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Asana (ASAN) to Report Q3 Earnings: What's in the Cards?

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Asana (ASAN - Free Report) is set to report third-quarter fiscal 2022 results on Dec 2.

For the fiscal third quarter, Asana anticipates non-GAAP net loss in the range of 26-27 cents per share.  The Zacks Consensus Estimate for loss per share has remained steady at 23 cents over the past 30 days.

Asana expects revenues in the range of $93-$94 million, indicating growth between 58% and 60% from the year-ago period's reported figure. The Zacks Consensus Estimate for revenues is pegged at $94 million, indicating an increase of 59.5% from the year-ago quarter’s reported figure.

Asana’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average earnings surprise being 13.7%.
 

Asana, Inc. Price and EPS Surprise

Asana, Inc. Price and EPS Surprise

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

 

Let’s see how things have shaped up for Asana prior to this announcement:

Factors to Consider

Asana’s third-quarter fiscal 2022 results are expected to reflect an expanded enterprise customer base as Asana’s Work Graph data model gains traction.

The number of customers spending $5,000 or more on an annualized basis grew to 12,806, an increase of 61% year over year in the fiscal second quarter. Moreover, the number of customers spending $50,000 or more on an annualized basis grew to 598, an increase of 111% year over year.

The company witnessed high retention rates in the fiscal second 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.

The 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 Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a 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 worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Snowflake (SNOW - Free Report) has an Earnings ESP of +1.82% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Snowflake shares have returned 29.6% year to date compared with the Zacks Internet – software industry’s decline of 15.6% and the Computer & Technology sector’s return of 23.2% year-to-date.

CrowdStrike (CRWD - Free Report) has an Earnings ESP of +0.92% and a Zacks Rank of 3.

CrowdStrike shares have returned 6% year to date compared with the Zacks Internet Software industry’s decline of 15.6%. CrowdStrike has underperformed the Computer & Technology sector’s return of 23.2% year-to-date.

Coupa Software has an Earnings ESP of +33.33% and a Zacks Rank of 3.

Coupa shares have declined 40.2% year to date compared with the Zacks Internet Software industry’s decline of 15.6%. Coupa has underperformed the Computer & Technology sector’s return of 23.1% year to date.


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