World

Asana stock soars 24% as software company cites improving path to profitability

Asana Inc. on Wednesday reported and forecast narrower-than-expected losses, saying the figures reflected a firmer path to profitability, and its stock skyrocketed in after-hours trading.

The project-management software provider — whose chief executive is a co-founder of Meta Platforms Inc.’s
META,
+0.25%
Facebook — forecast first-quarter sales of $150 million to $151 million, with an adjusted net loss of between 18 cents and 19 cents a share. That’s better than FactSet forecasts for a 23-cent per-share loss with revenue of $150.4 million.

For the full year, Asana
ASAN,
+1.83%
said it expects revenue of between $638 million and $648 million, with an adjusted net loss of 55 cents to 59 cents. Analysts polled by FactSet expected a 79 cent-per-share loss, on sales of $645.8 million.

The company reported a fourth-quarter net loss of $95 million, or 44 cents a share. That compares with a loss of $90 million, or 48 cents a share, in the same quarter last year. Revenue rose 34% to $150.2 million, compared with $111.9 million in the same quarter last year.

Adjusted for stock-based compensation, restructuring and other costs, Asana lost 15 cents a share, compared with 25 cents a year earlier.

Analysts polled by FactSet expected Asana to reported an adjusted loss of 27 cents a share, on revenue of $145.1 million.

Shares soared 24% after hours.

The company reported earnings as other workplace-oriented cloud-services platforms, like Salesforce Inc.
CRM,
-0.20%
and Workday
WDAY,
-1.69%,
scale back and lay off workers. The tech industry has tried to shrink, after hiring to meet digital demand brought by the pandemic that later fizzled as COVID restrictions lifted.

Shares of Asana have fallen 60% over the past two months. By comparison, the S&P 500 Index
SPX,
+0.14%
has lost 4.3% of its value over that period.