According to a recent market report, the global the global Enterprise Collaboration Market is estimated to grow from $47.2 billion in 2021 to $85.8 billion by 2026, translating to an annualized growth rate of over 12%. The current remote working conditions have accelerated the need for cloud-based collaborative services. Work management platform Asana recently reported results that beat estimates.
For the first quarter of fiscal 2022, Asana reported revenue of $76.7 million, up 61%. GAAP net loss was $60.7 million, compared to GAAP net loss of $35.8 million a year ago. Non-GAAP net loss per share was $0.21, compared to non-GAAP net loss per share of $0.31 a year ago. The market was looking for revenues of $70.1 million with an adjusted loss of $0.28 per share.
It ended the quarter with over 100,000 paying customers. The number of customers spending $5,000 or more on an annualized basis grew to 11,272, an increase of 53%. The number of customers spending $50,000 or more on an annualized basis grew to 485, an increase of 92%.
For the second quarter of fiscal 2022, the company expects revenues of $81 million to $83 million, or growth of 56% to 60%. Non-GAAP net loss per share is expected to be $0.27 to $0.26.
For the full fiscal year 2022, Asana expects revenues of $336 million to $340 million, or a growth of 48% to 50%.
Asana’s Expanding Offerings
The pandemic has fueled the need for solutions that ensure that employees and their leaders are productive from wherever they are working. Asana has released a slew of products that focus on ensuring these capabilities. Recently, it announced a new suite of features that will eliminate work distractions and help employees find their focus. The solution will allow people to reduce the number of meetings with Video Messaging, as well as prioritize their work with My Task, create specific times to focus with Clockwise’s smart calendar assistant, and quiet notifications with the Asana desktop app.
Earlier last month, it also announced another offering called Universal Reporting, which will provide new ways for leaders to keep track of how work is progressing towards business critical goals. Powered by Asana’s Work Graph data model, Universal Reporting provides fully-connected, accurate reports with real-time information on team activities, workloads, and budget. According to a study conducted by Asana, the pandemic’s accelerated virtual work environment caused senior leadership of the organizations to lose 58% of their time to following up on work about work. Activities such as searching for information about the tasks, and holding status meetings increased significantly. By providing features such as real-time information about work status and a streamlined reporting system, Universal Reporting will help address this sudden need.
It also announced an integration with ServiceNow that will boost the visibility and collaboration between process management and operational teams. The integration with ServiceNow will allow cross-functional teams to work together more effortlessly, irrespective of their location. The service will allow integration of workflows across teams, department and tools. Users will be able to trigger task creation directly from the ServiceNow workflow to accelerate activities and responses.
Asana went public on September last year at an opening price of $27 and a valuation of $5.5 billion. Its stock is currently trading at $72.32 with a market cap of $11.8 billion. It had touched a 52-week high of $74.49 earlier this week. It had fallen to a 52-week low of $20.57 in November last year.
Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article.