Why the Recommendation for
an asana Options Call Trade?
There are many reasons that should be mentioned
to understand the continued upward movement.....
1. Earnings Beat Estimates.....
reported a smaller-than-expected loss in the fiscal first quarter of 2022 and
beat revenue expectations. Asana is a web and mobile application designed to
help teams organize, track, and manage their work.
jumped 6.5% to close at $39.19 on June 4.
incurred a loss of $0.21 per share in 1Q, compared to the $0.27 loss per share
estimated by analysts. A loss of $0.31 per share was reported in the same
quarter last year.
generated in the quarter was $76.7 million, which grew 61% from the year-ago
period and beat analysts’ expectations of $70.17 million.
Dustin Moskovitz said, “Whether teams are
fully remote and working from home, or in offices coordinating work across
departments and geographies, clarity on who is doing what by when is essential.
More and more customers are turning to Asana and the Asana Work Graph to
provide a scalable, cross-functional, and easy-to-adopt solution.”
Q2, the company expects revenues in the range of $81 – $83 million, indicating
growth of 56% – 60% year-over-year. The consensus estimate is pegged at $74
million. Non-GAAP net loss per share is expected in the range of $0.27 to
$0.26, versus the consensus estimate for a loss of $0.27 per share.
2022, the company expects revenues to come in the range of $336 – $340 million,
representing an increase of 48% – 50% year-over-year. The consensus estimate
sits at $312.2 million.
3. Influencing Factors…..
Asana calls itself a mission-critical platform. It sees a $32B market by
2023, with over 1B information workers that could benefit from its platform.
Aside from this large greenfield opportunity, Asana also estimates that it has
only addressed or captured just 3% within its existing customer base. As an
e-collaboration platform, it is an obvious beneficiary of COVID-19 trends.
This is also still quite an emerging product category. In particular,
although it plays in the same space as Slack, it specializes in “co-ordination”
- providing members clarity about their work, about who is doing what and when.
Asana seeks to replace e-mail, spreadsheets, notes, etc. with a superior
Asana accomplishes this by what it calls its Work Graph, which it calls
its biggest differentiated feature compared to competitors - the equivalent of
Slack's shared channels, perhaps. The Asana Work Graph is an up-to-date map of
the work in the organization. This includes the units of works, such as tasks,
goals, ideas, agenda items, etc. It includes the information about that work,
such as files and status. And it includes connections such as responsibility.
One such differentiated feature of this Work Graph is multi-homing, and
Asana claims it is used by 97% of customers who spend over $5k annually. As
Asana puts it: "Multi-homing gives
people the ability to host a single task in multiple projects at the same time.
This feature is unique to Asana and is what allows Asana to serve as a single
source of truth for customers working across projects, processes and
Asana believes that its web and mobile application is slowly gaining
popularity among organizations. Whether teams are working from home or fully in
offices, monitoring work progress would be much easier with its application.
After all, clarity on who is doing what and when is essential for the success
of any organization.
recently launched Asana Partners, which consists of over 200 partners. Asana is
also heavily investing in R&D, which has allowed it to launch many other
features in 2020, and more in development. For example, recently Asana launched
Universal Reporting, which is aimed at higher-level executives.
4. Analysts Thoughts.....
its target price lifted by Robert W. Baird from $40.00 to $50.00 in a research
report sent to investors Thursday, June 10. Robert W. Baird currently has an
outperform rating on the stock.
June 4, Oppenheimer analyst Ittai Kidron reiterated a Buy rating on the stock
but increased his price target to $43.00 from $41.00.
commented, “Asana delivered a strong
overall quarter with encouraging new customer and expansion activity. While
spending levels will continue to be elevated, we’re positive on the execution
being shown and the long-term opportunity ahead.”