Asana (ASAN) Stock: Why The Price Dropped Today

By Amit Chowdhry ● Dec 3, 2021
  • The stock price of Asana, Inc. (NYSE: ASAN) fell by over 14% pre-market today. This is why it happened.

The stock price of Asana, Inc. (NYSE: ASAN) fell by over 14% pre-market today. Investors are responding negatively to the company’s third-quarter fiscal 2022 results.

Q3 Fiscal 2022 Financial Highlights

— Revenues were $100.3 million, an increase of 70% year over year.

— GAAP operating loss was $68.1 million, or 68% of revenues, compared to GAAP operating loss of $61.9 million, or 105% of revenues, in the third quarter of fiscal 2021. Non-GAAP operating loss was $41.3 million, or 41% of revenues, compared to a non-GAAP operating loss of $37.3 million, or 63% of revenues, in the third quarter of fiscal 2021.

— GAAP net loss was $69.3 million, compared to GAAP net loss of $73.3 million in the third quarter of fiscal 2021. GAAP net loss per share was $0.37, compared to GAAP net loss per share of $0.65 in the third quarter of fiscal 2021. Non-GAAP net loss was $42.5 million, compared to a non-GAAP net loss of $38.3 million in the third quarter of fiscal 2021. Non-GAAP net loss per share was $0.23, compared to non-GAAP net loss per share of $0.34 in the third quarter of fiscal 2021.

— Cash flows from operating activities were negative $28.5 million, compared to negative $34.4 million in the third quarter of fiscal 2021. Free cash flow was negative $29.5 million, compared to negative $19.5 million in the third quarter of fiscal 2021.

Financial Outlook

For the fourth quarter of fiscal 2022, Asana expects:

— Revenues of $104.5 million to $105.5 million, representing year over year growth of 53% to 54%.

— Non-GAAP operating loss of $53.0 million to $51.0 million.

— Non-GAAP net loss per share of $0.28 to $0.27, assuming basic and diluted weighted average shares outstanding of approximately 187 million.

For the fiscal year 2022, Asana expects:

— Revenues of $371.0 million to $372.0 million, representing year over year growth of 63% to 64%.

— Non-GAAP operating loss of $166.0 million to $164.0 million.

— Non-GAAP net loss per share of $0.96 to $0.95, assuming basic and diluted weighted average shares outstanding of approximately 176 million.

KEY QUOTE:

“Q3 was another strong quarter, led by record user adoption and large enterprise wins. We are excited to be announcing that we exceeded two million paid seats and we are landing bigger with larger customers and expanding significantly across our customer base. With some of the most valuable companies in the world deploying Asana to manage initiatives across entire divisions, Asana exemplifies what cross-functional work management at scale looks like.”

— Dustin Moskovitz, co-founder and chief executive officer of Asana

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.