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asanas (New York Stock Exchange: ASAN) Share increased more than 20% on Thursday, when investment firm Baird praised the employment management company for its strong fourth-quarter results and CEO Dustin Moskovitz’s plan to buy 30 million shares.
Analyst Rob Oliver, who has a neutral rating in Asana (ASAN) shares, said the company is seeing continued traction in the business and, despite concerns about the global economy, saw an increase in multi-year commitments.
“We continue to see longer sales cycles and increased budget scrutiny; we also saw an increase in multi-year deals and benefited from vendor consolidation,” Oliver wrote, raising his share price target to $20 from $15 in a note to investors
During the quarter, Asana (ASAN) said it added approximately 4,000 net new customers, beating estimates. Customers who paid more than $100,000 in annual contract value were 506, up 49% year-over-year.
Looking ahead, Asana (ASAN) said it expects revenue to be between $638 million and $648 million, slightly below analyst expectations, but the company is focused on increasing average sales rep productivity. by 20% by the end of the second half of 2024 and the company reiterated its goal of achieving positive free cash flow by the end of next year.
In addition, Moskovitz said he had entered into a 10b5-1 deal to plan to buy an additional 30 million shares because he believes they are “undervalued.” Plans start June 8th and end December 29th.
Earlier this month, investment firm DA Davison updated Asana (ASAN), citing recent data for the app showing continued growth in active users and a “marked acceleration in downloads.”