ASANA Reports 20.4% YoY Revenue Growth in Q2 FY2024 with USD 162.5M Earnings
September 7, 2023
☀️Earnings Overview
On July 31 2023, ASANA ($NYSE:ASAN) announced their second quarter FY2024 earnings results, with total revenue of USD 162.5 million – a 20.4% year-over-year increase. Net income for the quarter came in at USD -71.4 million, a decrease from the prior year’s -113.0 million.
Analysis
GoodWhale conducted an analysis of ASANA‘s well-being using the Star Chart, which is a useful framework to measure the performance of a company. According to the Star Chart, ASANA is strong in growth, medium in asset and weak in dividend, profitability. This type of company may be attractive to investors who are looking for companies with high growth potential but are also aware of the risks associated with low profitability. Additionally, ASANA has an intermediate health score of 6/10 with regard to its cashflows and debt, which implies that it is likely to sustain future operations in times of crisis. This could be appealing to investors who are interested in companies with strong fundamentals but don’t want to take too much risk. Therefore, ASANA may be attractive to investors looking for a combination of potential growth and strength in fundamentals. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Asana. More…
| Total Revenues | Net Income | Net Margin |
| 606.54 | -328.81 | -54.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Asana. More…
| Operations | Investing | Financing |
| -71.64 | -46.89 | 380.01 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Asana. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 956.41 | 622.15 | 1.52 |
Key Ratios Snapshot
Some of the financial key ratios for Asana are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 49.6% | – | -52.9% |
| FCF Margin | ROE | ROA |
| -14.1% | -58.7% | -21.0% |
Peers
Asana Inc is a company that provides a cloud-based work management application. It has a lot of features that allow users to manage their work and projects. However, it faces stiff competition from Monday.Com Ltd, Salesforce Inc, Microsoft Corp, and other companies.
– Monday.Com Ltd ($NASDAQ:MNDY)
The company’s market cap is 4.23B as of 2022. The company’s ROE is -16.76%. The company is a provider of online travel services. The company offers a variety of travel-related services, including air tickets, hotel reservations, car rentals, and vacation packages.
– Salesforce Inc ($NYSE:CRM)
Salesforce Inc is a cloud-based software company that offers customer relationship management (CRM) and enterprise software solutions. The company has a market capitalization of 147.18 billion as of 2022 and a return on equity of 0.08%. Salesforce was founded in 1999 and is headquartered in San Francisco, California. The company offers its CRM software to businesses of all sizes, from small businesses to large enterprises. Salesforce’s CRM software helps businesses manage customer data, sales processes, marketing campaigns, and other customer-related information. The company’s enterprise software solutions include Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, and App Cloud. Salesforce also offers a variety of other software products and services, such as social media management, customer service, and analytics.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of $1.77 trillion as of April 2021. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. The company also publishes books, video games, and, in 2020, launched the Microsoft Cloud TV platform.
Microsoft’s market cap is $1.77 trillion as of April 2021. The company has a Return on Equity of 45.3%. Microsoft is a technology company that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services.
Summary
Investing in ASANA is a good prospect, especially given its second quarter earnings for FY2024. The company reported total revenue of USD 162.5 million, a 20.4% increase from the previous year. Net income for the same period was USD -71.4 million, which is a decrease from the previous year of -113.0 million.
This shows that although revenues are increasing, the company is still in a state of financial losses. Investors should consider the current market conditions and potential future growth to make a decision on investing in this company.
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