Earnings Update: Asana, Inc. (NYSE:ASAN) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

Shareholders of Asana, Inc. (NYSE:ASAN) will be pleased this week, given that the stock price is up 14% to US$14.16 following its latest quarterly results. Revenues were in line with expectations, at US$201m, while statutory losses ballooned to US$0.29 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Asana's 15 analysts is for revenues of US$857.4m in 2027. This would reflect a meaningful 11% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 37% to US$0.58. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$853.4m and losses of US$0.61 per share in 2027. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

Check out our latest analysis for Asana

There's been no major changes to the consensus price target of US$15.76, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Asana at US$22.00 per share, while the most bearish prices it at US$10.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Asana's revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2027 being well below the historical 22% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that Asana is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Asana's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$15.76, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Asana analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Asana that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.