Asana Inc Reports Financial Results for Q2 FY2025
Intellectia.AI2024-09-04
Asana, Inc. Reports Financial Results for Q2 FY2025
Asana, Inc. (NYSE: ASAN), a prominent work management platform, has announced its financial results for the second quarter of fiscal year 2025, ending July 31, 2024.
Consolidated Financial Metrics
| Metric | Q2 FY2025 | Q2 FY2024 | YoY Change (%) | Consensus Estimate |
|---|---|---|---|---|
| Revenue | $179.2M | $162.9M | +10% | $177.65M |
| GAAP Net Loss | $72.2M | $71.4M | +1.1% | - |
| GAAP Net Loss per Share | $0.31 | $0.33 | -6.1% | - |
| Non-GAAP Net Loss | $11.1M | $8.4M | +32.1% | - |
| Non-GAAP Net Loss per Share | $0.05 | $0.04 | +25% | -$0.08 |
| Operating Cash Flow | $15.9M | $20.2M | -21.3% | - |
| Free Cash Flow | $12.8M | $14.6M | -12.3% | - |
Interpretation: Asana's revenue increased by 10% year-over-year (YoY), surpassing Wall Street’s consensus estimate of $177.65M. Despite a wider non-GAAP net loss YoY, the company beat the expected non-GAAP net loss per share of -$0.08 by reporting -$0.05. Operating and free cash flows experienced declines, reflecting the higher operational expenses associated with growth and innovation initiatives.
Segment Revenue Performance
| Segment | Revenue Q2 FY2025 | Revenue Q2 FY2024 | YoY Change (%) |
|---|---|---|---|
| Core Customers | 22,948 | 20,861 | +10% |
| Customers Spending $100K+ | 649 | 554 | +17% |
Interpretation: The number of core customers increased by 10% YoY. Customers spending over $100K annually grew by 17%, indicating successful penetration and retention within high-value clients.
Key Developments and Operational Highlights
- Record multi-year deals signed.
- Introduction of Asana AI teammates and other AI tools for enhancing team productivity.
- Published the 2024 State of AI at Work report examining AI's impact on knowledge work.
- Hosted global Work Innovation Summits in San Francisco and Paris.
- Recognized as a 2024 Innovation by Design award finalist by Fast Company.
- Achieved placement on Fortune's Great Place to Work Bay Area list for the eighth year and Inc.'s Best Workplaces for the seventh consecutive year.
- Issued the fiscal year 2024 ESG report showcasing sustained progress on ESG commitments.
Management Commentary
Dustin Moskovitz, co-founder and CEO of Asana, stated, "In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI. We're seeing momentum in key areas, including 17% growth in customers spending over $100,000, success in key verticals, and a record number of multi-year deals. We're at a pivotal moment where AI has enormous potential to revolutionize work management, and we are well-positioned to capitalize on the consolidation opportunity in the enterprise market."
Dividends and Share Repurchase Program
No announcements regarding dividends or share repurchase programs were made in this earnings report.
Forward Guidance
Asana provided the following guidance: - Q3 FY2025 : Revenue between $180.0M and $181.0M, with a non-GAAP net loss per share of $0.07. - FY2025 : Revenue between $719.0M and $721.0M, with a non-GAAP net loss per share of $0.20 to $0.19.
Stock Price Movement
Post-earnings release, Asana's stock witnessed a significant decline of 17.06%, reflecting investor concerns about ongoing losses and future profitability amidst increased operating expenses.
In summary, while Asana reported robust revenue growth and showed strong performance within high-value customer segments, ongoing net losses and reduced free cash flow raised investor caution, leading to a notable downturn in its stock price.
Genasys Inc Reports Fourth Quarter and Full Year Fiscal 2024 Financial Results
Toll Brothers Reports Fourth Quarter and Full Year 2024 Financial Results
OilDri Corporation of America Reports Record First Quarter Fiscal 2025 Results
Share