Asana's Q2 Earnings Beat Marred by Weak Revenue Outlook, Sending Shares Tumbling

Work management software provider Asana Inc. presented a mixed bag of results in its fiscal 2025 second-quarter earnings report, exceeding analysts' expectations on earnings and revenue but falling short on forward-looking guidance. The news sent Asana's shares tumbling nearly 13% in after-hours trading.

Asana reported an adjusted loss of 5 cents per share, surpassing predictions of an 8 cents per share loss. Revenue reached $179.2 million, exceeding the anticipated $177.67 million and representing a 10% year-over-year increase.

Despite these positive results, the company's outlook for the third quarter and full fiscal year disappointed investors. Asana projected an adjusted loss of 7 cents per share on revenue between $180 million to $181 million for the third quarter, missing analyst expectations of a 3 cents loss and $182.29 million in revenue. The full-year forecast followed a similar pattern, with an anticipated loss of 19 to 20 cents per share on revenue between $719 million and $721 million, slightly below analyst projections.

While acknowledging the challenging market conditions, Asana CEO Dustin Moskovitz expressed confidence in the company's strategic direction, stating, "In Q2, Asana continued to execute on our enterprise transition and make significant strides in AI. We’re seeing momentum in key areas, including 17% growth in customers spending over $100,000, success in key verticals and a record number of multi-year deals."

Asana's focus on attracting larger enterprise customers and expanding its AI capabilities is evident. The company recently launched AI Teammates, a suite of AI-powered bots designed to streamline workflows and automate tasks. This move aligns with the broader industry trend of integrating AI into work management tools to boost efficiency and productivity.