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Asana raises annual revenue outlook after Q2 beat on AI-integration momentum

Asana raises annual revenue outlook after Q2 beat on AI-integration momentum


Overview

  • U.S. work management software firm's fiscal Q2 revenue grew 10%, beating analyst expectations

  • Adjusted EPS for fiscal Q2 beat analyst expectations

  • Company raised full-year revenue and margin guidance, citing AI product momentum


Outlook

  • Asana raises full-year revenue guidance to $858.5 mln-$863.5 mln, up 9% year over year

  • Company sees Q3 revenue of $217 mln-$219 mln, up 8%-9% from a year earlier

  • Asana expects to build consumption- and outcome-based revenue streams alongside seats


Result Drivers

  • CUSTOMER RETENTION - Dollar-based net retention improved in every reported cohort, with overall net retention rate of 97%

  • UPMARKET GROWTH - Accelerating growth in upmarket segment and increased number of large enterprise customers, per CEO Dan Rogers

  • AI PRODUCT ENGAGEMENT - Strong momentum and deeper engagement among customers using AI Studio and AI Teammates, according to CEO Dan Rogers


Company press release: ID:nBwM0SCa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$216.40 mln

$214.12 mln (13 Analysts)

Q2 Adjusted EPS

Beat

$0.10

$0.09 (14 Analysts)

Q2 Loss Per Share

$0.17

Q2 Adjusted Net Income

Beat

$23.80 mln

$20.72 mln (12 Analysts)

Q2 Adjusted operating income

Beat

$21.80 mln

$19.21 mln (13 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy."

  • Wall Street's median 12-month price target for Asana, Inc. is $8.41, about 14.2% below its September 2 closing price of $9.80

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Sept 2 - Snowflake lifts FY27 revenue guidance as AI offerings, core data platform strength boosts results

  • Sept 2 - Snowflake lifts annual revenue forecast on cloud and AI demand, shares soar

  • Sept 2 - C3.ai Q1 revenue slightly beats estimates; bookings jump 73% sequentially


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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