Asana (ASAN) Q3 Earnings: What To Expect

StockStory
2024-12-04
Asana (ASAN) Q3 Earnings: What To Expect

Work management software maker Asana (NYSE: ASAN) will be reporting earnings tomorrow after the bell. Here’s what investors should know.

Asana beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $179.2 million, up 10.3% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly. It added 786 enterprise customers paying more than $5,000 annually to reach a total of 22,948.

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 8.5% year on year to $180.7 million, slowing from the 17.7% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.

Analysts covering the company have generally 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 2% on average.

Looking at Asana’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Monday.com delivered year-on-year revenue growth of 32.7%, beating analysts’ expectations by 1.9%, and Atlassian reported revenues up 21.5%, topping estimates by 2.8%. Monday.com traded down 19.7% following the results while Atlassian was up 19%.

Read our full analysis of Monday.com’s results here and Atlassian’s results here.

There has been positive sentiment among investors in the productivity software segment, with share prices up 16.8% on average over the last month. Asana is up 19.2% during the same time and is heading into earnings with an average analyst price target of $14.16 (compared to the current share price of $15.50).

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