Asana Inc. (ASAN) is having a rough evening. The work management software company reported its fiscal second-quarter results Thursday, and while the numbers beat expectations, the outlook for the current quarter left investors wanting more. Shares were down 12.78% in after-hours trading, sitting at $8.80 at the time of publication.
Let's dig into the numbers. Asana reported second-quarter revenue of $216.43 million, edging past analyst estimates of $214.12 million. On the earnings front, the company posted adjusted earnings of 10 cents per share, beating the expected nine cents. So far, so good.
CEO Dan Rogers struck an optimistic tone, saying, "Our core business continues to strengthen, with improving retention, accelerating growth in our upmarket motion and broad-based momentum across industries and geographies."
The trouble came with guidance. For the third quarter, Asana expects revenue between $217 million and $219 million, which brackets the $218.16 million analysts were looking for. But the adjusted earnings forecast of eight cents per share falls short of the nine cents consensus. That's the kind of miss that spooks the market, even if revenue looks fine.
For the full year, Asana raised its revenue guidance to a range of $858.5 million to $863.5 million, versus estimates of $860.90 million. The company also reaffirmed its full-year adjusted earnings outlook of 37 cents per share, which matches expectations.
So, the story here is a classic one: beat now, guide lower later. Investors are voting with their sell orders, at least for the moment. Whether this is an overreaction or a sign of things to come remains to be seen, but for now, Asana's after-hours slide tells you everything you need to know about market sentiment.
