Asana shares are losing ground in late trading Thursday even after the workflow management posted better-than-projected results for its fiscal third quarter ended Oct. 31.
As one of the most pricey software stocks, the bar for Asana’s results is high.
For the quarter, Asana (ticker: ASAN) posted revenue of $100.3 million up 70%, and ahead of the company’s guidance range of $93 million to $94 million. On a non-GAAP basis, the company lost 23 cents a share in the quarter, narrower than the company’s forecast for a loss of 26 to 27 cents a share. The company’s non-GAAP operating loss of $41.3 million was smaller than the company’s forecast for a loss of $47 million to $49 million.
Asana said it added more than 7,000 customers in the quarter, boosting the total to over 114,000. The number of customers spending more than $5,000 a year was up 58%, to 14,143, while the number spending more than $50,000 a year increased 132%, to 739.
“Q3 was another strong quarter, led by record user adoption and large enterprise wins,” CEO Dustin Moskovitz said in a statement. “We are excited to be announcing that we exceeded two million paid seats and we are landing bigger with larger customers and expanding significantly across our customer base. With some of the most valuable companies in the world deploying Asana to manage initiatives across entire divisions, Asana exemplifies what cross-functional work management at scale looks like.”
For the fiscal fourth quarter ending Jan. 31, Asana sees revenue of $104.4 million to $105.5 million, ahead of the Street consensus at $98.7 million. Asana sees a non-GAAP operating loss for the quarter of $51 million to $53 million, with a non-GAAP loss per share of 27 to 28 cents a share, which is comparable to the Street consensus forecast for a loss of 27 cents a share.
Asana now expects to post full year revenue of $371 million to $372 million, up 63% to 64%. Previously, the company’s guidance was for revenue of $357 million to $359 million, up 57% to 58%.
Asana shares have come under severe selling pressure, tumbling 36% from Nov. 9 to Thursday’s regular session close. The stock is off another 13.6% in late trading to $78.87. Even with that decline, the stock remains among the most expensive in the cloud computing space, with a valuation of about 39 times current year projected sales.
Write to Eric J. Savitz at [email protected]
