Shares in Asana Inc. fell more than 2% in late trading today after the work management software company reported earnings and revenue beats in its fiscal 2024 fourth quarter but fell short at the midpoint in its earnings outlook.

For the quarter that ended on Jan. 31, Asana reported an adjusted earnings per share loss of four cents, up from a loss of 15 cents per share in the same quarter of the previous year, on revenue of $171.1 million, up 14% year-over-year. Both figures were ahead of the 10-cent loss per share on revenue of $167.68 million expected by analysts.

Asana reported an operating loss in the quarter of $67.9 million, or 40% of revenue, up from a $99.2 million loss, or 66% of revenue, in the same quarter of fiscal 2023. Cash flow from operating activities was negative $15.3 million, an improvement over a loss of $31.1 million in the fourth quarter of the previous year.

For its full fiscal year 2024, Asana reported an adjusted earnings per share loss of 20 cents, up from a loss of $1.04 per share in fiscal 2023, on revenue of $652.5 million, up 19% year-over-year.

Asana ended its fiscal year with 21,646 customers spending $5,000 or more on an annualized basis — up 11% year-over-year and revenue from “Core” customers in the fourth quarter grew 16% year-over-year. Asana’s customers are sticking around, with the company reporting a dollar-based net rendition rate of over 100%. For customers spending $100,000 or more per year, the retention rate was 115%.

“Asana’s Q4 and fiscal year results beat expectations on the top and bottom line,” Dustin Moskovitz, co-founder and chief executive officer of Asana, said in the company’s earnings release. “Overall revenue growth was better than our guidance and operating margin improved significantly during the year, as we target to be free cash flow positive by the end of this year.”

The earnings report comes after Moskovitz warned investors after Asana’s last earnings release in December that it was experiencing a challenging macroeconomic environment. The economic environment was raised again in comments to investors today, with Anne Raimondi, Asana’s chief operating officer, saying that “we continued to feel the impact of the macroeconomic headwinds, increased budget scrutiny and reductions in headcount among our customers, especially in the technology vertical which has been a drag to our growth.”

But it wasn’t all doom and gloom. “Across the business, there are some early signs that hint at modest stabilization,” Raimondo added. “As you have seen in the news, headcount reductions have continued, but they are smaller this year in aggregate versus last year and we should be lapping the bulk of those renewals in the first half of the year.”

Looking forward, Asana forecast an adjusted earnings per share loss of eight to nine cents on revenue of $168 million to $169 million in its fiscal 2025 first quarter. At the midpoint, the earnings per share outlook was below the eight cents expected by analysts, while revenue was slightly ahead of an expected $168.25 million.

For its full 2025 fiscal year, Asana expects to see an earnings per share loss of 19 to 22 cents on revenue of $716 million to $722 million. Analysts were expecting a loss of 22 cents on revenue of $724.75 million.

Image: Asana