Earnings To Watch: Asana (ASAN) Reports Q4 Results Tomorrow

Kayode Omotosho /
2022/03/08 6:09 am EST

Work management software maker Asana (NYSE: ASAN) will be reporting results tomorrow after the bell. Here's what to look for.

Last quarter Asana reported revenues of $100.3 million, up 70.3% year on year, beating analyst revenue expectations by 6.85%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth. The company added 1,337 enterprise customers paying more than $5,000 annually to a total of 14,143.

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 53.8% year on year to $105.1 million, in line with the 57.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.28 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 8.55%.

Looking at Asana's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Atlassian delivered top-line growth of 37.3% year on year, beating analyst estimates by 7.16% and monday.com reported revenues up 90.5% year on year, exceeding estimates by 8.82%. Atlassian traded up 8.96% on the results, monday.com was down 15.1%. Read our full analysis of Atlassian's results here and monday.com's results here.

The technology sell-off has been putting pressure on stocks since November and software stocks have not been spared, with share price down on average 16.1% over the last month. Asana is down 13.8% during the same time, and is heading into the earnings with analyst price target of $83.8, compared to share price of $42.15.

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.