Shares in Asana Inc. fell more than 25% in late trading today after the work management software company fell short with its outlook that was delivered alongside otherwise reasonable quarterly earnings.

But it also announced that Chief Executive Dustin Moskovitz is retiring at the grand old age of 40, potentially raising questions about leadership of the 17-year-old company.

For its fiscal 2025 fourth quarter that ended on Jan. 31, Asana reported it broke even, up from a loss of four cents per share in the same quarter of the previous fiscal year, on revenue of $188.3 million, up 10% year-over-year. Both figures were slightly above the loss of a penny per share and revenue of $188.1 million expected by analysts.

For the full fiscal year, Asana reported an adjusted earnings per share loss of 13 cents, up from a loss of 20 cents the year prior, on revenue of $7233.9 million, up 11% year-over-year.

Asana ended the quarter and its fiscal year with 24,062 “core customers,” customers spending $5,000 or more annually, up 11% year-over-year, while customers spending $100,000 or more annually rose 20% year-over-year, to 726. Not all of the company’s customers are sticking around, however, with the company reporting an overall dollar-based net retention rate of 96%; anything below 100% indicates a decline.

Business highlights in the quarter included the October launch of Asana AI Studio, a no-code tool that allows companies to create artificial intelligence agents that can be embedded into workflows throughout the Asana platform.

The service allows users to design “smart workflows” that coordinate projects and orchestrate tasks, leveraging Asana’s Work Graph to capture critical context and relationships within organizations. AI Studio assists workers by understanding who is doing what, where, when, how and why and helps them with more straightforward, mundane tasks, effectively acting as a colleague or teammate.

Other highlights include the introduction of stacked bar charts for dashboards in November, enhancing data visualization for improved decision-making. In December, Asana launched Portfolio Rules, allowing users to automate actions at the portfolio level to streamline workflows across multiple projects.

In January 2025, the company released Gantt View, a feature that creates timeline-based perspectives to enhance project planning and tracking. Additionally, Asana introduced Project Notes, allowing teams to document key information directly within projects for better collaboration.

“The early momentum with AI Studio has exceeded our expectations, with initial proof points confirming its transformative potential, including strong early customer adoption across segments and geographies, rapidly growing credit usage and a multi-million dollar pipeline,” Moskovitz said in the company’s earnings release.

For its fiscal 2026 first quarter, Asana expects adjusted earnings per share of two cents on revenue of $184.5 million to $186.5 million. The revenue outlook fell short of the $191 million expected by analysts. For the full fiscal year, the company expects revenue of $782 million to $790 million, short of the $803.5 million analysts had been looking for.

Retirement

Along with the misses on revenue outlook putting downward pressure on the company’s share price, was the announcement that Moskovitz, perhaps best known to the public as a Facebook co-founder, was stepping down as Asana’s CEO after having founded the company in 2008.

In a press release, Asana said that it had retained a leading executive search firm to execute a search for the company’s next CEO. Moskovitz will remain CEO until a successor begins and intends to maintain his shareholdings in Asana.

“Creating and leading Asana has been more than just building a company — it’s been a profound privilege to work alongside some of the most talented minds in the industry to build a platform that is trusted by over 85% of Fortune 500 companies today,” said Moskovitz. “Asana has grown into a multi-product company at the forefront of AI innovation that is transforming how work gets done.”

Moskovitz still plans to continue as chairman of the company, focusing on product vision, strategic guidance and AI strategy. He also intends to dedicate more energy to addressing global challenges through his philanthropic organizations, Good Ventures and Open Philanthropy.

Photo: Asana