification of suicide. Without mentioning the tarnishing of a reputation, as well as the insulting rewritting of intentions which can cause distress to living relatives. Without appropriate safeguards, AI chatbots have the capacity not only to continue infiltrating society but to distort reality. In 2023, a man was convicted after attempting to kill Queen Elizabeth II, an act which he said was 'encouraged' by his AI chatbot 'girlfriend'. The same year, another man killed himself after a six-week-long conversation about the climate crisis with an AI chatbot named Eliza. While these tragic examples seem far removed from a fake Kurt Cobain chatting with its fans, caution remains vital. As Pauline Paillé, a senior analyst at RAND Europe, told Euronews Next last year: "Chatbots are likely to present a risk, as they are capable of recognising and exploiting emotional vulnerabilities and can encourage violent behaviours.' Indeed, as the online safety advisory of eSaftey Commissioner states: 'Children and young people can be drawn deeper and deeper into unmoderated conversations that expose them to concepts which may encourage or reinforce harmful thoughts and behaviours. They can ask the chatbots questions on unlimited themes, and be given inaccurate or dangerous 'advice' on issues including sex, drug-taking, self-harm, suicide and serious illnesses such as eating disorders.' Still, accounts like the AI Kurt Cobain chatbot remain extremely popular, with Cobain's bot alone logging more than 105.5k interactions to date. The global chatbot market continues to grow exponentially. It was valued at approximately $5.57bn in 2024 and is projected to reach around $33.39bn by 2033. "If you ever need anything, please don't hesitate to ask someone else first," sang Cobain on 'Very Ape'. Anyone but a chatbot.
Euronews
20 hours ago
- Entertainment
- Euronews
AI Kurt Cobain: The horror of Instagram's chatbots
Last July, Meta, Instagram's parent company, launched AI Studio - a tool which offers users the opportunity to design their own chatbots that can be interacted with via DM (Direct Message). Originally intended as a way for business owners and creators to offer interactive FAQ-style engagement on their pages, the platform has since evolved into a playground. And as is usually the way, give mankind tools and things soon take a turn for the distasteful – if not downright horrific. Case and point when it comes to chatbots: the Hitler chatbot created by the far-right US-based Gab social network had the Nazi dictator repeatedly asserting that he was "a victim of a vast conspiracy," and "not responsible for the Holocaust, it never happened". Moving away from fascist despots – and trying to not have a nightmare when it comes to AI's ability to spread falsehoods, conspiracy theories and its potential to radicalise - many have been interacting with some AI-generated celebrities online. Particularly dead ones. Recently, thousands of Instagram users have been conversing with an AI chatbot who is speaking as if it is the late Nirvana frontman Kurt Cobain. Sounds harmless enough at first glance, but this artificial resurrection turns ugly real quick, as not only does the fake grunge icon know it's dead, but the chatbot is making things truly morbid. One user asked the chatbot if they were talking to Cobain. The chatbot replied to the prompt by saying: 'The one and only. Or at least what's left of me'. Dark. The conversation continued with the user asking the AI Cobain, 'I'm curious, why'd you do it?' - in reference to Kurt Cobain's death by suicide in 1994. The bot replied: 'I was tired of the pain.' Darker. But the bleak conversation didn't stop there. 'Was there anything that made you think about not doing it?' was the next prompt – to which AI Cobain replied, 'My daughter, but even that wasn't enough.' Une publication partagée par David Wells Dude/Y'all (@davidwells2258) Beyond how this utterly crass exhumation and its disrespectful practices would make any sane person shudder, there's the harmful attitude towards the topic of mental health and the possible glorification of suicide. Without mentioning the tarnishing of a reputation, as well as the insulting rewritting of intentions which can cause distress to living relatives. Without appropriate safeguards, AI chatbots have the capacity not only to continue infiltrating society but to distort reality. In 2023, a man was convicted after attempting to kill Queen Elizabeth II, an act which he said was 'encouraged' by his AI chatbot 'girlfriend'. The same year, another man killed himself after a six-week-long conversation about the climate crisis with an AI chatbot named Eliza. While these tragic examples seem far removed from a fake Kurt Cobain chatting with its fans, caution remains vital. As Pauline Paillé, a senior analyst at RAND Europe, told Euronews Next last year: "Chatbots are likely to present a risk, as they are capable of recognising and exploiting emotional vulnerabilities and can encourage violent behaviours.' Indeed, as the online safety advisory of eSaftey Commissioner states: 'Children and young people can be drawn deeper and deeper into unmoderated conversations that expose them to concepts which may encourage or reinforce harmful thoughts and behaviours. They can ask the chatbots questions on unlimited themes, and be given inaccurate or dangerous 'advice' on issues including sex, drug-taking, self-harm, suicide and serious illnesses such as eating disorders.' Still, accounts like the AI Kurt Cobain chatbot remain extremely popular, with Cobain's bot alone logging more than 105.5k interactions to date. The global chatbot market continues to grow exponentially. It was valued at approximately $5.57bn in 2024 and is projected to reach around $33.39bn by 2033. "If you ever need anything, please don't hesitate to ask someone else first," sang Cobain on 'Very Ape'. Anyone but a chatbot. The Netherlands' national museum has a new object on display: a 200-year-old condom, emblazoned with erotic art depicting a partially undressed nun pointing at the erect genitals of three clergymen. The 19th-century 'luxury souvenir', bought for €1,000 at an auction in Haarlem last November, is the first contraceptive sheath to be added to the Rijksmuseum's art collection. It goes on display this week as part of an exhibition called 'Safe Sex?' about 19th century sex work. Presumed to be made out of a sheep's appendix circa 1830 (vulcanised rubber was invented nine years later to make them safer and more widely available), the ancient prophylactic reportedly comes from an upmarket brothel in France - most likely in Paris. As well as the phallus-indicating sister of Christ, the condom features the phrase 'Voila, mon choix' ('There, that's my choice'). So, a nun judging a cock-off? Almost... The Rijksmuseum said in a statement that the playful item 'depicts both the playful and the serious side of sexual health' and that the French etching is a reference to the Pierre-Auguste Renoir painting 'The Judgment of Paris,' which depicts the Trojan prince Paris judging a beauty contest between three goddesses. Visitors of the Rijksmuseum have until end of the November to take the plunge and see the condom of yore in the 'Safe Sex?' exhibition.
