Asana (ASAN) shares jumped over 24% to $19.24 in early trading after the software maker reported its third-quarter earnings and revenue, beating analysts’ expectations. The company’s adjusted profit was 2 cents per share, compared to a 4-cent loss in the same quarter last year.
Revenue rose 10% to $183.9 million, topping estimates of $180.6 million. Asana forecast revenue for the next quarter of $188 million, slightly above analyst expectations of $187.8 million.
The company’s work management platform has helped it gain ground on rivals like Smartsheet (SMAR). Despite a 2024 stock price decline of 18%, Asana currently holds an IBD Relative Strength Rating of 56 out of 99, indicating a strong market position.
Analysts at RBC Capital praised the results, saying they represented “a better-than-feared quarter against a low bar.” However, they noted that billings missed expectations and monetization for Asana’s new AI Studio product remains uncertain.
Source: https://www.investors.com/news/technology/asana-stock-asana-earnings-q32024