Work management platform Asana (NYSE: ASAN) will be announcing earnings results this Thursday after market hours. Here’s what investors should know.
Asana beat analysts’ revenue expectations last quarter, reporting revenues of $205.1 million, up 9.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ billings estimates. It added 175 enterprise customers paying more than $5,000 annually to reach a total of 26,103.
Is Asana a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Asana’s revenue to grow 8.8% year on year, slowing from the 9.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Asana has a history of exceeding Wall Street’s expectations.
Looking at Asana’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Atlassian delivered year-on-year revenue growth of 27.6%, beating analysts’ expectations by 6.4%, and monday.com reported revenues up 21.9%, topping estimates by 2.6%. Atlassian traded up 35.3% following the results while monday.com was down 6.1%.
Read our full analysis of Atlassian’s results here and monday.com’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 11.1% on average over the last month. Asana is up 16.8% during the same time and is heading into earnings with an average analyst price target of $9.27 (compared to the current share price of $9.96).
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