ASAN - Asana stock drops ~11% as analysts raise concerns over cash burn margin profile

Asana (NYSE:ASAN) shares have dropped ~11% after the software company announced its first-quarter results that failed to impress analysts who raised concerns over its margin profile and continued cash burn. The company generated adj. EPS of -$0.30 on revenue of $120.65M (+57.4% Y/Y), both exceeding Wall Street estimates. Adj. net loss widened from $33.8M in the first quarter of fiscal 2022 to $57.4M. Cash flows from operating activities were -$41.1M (vs. -$7.4M in the prior year quarter), while free cash flow was negative $42.2M (vs. -$7.7M last year). For Q2, the company estimates revenues of $127M to $128M vs. $127.70M consensus and adj. net loss per share of $0.39 to $0.38 vs. -$0.37 consensus.  For fiscal year 2023, Asana (ASAN) expects revenues of $536M to $540M vs. consensus of $538.20M. Analysts responses were mixed on the report, with JPMorgan predicting that "the stock is likely to underperform given its relatively high cash

For further details see:

Asana stock drops ~11% as analysts raise concerns over cash burn, margin profile