But researchers predict it could hit $832 million by 2025.
However, this is not necessarily a reason to write off a startup. Asana is a digital productivity software that helps employees track the status of their work, similar to Monday.com. In Q1 2019, enterprises and businesses made up 11% of its business. Below I go over some of Asana’s strength and the maximum valuation I’m willing to pay. Best Stocks: Three of the best stocks to consider buying today – these picks belong in every portfolio.
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. Sources say Asana has been trading at a roughly $5B market value in the secondary market.
Her experience comes from a decade of analyzing tech companies, tech products and startups resulting in over 700 articles and many enterprise-level analyst reports. 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. Asana is workplace collaboration and planning software that is designed to help teams orchestrate their work so they can achieve their goals more efficiently. 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. Forrester research has listed Asana as one of three leaders in the collaborative work management space. At a $5B valuation, Asana would be valued at approximately 26.2x forward revenue using its annual run rate. Other cloud-oriented tech startups announcing IPOs earlier this month as well – Unity, JFrong, Snowflake, and Sumo Logic. Stocks that are already public might even produce greater profits. She has written Quarterly Data Reports on technology since 2014. In Q1 2020, that number was 42% – a 31% leap. Asana was founded by Dustin Moskovitz, who is best known for co-founding Facebook with his Harvard roommate, Mark Zuckerberg. The product provides teams with effective tools to coordinate their workflows and increase productivity. The company states the following, “The market for work management solutions is increasingly competitive, fragmented, and subject to rapidly changing technology, shifting user and customer needs, new market entrants, and frequent introductions of new products and services. If it really is ahead of the innovation curve, you can also expect its revenue number to blossom in the coming years with a growing work-from-home trend. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. There is still not an official date for the Asana IPO. Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free.
Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info, By submitting your email address you will receive a free subscription to, Here's Whether Asana Stock Is a Buy After the IPO. David Marlin contributed to this article. © 2020 Money Morning All Rights Reserved. The IPO world went silent for a few months since the COVID-19 crash.
Snowflake priced its IPO at $120 per share , raising $3.3 billion. Required fields are marked *, Sign me up for the Money Morning newsletter. Still, you have other things to consider when IPO investing…. Cloud computing is going to transform the world. Asana’s gross margin is 86.1%, which is among the best in the software industry. The company outlined this strategy in its S-1, stating that it expects to increase its operating losses in the future to prioritize growth. It also means investors will get to pay market price for shares of Asana stock instead of the markup underwriters bake into normal IPOs. That means the company doesn't raise any additional capital in the IPO, beyond the $213.5 million it's already raised. Despite Asana having investable growth, the company may be in too-crowded of a space for the size of the addressable market. The benefit of the DPO is that shares can go to market faster, as the company is subject to fewer SEC requirements.
It's just one of many cloud computing stocks trading now. 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. Before you go investing in IPOs like Asana, it's important to watch for more financials and forward-looking statements as they are released. It helps employees stay on the same page, because they can log every step of a project for their whole team to see. She is a San Francisco-based technology analyst with more than a decade of experience in analyzing private and public technology companies. Protected by copyright of the United States and international treaties. © 2020 Forbes Media LLC.
Citing IDC data, the work management market that Asana addresses is expected to grow from $23B in 2020 to $32B in 2023. With its forward-thinking front-office (Asana is founded by Facebook cofounder Dustin Moskovitz), this company could grab a piece of a 212% growth industry. All rights reserved. Powered and implemented by Interactive Data Managed Solutions. The increase in losses can be attributed to the company more than doubling its spending on research & development as well as sales & marketing. 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. It’s official: Obama’s first-term stock market performance beats Trump’s by a wide margin, CA Notice at Collection and Privacy Notice, http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. She speaks frequently at tech conferences covering macro trends and has a tech podcast in the Top 40 for technology on iTunes and Spotify. 41 a year ago. 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. In its most recent quarter, net losses grew 138% year over year. You're maybe aware of tools that help coworkers track their progress on different projects. Today we'll show you everything you need to know about the Asana IPO…. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. think will win today’s election? In fact, it is currently at a deficit of $365.6 million. Beth Kindig is a technology analyst who publishes weekly at beth.technology and runs a premium service for serious tech investors. Asana has widening losses and decelerating revenue growth in a highly competitive industry. Asana followed in the footsteps of its competitor Slack, which listed its shares on the NYSE through a direct listing in June 2019. Your email address will not be published. In fact, IPO activity fell by as much as 48%. All Rights Reserved. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. But Shah says THESE three stocks are "screaming buys.".
To compete for market share in such a crowded space, Asana will have to continue to allocate a large portion of its revenue to customer acquisition strategies. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. However, the company’s free cash flow margin is -33%. Market data provided by Interactive Data. This kind of technology will become an important fixture in office life as more companies migrate their entire workloads to the cloud. Palantir and Asana are coming at the end of September. But it could come sooner than later.
Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Click here to jump to comments…. The company’s software is used by more than 75,000 companies including AT&T, Google and NASA. That's 82% growth in one year. We compete with companies that range in size from large and diversified with significant spending resources to smaller companies.”. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices Learn more…. 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. Trump’s odds of winning have surged in the past 48 hours, according to this data scientist’s model, Swing states, COVID, and the Electoral College: Why Trump’s odds of winning are better than they seem. Here's Whether Asana Stock Is a Buy After the IPO By Mike Stenger, Associate Editor, Money Morning • September 1, 2020 The IPO world went … This has brought some of the most anticipated tech IPOs out of the woodwork recently. The SEC has approved the draft registration paperwork and noted it on their website. Asana's Class B … 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. Some of these have yet to earn a profit. Asana has 1.2 million paid users and an additional 3.2 million free activated accounts, according to the filing. © 2020 Fortune Media IP Limited. Save my name, email, and website in this browser for the next time I comment. We do know, however, that it filed S-1 on Aug. 24. I believe a fair valuation for Asana would be closer to Smartsheet’s, but we are unlikely to see that until the initial hype and excitement wear off. 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.". Now, case numbers are leveling off in certain areas. Asana stock will trade on the New York Stock Exchange. Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. You can view this here. Or to contact Money Morning Customer Service, click here. Quotes delayed at least 15 minutes. Asana will be an exciting growth stock to watch in the future, but I believe anything above an initial $5B valuation is too rich. Follow Money Morning on Facebook and Twitter. To get the company names, tickers, and price targets for Shah's picks, go here now. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, has been trading at a roughly $5B market value. The stock market has made its final prediction: Joe Biden will win the presidential election Dozens are overpriced and overhyped – you should ditch them ASAP. This represented a 67% decrease in IPO proceeds for April-March 2020. Asana filed its S-1 last week and is expected to list directly on the NYSE in late September. The company took a loss, however. When is the Asana IPO date? Among them is Asana, a SaaS company selling cloud-based productivity software for the next generation. Asana has been unprofitable since its founding in 2008. By Mike Stenger, Associate Editor, Money Morning • September 1, 2020. The company also saw its losses grow from $50.9 million in 2019 to $118.6 million in fiscal 2020. A whopping $119 million in the red. Join the conversation. Beth Kindig does not own any shares of Asana, Smartsheet or Atlassian and has no plans to purchase these stocks. You may opt-out by. 17 in this year’s Forbes Cloud 100, the annual ranking of the world’s top private cloud-computing companies, up from No. Citing IDC data, the work management market that Asana addresses is expected to grow from $23B in 2020 to $32B in 2023.
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