Why Asana Shares Dropped Today

Actions of drain (ASAN -5.76%) fell today after the cloud productivity software company issued disappointing guidance in its fiscal second quarter 2025 earnings report. Shares fell 6.3% at 1:17 pm ET on the news.

Image source: Getty Images.

Asana cannot break the curse of the pandemic

Asana shares are still down about 90% from the peak of the pandemic, and the latest round of results showed the company struggling, with revenue up 10% to $179.2 million, which beat estimates at 177.7 million dollars.

The company reported a 17 percent increase in customers spending more than $100,000, a possible sign of momentum among high-net-worth customers.

Further down the income statement, the generally accepted accounting principles (GAAP) operating loss increased from $73.4 million to $76.8 million, showing that the company is still struggling to break even. Bottom line, Asana reported an adjusted loss per share of $0.05, which was worse than the $0.04 loss in the year-ago quarter, but better than expectations for a $0.08 loss.

Despite the sale, CEO Dustin Moskovitz expressed optimism about the direction of the business, saying, “In Q2, Asana continued to execute the transition of our enterprise and make significant progress in AI. We’re seeing momentum in key areas, success in key verticals and a record number of multi-year deals.”

What’s next for Asana?

Despite the optimism, Asana’s guidance was disappointing as the company called for revenue of $180 million-$181 million in the third quarter, up 8%-9% and weaker than the consensus of 182.3 millions of dollars.

On the bottom line, it sees an adjusted loss per share of $0.07, compared to estimates for a loss of $0.04 per share. It also cut its full-year revenue guidance from $719 million to $724 million to $719 million to $721 million, below the $722.9 million consensus.

Single-digit revenue and consistent adjusted losses aren’t a recipe for success in the stock market, and it’s no surprise to see Asana shares fall again following a dismal earnings update.