Asana, Inc. has announced its third-quarter financial results, revealing key figures that exceeded analysts’ expectations. The report, released after the markets closed on Thursday, detailed a loss of two cents per share, performing better than the anticipated loss of seven cents. The company’s revenue for the quarter reached $183.88 million, surpassing the consensus estimate of $180.66 million and providing a notable increase from $166.5 million during the same period last year.

The company has also reported growth in its Core customer base, defined as those spending $5,000 or more annually. The total number of Core customers rose to 23,609, marking an 11% increase year-over-year. Revenue generated from these Core customers grew at the same rate of 11% compared to the previous year.

In terms of larger spending customers, those contributing $100,000 or more annually increased by 18%, bringing the total to 683. Asana's overall dollar-based net retention rate held steady at 96%, with higher retention rates of 98% for Core customers and 99% for those in the $100,000 category.

Dustin Moskovitz, CEO of Asana, commented on the launch of the company’s new AI Studio, stating, “The launch of AI Studio is the birth of a new category, unlocking a massive Total Addressable Market (TAM) and growth opportunity for the company.” Moskovitz highlighted the significant demand for AI-powered work management solutions, noting that customers have reported meaningful productivity gains across their workflows. He added, “The productivity benefits and early traction not only validate the market demand for AI-powered work management solutions but also underscore Asana’s leadership position in this space.”

Looking forward, Asana provided an outlook for fiscal 2025, projecting adjusted losses of between 15 cents and 14 cents per share. This is an improvement from the estimated loss of 19 cents, with anticipated revenues ranging from $723 million to $724 million, above the estimate of $720.25 million.

Following the release of the report, Asana's shares saw a notable increase of 20.44% in after-hours trading, reaching a price of $18.62. The results and the growth in AI capabilities indicate a strategic direction focusing on emerging technologies, amidst industry forecasts highlighting the potential impacts of automation on business practices.

Source: Noah Wire Services