ASAN Stock: Asana Reports Narrower Loss, CEO Says He Will Buy Up To 30 Million Shares

Asana (ASAN) stock popped on a narrower-than-expected fourth-quarter loss while the software maker’s revenue topped expectations. Asana’s chief executive, Dustin Moskovitz, announced plans to buy up to 30 million shares of ASAN stock during the earnings call with analysts.

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The company reported January-quarter results after the market close on Wednesday. ASAN stock jumped 17.1% to 20.84 in premarket trading on the stock market today.

“ASAN rebounded and beat billings expectations with 28.5% growth vs. 21% consensus,” Jefferies analyst Brent Thill said in a report.

He added: “After two quarters of misses, results were a step in the right direction amidst macro headwinds. But 2024 revenue guide of 18% growth (vs. 45% in fiscal 2023) implies pressure hasn’t dissipated. CEO buoyed shares with announcement he could repurchase up to 30 million shares, starting Jun 8.”

ASAN Stock: Sales Guidance Meets Views

In the Asana earnings report for the quarter ending Jan. 31, the company lost 15 cents per share. A year earlier, Asana lost 25 cents per share. Analysts had predicted a loss of 27 cents per share.

Revenue rose 34% to $150.2 million, topping views of $145.2 million.

For the quarter ending in April, Asana forecast revenue of $150.5 million vs. analyst estimates of $149.7 million.

ASAN stock had climbed 29% in 2023 but was down 63% from a year earlier.

Asana’s work management platform that helps users orchestrate work, from daily tasks to cross-functional strategic initiatives. Rivals include Smartsheet (SMAR). Smartsheet reports earnings on March 14.

Heading into the Asana earnings report, the software stock owned an IBD Relative Strength Rating of 35 out of a best-possible 99.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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