Work management software maker Asana (NYSE: ASAN) will be reporting earnings tomorrow afternoon. Here’s what investors should know.
Asana met analysts’ revenue expectations last quarter, reporting revenues of $188.3 million, up 10% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
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 7.6% year on year to $185.5 million, slowing from the 13.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
Analysts covering the company have generally 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 1.7% on average.
Looking at Asana’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monday.com delivered year-on-year revenue growth of 30.1%, beating analysts’ expectations by 2.3%, and Atlassian reported revenues up 14.1%, in line with consensus estimates. Monday.com traded up 4.5% following the results while Atlassian was down 8.9%.
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 7.6% on average over the last month. Asana is up 11.6% during the same time and is heading into earnings with an average analyst price target of $15.38 (compared to the current share price of $17.91).
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