Asana’s revenues jump 72%; labor management company increases sales forecast for full year
For his Next Act in tech, Facebook Inc. co-founder Dustin Moskovitz immersed himself in the realm of work management with startup Asana Inc. over ten years ago.
The bet is paying more and more. Shares of Asana Inc. ASAN,
up 161% this year on the heels of an IPO in late 2020, initially jumped 10% in extended trading on Wednesday before cooling off after the company reported better-than-expected revenue and profits, according analysts’ forecasts. Shares ended the after-hours session up 1.2%.
Asana also raised its forecast for its current quarter and appointed a new COO, Anne Raimondi, a technology veteran from Zendesk Inc. ZEN,
TaskRabbit and SurveyMonkey, now known as Momentive Global Inc. MNTV,
“Our mission of monitoring who’s doing what, when and why paid off across the company during the quarter,” said Moskovitz, Facebook FB co-founder,
with her Harvard University roommate, Mark Zuckerberg, told MarketWatch. “The pandemic seems to have accelerated the trend among businesses. “
Asana reported a net loss of $ 68.4 million, or 40 cents per share, compared to a net loss of $ 41.1 million, or 54 cents per share, in the quarter last year. The company’s adjusted net loss was $ 39.8 million, or 23 cents per share.
Revenue jumped 72% to $ 89.5 million from $ 52 million a year ago.
Analysts polled by FactSet expected a net loss of 26 cents per share on revenue of $ 82.3 million.
New customer additions were found to be significant in the second quarter, allowing revenues for customers spending over $ 5,000 to increase 97% year-over-year. As a result, Asana raised its revenue growth forecast for the entire year to between $ 357 million and $ 359 million. FactSet analysts are forecasting $ 339 million.
Asana creates workplace collaboration and scheduling software designed to help employee teams orchestrate work to achieve their goals smoothly and efficiently. The company’s software helps coordinate workflows and increase productivity through what it calls the three Cs: content, communication, and coordination. Asana’s intention is to improve the first two, causing the whole to become greater than the sum of its parts.
The company couldn’t be more different in its market than Moskovitz’s previous creation, Facebook. Despite following the social media giant closely, Moskovitz declined to comment on his current status and to argue with federal regulators.
“I’m a curious observer, but running Asana is my full-time occupation,” Moskovitz said. “I leave that [antitrust] tips for the experts.