Asana may be valued at a healthy $1.5 billion, a unicorn with exciting prospects. 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 … It's just a matter of discovering which stocks are going to be at the helm of that discovery.
We compete with companies that range in size from large and diversified with significant spending resources to smaller companies.”.
But you want to know as much as you can before making a decision. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud. Your email address will not be published. Mark Zuckerberg's roommate at Harvard University and Facebook, Inc. (FB) Co-founder Dustin Moskovitz, along with the early Facebook employee Let's see if the Asana IPO can separate itself from the pack…. 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 Beth Kindig does not own any shares of Asana, Smartsheet or Atlassian and has no plans to purchase these stocks. 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. 41 a year ago. In 2020, the company’s sales & marketing expenses accounted for 74% of its revenue and its research & development spending accounted for an additional 63%. 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. Required fields are marked *, Sign me up for the Money Morning newsletter. © 2020 Money Morning All Rights Reserved. She works in San Francisco and Silicon Valley as a data technology evangelist with over 7 years of experience in mobile and data. Today we'll show you everything you need to know about the Asana IPO…. Learn more…. Before you go investing in IPOs like Asana, it's important to watch for more financials and forward-looking statements as they are released. This kind of technology will become an important fixture in office life as more companies migrate their entire workloads to the cloud. Asana will be an exciting growth stock to watch in the future, but I believe anything above an initial $5B valuation is too rich. 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. She invested in Roku from its IPO for a 1,000% gain and she is known for having a crystal ball on Twitter. Click here to jump to comments…. The company outlined this strategy in its S-1, stating that it expects to increase its operating losses in the future to prioritize growth. Simply put: No, Asana is not profitable, but it could be soon. The Asana stock ticker symbol will be SANA.RC. Asana has widening losses and decelerating revenue growth in a highly competitive industry. Join the conversation. Asana operates in a highly competitive industry with many companies competing for a share of the market. Quotes delayed at least 15 minutes. 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.
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. Asana revenue grew from $76.8 million to $142.6 million between 2019 and 2020. Snowflake priced its IPO at $120 per share , raising $3.3 billion.
Choose from the topics below to receive our money-making recommendations in real time. She has been published in many publications including VentureBeat, MediaPost, AdExchanger and the International Association of Privacy Professionals. 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. The company took a loss, however. The cloud computing market was measured at $266 million in 2019. In fact, it is currently at a deficit of $365.6 million. FORTUNE may receive compensation for some links to products and services on this website. Chief Investment Strategist Shah Gilani just held his first-ever stock-picking lightning round event – running through more than 50 stocks to tell you if they are stocks to buy or stocks to sell. Many of those customers also come from around the world. She has written Quarterly Data Reports on technology since 2014. Market data provided by Interactive Data. © 2020 Forbes Media LLC. By Mike Stenger, Associate Editor, Money Morning • September 1, 2020.
In Q1 2019, enterprises and businesses made up 11% of its business. And it did broaden its base in the last year, significantly. She speaks frequently at tech conferences covering macro trends and has a tech podcast in the Top 40 for technology on iTunes and Spotify. Among them is Asana, a SaaS company selling cloud-based productivity software for the next generation. However, the company’s free cash flow margin is -33%. 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. At a $5B valuation, Asana would be valued at approximately 26.2x forward revenue using its annual run rate. That means the company doesn't raise any additional capital in the IPO, beyond the $213.5 million it's already raised. 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. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. A whopping $119 million in the red. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Asana is following the footsteps of Palantir and doing a direct listing, or direct public offering (DPO) instead of a traditional IPO. Beth Kindig is a technology analyst who publishes weekly at beth.technology and runs a premium service for serious tech investors. It also means investors will get to pay market price for shares of Asana stock instead of the markup underwriters bake into normal IPOs. But Shah says THESE three stocks are "screaming buys.". 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. Asana has been unprofitable since its founding in 2008. Forrester research has listed Asana as one of three leaders in the collaborative work management space. 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. Stocks that are already public might even produce greater profits. Beth Kindig publishes a free newsletter on tech stocks at Beth.Technology and runs a premium research service for stock investors. You can view this here. Or to contact Money Morning Customer Service, click here. 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. But investors familiar with IPOs know that young companies go through a heavy cash-burning phase early on. Previous price talk over the … Asana’s dollar-based net retention rate, which measures how much existing customers spent on the platform today versus how much they spent a year earlier, was over 120% in 2019. The company also saw its losses grow from $50.9 million in 2019 to $118.6 million in fiscal 2020. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. Other cloud-oriented tech startups announcing IPOs earlier this month as well – Unity, JFrong, Snowflake, and Sumo Logic. Asana’s gross margin is 86.1%, which is among the best in the software industry. Best Stocks: Three of the best stocks to consider buying today – these picks belong in every portfolio. Beth predicted the biggest stock drop in history in Q2 2018 with Facebook's miss and the biggest IPO loss in history with Uber in Q2 2019. It's just one of many cloud computing stocks trading now. David Marlin contributed to this article. This has brought some of the most anticipated tech IPOs out of the woodwork recently. Despite Asana having investable growth, the company may be in too-crowded of a space for the size of the addressable market. Still, you have other things to consider when IPO investing….
There is still not an official date for the Asana IPO.
Asana followed in the footsteps of its competitor Slack, which listed its shares on the NYSE through a direct listing in June 2019. In its most recent quarter ending April 2020, Asana recorded 71% YoY revenue growth. But researchers predict it could hit $832 million by 2025. In Q1 2020, that number was 42% – a 31% leap. The product provides teams with effective tools to coordinate their workflows and increase productivity. 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. Follow Money Morning on Facebook and Twitter. Treatments are being discovered.
Yes, Asana has yet to profit in its lifetime. 17 in this year’s Forbes Cloud 100, the annual ranking of the world’s top private cloud-computing companies, up from No. All rights reserved. And business leaders have more faith in the IPO market. Sources say Asana has been trading at a roughly $5B market value in the secondary market. All Rights Reserved, This is a BETA experience. In fact, IPO activity fell by as much as 48%. This is evident in the widening losses and the need to double R&D and sales and marketing to keep their revenue growth competitive. Asana is workplace collaboration and planning software that is designed to help teams orchestrate their work so they can achieve their goals more efficiently. Who does A.I. 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. The company ranks at No. Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. In its most recent quarter, net losses grew 138% year over year. The benefit of the DPO is that shares can go to market faster, as the company is subject to fewer SEC requirements. Your email address will not be published. However, this is not necessarily a reason to write off a startup. Forty-one percent of Asana revenue came from companies outside the United States this year. © 2020 Fortune Media IP Limited.
The company’s software is used by more than 75,000 companies including AT&T, Google and NASA. 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. But it could come sooner than later. The increase in losses can be attributed to the company more than doubling its spending on research & development as well as sales & marketing. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Asana's Class B … Continued deceleration of this growth will be troublesome for the company’s ability to become profitable in the future. Citing IDC data, the work management market that Asana addresses is expected to grow from $23B in 2020 to $32B in 2023. Some of these have yet to earn a profit.
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