Asana (NYSE: Assan) plans to report third quarter results for fiscal year 2023 on December 1. While not immune to macroeconomic challenges, work management platform providers appear to have attracted new customers (according to website traffic trends), which bodes well for their business in fiscal Q3. .
Asana expects an adjusted net loss of 33-32 cents per share, which is in line with Wall Street consensus expectations. Additionally, the company’s quarterly earnings outlook ranges from He’s $138.5 million to He’s $139.5 million, while Wall Street expects He’s $139.37 million.
Since going public in September 2020, the company has not missed a final quote. Let’s see how it goes this time.
Factors Likely to Impact Q3
The company has invested heavily in enterprise solutions. In particular, the company’s focus on brand awareness programs has led to strong website traffic and a significant increase in customer numbers in the second quarter. This trend is likely to continue into the third quarter.
At least, that’s what TipRanks’ website traffic tool suggests. Asana’s unique website visits to his website increased nearly 11% from Q2, according to the tool. Some of this translated into signups, which may have boosted quarterly sales.
However, it should also be recognized that macroeconomic volatility is wreaking havoc on the foreign exchange market. This could have been the final headwind for his Asana in Q3.
JP Morgan (New York Stock Exchange: JPM) analyst Pinjarim Bora is also concerned that the high level of cash burn may have dampened the company’s already strained profitability.
Is ASAN a good stock to buy, according to analysts?
Wall Street is cautiously optimistic ahead of the outcome, with a moderate buy rating based on 6 buys, 5 holds and 2 sells. The average ASAN price target of $26.15 indicates a 55.1% upside potential.
While currency headwinds and cash burn appear to be weighing on margins, strong trends in the product side of the business may have led to a relatively strong quarter.