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Asana (ASAN) Incurs Q4 Loss, Top Line Up Y/Y on User Expansion
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Asana (ASAN - Free Report) reported fourth-quarter fiscal 2022 non-GAAP loss of 25 cents per share, narrower than the Zacks Consensus Estimate of a loss of 28 cents. However, the figure was broader than the loss of 22 cents reported in the year-ago quarter.
Asana reported revenues of $111.9 million in the quarter, which surpassed the Zacks Consensus Estimate by 6.55%. The top line improved 64% on a year-over-year basis.
In the reported quarter, Asana revenues were driven by their product-led strategy as the company launched more than 200 features in the 2022 fiscal year. This aided it in attracting new customers. Customer spending also increased in the reported quarter, which directly impacted the top-line growth.
Asana’s shares have fallen 34.5% year to date, compared with the Zacks Internet Software industry’s decline of 38.9%. Meanwhile, the Computer & Technology sector has slumped 19.2%.
In the reported quarter, Asana’s top-of-funnel investments paid off as the company hosted thousands of attendees in its Focus and Flow and Scale Events. This boosted the company’s ability to reach larger customers and build strategic partnerships.
Asana’s total number of paying customers grew by 5,000 in the reported quarter. At the end of the fiscal fourth quarter, the company had more than 119,000 paying customers.
The number of customers spending $5K or more on an annualized basis grew to 15,437, up 52% year over year. Revenues from these customers soared 82% year over year.
The number of customers spending $50K or more on an annualized basis grew to 894, an increase of 125% 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 180 basis points (bps) on a year-over-year basis to 90%.
Total operating expenses jumped 52% year over year to $144.6 million.
Non-GAAP operating loss was $43.9 million, wider than $34.8 million reported in the year-ago quarter.
Balance Sheet
As of Jan 31, 2022, cash and cash equivalents, and marketable securities were $315 million compared with $343.4 million as of Oct 31, 2021.
As of Jan 31, 2022, free cash outflow was $41.2 million.
Guidance
For the first quarter of fiscal 2023, revenues are expected in the range of $114.5 million to $115.5 million, indicating growth between 49% and 51%.
Non-GAAP operating loss is projected to be $68-$66 million.
Non-Gaap net loss per share is expected between 36 cents per share and 35 cents per share.
For fiscal 2023, the company anticipates total revenues between $527 million and $531 million.
Zacks Rank & Stocks to Consider
Asana currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Computer & Technology sector are Broadcom (AVGO - Free Report) , Advanced Micro Devices (AMD - Free Report) and Avnet (AVT - Free Report) .
Broadcom shares have fallen 10.3% year to date compared with the Zacks Electronics-Semiconductors industry’s and the Computer & Technology sector’s decline of 19.5% and 19.2%, respectively.
The long-term earnings growth rate for AMD, a Zacks Rank #1 stock, stands at 29.08%.
AMD shares have fallen 22.8% year to date, compared with the Electronics-Semiconductors industry’s and the Computer & Technology sector’s decline of 19.5% and 19.2%, respectively.
Avnet has a Zacks Rank #1 and a long-term earnings growth rate of 28.80%.
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Asana (ASAN) Incurs Q4 Loss, Top Line Up Y/Y on User Expansion
Asana (ASAN - Free Report) reported fourth-quarter fiscal 2022 non-GAAP loss of 25 cents per share, narrower than the Zacks Consensus Estimate of a loss of 28 cents. However, the figure was broader than the loss of 22 cents reported in the year-ago quarter.
Asana reported revenues of $111.9 million in the quarter, which surpassed the Zacks Consensus Estimate by 6.55%. The top line improved 64% on a year-over-year basis.
In the reported quarter, Asana revenues were driven by their product-led strategy as the company launched more than 200 features in the 2022 fiscal year. This aided it in attracting new customers. Customer spending also increased in the reported quarter, which directly impacted the top-line growth.
Asana’s shares have fallen 34.5% year to date, compared with the Zacks Internet Software industry’s decline of 38.9%. Meanwhile, the Computer & Technology sector has slumped 19.2%.
Asana, Inc. Price, Consensus and EPS Surprise
Asana, Inc. price-consensus-eps-surprise-chart | Asana, Inc. Quote
Quarter in Detail
In the reported quarter, Asana’s top-of-funnel investments paid off as the company hosted thousands of attendees in its Focus and Flow and Scale Events. This boosted the company’s ability to reach larger customers and build strategic partnerships.
Asana’s total number of paying customers grew by 5,000 in the reported quarter. At the end of the fiscal fourth quarter, the company had more than 119,000 paying customers.
The number of customers spending $5K or more on an annualized basis grew to 15,437, up 52% year over year. Revenues from these customers soared 82% year over year.
The number of customers spending $50K or more on an annualized basis grew to 894, an increase of 125% 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 180 basis points (bps) on a year-over-year basis to 90%.
Total operating expenses jumped 52% year over year to $144.6 million.
Non-GAAP operating loss was $43.9 million, wider than $34.8 million reported in the year-ago quarter.
Balance Sheet
As of Jan 31, 2022, cash and cash equivalents, and marketable securities were $315 million compared with $343.4 million as of Oct 31, 2021.
As of Jan 31, 2022, free cash outflow was $41.2 million.
Guidance
For the first quarter of fiscal 2023, revenues are expected in the range of $114.5 million to $115.5 million, indicating growth between 49% and 51%.
Non-GAAP operating loss is projected to be $68-$66 million.
Non-Gaap net loss per share is expected between 36 cents per share and 35 cents per share.
For fiscal 2023, the company anticipates total revenues between $527 million and $531 million.
Zacks Rank & Stocks to Consider
Asana currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Computer & Technology sector are Broadcom (AVGO - Free Report) , Advanced Micro Devices (AMD - Free Report) and Avnet (AVT - Free Report) .
Currently, Broadcom sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The long-term earnings growth rate stands at 14.52%.
Broadcom shares have fallen 10.3% year to date compared with the Zacks Electronics-Semiconductors industry’s and the Computer & Technology sector’s decline of 19.5% and 19.2%, respectively.
The long-term earnings growth rate for AMD, a Zacks Rank #1 stock, stands at 29.08%.
AMD shares have fallen 22.8% year to date, compared with the Electronics-Semiconductors industry’s and the Computer & Technology sector’s decline of 19.5% and 19.2%, respectively.
Avnet has a Zacks Rank #1 and a long-term earnings growth rate of 28.80%.
Avnet shares have fallen 3.4%, compared with the Zacks Electronics - Parts Distribution industry’s decline of 14%.