Asana’s Q3 Beat, Raised FY25 Guidance Send Stock Soaring In After-Hours: Retail Mood Buoyant

Asana, Inc. ($ASAN) shares took off in Thursday’s after-hours session after the enterprise work management platform announced better-than-expected results for its fiscal year 2025 third quarter.

San Francisco, California-based Asana reported a non-GAAP loss per share of $0.02, narrower than the year-ago loss of $0.04 and the consensus loss estimate of $0.07.

Third-quarter revenue climbed 10% year-over-year (YoY) to $183.9 million versus the $180.65 million consensus estimate.

Both metrics exceeded the company’s guidance issued in early September.

Sonalee Parekh, Asana's CFO, said, “We delivered a solid quarter with stabilizing revenue growth, improving in-quarter net retention, and expanding with large customers.”

Among the key operational metrics, the number of core customers spending $5,000 or more on an annualized basis rose 11% YoY to 23,609, with revenue from these core customers increasing 11%.

The number of customers spending $100,000 or more on an annualized basis was up 18% to 683.

The overall dollar retention rate was 96%.

Cash flows from operating activities and free cash flow were negative $14.9 million and negative $18.2 million, respectively.

Asana launched the Asana AI Studio during the quarter, a no-code builder that lets any team design any workflow, embed AI agents without code, and deploy the workflow directly where teams are already working in Asana.

Commenting on the product, Dustin Moskovitz said, “While still early, we have seen significant demand, with customers experiencing meaningful productivity gains across their workflows.”

Asana said it is on track to deliver positive free cash flow for the fourth quarter.

For the fourth quarter, the company expects a non-GAAP loss per share of $0.01-$0.02 and revenue of $187.5 million-$188.5 million. According to Yahoo Finance, analysts, on average, expect a loss of $0.02 per share and revenue of $187.81 million.

Asana raised its 2025 non-GAAP loss per share guidance from $0.19-$0.20 to $0.14-$0.15 and revenue guidance from $719 million—$721 million to $723 million—$724 million. Stocktwits data shows expectations of a loss of $0.19 per share and revenue of $720.15 million.

ASAN sentiment December 5, 2024, as of 9:15 pm ET | Source: Stocktwits

Retail sentiment toward Asana stock flipped from ‘bearish’ (32/100) to ‘extremely bullish’ (96/100) on Stocktwits.

Message volume continued to be ‘extremely high.’

Asana shares, which ended Thursday’s regular session down 2.34% at $15.46, climbed 19.02% to $18.40 in the after-hours session. The stock is down about 19% for the year.

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