Asana Announces $150 Million Stock Repurchase Program
21 June 2024 - 6:05AM
Business Wire
Asana, Inc. (NYSE: ASAN) (LTSE: ASAN), a leading work management
platform, today announced that its Board of Directors has approved
a stock repurchase program authorizing Asana to repurchase up to
$150 million of its Class A common stock through June 30, 2025.
“I’m pleased to share that, after careful consideration, our
Board has authorized a stock repurchase program of up to $150
million over the next 12 months. This is a good investment
opportunity for us as I believe our shares are undervalued given
our immense long-term potential,” said Dustin Moskovitz, co-founder
and chief executive officer of Asana. “With over $500 million of
cash, cash equivalents, and investments on the balance sheet and a
commitment to becoming free cash flow positive by the end of this
year, we have the financial leverage and resources. AI is
transforming how we work, and Asana is delivering the ideal
platform for this new era where people and AI collaborate to reach
new levels of productivity and innovation.”
Under the program, which is designed to return value to Asana’s
stockholders and reduce share count over time, Asana may repurchase
shares in the open market, through privately negotiated
transactions, by entering into structured repurchase agreements
with third parties, by making block purchases, and/or pursuant to
Rule 10b5-1 trading plans. The timing, manner, price, and amount of
any repurchases under the program will be determined by Asana in
its discretion. Asana is not obligated to repurchase any specific
number of shares and the program may be modified, suspended, or
discontinued at any time, without prior notice. The stock
repurchase program is expected to continue through June 30, 2025,
unless extended or shortened by the Board of Directors.
Asana reaffirms its previously provided guidance, other than net
loss per share due to the recency of the repurchase program, for
the second quarter and the full fiscal year 2025:
For the second quarter of fiscal 2025, Asana expects:
- Revenues of $177.0 million to $178.0 million, representing year
over year growth of 9% to 10%; and
- Non-GAAP operating loss of $23.0 million to $21.0 million, with
12% operating loss margin at the midpoint.
For the full year fiscal 2025, Asana expects:
- Revenue of $719.0 million to $724.0 million, representing year
over year growth of 10% to 11%;
- Non-GAAP operating loss of $59.0 million to $55.0 million, with
8% operating loss margin at the midpoint; and
- Free Cash Flow positive for the full year.
A reconciliation of non-GAAP outlook measures to corresponding
GAAP measures is not available on a forward-looking basis without
unreasonable effort due to the uncertainty regarding, and the
potential variability of, many of these costs and expenses that may
be incurred in the future.
Forward-Looking Statements
This press release contains “forward-looking” statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are based on management’s beliefs and assumptions and on
information currently available to management. Forward-looking
statements include, but are not limited to, statements about
Asana’s financial outlook for the second quarter and full fiscal
year 2025, the stock repurchase program, and Asana’s immense
long-term potential. Forward-looking statements generally relate to
future events or Asana’s future financial or operating performance.
Forward-looking statements include all statements that are not
historical facts and in some cases can be identified by terms such
as “anticipate,” “expect,” “intend,” “plan,” “believe,” “continue,”
“could,” “potent, not all forward-looking statements contain these
identifying words. Forward-looking statements involve known and
unknown risks, uncertainties and other factors, including factors
beyond Asana’s control, that may cause Asana’s actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. These risks include, but are not
limited to, risks and uncertainties related to: Asana’s capital
allocation strategy, Asana’s ability to achieve future growth and
sustain its growth rate, the timing and ability of Asana to reach
profitability, Asana’s ability to attract and retain customers and
increase sales to its customers, Asana’s ability to develop and
release new products and services and to scale its platform,
including the successful integration of artificial intelligence,
Asana’s ability to increase adoption of its platform through its
self-service model, Asana’s ability to maintain and grow its
relationships with strategic partners, the highly competitive and
rapidly evolving market in which Asana participates, Asana’s
international expansion strategies, and broader macroeconomic
conditions. Further information on risks that could cause actual
results to differ materially from forecasted results are included
in Asana’s filings with the SEC, including Asana Quarterly Report
on Form 10-Q for the quarter ended April 30, 2024 and subsequent
filings with the Securities and Exchange Commission. Any
forward-looking statements contained in this press release are
based on assumptions that Asana believes to be reasonable as of
this date. Except as required by law, Asana assumes no obligation
to update these forward-looking statements, or to update the
reasons if actual results differ materially from those anticipated
in the forward-looking statements.
About Asana
Asana, the #1 AI work management platform, is where work
connects to goals. Over 150,000 customers like Amazon, Accenture,
and Suzuki rely on Asana to manage and automate everything from
goal setting and tracking to capacity planning to product launches.
To learn more, visit asana.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240620046706/en/
Catherine Buan Asana Investor Relations IR@asana.com
Frances Ward Asana Corporate Communications press@asana.com
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