By Senad Karaahmetovic
Shares of Asana (NYSE:ASAN) are down almost 18% after the company reported mixed results and cut its full-year forecast.
Asana reported an adjusted Q3 loss per share of $0.26 on revenue of $141.4 million, topping estimates for a loss of $0.33 on revenue of $139.0M. For this quarter, Asana said it expects to generate revenue between $144M and $146M, missing the $151.1M consensus. The adjusted loss per share is seen at $0.28-0.27, again worse than the expected loss of $0.29 per share.
On a full-year basis, Asana lowered its forecast to a range of $541-543M from $544-547M and below the 545.6M guidance. The outlook for an adjusted loss per share ranges between $1.15 and $1.14, much worse than the estimated loss per share of $1.25.
In response to "mixed" results and a guide down, analysts at Piper Sandler and Baird lowered their ratings on the ASAN stock. Piper Sandler analysts slashed the rating to Neutral from Overweight with a $16 per share price target (down from $24), citing limited visibility.
"ASAN appears to be entering a potential 6-9 month digestion period as tech unicorns and digital natives pause faster than it can diversify into non-tech verticals. Slowing growth, payment timing shifts at large enterprise customers, and high-cost structure could elevate quarterly cash burn volatility even after the restructuring. That said, we plan to closely monitor how quickly ASAN can diversify the customer base while improving bottom-line efficiency," they said in a client note.
JMP analysts cut the price target to $28 per share (from $43) to reflect lowered guidance. Still, they reiterated a Market Outperform rating and continue "to like this idea into 2023 for a number of reasons."
Asana shares were down over 75% year-to-date going into earnings.