Work management software maker Asana (NYSE: ASAN) will be announcing earnings results tomorrow after market close. Here's what you need to know.
Last quarter Asana reported revenues of $152.4 million, up 26.3% year on year, beating analyst revenue expectations by 1.22%. It was a mixed quarter for the company, with revenue narrowly exceeding expectations. We also liked to see the reduction in cash burn. On the other hand, it was less good to see the deterioration in revenue retention rate. The company added 432 enterprise customers paying more than $5,000 annually to a total of 19,864.
Is Asana buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Asana's revenue to grow 17% year on year to $157.8 million, slowing down from the 50.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.12 per share.
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 4.92%.
Looking at Asana's peers in the productivity software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Atlassian (NASDAQ:TEAM) delivered top-line growth of 23.6% year on year, beating analyst estimates by 2.52%, and Monday.com reported revenues up 42% year on year, exceeding estimates by 3.77%. Atlassian traded up 12.3% on the results, and Monday.com was up 5.33%.
Read the full analysis of Atlassian's and Monday.com's results on StockStory.
Investors in the productivity software segment have had steady hands going into the earnings, with the stocks down on average 0.59% over the last month. Asana is down 1.59% during the same time and is heading into the earnings with analysts' average price target of $23.4, compared to share price of $21.7.
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The author has no position in any of the stocks mentioned.
