Asana, Inc. (NYSE:ASAN) shares closed more than 6% lower on Friday following the company’s reported Q1 results, highlighted by strong revenue growth, but missing on Q2/23 EPS guidance.
Q1 EPS came in at ($0.30), better than the Street estimate of ($0.35), and revenue came in at $120.6 million, compared to the Street estimate of $115.05 million.
Key business metrics remain healthy despite macro headwinds, including new customer adds (up 26% year-over-year), strong large customer growth (up 102% year-over-year for over $50,000 customers), and steady NRR (over 120% overall, over 145% for large customers).
Newer features are also resonating with customers with Goals driving more wall-to-wall adoption and Workflow Builder seeing early interest. However, the expansion continues to come at the expense of aggressive investment, which won’t be fully reflected in the operating margin until Q2/23 before potential H2 improvement.
The company expects Q2/23 EPS to be in the range of ($0.39)-($0.38), missing the Street estimate of ($0.32). Q2 revenue is expected to be in the range of $127-128 million, compared to the Street estimate of $125.31 million.