JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Wednesday, Citizens JMP analysts reiterated their Market Outperform rating for Asana stock (NYSE: ASAN) and maintained a price target of $22, aligning with the broader analyst target range of $10-$23. The stock has shown strong momentum, delivering a 40% return over the past year. This decision follows Asana’s announcement of better-than-expected financial results for the first quarter of fiscal year 2026. According to InvestingPro, 13 analysts have recently revised their earnings estimates upward for the upcoming period.
Asana reported a non-GAAP earnings per share of $0.05, surpassing the consensus estimate of $0.02. The company also achieved its first-ever positive operating margin of 4.3%, a significant improvement from the negative 0.9% margin in the previous quarter. Revenue for the quarter reached $187 million, slightly above the consensus expectation of $186 million, marking a 9% increase year-over-year. The company maintains impressive gross profit margins of 89%, demonstrating strong operational efficiency.
The company’s dollar-based net retention rate was 95%, slightly below the estimated 96% and down from 96% in the previous quarter. Billings amounted to $175 million, falling short of the consensus of $213 million and reflecting a 12% year-over-year decline. The decline in billings and the 11% growth in remaining performance obligations were attributed to a major deal slipping into the second quarter, which, if billed in the first quarter, would have resulted in a 5% growth in billings and a 37% increase in RPO growth.
Despite these challenges, Citizens JMP analysts remain optimistic about Asana’s future performance, maintaining their positive outlook and price target. InvestingPro analysis indicates that Asana is currently trading near its Fair Value, with analysts projecting profitability this year. For deeper insights into Asana’s valuation and growth potential, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Asana Inc (NYSE:ASAN). reported its first quarter 2025 financial results, surpassing earnings and revenue expectations. The company achieved non-GAAP profitability for the first time, with earnings per share of $0.05 against a forecast of $0.02. Revenue reached $187.3 million, slightly above the anticipated $185.5 million, marking a 9% year-over-year increase. Asana also launched AI Studio, contributing to growth in annual recurring revenue, and reported an improvement in non-GAAP operating margin by 1,300 basis points. The company’s core customers, defined as those spending $5,000 or more annually, grew by 10%, while customers spending $100,000 or more annually increased by 20%. Looking ahead, Asana projects full-year revenue between $775 million and $790 million, reflecting growth of 7-9%. The company has also raised its non-GAAP operating margin guidance to at least 5.5%. Analyst firms have taken note of these developments, with Asana’s strategic focus on AI integration being a key highlight in recent discussions.
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