Asana
shares are heading lower in late trading Tuesday despite better-than-expected October quarter financial results for the work management software company, as macroeconomic issues continued to slow the company’s growth rate.
Asana in late trading is 8.2% lower at $21.40.
For the quarter, Asana posted revenue of $166.5 million, up 18% from a year earlier, and above both the company’s guidance range of $163.5 million to $164.5 million and Street consensus at $164.1 million.
On an adjusted basis, Asana lost 4 cents a share in the quarter, narrower than the company’s forecast loss of 10 to 11 cents a share. Street consensus had called for a loss of 11 cents a share.
The January quarter guidance was similarly strong. Asana sees revenue for the period of $167 million to $168 million, ahead of consensus at $166.9 million, with an adjusted loss of 9 to 10 cents a share, better than the Street consensus forecast for a loss of 16 cents.
Asana now sees revenue for the full fiscal year ending in January of between $648.5 million and $649.5 million, with a loss of between 26 and 27 cents a share; previous guidance called for revenue of $642 million to $648 million and a loss of 39 to 42 cents a share.
In comments prepared for the company’s earnings conference call, CEO Dustin Moskovitz said that “while the macroeconomic headwinds continue, especially impacting business in our renewal base, we are seeing signs of stabilization in new business.” Chief Operating Officer Anne Raimondi added that “deal cycles continue to be longer and budgets continue to be a significant factor.”
CFO Tim Wan said that macro issues continue to affect Asana’s net-retention rates, a measure of repeat business. Asana said its net retention rate in the quarter was “over 100%,” while topping 120% for customers spending more than $100,000 a year with the company.
Write to Eric J. Savitz at eric.savitz@barrons.com
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