Asana (ASAN) Q2 Earnings: What To Expect

Work management software maker Asana (NYSE: ASAN) will be reporting results tomorrow after the bell. Here’s what you need to know.

Asana beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $172.4 million, up 13.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ billings estimates but underwhelming revenue guidance for the next quarter. It added 516 enterprise customers paying more than $5,000 annually to reach a total of 22,162.

Is Asana a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Asana’s revenue to grow 9.4% year on year to $177.7 million, slowing from the 20.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Asana has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.6% on average.

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. Monday.com delivered year-on-year revenue growth of 34.4%, beating analysts’ expectations by 3%, and Atlassian reported revenues up 20.5%, in line with consensus estimates. Monday.com traded up 16.1% following the results while Atlassian was down 17.1%.

Read our full analysis of Monday.com’s results here and Atlassian’s results here.

There has been positive sentiment among investors in the productivity software segment, with share prices up 10.2% on average over the last month. Asana is up 12.5% during the same time and is heading into earnings with an average analyst price target of $16.6 (compared to the current share price of $14.25).

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