Yahoo
a day ago
- Business
- Yahoo
Asana Inc (ASAN) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and AI Innovations ...
Total Revenue: $187.3 million, up 9% year-over-year. Non-GAAP Operating Margin: Improved by more than 1,300 basis points year-over-year, reaching 4%. Adjusted Free Cash Flow Margin: Improved by more than 700 basis points year-over-year, reaching 5%. Core Customers: 24,297 customers spending $5,000 or more annually, with revenue growth of 10% year-over-year. Customers Spending $100,000 or More: 728 customers, growing 20% year-over-year. Gross Margin: Approximately 90%. Net Income: $12 million or $0.05 per share. Cash and Cash Equivalents: Approximately $470.8 million. Share Repurchase: $15.6 million of Class A common stock repurchased. Q2 Revenue Guidance: $192 million to $194 million, representing 7% to 8% growth year-over-year. Full Year Revenue Guidance: $775 million to $790 million, representing 7% to 9% growth year-over-year. Warning! GuruFocus has detected 4 Warning Signs with ASAN. Release Date: June 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Asana Inc (NYSE:ASAN) achieved non-GAAP profitability for the first time in Q1 fiscal year 2026, marking a significant milestone. AI Studio reached general availability and surpassed $1 million in ARR, demonstrating strong early momentum. Total revenues increased by 9% year-over-year, exceeding the top end of guidance. Non-tech verticals grew faster than overall growth, with manufacturing, energy, media, entertainment, and financial services showing strong performance. A landmark $100 million-plus contract renewal with one of the largest employers in the world highlights Asana's enterprise capabilities. The $100 million-plus renewal, while significant, resulted in a modest ACV downgrade, impacting net retention rates. There is increased buyer scrutiny and elongation in decision-making processes, particularly in enterprise and tech verticals. Net retention rate (NRR) is expected to be pressured in Q2 due to downgrade pressures in enterprise and middle market segments. The macroeconomic environment presents risks, with potential for elongated sales cycles and increased budget scrutiny. Despite strong new business momentum, downgrade pressures and macroeconomic risks may limit the reflection of growth in overall revenue. Q: Can you provide more details on the $1 million ARR achieved by AI Studio and potential growth scenarios for fiscal '26? A: Dustin Moskovitz, CEO, explained that the $1 million ARR from AI Studio reflects a diverse customer base across regions and industries. The growth is driven by AI Studio Pro platform fees, with potential future upside from incremental consumption. The launch of the smart workflow gallery and the introduction of a more affordable Plus SKU and AI mates are expected to drive further growth in the second half of fiscal '26. Q: Could you elaborate on the $100 million contract renewal in the tech vertical and its impact on ACV and AI Studio? A: Sonalee Parekh, CFO, noted that the renewal was the largest deal in Asana's history, with a $100 million TCV over three years. Although there was a modest ACV downgrade, the deal provides greater visibility into fiscal years '27 and '28. AI Studio is not yet factored into this renewal, presenting potential upside. Q: How does AI Studio compare to other AI agents in the market, and what are the prospects for large-scale adoption? A: Dustin Moskovitz highlighted that Asana's AI Studio is more successful because it integrates AI into existing workflows, allowing for partial automation and collaboration with human teams. This approach contrasts with standalone agents that require complete workflow automation. While large-scale adoption is still developing, Asana is optimistic about future growth, especially with the introduction of AI mates. Q: What are the macroeconomic pressures affecting enterprise and mid-market segments, and how is Asana addressing them? A: Anne Raimondi, COO, mentioned early signs of budget pressures, workforce reductions, and tool consolidation in the enterprise and Americas regions. Asana is mitigating these challenges through customer success management, flexible pricing, and AI Studio, which enhances business workflows and adoption. Q: How is Asana planning to manage potential revenue slowdowns due to macroeconomic uncertainties? A: Sonalee Parekh stated that the lower end of Asana's revenue guidance reflects potential macroeconomic pressures. The company is prepared to leverage cost efficiencies and productivity improvements to maintain profitability, with a focus on optimizing marketing spend, vendor rationalization, and workforce geographic mix. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
