Asana Shares Plunge 18 percent Since Q3 Report

Asana, Inc. (NYSE:ASAN) shares fell more than 18% since the company’s reported Q3 results on Thursday. While EPS of ($0.26) and revenue of $141.4 million came in better than the Street estimates of ($0.33) and $139.01 million, respectively, the revenue outlook missed expectations.
According to the analysts at RBC Capital, the main focus for them was buying behavior changing dramatically, with cases of delayed deals, expansion headwinds, and some downgrades at renewal. Management expects the environment to worsen in coming quarters and maintained its 2024 free cash flow target in spite of topline headwinds.
Q4/23 EPS is expected to be in the range of ($0.28)-($0.27), compared to the Street estimate of ($0.29). Revenue is seen in the range of $144-146 million, compared to the Street estimate of $151.06 million.
For fiscal 2023, the company expects EPS in the range of ($1.15)-($1.14), compared to the Street estimate of ($1.25), and revenue in the range of $541-543 million, compared to the Street estimate of $545.89 million.