Key takeout
Asana (Asan) shares fell 12% in pre-market trading on Wednesday, a day after the job management software maker warned that its net retention could be hit in the second quarter.
After the bell on Tuesday, the company reported earnings per share increased to $0.05, revenue of $0.05, just above the visible Alpha Consensus, up 9% year-on-year.
Asana’s first quarter net retention (NRR) was 95%, while analysts were looking for 96%.
CFO Sonalee Parekh said in a revenue call on Tuesday that he expects Q2 NRR to be “pressed” especially in the verticals of our company and mid-market segments and technology.
CFO says nrr’ will remain headwind soon
Parekh said he is confident that Asana will improve its NRR in the long term, but in the near future, “it remains a headwind, and will gain strong new business momentum and scaling contributions from add-ons, and the channels are not much reflected in overall revenue growth.”
COO Anne Raimondi said the company is “starting to increase buyer scrutiny and growth in decisions related to broader integration or software stack transformation efforts.”
This quarter was Asana’s first adjusted operating margin, with the company increasing its metric’s full-year forecast to 5.5%, up from the previous 5%.
Asana’s shares fell roughly 6% a year, nearly recovering from the drop that followed last quarter’s report, the company announced that co-founder CEO Dustin Moskovitz would resign as soon as a new CEO is appointed. Asana said Moskovitz plans to continue as chairman of the board and hold shares.
