2024-03-15 13:01:11 ET
Summary
- Asana's recent earnings results led to a stock sell-off, but the work management space is still a nascent market with potential for revenue growth.
- The company is successfully improving profitability and has a high gross margin of 90.1%, indicating potential for leverage as revenue scales.
- Despite a slowdown in growth, Asana's valuation at just 5x P/S is favorable for patient investors, and the stock could deliver double-digit returns over time.
- If Asana succeeds in reaccelerating revenue in H2, then investors could benefit from both the increase in revenue/growth and the higher valuation that might result in.
Investment Thesis
Asana ( ASAN ) sold off after its recent earnings results based on tepid FY guidance, which calls for a further slowdown. Nevertheless, the work management space remains a relatively nascent market opportunity, and the company has the explicit goal to reaccelerate revenue this year. Meanwhile, the company is successfully executing on improving its profitability....
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Asana Remains A Solid Long-Term Investment