Asana Earnings: Macroeconomic Pressures and Technology Sector Headwinds Drag Near-Term Outlook

We lower our fair value estimate for no-moat Asana to $16 per share from $18 following mixed second-quarter fiscal 2025 results. Top-line growth for the quarter came in line with our above-guidance forecasts, and profitability surprised to the upside. However, the firm’s near-term guidance disappointed amid elevated customer budget scrutiny and elongated sales cycles delaying deal execution. Accordingly, we have trimmed our forecasts to factor in more muted top-line growth, driving our fair value estimate cut. Nonetheless, following a sharp 13% fall in after-hours trading, Asana shares continue to screen as attractive on a risk-adjusted basis, and we believe the firm has a long runway for growth in the nascent work management software market.