Q4 2024 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$18.79Last close (Mar 11, 2024)
Post-Earnings Price$18.44Open (Mar 12, 2024)
Price Change
$-0.35(-1.86%)
- Asana is observing stabilization and growth in non-tech sectors, with non-tech ARR growing in the high teens, indicating diversification and potential for overall growth acceleration.
- The launch of Asana Intelligence (AI features) is expected to differentiate the product and drive growth, alongside increased sales capacity and normalizing net retention rates.
- Management is committed to achieving free cash flow positive by the end of the year while reaccelerating growth, demonstrating strong operational focus and improved business fundamentals.
- Asana's revenue growth is decelerating, with Q1 fiscal 2025 revenue guidance of 10-11% year-over-year growth, down from 14% in Q4 fiscal 2024 and 19% for the full fiscal year 2024, indicating slowing momentum and ongoing macroeconomic headwinds.
- The company is experiencing lower dollar-based net retention rates, hovering around 100% through Q2 fiscal 2025, mainly driven by customers reducing spend due to seat adjustments, particularly in the technology sector, which impacts growth from existing customers.
- Future operating margin improvements are expected to be modest compared to the significant progress made in the prior year, suggesting limited potential for further cost efficiencies to drive profitability enhancements.
Research analysts covering Asana.