Asana Shares Plunge 11.11% on Slowing Revenue Growth

Asana shares dropped 11.11% in pre-market trading on June 4, 2025, as investors reacted to the company's fiscal 2026 first-quarter earnings report, which, while beating estimates, showed slowing revenue growth.

Asana reported adjusted earnings per share of five cents, up from a loss of six cents per share in the same quarter of the previous fiscal year, on revenue of $187.3 million, up 9% year-over-year. The company's customer growth was a key driver of these figures, with a 10% year-over-year increase in "core customers" and a 20% year-over-year increase in customers spending $100,000 or more per year.

During the quarter, Asana launched several new features and integrations, including the full rollout of Asana AI Studio, enhanced integration with Microsoft Teams, and real-time data sync with Salesforce. These advancements are aimed at improving workflow automation and data integration for users.

Despite the positive earnings report, investors were concerned about the slowing revenue growth, which decreased from 26% in the year-ago quarter to 9%. This concern, along with the company's outlook for the second quarter and full fiscal year, contributed to the share price decline.