Asana Announces $150M Stock Repurchase Program

Asana, Inc. has announced a $150 million stock repurchase program, reflecting confidence in the company's long-term potential. With over $500 million in cash, cash equivalents, and investments on the balance sheet, and a commitment to becoming free cash flow positive by the end of the year, the company believes it has the financial leverage and resources to undertake this program.

The stock repurchase program is intended to return value to stockholders and reduce share count over time. Asana may repurchase shares through various methods, including open market purchases, privately negotiated transactions, structured repurchase agreements with third parties, block purchases, and pursuant to rule 10b5-1 trading plans.

Looking at the financial outlook provided by Asana, for the second quarter of fiscal 2025, the company expects revenues of $177.0 million to $178.0 million, reflecting year-over-year growth of 9% to 10%. The non-GAAP operating loss is anticipated to be between $23.0 million to $21.0 million, with a 12% operating loss margin at the midpoint. For the full fiscal year 2025, Asana expects revenue of $719.0 million to $724.0 million, representing year-over-year growth of 10% to 11%. The non-GAAP operating loss is projected to be $59.0 million to $55.0 million, with an 8% operating loss margin at the midpoint. Additionally, the company aims to achieve free cash flow positivity for the full year.

It's important to note that the company reaffirmed its previously provided guidance for the second quarter and the full fiscal year 2025, except for net loss per share due to the recent stock repurchase program. Asana's stock repurchase program is expected to continue through June 30, 2025, unless extended or shortened by the board of directors. As a result of these announcements, the company's shares have moved -4.2% on the market, and are now trading at a price of $11.37. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.