Shares of Asana were charging higher Friday after the work management software company turned in quarterly results that left Wall Street feeling optimistic.

Asana stock gained 39% to $21.47 in trading Friday and was on track for its largest daily percentage increase on record, according to Dow Jones Market Data.

For its third quarter, the company reported an adjusted loss of 2 cents per share, narrower than the loss of 7 cents analysts expected, according to FactSet. Revenue of $183.9 million was above the consensus call of $180.6 million.

For its fourth quarter, the company anticipates an adjusted loss of 1 cent to 2 cents a share, while analysts had forecast a loss of 2 cents. For fiscal 2025, it is now calling for an adjusted loss of 14 cents to 15 cents a share, while analysts had penciled in a loss of 19 cents.

During the quarter, the company launched AI Studio, a no-code builder that lets teams design workflows with AI agents. "While still early, we have seen significant demand, with customers experiencing meaningful productivity gains across their workflows," said CEO and co-founder Dustin Moskovitz in a statement.

The company has been turning things around, argued KeyBanc Capital Markets analysts led by Jackson Ader, who upgraded shares to Sector Weight from Underweight and removed a downside price target.

"The stock has had a good run since the lows of the prior quarter, and this solid, although not exceptional, fundamental quarter is seeing really strong followthrough in shares," they wrote.

Jefferies analysts led by Brent Thill were a bit more tentative, maintaining a Hold rating but lifting the price target to $16 from $13.

Asana did beat revenue estimates, he acknowledged, but the macro environment remains a headwind and the company continues to lose share to Monday.com and Smartsheet, and it will take some time for AI Studio "to move the needle."

Monday.com stock rose 5.2%, while Smartsheet shares were down slightly.