Work management platform Asana (NYSE: ASAN) will be reporting earnings this Wednesday after market close. Here’s what you need to know.
Asana beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $187.3 million, up 8.6% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Asana a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Asana’s revenue to grow 7.7% year on year to $193.1 million, slowing from the 10.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Asana has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.6% on average.
Looking at Asana’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. monday.com delivered year-on-year revenue growth of 26.6%, beating analysts’ expectations by 1.8%, and Atlassian reported revenues up 22.3%, topping estimates by 2.1%. monday.com traded down 30.6% following the results while Atlassian was also down 1.5%.
Read our full analysis of monday.com’s results here and Atlassian’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 3.2% on average over the last month. Asana is up 1.7% during the same time and is heading into earnings with an average analyst price target of $16.38 (compared to the current share price of $14.60).
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