Overview
Asana Inc. (NYSE:ASAN) saw its shares tumble 14% in after‑hours trading on Thursday after the company released third‑quarter guidance that fell short of analyst expectations, even though it delivered a robust second‑quarter performance.
Second‑Quarter Results
The work‑management software firm reported second‑quarter revenue of $216.4 million, representing a 10% year‑over‑year increase and beating the consensus estimate of $214.15 million. Adjusted earnings per share (EPS) were $0.10, surpassing the analyst forecast of $0.09. The adjusted operating margin expanded by roughly 300 basis points year‑over‑year to 10%.
GAAP operating loss improved to $41.2 million, equal to 19% of revenue, compared with a loss of $49.5 million (25% of revenue) in the same quarter last year.
Customer Metrics
The company’s dollar‑based net retention rate stood at 97% overall, with core customers achieving a 98% retention rate. Customers spending $100,000 or more on an annualized basis grew 16% year‑over‑year to 890, while core customers (those spending $5,000 or more annually) increased 7% year‑over‑year to 26,778.
Third‑Quarter Outlook
For the upcoming third quarter, Asana projected revenue in the range of $217 million to $219 million, with a midpoint of $218 million, which is marginally below the consensus estimate of $218.2 million. Adjusted EPS guidance was set at $0.08, under the consensus expectation of $0.09.
Full‑Year Guidance
For fiscal 2027, Asana raised its full‑year revenue guidance to a range of $858.5 million to $863.5 million, with a midpoint of $861 million, aligning closely with the consensus estimate of $860.9 million. The company maintained its full‑year adjusted EPS outlook at $0.37, matching analyst expectations.
Product Launch
Asana announced the launch of “Agentic Work Management” in the third quarter, which will introduce AI Teammates, AI Studio, and Asana Dash to every paid tier.
Executive Comment
Chief Executive Officer Dan Rogers said, “Our core business continues to strengthen, with improving retention, accelerating growth in our up‑market motion and broad‑based momentum across industries and geographies.”