Asana (ASAN, Financial) is currently experiencing challenges due to changes in artificial intelligence affecting search engine results. While Monday.com, a competitor, maintains a strong marketing approach, Asana's digital engagement has come under pressure. Citi analyst Steven Enders indicates that these AI-driven shifts may be impacting Asana's performance. Although Monday.com shows stable growth potential with its marketing efforts, Asana faces hurdles in retaining its digital presence.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Asana Inc (ASAN, Financial) is $16.47 with a high estimate of $22.00 and a low estimate of $10.00. The average target implies an upside of 23.96% from the current price of $13.29. More detailed estimate data can be found on the Asana Inc (ASAN) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Asana Inc's (ASAN, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Asana Inc (ASAN, Financial) in one year is $21.87, suggesting a upside of 64.56% from the current price of $13.29. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Asana Inc (ASAN) Summary page.
ASAN Key Business Developments
Release Date: June 03, 2025
- Total Revenue: $187.3 million, up 9% year-over-year.
- Non-GAAP Operating Margin: Improved by more than 1,300 basis points year-over-year, reaching 4%.
- Adjusted Free Cash Flow Margin: Improved by more than 700 basis points year-over-year, reaching 5%.
- Core Customers: 24,297 customers spending $5,000 or more annually, with revenue growth of 10% year-over-year.
- Customers Spending $100,000 or More: 728 customers, growing 20% year-over-year.
- Gross Margin: Approximately 90%.
- Net Income: $12 million or $0.05 per share.
- Cash and Cash Equivalents: Approximately $470.8 million.
- Share Repurchase: $15.6 million of Class A common stock repurchased.
- Q2 Revenue Guidance: $192 million to $194 million, representing 7% to 8% growth year-over-year.
- Full Year Revenue Guidance: $775 million to $790 million, representing 7% to 9% growth year-over-year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Asana Inc (ASAN, Financial) achieved non-GAAP profitability for the first time in Q1 fiscal year 2026, marking a significant milestone.
- AI Studio reached general availability and surpassed $1 million in ARR, demonstrating strong early momentum.
- Total revenues increased by 9% year-over-year, exceeding the top end of guidance.
- Non-tech verticals grew faster than overall growth, with manufacturing, energy, media, entertainment, and financial services showing strong performance.
- A landmark $100 million-plus contract renewal with one of the largest employers in the world highlights Asana's enterprise capabilities.
Negative Points
- The $100 million-plus renewal, while significant, resulted in a modest ACV downgrade, impacting net retention rates.
- There is increased buyer scrutiny and elongation in decision-making processes, particularly in enterprise and tech verticals.
- Net retention rate (NRR) is expected to be pressured in Q2 due to downgrade pressures in enterprise and middle market segments.
- The macroeconomic environment presents risks, with potential for elongated sales cycles and increased budget scrutiny.
- Despite strong new business momentum, downgrade pressures and macroeconomic risks may limit the reflection of growth in overall revenue.
