Asana Shares Fall Despite Q1 Earnings, Revenue Beat
Asana Inc . (NYSE:ASAN) reported better-than-expected first quarter results but saw its shares drop 8% in after-hours trading as revenue growth continued to decelerate.
The work management software company posted adjusted earnings of $0.05 per share for Q1, beating analyst estimates of $0.02. Revenue grew 9% YoY to $187.3 million, surpassing expectations of $185.5 million.
However, Asana’s revenue growth rate slowed significantly from 26% in the year-ago quarter. The company also forecast Q2 revenue growth of 7-8% YoY.
"We achieved a major milestone this quarter, delivering Asana’s first quarter of non-GAAP operating income," said CFO Sonalee Parekh. The company reported non-GAAP operating income of $8.1 million, compared to a loss of $15.8 million a year ago.
For Q2, Asana expects revenue of $192-194 million and adjusted EPS of $0.04-$0.05. The company raised its full-year adjusted EPS outlook to $0.22, above consensus of $0.19.
CEO Dustin Moskovitz highlighted early traction with Asana’s new AI offerings, noting its AI Studio exceeded $1 million in annual recurring revenue in its first quarter of general availability.
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