Work management software maker Asana (NYSE: ASAN) will be reporting results tomorrow after market hours. Here's what to expect.
Asana beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $171.1 million, up 13.9% year on year. It was a solid quarter for the company, with an impressive beat of analysts' billings estimates and a decent beat of analysts' ARR (annual recurring revenue) estimates. It added 300 enterprise customers paying more than $5,000 annually to reach a total of 21,646.
Is Asana a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Asana's revenue to grow 10.7% year on year to $168.8 million, slowing from the 26.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Asana has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3% on average.
Looking at Asana's peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Atlassian delivered year-on-year revenue growth of 29.9%, beating analysts' expectations by 8.1%, and Monday.com reported revenues up 33.7%, topping estimates by 3%. Atlassian traded down 9.5% following the results while Monday.com was up 25.8%.
Read our full analysis of Atlassian's results here and Monday.com's results here.
Investors in the productivity software segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Asana is down 5.9% during the same time and is heading into earnings with an average analyst price target of $19.4 (compared to the current share price of $14).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.