Asana tumbles after Q3 outlook disappoints, FY guidance reduced, CFO change

RingCentral

04/09/2024 14:27

** Asana's  ASAN.N  shares tumble 14.4% premarket to $11.37
after office-management software firm's current-qtr results
missed consensus, co trimmed high-end of FY guidance and named
new CFO  
    ** For Q3, co late Tues said sees rev of $180-$181 mln and
adj loss of 7 cents/sh. Wall Street expected rev of $182.3 mln
and loss of 4 cents/sh, per LSEG data
    ** For fiscal 2025, co forecasted rev of $719-$721 mln and
adj loss of 19-20 cents/sh vs prior guidance of $719-$724 mln
and loss of 19-21 cents/sh
    ** Q2 rev rose 10% yr/yr to $179.2 mln and co posted adj
loss of 5 cents/sh, both topping analysts' estimates
    ** Co appointed Sonalee Parekh, most recently CFO of
RingCentral  RNG.N , as its finance chief effective Sept 11,
succeeding Tim Wan
    ** Piper Sandler cut its PT by $2 to $12, pointing to
continual growth headwinds, slower top-line reacceleration,
adding that CFO transition adds another element of risk
    ** Several other brokerages also reduced their PTs,
including Citi, Baird and Oppenheimer
    ** Avg rating among 17 brokerages covering ASAN is "hold"
and median PT is $14 - LSEG
    ** Through Tues close, ASAN shares had fallen 30% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))