ASAN - Why This Popular SaaS Stock Might Go Private
Asana (NYSE: ASAN) has potential to go private, but will it? In this clip from "3 Minute Stocks Updates" on Motley Fool Live , recorded on March 30 , Motley Fool contributors Brian Withers and Toby Bordelon speculate whether they think the SaaS company will go private and explain how it could be done.
Brian Withers: You might not know what Asana does, but customers really love this platform. Let me briefly explain it. They do a nice job with this slide in their investor presentation that much of what you do at work is really coordinating other work. Whether it's setting up meetings, communicating, you end up duplicating work for goodness sake. The company estimates that 60% of your time is wasted doing work about work, whereas 40% is really the strategic value-added stuff that really moves the company forward. Asana is focused on making that 60% a lot smaller. The customers have loved it. Here's the growth trajectory over the last number of quarters. You can see the growth down here, 57%, 61%, 72%, most recent quarter, 64% year-over-year growth. That's just absolutely tremendous. Well, before I get to that, the stock has not done that. It has not gone up into the right. You can see it went up for a while. Then, along with other tech stocks, it's really been sold off a lot since about November. Then, you can see even the couple of earnings reports that it has had, it hasn't done anything to turnaround the stock. But I think this is a really great opportunity. When you look at paying customers, you can see the year-over-year growth there in the high 20s, low 30s. Customers spending more than $5,000, it's not much, but that growth is even higher. Then, customer spending more than $50,000 a year, this is really where the rubber hits the road with the company and it is growing at triple-digit rates. I think this bodes well as, once companies get in, they see the value of the platform and then expand to more and more of their organization, which brings the spending up to more over time. So, I think this company has got a lot going for it.
For further details see:
Why This Popular SaaS Stock Might Go Private