Asana stock soars 24% as software company says path to profitability is improving

For the full year, Asana ASAN, +1.83% said it expects revenue of between $638 million and $648 million, with an adjusted net loss of 55 cents to 59 cents. Analysts polled by FactSet expected a 79 cent-per-share loss, on sales of $645.8 million.

The company reported a fourth-quarter net loss of $95 million, or 44 cents a share. That compares with a loss of $90 million, or 48 cents a share, in the same quarter last year. Revenue rose 34% to $150.2 million, compared with $111.9 million in the same quarter last year.

Adjusted for stock-based compensation, restructuring and other costs, Asana lost 15 cents a share, compared with 25 cents a year earlier.

Analysts polled by FactSet expected Asana to reported an adjusted loss of 27 cents a share, on revenue of $145.1 million.

Shares soared 24% after hours.

The company reported earnings as other workplace-oriented cloud-services platforms, like Salesforce Inc. CRM, -0.20% and Workday WDAY, -1.69%, scale back and lay off workers. The tech industry has tried to shrink, after hiring to meet digital demand brought by the pandemic that later fizzled as COVID restrictions lifted.

Shares of Asana have fallen 60% over the past two months. By comparison, the S&P 500 Index SPX, +0.14% has lost 4.3% of its value over that period.