Latest news with #ASAN
Yahoo
5 days ago
- Business
- Yahoo
BofA Reiterates Buy Rating on Asana (ASAN), Lowers PT to $21
On June 4, Bank of America Securities analyst Michael Funk reiterated a Buy rating for Asana, Inc. (NYSE:ASAN), reducing the price target to $21 from $23. The analyst based the rating on the company's future prospects and financial performance, as reported in the fiscal Q1 2026 earnings released on June 3. The analyst reasoned that despite a minute drop in revenue guidance led by macroeconomic challenges, the company's financial results exceeded expectations in terms of operating margin and revenue. A financial professional at his desk, working intently on his wealth management software. Revenue for the quarter underwent a 9% year-over-year growth to $187.3 million, while Q1 GAAP operating margin improved 15 percentage points year-over-year. Asana, Inc. (NYSE:ASAN) also reported its first positive non-GAAP operating margin in company history, expanding non-GAAP operating margin by 1,300 basis points year over year. According to the analyst, these trends indicate the company's potential to effectively manage profitability, which is a positive sign for investors. The Asana AI Studio is also showing promising potential, as it exceeded the $1 million ARR threshold. The analyst expects it to be a prominent growth driver in the fiscal year's latter half, further supporting the Buy rating. While we acknowledge the potential of ASAN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. 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
04-06-2025
- 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
04-06-2025
- 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.
Yahoo
02-06-2025
- Business
- Yahoo
Asana (ASAN) Q1 Earnings: What To Expect
Work management software maker Asana (NYSE: ASAN) will be reporting earnings tomorrow afternoon. Here's what investors should know. Asana met analysts' revenue expectations last quarter, reporting revenues of $188.3 million, up 10% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts' expectations and a solid beat of analysts' EBITDA estimates. Is Asana a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Asana's revenue to grow 7.6% year on year to $185.5 million, slowing from the 13.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Asana has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.7% on average. Looking at Asana's peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. delivered year-on-year revenue growth of 30.1%, beating analysts' expectations by 2.3%, and Atlassian reported revenues up 14.1%, in line with consensus estimates. traded up 4.5% following the results while Atlassian was down 8.9%. Read our full analysis of results here and Atlassian's results here. There has been positive sentiment among investors in the productivity software segment, with share prices up 7.6% on average over the last month. Asana is up 11.6% during the same time and is heading into earnings with an average analyst price target of $15.38 (compared to the current share price of $17.91). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. 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
01-05-2025
- Business
- Yahoo
1 Stock Under $50 Worth Your Attention and 2 to Avoid
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they're typically more established than penny stocks. But their headline prices don't guarantee quality, and investors should exercise caution as some have shaky business models. This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one stock under $50 with huge potential and two that may have trouble. Share Price: $16.55 Founded in 2008 by Facebook's co-founder Dustin Moskovitz, Asana (NYSE:ASAN) is a cloud-based project management software, where you can plan and assign tasks to employees and monitor and discuss progress of work. Why Are We Hesitant About ASAN? Offerings struggled to generate meaningful interest as its average billings growth of 9.4% over the last year did not impress Customers have churned over the last year due to the commoditized nature of its software, as reflected in its 97.5% net revenue retention rate Operating losses show it sacrificed profitability while scaling the business Asana is trading at $16.55 per share, or 4.8x forward price-to-sales. Read our free research report to see why you should think twice about including ASAN in your portfolio, it's free. Share Price: $25.62 Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group (NASDAQ:PNTG) operates home health, hospice, and senior living facilities across 13 western and midwestern states, serving patients of all ages including seniors. Why Does PNTG Worry Us? Revenue base of $695.2 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale 3.6 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Below-average returns on capital indicate management struggled to find compelling investment opportunities The Pennant Group's stock price of $25.62 implies a valuation ratio of 23.5x forward price-to-earnings. If you're considering PNTG for your portfolio, see our FREE research report to learn more. Share Price: $43.65 Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE:PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks. Why Are We Positive On PRKS? Healthy operating margin of 26.7% shows it's a well-run company with efficient processes Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue Returns on capital are climbing as management makes more lucrative bets At $43.65 per share, United Parks & Resorts trades at 8.9x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
