By Dhirendra Tripathi
Investing.com – Asana, Inc. (NYSE:ASAN) stock was trading 24% lower in premarket Thursday with almost a fourth of its value erased after the company projected a slower growth in the ongoing year.
The company had a solid two-year growth when its software supporting corporate teams’ collaboration and organization proved to be a big hit in the pandemic.
Asana expects revenue of no more than $531 million in the current fiscal year, up 40% after it rose 67% in 2022.
The muted outlook comes in even as the company outperformed expectations in the fourth quarter. It closed January with over 119,000 paying customers.
The number of customers spending $5,000 or more on an annualized basis in the quarter grew 52% to 15,437. Revenue from these customers grew 82% year-over-year in the quarter.
Asana was founded in 2008 by Facebook co-founder Dustin Aaron Moskovitz and former Google and Facebook engineer Justin Rosenstein. It was listed on NYSE in September 2020. It counts Amazon (NASDAQ:AMZN), Affirm Holdings, Inc. (NASDAQ:AFRM), and Sky as customers relying on it to manage digital transformation, product launches, and marketing campaigns.
Revenue in the fourth quarter climbed 64% to $112 million. Adjusted loss per share widened by 3 cents to 25 cents. A jump in operating expenses and a much higher interest income last time offset the rise in revenue.
In the current quarter, the company is expecting revenue to be $115 million at the center of its guidance range, up 50%. Adjusted loss per share is seen between 36 cents and 35 cents.
It launched Asana Flow in February -- a suite of offerings to help teams build start-to-finish workflows and enable individuals to prioritize work with an intelligent Home interface.