SAN FRANCISCO - Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a prominent work management platform, has reported a narrower-than-expected adjusted net loss for the first quarter of fiscal 2025, alongside a revenue figure that exceeded analyst forecasts.
The company's shares soared 7.6% in response to the positive financial results and optimistic business developments.
For the quarter ended April 30, 2024, Asana announced an adjusted net loss of -$0.06 per share, surpassing the consensus estimate of -$0.08. Revenue grew to $172.4 million, a 13% increase from the same quarter last year and higher than the analyst estimate of $168.73 million. This growth was partly attributed to a 15% year-over-year increase in revenues from customers spending $5,000 or more.
Asana's GAAP operating loss showed improvement, coming in at 38% of revenues compared to 43% in the first quarter of the previous fiscal year. The non-GAAP operating loss was $15.8 million, or 9% of revenues, improving from a non-GAAP operating loss of $22.3 million, or 15% of revenues, in the prior year's first quarter.
The company's financial outlook for the second quarter of fiscal 2025 includes expected revenues of $177.0 million to $178.0 million, representing a 9% to 10% year-over-year growth, and an adjusted operating loss margin of 12% at the midpoint. The projected adjusted net loss per share for Q2 ranges from -$0.09 to -$0.08. For the full fiscal year 2025, Asana anticipates revenues of $719.0 million to $724.0 million, indicating a 10% to 11% year-over-year increase, with an adjusted operating loss margin of 8% at the midpoint, and an adjusted net loss per share of -$0.21 to -$0.19.
Dustin Moskovitz, co-founder and CEO, expressed confidence in Asana's position within the AI work management space, citing the company's ability to provide a platform that aligns work with higher-level objectives. He highlighted the potential for Asana to capture a significant portion of enterprise workflows as traditional software categories evolve.
The company's improved cash flow metrics, with operating cash flow and free cash flow showing year-over-year improvement, further bolstered investor confidence. Asana expects to be free cash flow positive for the full year.
Asana's customer base also expanded, with a 12% year-over-year growth in the number of Core customers, or customers spending $5,000 or more annually, and a 19% increase in customers spending $100,000 or more annually.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.