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Asana (ASAN) to Report Q1 Earnings: What's in the Cards?

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Asana (ASAN - Free Report) is slated to report first-quarter fiscal 2023 results on Jun 2.

For the fiscal first quarter, Asana anticipates non-GAAP net loss to be 36-35 cents per share. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 35 cents per share, which has remained steady over the past 30 days.

Asana expects revenues in the range of $114.5 million to $115.5 million, indicating growth between 49% and 51% from the year-ago period reported figure.

The Zacks Consensus Estimate for revenues stands at $115.09 million, suggesting an improvement of 50.11% from the year-ago quarter.

Asana’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14%.

Asana, Inc. Price and EPS Surprise

Asana, Inc. Price and EPS Surprise

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

Factors to Note

Asana’s fiscal first-quarter results are likely to reflect positive traction from aggressive investing in their enterprise solutions. The company’s top-of-the-funnel investments to increase awareness regarding its brand and varied products might have benefited the to-be-reported quarter’s performance. Investments in marketing activities are likely to have increased web traffic, and sign-ups impacted customer growth positively.

The number of customers spending $5,000 or more on an annualized basis grew to 15,437, reflecting an increase of 52% year over year in the fiscal fourth quarter. The number of customers spending $50,000 or more on an annualized basis grew to 894, suggesting an increase of 125% year over year.

The company witnessed high retention rates in the fiscal fourth quarter, which translated into sustained strong net new paying customer growth and strong seed expansion for its Impact Suite solutions.

This momentum is likely to have sustained in the to-be-reported quarter.

The expansion of Asana offices across Paris, Singapore and Chicago might have acted as a key growth driver in the fiscal first quarter as it is expected to have aided the company reach out to more customers.

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 -1.70% 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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Designer Brands (DBI - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

DBI’s shares have returned 11.4% in the year-to-date period against the Zacks Retail - Apparel and Shoes sector’s decline of 35.7%.

Veeva Systems (VEEV - Free Report) has an Earnings ESP of +1.64% and a Zacks Rank of 2.

VEEV’s shares have fallen 32.7% year to date against the Zacks Internet – Software sector’s decline of 45.9%.

Samsara Inc. (IOT - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #2.

IOT’s shares have declined 59.1% in the year-to-date period against the Zacks Internet – Software sector’s decline of 45.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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