Asana guided Q3 fiscal 2027 revenue to $217 million to $219 million, an 8 percent to 9 percent growth rate that came in below the 10 percent recorded in Q2, sending shares lower after hours. The company beat on Q2 revenue of $216.4 million and raised its full-year outlook, but investors focused on the deceleration.
Asana Inc. shares fell in extended trading Thursday after Q3 revenue guidance of $217 million to $219 million disappointed investors who had expected faster growth.
"Our core business continues to strengthen, with improving retention, accelerating growth in our upmarket motion and broad-based momentum across industries and geographies," Chief Executive Officer Dan Rogers said in the release.
The San Francisco-based work-management software maker, listed on the New York Stock Exchange, reported Q2 fiscal 2027 revenue of $216.4 million, up 10 percent year over year and above the high end of guidance. Non-GAAP operating income rose to $21.8 million, a 10 percent margin versus 7 percent a year earlier, while GAAP net loss narrowed to $39.2 million, or 17 cents a share, from $48.4 million. Operating cash flow reached $46.0 million and adjusted free cash flow $42.3 million.
Dollar-based net retention improved to 97 percent overall and 98 percent for core customers and those spending $100,000 or more annually, a cohort that grew 16 percent to 890. The company also secured FedRAMP Moderate Authorization for Asana Gov, opening the platform to U.S. federal government customers.
The Q3 outlook implies 8 percent to 9 percent growth, a step down from the 10 percent posted in Q2, and a non-GAAP operating margin of 8 percent to 9 percent. Asana still raised its full-year fiscal 2027 revenue forecast to $858.5 million to $863.5 million, about 9 percent growth, with non-GAAP operating income of $84.5 million to $86.5 million and non-GAAP earnings of 37 cents a share.
The softer near-term guide overshadowed the beat, with investors focused on deceleration even as the company pushes into AI. Gross margin compressed to about 86 percent from 89.7 percent a year earlier as cost of revenue jumped roughly 50 percent, and stock-based compensation of $58.6 million kept GAAP results in a loss. Asana paid $71.6 million for AI startup StackAI during the quarter and repurchased $51.5 million of stock, leaving cash and marketable securities at $339.9 million.
The company plans to launch Agentic Work Management in Q3, bringing AI Teammates, AI Studio and Asana Dash to every paid tier, and Chief Financial Officer Aziz Megji flagged an opportunity to add consumption- and outcome-based revenue alongside seats. The push comes as Asana competes with Atlassian Corp. and Monday.com Ltd. for enterprise work-management budgets, with rivals also layering AI agents onto their platforms.
The guidance points to growth moderating in the near term even as profitability improves. Investors will watch the Q3 earnings call in early December for signs that the AI push is translating into faster expansion.
This article is for informational purposes only and does not constitute investment advice.
