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Asana (ASAN)
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Asana (ASAN) AI Stock Analysis

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ASAN

Asana

(NYSE:ASAN)

Rating:64Neutral
Price Target:
$16.00
▲(5.82%Upside)
Asana's overall score is driven by strong financial performance in revenue growth and cash flow, significant corporate events, and positive earnings call highlights. However, valuation challenges and technical indicators suggest caution, particularly in the tech segment.
Positive Factors
Profitability and Margins
Profitability progress was impressive and ahead of expectations, supporting the accelerating margin expansion bull case.
Strategic Deals
The signing of a $100mn+ TCV three-year renewal deal, the largest subscription agreement in the company’s history, speaks to the strategic value of Asana.
Negative Factors
Market Competition
Partner checks point to intensifying competition, with Asana losing market share to Monday.com and other private companies.
Revenue Growth
Revenue growth decelerated to 8.6% year-over-year with further deceleration expected.
Revenue Retention
The company's dollar based net revenue retention rate dipped to 95% and is expected to decline further.

Asana (ASAN) vs. SPDR S&P 500 ETF (SPY)

Asana Business Overview & Revenue Model

Company DescriptionAsana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. The company's platform enables teams to orchestrate work from daily tasks to cross-functional strategic initiatives; and manages product launches, marketing campaigns, and organization-wide goal settings. It serves customers in industries, such as technology, retail, education, non-profit, government, healthcare, media, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
How the Company Makes MoneyAsana makes money primarily through a subscription-based revenue model. The company offers its platform on a tiered pricing structure, which includes Free, Premium, Business, and Enterprise plans. These plans provide varying levels of features and support depending on the needs of the customer. Revenue is generated from customers who subscribe to the Premium, Business, or Enterprise plans, with the Enterprise plan offering the most advanced features and customization options for larger organizations. Additionally, Asana may engage in partnerships and integrations with other technology providers to expand its ecosystem and enhance its service offerings, though these are not direct revenue streams. Key factors contributing to Asana's earnings include its ability to attract new users, retain existing customers, and upsell higher-tier plans to its user base.

Asana Key Performance Indicators (KPIs)

Any
Any
Customers Over $5K
Customers Over $5K
Tracks the number of customers generating over $5,000 in annual revenue, highlighting Asana's ability to attract and retain mid-sized clients.
Chart InsightsAsana's steady increase in customers spending over $5K reflects robust growth, particularly in non-tech verticals like manufacturing and media. Despite challenges in the tech sector and macroeconomic pressures, Asana's strategic focus on AI and channel expansion is driving customer acquisition. The earnings call highlighted a 20% growth in customers spending over $100K, underscoring enterprise traction. However, the decline in net retention for large customers and tech sector headwinds could pose risks. Asana's transition to positive free cash flow and anticipated profitability signal a strategic pivot towards sustainable growth.
Data provided by:Main Street Data

Asana Earnings Call Summary

Earnings Call Date:Jun 04, 2025
(Q1-2026)
|
% Change Since: 0.07%|
Next Earnings Date:Sep 09, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements including non-GAAP profitability and strong early success of AI Studio, paired with challenges in net retention rates and buyer scrutiny. While growth was strong in non-tech verticals and international markets, there were pressures from downgrade activities and difficulties in the tech segment. Overall, the positive aspects are balanced by the challenges, leading to a neutral sentiment.
Q1-2026 Updates
Positive Updates
Non-GAAP Profitability Achievement
Asana achieved non-GAAP profitability for the first time in Q1 of FY2026, with non-GAAP operating margins improving over 1,300 basis points year over year.
AI Studio's Early Success
AI Studio surpassed $1 million in ARR, showing strong early momentum and demonstrating significant potential for future revenue growth.
Enterprise Customer Growth
Customers spending $100,000 or more grew 20% year over year, and the company closed the largest deal in its history, a $100 million-plus contract renewal.
Revenue and Cash Flow Improvements
Total revenues were up 9% year over year, exceeding guidance, with adjusted free cash flow margin improving by more than 700 basis points, reaching 5%.
International Revenue Growth
International revenue grew by 11% year over year, driven by strong demand in EMEA and Japan.
New Offerings and Strategic Initiatives
Launched AI Studio Plus tier and Smart Workflow Gallery, enhancing AI capabilities and customer value.
Continued Expansion in Non-Tech Verticals
Non-tech verticals grew mid-teens year over year, now accounting for over 70% of the business.
Negative Updates
Net Retention Rate Pressure
Overall dollar-based net retention rate was 95%, with expected pressure in Q2 due to downgrade activity, particularly in enterprise and tech verticals.
ACV Downgrade in Major Renewal
A $100 million-plus renewal represented a modest ACV downgrade, impacting net retention and the tech vertical.
Increased Buyer Scrutiny and Elongated Sales Cycles
Signs of increased buyer scrutiny and elongation in decision-making processes were observed, particularly in enterprise and corporate customer bases.
Tech Vertical Growth Challenges
While stabilization was noted, the tech vertical continues to drag on overall growth.
Company Guidance
During Asana's fiscal year 2026 Q1 earnings call, the company highlighted several key metrics and strategic initiatives. Asana achieved non-GAAP profitability for the first time, with a total revenue increase of 9% year over year, exceeding the top end of their guidance. Non-GAAP operating margins improved by over 1,300 basis points year over year, shifting from a 9% operating loss to a 4% operating income margin. The adjusted free cash flow margin increased by more than 700 basis points year over year, reaching 5% for the quarter. AI Studio, a significant focus, surpassed $1 million in annual recurring revenue (ARR), showcasing strong early momentum. Asana also reported a 20% year-over-year growth in customers spending $100,000 or more, including a landmark three-year $100 million-plus contract renewal with one of the largest employers globally. Despite a stable in-quarter net retention rate, the company anticipates pressure in Q2 due to continued downgrades, particularly in the tech and enterprise segments. Asana's strategic priorities for fiscal year 2026 include driving customer health, accelerating acquisition, and enhancing customer value through product innovation, particularly with AI. For Q2, Asana projects revenues between $192 million and $194 million, with a non-GAAP operating income of $8 million to $10 million and a non-GAAP net income per share of 4¢ to 5¢. The full-year revenue guidance has been updated to a range of $775 million to $790 million, representing 7% to 9% growth year over year.

Asana Financial Statement Overview

Summary
Asana shows strong revenue growth and improving cash flow metrics, but continues to face profitability challenges with negative net margins and return on equity.
Income Statement
65
Positive
Asana has demonstrated a strong revenue growth trajectory, with revenue increasing significantly over the years. The TTM revenue growth is robust at 13.2% compared to the previous year. However, the company continues to face profitability challenges with a negative net profit margin of -31.4% and an EBIT margin of -33.1% for the TTM. Despite high gross profit margins at 89.4%, the high operating expenses impact overall profitability.
Balance Sheet
58
Neutral
The balance sheet shows moderate stability with a debt-to-equity ratio of 1.10, indicating a balanced approach to leveraging. The equity ratio stands at 26.9%, reflecting a moderate level of financial risk. However, the return on equity is negative at -98.1% due to ongoing net losses, highlighting profitability challenges that impact shareholder value.
Cash Flow
70
Positive
Asana's cash flow statement shows a positive trend with improving free cash flow and operating cash flow. The TTM free cash flow growth rate is 58.7%, indicating better cash generation capabilities. The operating cash flow to net income ratio is 0.10, suggesting improved cash conversion despite negative net income.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue723.88M652.50M547.21M378.44M227.00M
Gross Profit646.68M587.98M490.65M339.54M198.26M
EBITDA-229.54M-235.03M-388.22M-256.72M-154.12M
Net Income-255.54M-257.03M-407.77M-288.34M-211.71M
Balance Sheet
Total Assets891.41M961.96M954.96M707.03M731.12M
Cash, Cash Equivalents and Short-Term Investments466.88M519.46M529.30M312.03M386.27M
Total Debt268.39M277.88M271.54M255.61M585.86M
Total Liabilities663.89M635.56M598.39M503.19M743.91M
Stockholders Equity227.52M326.40M356.57M203.84M-12.79M
Cash Flow
Free Cash Flow9.36M-31.09M-167.22M-126.50M-151.18M
Operating Cash Flow14.93M-17.93M-160.06M-83.78M-92.87M
Investing Cash Flow-6.13M-289.13M64.49M27.56M-158.94M
Financing Cash Flow-58.09M16.78M381.39M37.21M201.00M

