ASAN - Why Asana Shares Crashed Last Month
Shares of Asana (NYSE: ASAN) fell 28.3% in December, according to data from S&P Global Market Intelligence . The maker of cloud-based work management and team collaboration tools posted strong third-quarter results early in the month, but the stock was priced for absolute perfection at the time. The resulting market correction was swift and sharp.
Asana's third-quarter sales rose 70% year over year to $100.3 million, exceeding the top end of management's guidance range by $6.3 million. Adjusted net losses decreased from $0.34 to $0.23 per share. Here, guidance had pointed to a net loss of at least $0.26 per share. Your average Wall Street analyst would have settled for a net loss of $0.26 per share on top-line revenue near $93.7 million.
The company fired on all cylinders in the third quarter. Asana's robust sales growth included revenue doubling in the crucial category of deals worth more than $5,000 per year. Customers renewing their agreements tended to grow the number of licenses and include more tools in their renegotiated deals.
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Why Asana Shares Crashed Last Month