Glad I hung on to this. It’s up 10% in AH.
First Quarter Fiscal 2022 Financial Highlights
- Ended the quarter with over 100,000 paying customers.
- The number of customers spending $5,000 or more on an annualized basis grew to 11,272, an increase of 53% year over year.
- The number of customers spending $50,000 or more on an annualized basis grew to 485, an increase of 92% year over year.
- Overall dollar-based net retention rate was over 115%.
-Revenues were $76.7 million, an increase of 61% year over year.
The huge losses continued and that’s no surprise as it seems to be paying off accelerating customer growth. I like Asana because I think a PM tool is stickier and harder to replace than a lot of other tools like Smartsheet. Switching costs are higher. I also think the freemium model is working well, like Dropbox, but this is a better product. Dropbox was easily commoditized.
ASAN did a great job this Q, and see their guidance seems like they are post Covid play. According to their guidance, I believe they gonna keep accelerating to 70’s growther. Even they keep burning money.
No position, consider add it back
Agree Asana posted good results - superior to Smartsheets which I shifted my position across from last year.
Also agree they could keep accelerating although i) they need to as they are still quite under scale in their annualised revenues and ii) they are still burning along at a loss and I’m looking carefully for the inflection point where the bottom line starts to come under control.
Nice revenue beat and growth of 61% YoY. This is a continuation of recent double digit % QoQ growth and >50% YoY.
Quarter Rev $M QoQ YoY
Q1-22 76.7 12% 61%
Q4-21 68.4 16% 57%
Q3-21 58.9 13%
Q2-21 52 9%
Q1-21 47.7 10%
Another encouraging sign - while still losing money with a negative free cash flow, that negative is decreasing. I’d look to see the free cash flow turn positive in a couple of quarters. I don’t mind the GAAP losses as long as they are generating some positive cash flow.
They also raised revenue guidance to a $338M midpoint - which would be a 49% growth over FY21 revenue. Assume a small amount of conservatism in that number, we are looking at another year of >50% growth. And looking at the amount they have beaten guidance in the past, my calcs indicate similar levels would put them at ~55% revenue growth for the year.
Annual Revenue Growth
FY22 – 49%-55% (my estimated range)
FY21 – 58%
FY20 – 86%
So a slight slowing trend which is normal in this early phase, but still an optimistic level with the increase to the FY22 guidance.
I was a little late to the ASAN party - with my first purchase on Jan 5 of this year (freed up some cash with New Year selling of other holdings) and subsequent purchases in April and May. I am happy with their performance and will be staying long ASAN as long as the QoQ growth is over 10% and YoY is >50%.
Revenue growth accelerated in the last two quarters and new customer count has accelerated in the last three quarters. During the conference call management didn’t provide much insight into the cause of the acceleration…just “we are doing well at all sales levels.” An analyst noted that “key metrics were impressive as they moved upstream in the enterprise.” Management did mention that they now have one account with 50,000 seats. So, it does appear that ASAN is “gaining traction” at the enterprise level.
During the call, management seemed particularly excited about product upgrades scheduled for Q3 and Q4.
For details on revenue and customer count growth see pages 26 and 28 of the below-linked investor presentation: