Shares of Asana (ASAN -2.14%) were sliding today after the cloud productivity software company posted disappointing guidance in its fiscal 2025 second-quarter earnings report. The stock was down 6.3% as of 1:17 p.m. ET on the news.
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Asana can't break the pandemic curse
Asana stock is still down roughly 90% from its pandemic peak, and the latest round of results shows the company is struggling, with revenue up 10% to $179.2 million, which edged out estimates at $177.7 million.
The company reported 17% growth in customers spending more than $100,000, a possible sign of momentum in high-value customers.
Further down the income statement, its generally accepted accounting principles (GAAP) operating loss expanded from $73.4 million to $76.8 million, showing the company is still struggling to move toward break-even. On the bottom line, Asana reported an adjusted per-share loss of $0.05, which was worse than the loss of $0.04 in the quarter a year ago but better than expectations at a loss of $0.08.
Despite the sell-off, CEO Dustin Moskovitz expressed optimism about the direction of the business, saying, "In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI. We're seeing momentum in key areas, success in key verticals, and a record number of multi-year deals."
What's next for Asana
Despite the optimism, Asana's guidance was disappointing as the company called for revenue of $180 million-$181 million in the third quarter, up 8%-9% and worse than the consensus at $182.3 million.
On the bottom line, it sees an adjusted loss per share of $0.07, compared to estimates at a $0.04 per-share loss. It also lowered its full-year revenue guidance from $719 million-$724 million to $719 million-$721 million, below the consensus of $722.9 million.
Single-digit revenue and consistent adjusted losses aren't a recipe for success on the stock market, and it's not surprising to see Asana stock falling again on an underwhelming earnings update.
