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Asana, Inc. (ASAN)
:ASAN
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Asana
(NYSE:ASAN)58Neutral
Positive Factors
AI Studio
AI Studio is showing positive early signs and was cited as having the ability to eclipse seat-based revenue over time.
Net Retention Ratio
Net retention ratio improved in every cohort, signaling an end to budgetary and layoff driven seat compression.
Negative Factors
CEO Transition
Mr. Moskowitz’s plan to retire from the CEO role creates new risk, particularly given his 53% ownership of the business.
Asana (ASAN) vs. S&P 500 (SPY)
Market Cap
$3.82B
Dividend YieldN/A
Average Volume (3M)3.16M
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth11.89%
EPS Growth15.73%
CountryUS
Employees1,840
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)-1.12
Shares Outstanding143,311,520
10 Day Avg. Volume2,812,036
30 Day Avg. Volume3,159,696
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.91
Price to Cash Flow (P/CF)-70.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.50Price Target Upside-7.07% Downside
Rating ConsensusHold
Number of Analyst Covering14
Asana Business Overview & Revenue Model
Company DescriptionAsana, Inc. is a leading work management platform that helps teams organize, track, and manage their work. Founded in 2008 and headquartered in San Francisco, California, Asana operates in the software-as-a-service (SaaS) sector, offering a cloud-based solution to improve team collaboration and productivity. The platform enables users to create projects, assign tasks, set deadlines, and communicate directly within the application, streamlining workflows across various industries.
How the Company Makes MoneyAsana makes money primarily through a subscription-based revenue model. The company offers several pricing tiers, including Basic, Premium, Business, and Enterprise, each with a different set of features tailored to the needs of different organizations. Users can access the Basic plan for free, while the Premium, Business, and Enterprise plans require a monthly or annual subscription fee. The pricing structure is based on the number of users within an organization, allowing Asana to scale its revenue with its clients' growth. Additionally, Asana collaborates with various technology partners to enhance its platform capabilities and expand its reach, further contributing to its revenue streams. Factors such as the increasing demand for remote work solutions and digital transformation initiatives across industries have also positively impacted Asana's earnings.
Asana Financial Statement Overview
Summary
Asana shows strong revenue growth, a positive indicator in the software industry, but struggles with profitability and cash flow. The balance sheet indicates moderate leverage but limited equity coverage, highlighting potential financial vulnerabilities.Income Statement
Asana shows solid revenue growth with a TTM increase of 8.3% and a past annual growth trend, indicating strong demand in the software industry. However, the company struggles with profitability, evidenced by negative net and EBIT margins in the TTM, reflecting sustained operating losses.65
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.96 TTM, suggesting balanced leverage but potential financial strain. Equity ratio is low at 27.37% TTM, indicating limited asset backing by equity, while negative ROE highlights profitability challenges.45
Neutral
Cash Flow
Cash flow analysis shows negative free cash flow growth, but improvements in cash flow to net income ratios suggest better cash management. However, the negative operating cash flow indicates operational cash challenges.50
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 723.88M | 652.50M | 547.21M | 378.44M | 227.00M | 142.61M | Gross Profit |
| 646.68M | 587.98M | 490.65M | 339.54M | 198.26M | 122.72M | EBIT |
| -266.74M | -270.00M | -407.83M | -265.18M | -175.57M | -119.63M | EBITDA |
| -237.94M | -235.03M | -388.22M | -256.72M | -154.12M | -116.03M | Net Income Common Stockholders |
| -255.54M | -257.03M | -407.77M | -288.34M | -211.71M | -118.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 455.31M | 519.46M | 529.30M | 312.03M | 386.27M | 351.31M | Total Assets |
| 874.16M | 961.96M | 954.96M | 707.03M | 731.12M | 421.69M | Total Debt |
| 229.08M | 277.88M | 271.54M | 255.61M | 585.86M | 225.18M | Net Debt |
| 32.31M | 41.22M | -255.02M | 15.20M | 325.98M | -80.84M | Total Liabilities |
| 634.89M | 635.56M | 598.39M | 503.19M | 743.91M | 567.01M | Stockholders Equity |
| 239.27M | 326.40M | 356.57M | 203.84M | -12.79M | -145.31M |
| Cash Flow | Free Cash Flow | ||||
| 6.57M | -31.09M | -167.22M | -126.50M | -151.18M | -47.40M | Operating Cash Flow |
| 14.93M | -17.93M | -160.06M | -83.78M | -92.87M | -40.14M | Investing Cash Flow |
| -6.13M | -289.13M | 64.49M | 27.56M | -158.94M | 12.65M | Financing Cash Flow |
| -58.09M | 16.78M | 381.39M | 37.21M | 201.00M | 311.60M |
Asana Technical Analysis
Negative
16.68
Price Trends
20.63
Negative
18.34
Negative
15.71
Positive
Market Momentum
-0.98
Positive
32.31
Neutral
19.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAN, the sentiment is Negative. The current price of 16.68 is below the 20-day moving average (MA) of 20.54, below the 50-day MA of 20.63, and above the 200-day MA of 15.71, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 32.31 is Neutral, neither overbought nor oversold. The STOCH value of 19.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASAN.
