Citing IDC data, the work management market that Asana addresses is expected to grow from $23B in 2020 to $32B in 2023. You may opt-out by. According to Asana’s filing, 28% of work time is spent answering emails, 19% is spent gathering information, and 14% is spent on internal communication. She has been published in many publications including VentureBeat, MediaPost, AdExchanger and the International Association of Privacy Professionals. Asana has been unprofitable since its founding in 2008. Two of the company’s closest public competitors are Smartsheet (SMAR) and Atlassian (TEAM), for comparison purposes: With the recent froth we have seen in the IPO market, Asana could open trading at a $6B-$7B valuation. The company ranks at No.
© 2020 Forbes Media LLC. FORTUNE may receive compensation for some links to products and services on this website. Other cloud-oriented tech startups announcing IPOs earlier this month as well – Unity, JFrong, Snowflake, and Sumo Logic.
Asana revenue grew from $76.8 million to $142.6 million between 2019 and 2020. In fact, IPO activity fell by as much as 48%. The product provides teams with effective tools to coordinate their workflows and increase productivity. Below I go over some of Asana’s strength and the maximum valuation I’m willing to pay. All rights reserved. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. And business leaders have more faith in the IPO market. Protected by copyright of the United States and international treaties. Yes, Asana has yet to profit in its lifetime.
Sources say Asana has been trading at a roughly $5B market value in the secondary market. Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Your email address will not be published. Continued deceleration of this growth will be troublesome for the company’s ability to become profitable in the future. By Mike Stenger, Associate Editor, Money Morning • September 1, 2020. She is a San Francisco-based technology analyst with more than a decade of experience in analyzing private and public technology companies.
Asana has widening losses and decelerating revenue growth in a highly competitive industry. The company also saw its losses grow from $50.9 million in 2019 to $118.6 million in fiscal 2020. The company believes they have the opportunity to reach 1.25 billion global information workers and that their existing customer base represents less than 3% penetration of the total addressable market. Join the conversation. In its most recent quarter ending April 2020, Asana recorded 71% YoY revenue growth. And it did broaden its base in the last year, significantly. Some of these have yet to earn a profit. Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. She invested in Roku from its IPO for a 1,000% gain and she is known for having a crystal ball on Twitter. But Shah says THESE three stocks are "screaming buys.". think will win today’s election? For customers with an ACV greater than $50k, Asana’s net retention rate expands to over 140%, indicating that its biggest customers are spending significantly more than they did a year ago.
This is evident in the widening losses and the need to double R&D and sales and marketing to keep their revenue growth competitive. When considering if I should buy into a SaaS public offering, my first thought is the company better be special because there are some very solid choices already on the market.
Opinions expressed by Forbes Contributors are their own. The company’s software is used by more than 75,000 companies including AT&T, Google and NASA. All three are trading at a discount… they're under-the-radar companies most people haven't even heard of… and they have massive tailwinds ready to send their share prices into the stratosphere. For fiscal 2020, Asana’s revenue came in at $142.6 million, representing growth of 86% YoY. However, the company’s free cash flow margin is -33%. It's just one of many cloud computing stocks trading now. Save my name, email, and website in this browser for the next time I comment. Forty-one percent of Asana revenue came from companies outside the United States this year. Required fields are marked *, Sign me up for the Money Morning newsletter. Cloud computing is going to transform the world. But investors familiar with IPOs know that young companies go through a heavy cash-burning phase early on. Many of those customers also come from around the world. There is still not an official date for the Asana IPO. All Rights Reserved, This is a BETA experience. Or to contact Money Morning Customer Service, click here. At the midpoint of this valuation, the stock would be valued at 34x forward revenue, which would be among the highest valuations in the entire software industry. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors.
The cloud computing market was measured at $266 million in 2019. She works in San Francisco and Silicon Valley as a data technology evangelist with over 7 years of experience in mobile and data.
The SEC has approved the draft registration paperwork and noted it on their website. We compete with companies that range in size from large and diversified with significant spending resources to smaller companies.”. Asana’s gross margin is 86.1%, which is among the best in the software industry. Who does A.I. The benefit of the DPO is that shares can go to market faster, as the company is subject to fewer SEC requirements. The company took a loss, however. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. In a news release, Asana makes this very argument, saying the losses reflect "significant investments we made to develop and commercialize our platform, serve existing customers, and broaden our customer base.". Notably, there are many competitors missing from the evaluation, for example Atlassian and Jira, Basecamp, Trello, Click Up, Pivotal Tracker – plus Salesforce with its project management applications. That means the company doesn't raise any additional capital in the IPO, beyond the $213.5 million it's already raised.
Beth Kindig is a technology analyst who publishes weekly at beth.technology and runs a premium service for serious tech investors. But it could come sooner than later. 17 in this year’s Forbes Cloud 100, the annual ranking of the world’s top private cloud-computing companies, up from No.
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