Asana Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.12
Price Trends
50DMA
15.30
Negative
100DMA
15.43
Negative
200DMA
16.65
Negative
Market Momentum
MACD
0.05
Negative
RSI
57.75
Neutral
STOCH
82.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAN, the sentiment is Neutral. The current price of 15.12 is above the 20-day moving average (MA) of 14.12, below the 50-day MA of 15.30, and below the 200-day MA of 16.65, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.01B50.49-47.39%3.82%-251.96%
73
Outperform
$4.27B-6.85%20.46%39.37%
69
Neutral
$3.68B-11.93%40.36%73.68%
68
Neutral
$4.85B-10.47%21.66%-50.24%
65
Neutral
$3.19B-3.84%4.82%73.90%
64
Neutral
$3.56B-83.36%9.84%13.74%
51
Neutral
AU$1.67B2.47-31.66%3.57%16.42%-7.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ASAN
Asana
15.12
0.04
0.27%
FROG
JFrog
41.97
3.74
9.78%
OPFI
OppFi
11.65
7.66
191.98%
GBTG
Global Business Travel Group
6.66
-0.04
-0.60%
ZETA
Zeta Global Holdings Corp
16.56
-3.73
-18.38%
FRSH
Freshworks
14.49
1.25
9.44%

Asana Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Asana Announces New CEO Dan Rogers Appointment
Positive
Jun 25, 2025

On June 25, 2025, Asana announced the appointment of Dan Rogers as the new CEO, effective July 21, 2025, succeeding co-founder Dustin Moskovitz, who will remain as Board Chair. Rogers, with a strong background in leading high-growth technology companies, is expected to drive Asana’s next phase of growth and innovation, particularly in AI, as the company continues to be a major player in the enterprise work management industry.

The most recent analyst rating on (ASAN) stock is a Sell with a $14.00 price target. To see the full list of analyst forecasts on Asana stock, see the ASAN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Asana Holds Annual Stockholders Meeting on June 16
Neutral
Jun 20, 2025

On June 16, 2025, Asana, Inc. held its Annual Meeting of Stockholders, where three key proposals were voted on. Stockholders elected three Class II directors to serve until 2028, ratified PricewaterhouseCoopers LLP as the independent accounting firm for the fiscal year ending January 31, 2026, and approved the compensation of the company’s named executive officers. These decisions reflect the company’s ongoing governance and financial management strategies.

The most recent analyst rating on (ASAN) stock is a Sell with a $14.00 price target. To see the full list of analyst forecasts on Asana stock, see the ASAN Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Asana Expands Share Repurchase Program by $100 Million
Positive
Jun 3, 2025

On May 30, 2025, Asana‘s Board of Directors approved an increase to its share repurchase program, allowing for an additional $100 million in stock repurchases and removing the program’s expiration date. This move reflects Asana’s strategic financial management and commitment to enhancing shareholder value. In its first quarter fiscal 2026 results, Asana reported a significant financial turnaround with its first positive non-GAAP operating margin and a 9% increase in revenue year-over-year. The launch of AI Studio contributed over $1 million in ARR, showcasing Asana’s potential for long-term growth in AI innovation and strengthening its market position. The company also achieved notable customer growth and received several industry recognitions, highlighting its leadership in the digital workplace solutions sector.

The most recent analyst rating on (ASAN) stock is a Sell with a $14.00 price target. To see the full list of analyst forecasts on Asana stock, see the ASAN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 09, 2025