Company Reports

We lower our fair value estimate for no-moat Asana to $16 per share from $18 following mixed second-quarter fiscal 2025 results. Top-line growth for the quarter came in line with our above-guidance forecasts, and profitability surprised to the upside. However, the firm’s near-term guidance disappointed amid elevated customer budget scrutiny and elongated sales cycles delaying deal execution. Accordingly, we have trimmed our forecasts to factor in more muted top-line growth, driving our fair value estimate cut. Nonetheless, following a sharp 13% fall in after-hours trading, Asana shares continue to screen as attractive on a risk-adjusted basis, and we believe the firm has a long runway for growth in the nascent work management software market.

Asana is a leading provider of collaborative work management, or CWM, SaaS solutions. The emerging niche within SaaS aims to improve the efficiency and productivity of project and process management by displacing widely deployed but suboptimal incumbent tools of email and spreadsheets. Asana’s platform allows nontechnical users to configure, automate, and visualize custom workflows, dynamically assign tasks, manage resourcing, and utilize centralized dashboards for real time visibility and accountability. The platform leverages integrations with adjacent business applications and productivity tools to streamline workflows and centralize data.

We maintain our $18 fair value estimate for no-moat Asana following the release of robust first-quarter fiscal 2025 results with top-line growth and profitability surpassing our above-guidance expectations. Following the release, we have tweaked our near-term forecasts on updated guidance, which is immaterial to our valuation. Asana shares jumped 8% after hours yet continue to screen as undervalued on a risk-adjusted basis relative to our unchanged fair value estimate.

No-moat Asana reported mixed fourth-quarter and full-year fiscal 2024 results that marginally exceeded our topline and profitability expectations. The firm's performance throughout the year was hindered by challenging macroeconomic conditions, elevated budget scrutiny and workforce reductions, amplified by the firm's exposure to the technology sector and SMB customers. Together this cumulated in weak seat expansion as illustrated by dollar-based net retention deteriorating to 100% at year-end, from 115% in the prior corresponding period, and top-line growth more than halving relative to the prior year. Following the result, we maintain our longer-term forecasts but raise our fair value estimate to $18 from $17.50 on time value of money. At current prices, Asana shares screen as fairly valued on a risk-adjusted basis.

Asana is a leading provider of collaborative work management, or CWM, SaaS solutions. The emerging niche within SaaS aims to improve the efficiency and productivity of project and process management by displacing widely deployed but suboptimal incumbent tools of email and spreadsheets. Asana’s platform allows nontechnical users to configure, automate, and visualize custom workflows, dynamically assign tasks, manage resourcing, and utilize centralized dashboards for real time visibility and accountability. The platform leverages integrations with adjacent business applications and productivity tools to streamline workflows and centralize data.

We launch coverage of Asana with a $17.50 fair value estimate and no-moat rating. Asana is a leading provider of collaborative work management, or CWM, SaaS solutions. The emerging niche within SaaS aims to improve the efficiency and productivity of project and process management by displacing widely deployed but suboptimal incumbent tools of email and spreadsheets. At current prices, Asana shares screen as fairly valued relative to our valuation.

Asana is a leading provider of collaborative work management, or CWM, SaaS solutions. The emerging niche within SaaS aims to improve the efficiency and productivity of project and process management by displacing widely deployed but suboptimal incumbent tools of email and spreadsheets. Asana’s platform allows nontechnical users to configure, automate, and visualize custom workflows, dynamically assign tasks, manage resourcing, and utilize centralized dashboards for real time visibility and accountability. The platform leverages integrations with adjacent business applications and productivity tools to streamline workflows and centralize data.