Work management platform Asana (NYSE:ASAN) reported Q2 CY2025 results exceeding the market’s revenue expectations , with sales up 9.9% year on year to $196.9 million. The company expects next quarter’s revenue to be around $198.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.06 per share was $0.01 above analysts’ consensus estimates.

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• Revenue: $196.9 million vs analyst estimates of $193.1 million (9.9% year-on-year growth, 2% beat)

• Adjusted EPS: $0.06 vs analyst estimates of $0.05 ($0.01 beat)

• Adjusted Operating Income: $14.01 million vs analyst estimates of $9.34 million (7.1% margin, 50% beat)

• The company slightly lifted its revenue guidance for the full year to $785 million at the midpoint from $782.5 million

• Management raised its full-year Adjusted EPS guidance to $0.24 at the midpoint, a 9.1% increase

• Operating Margin: -25.1%, up from -42.9% in the same quarter last year

• Free Cash Flow Margin: 18%, up from 5.3% in the previous quarter

• Customers: 25,006 customers paying more than $5,000 annually

• Net Revenue Retention Rate: 96%, up from 95% in the previous quarter

• Billings: $220.3 million at quarter end, up 28.6% year on year

• Market Capitalization: $3.29 billion

Born from the founders’ frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE:ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, Asana grew its sales at a 17.4% annual rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds.

This quarter, Asana reported year-on-year revenue growth of 9.9%, and its $196.9 million of revenue exceeded Wall Street’s estimates by 2%. Company management is currently guiding for a 7.9% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 7.7% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and indicates its products and services will see some demand headwinds.

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