ASAN - Why Asana Shares Crashed Today
Shares of Asana (NYSE: ASAN) crashed hard on Thursday, following Wednesday evening's release of fourth-quarter results. The stock bottomed out at a 27.5% decline just before noon ET, recovering to a 23.5% drop as of 3 p.m. ET.
The reported results were actually quite decent. Top-line revenue rose 64% year over year to $112 million while adjusted net losses increased from $0.22 to $0.25 per share. Your average Wall Street analyst would have settled for sales near $105 million and a net loss of $0.28 per share. The maker of cloud-based project management tools also issued bullish guidance targets for the next quarter and fiscal year.
However, many investors expected even more. Asana's top-line result landed 6.4% above the analyst consensus, and that was the smallest margin of surprise in the company's publicly traded history. For example, Asana exceeded revenue expectations by 7% in the third quarter and 8.7% in the second quarter. While the pace of growth remains impressive, it's also slowing down to a meaningful degree. Wall Street responded with a plethora of downgrades and slashed price targets.
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Why Asana Shares Crashed Today