Asana (ASAN) Reports Q1: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2022/06/01 8:49 am EDT
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Work management software maker Asana (NYSE: ASAN) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter Asana reported revenues of $111.9 million, up 63.7% year on year, beating analyst revenue expectations by 6.43%. It was a decent quarter for the company, with an exceptional revenue growth but an underwhelming guidance for the next year. The company added 1,294 enterprise customers paying more than $5,000 annually to a total of 15,437.

Is Asana buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Asana's revenue to grow 50.1% year on year to $115.1 million, slowing down from the 60.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.36 per share.

Asana Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 8.19%.

Looking at Asana's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. monday.com delivered top-line growth of 83.9% year on year, beating analyst estimates by 7.09% and Atlassian reported revenues up 30.2% year on year, exceeding estimates by 5.2%. monday.com traded flat on the results, and Atlassian was down 3.8%. Read our full analysis of monday.com's results here and Atlassian's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 10.2% over the last month. Asana is down 18.1% during the same time, and is heading into the earnings with analyst price target of $48.2, compared to share price of $22.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.