Shares in Asana Inc. fell more than 7% in late trading today on investor concerns about slowing revenue growth, after the work management software company reported earnings and revenue ahead of expectations in its fiscal 2026 first quarter.

For the quarter that ended on April 30, Asana reported adjusted earnings per share of five cents, up from a loss of six cents per share in the same quarter of the previous fiscal year, on revenue of $187.3 million, up 9% year-over-year. Both figures were ahead of the two-cents-per-share profit and revenue of $185.5 million expected by analysts.

Asana’s better-than-expected figures were driven by customer growth. The company said it has 24,297 “core customers,” customers spending $5,000 or more annually as of the end of the quarter, up 10% year-over-year. The number of customers spending $100,000 or more per year rose 20% year-over-year, to 728.

Business highlights in the quarter included the full rollout of Asana AI Studio, a no-code builder that allows users to create smart workflows with embedded artificial intelligence agents. The platform allows teams to automate tasks such as triaging requests, summarizing content and integrating data from sources like Google Drive and SharePoint.

Asana also enhanced its integration with Microsoft Teams, allowing users to receive real-time inbox notifications, access project views and take action on Asana tasks directly within the Teams desktop app.

The quarter also saw Asana introduce a real-time data sync between Asana and Salesforce Inc. The integration allows teams to automate workflows by syncing Salesforce data into Asana for the creation of custom workflows and ensuring that sales and cross-functional teams have up-to-date information.

“Just months after launching AI Studio, we’ve already crossed $1 million in ARR and head into Q2 with a robust, rapidly growing global pipeline,” co-founder and Chief Executive Dustin Moskovitz said in the company’s earnings release. “With new offerings like the AI Studio Plus package and Smart Workflow Gallery, we’re making these transformative AI capabilities even more accessible.”

For its second quarter, Asana expects adjusted earnings per share of four to five cents on revenue of $192 million to $194 million. Analysts were expecting four cents per share on revenue of $192.21 million.

For its full fiscal year, the company expects adjusted earnings of 22 cents per share on revenue of $775 million to $790 million. That’s up from a previous outlook of 19 to 20 cents per share.

Though there was nothing particularly wrong with the figures, revenue growth of only 9% was down from a growth rate of 26% that Asana reported in the year-ago quarter. It was enough to spook investors and drive the after-hours share price decline.

Photo: Asana