Shares in Asana Inc. fell nearly 13% in late trading today after the work management software company reported earnings and revenue beats in its fiscal second quarter but fell short of expectations on revenue outlook for its third quarter and full fiscal year.
For the quarter ended July 31, Asana reported an adjusted earnings per share loss of five cents per share, up from a four-cent-per-share loss in the same quarter of the previous year, on revenue of $179.2 million, up 10% year-over-year. Both were beats, as analysts had expected to see a loss of eight cents per share on revenue of $177.67 million.
Through the quarter, the number of customers spending $5,000 or more annually on Asana grew 10% from a year ago, to 22,948, and customers spending $100,000 or more annually rose 17%, to 649. Cash flow from activities in the quarter came in at $15.9 million and Asana ended the quarter with $219.4 million in cash and cash equivalents on hand.
Business highlights in the quarter included the June launch of AI Teammates, a suite of generative artificial intelligence-enabled bots that can advise workers on priorities, generate workflows and automatically complete complex tasks on demand, taking the burden of mundane drudgery out of the hands of employees. The AI Teammates service can also adapt to the unique needs of employees and teams based on work context.
“In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI,” Dustin Moskovitz, co-founder and chief executive of Asana, said in the company’s earnings release, citing momentum in key areas such and a record number of multiyear deals.
For its third quarter, Asana expects adjusted earnings of seven cents per share, revenue of $180 million to $181 million. Both fell short of the three-cent-per-share loss and revenue of $182.29 million expected by analysts.
For the full fiscal year, the company expects to see adjusted loss of 19 to 20 cents per share on revenue of $719 million to $721 million. Analysts had expected a loss of 20 cents per share on revenue of $722.85 million.