What to look for in ASAN

Work management software maker Asana (NYSE: ASAN) will report earnings tomorrow after market hours. Here’s what to expect.

Asana beat analyst revenue expectations by 1.9% last quarter, reporting revenue of $171.1 million, up 13.9% year-over-year. It was a solid quarter for the company, with impressive growth in analyst estimates for accruals and a decent performance in analyst estimates for ARR (annual recurring revenue). Added 300 enterprise customers paying more than $5,000 per year, bringing the total to 21,646 customers.

Is the purchase or sale of Asana included in earnings? Read our full analysis here, it’s free.

Analysts expect Asana’s revenue this quarter to grow 10.7% year-over-year to $168.8 million, a slowdown from the 26.3% growth reported in the same quarter last year. Adjusted loss is expected to be -$0.08 per share.

Most analysts covering the company have reaffirmed their estimates over the last 30 days, suggesting they expect the company to remain on track towards earnings. Asana has a history of exceeding Wall Street expectations, beating revenue estimates by an average of 3% each time over the past two years.

Looking at Asana’s competitors in the productivity software space, some have already reported first-quarter results, which gives us a hint of what to expect. Atlassian reported year-over-year revenue growth of 29.9%, beating analyst expectations by 8.1%, and Monday.com reported revenue growth of 33.7%, beating estimates by 3%. Following the results, Atlassian’s price fell 9.5%, while Monday.com rose 25.8%.

Read our full analysis of Atlassian’s results here and Monday.com’s results here.

Investors in the productivity software space have continued to generate profits, with share prices rising an average of 1.3% over the past month. Meanwhile, Asana is down 5.9% and heading toward earnings, with an average analyst price target of $19.4 (versus the current share price of $14).

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