Asana Risk Analysis
Asana disclosed 58 risk factors in its most recent earnings report. Asana reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Asana Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $15.73B | 16.04 | 68.48% | ― | 7.52% | 1855.81% | |
71 Outperform | $11.62B | 385.29 | 3.51% | ― | 33.21% | ― | |
69 Neutral | $4.62B | 23.88 | 1086.23% | ― | 4.09% | 299.27% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
58 Neutral | $3.82B | ― | -89.47% | ― | 11.89% | 15.73% | |
57 Neutral | $56.56B | ― | -32.59% | ― | 23.19% | 11.01% |
* Technology Sector Average
Performance Comparison
ASAN
Asana
16.68
0.28
1.71%
BOX
Box
31.40
1.40
4.67%
TEAM
Atlassian
215.89
-1.47
-0.68%
DOCU
DocuSign
79.50
21.02
35.94%
MNDY
Monday.com
242.82
18.08
8.04%
Asana Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: 0.00% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth, expansion in non-tech verticals, and significant early success with AI Studio. However, challenges in the tech vertical, macroeconomic impacts, and a decline in net retention for large customers were notable concerns. The transition to positive free cash flow and strategic channel expansions are promising, but headwinds remain.Highlights
Revenue Growth and Profitability Milestone
Q4 revenues were up over 10% year-over-year, exceeding guidance. Non-GAAP operating margins improved by more than 800 basis points year-over-year. Asana reached positive free cash flow for fiscal year 2025, marking a significant milestone.
Enterprise and Non-Tech Vertical Growth
Enterprise customer acquisition showed strong progress, with customers spending $100,000 or more growing 20% year-over-year. Non-tech verticals grew 15% year-over-year, with manufacturing, energy, consumer retail, and media as fast-growing sectors.
AI Studio Momentum
AI Studio showed strong early adoption, with hundreds of large customers running smart workflows. A global media company reduced manual work by 60% and decreased processing time by 69% using AI Studio.
International Revenue Growth
International revenue grew 14% year-over-year, reflecting acceleration from the previous quarter.
Channel Expansion and Partner Growth
Significant wins through partners and strong growth in partner-sourced deals. Expanded partner community with large system integrators, increasing channel presence.
Lowlights
Challenges in Tech Vertical
The technology sector continued to be a drag on overall growth, impacting net retention rates and expansion. Several large churns and downgrades were observed in tech customers.
Macroeconomic Impact
Ongoing macroeconomic softness, particularly affecting the technology vertical and elongating decision timelines. The guidance assumes no material change but reflects current macro challenges.
Large Customer NRR Decline
Dollar-based net retention rate for customers spending $100,000 or more was 96%, marking a decline and coming in below core customer NRR.
Workforce Reduction
A 5% reduction in full-time workforce was implemented to align costs with strategic priorities, resulting in restructuring charges.
Company Guidance
During Asana's Fourth Quarter and Fiscal Year 2025 Earnings Conference Call, the company provided guidance on several key metrics. Asana reported a 10% year-over-year increase in total revenues for Q4, exceeding their guidance when adjusted for currency impacts. The company achieved a significant milestone with positive free cash flow for the fiscal year and expects non-GAAP profitability in Q1 of the next fiscal year. Asana's non-tech verticals grew by 15% year-over-year, with notable growth in manufacturing, energy, consumer retail, and media. The number of customers spending over $100,000 annually grew by 20% year-over-year. Asana's non-GAAP operating margin improved by over 800 basis points, moving from a 9% operating loss margin to a 1% loss margin. The company anticipates an over 1,000 basis point expansion in non-GAAP operating margin in fiscal year 2026. Asana is also focused on AI Studio, with expectations of significant customer demand and transformative potential. The company plans to evolve its pricing model to better align with the value delivered through AI Studio and other advanced capabilities, introducing a credit system to fuel AI workflows. Asana's fiscal year 2026 revenue guidance is set at $782 million to $790 million, representing an 8% to 9% growth year-over-year, with an expected non-GAAP operating margin of at least 5%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.