Asana (ASAN, Financials) shares fell 8.6% on Monday to $16.68 and plunged another 28.1% in after-hours trading to $11.98 following the company's fourth-quarter earnings report and CEO Dustin Moskovitz's announcement that he will step down.
With fourth-quarter income of $188.3 million, the corporation showed a 10% annual growth. When adjusted for currency changes, it surpassed the upper end of its income projection and had positive free cash flow for fiscal year 2025.
Focusing on artificial intelligence strategy and charitable activities, Moskovitz revealed intentions to step down from his position as CEO to board chair. The board is looking for a replacement via an executive search company.
Growing 15% year over year, the company's non-tech verticals—manufacturing, energy, retail, and media—gushed above total income growth. Large company accounts spending more than $100,000 yearly grew 20%, mirroring ongoing progress in high-value client groups.
Particularly among big companies, Asana's AI Studio—an artificial intelligence-powered workflow automation tool—has achieved great acceptance. With hundreds of Asana's biggest clients actively utilizing AI Studio for smart processes and thousands of accounts set up, by mid-year, the firm intends to introduce a self-serve AI Studio product that may increase acceptance even in mid-market and small business sectors.
With a non-GAAP operating loss margin of 1%, the business said it had improved over 800 basis points year over year. For the quarter, non-GAAP net loss came to $438,000, or $0.00 per share.
Accelerating from the prior quarter, international revenue increased 14% year over year. Citing great demand for AI-driven collaboration products, the firm is extending its footprint beyond the United States.
Asana gave direction for fiscal year 2026, projecting income between $782 million and $790 million, thereby reflecting an 8–9% increase. Between $0.19 and $0.20 the firm forecasts a non-GAAP operating margin of at least 5% and non-GAAP net income per share.
Executives underlined the need for concentrating on new company acquisition and better client retention policies. Resources have been directed by the corporation toward channel alliances, better-performance sales processes, and AI Studio experts.
Long-term growth is anticipated from Asana's change to a multi-product firm. Based on usage, the firm has developed a new price plan for AI Studio with credit-based pricing levels. Early uptake has been robust; some clients exceeded their allocated credits by 150%.
Looking forward, Asana targets over 1,000 basis points of non-GAAP operating margin increase in fiscal year 2026 and anticipates continuous margin growth. Scaling AI Studio, enhancing business acceptance, and broadening its go-to-market methods to generate long-term revenue development are top priorities for the firm.
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