Back in 2020 it was the darling of SV, when CEO Dustin listed it on long term stock exchange. Garner, Forrester hailed it as a leader in work management. They offered huge compensation and attracted talents from facebook/google. Fast forward 2024, stock is stagnant at $17, while the entire tech sector is a raging bull. The revenue growth is stagnant at ~20-30% ish and even after 16 years in business there is no sight of profitability. They continue to hire and open offices ( Poland) and post huge losses, while blaming the macro economic conditions. The company barely passing 500 Million in revenue with a revenue per employee ~300 K. While it’s competition Smartsheet is killing it. Monday.com already ate Asana’s lunch. While there was opportunity to cut fat as the entire market doing laying off, Asana being the pedantic keeps hiring. What am I missing here? I am just anxious that this once so called “unicorn” is dying a slow death. They got the best talents and leaders among its peers then why this lackluster performance? It seems like the management doesn’t give a shit about its shareholders. Unfortunately I drank the kool-aid and invested in Asana so tearing by my hair apart. I guess there is no going back now. /End rant TC: 400 K Yoe: 10 #tech #asana #monday #smartsheet
It's the following factors: 1. Tech-heavy customer base. Just look at their recent earnings. Their non-tech side is doing well, but their tech customers aren't because Asana makes money on a per-seat basis. Hence, layoffs most definitely will impact their bottom line. 2. General rise in interest rates. This affects growth companies the most, of which Asana is a prime target. 3. The transition upmarket. Any transition will require restructuring, letting people go, and hiring a different set of talent (in this case, more traditional enterprise folks). Just like at them firing Eda for Ed. This transition can lead to a slowdown. But this is a worthwhile transition. Enterprise has much more $$$ than SMB. But if you notice, all these factors are short-term in nature. The battle for CWM will take place over the next 5-10 years. Macro-economic headwinds are just a blip on the radar. You can hack revenue growth w/ short-term initiatives like going into storage/CRM/messaging (like Monday). But like any market, these things take years. Any good investment does not pan out over 3-5 years. They take 10 years. So based on this information, you can decide if Asana is a winner/loser. To declare loss/victory would be premature. You should look at the company fundamentals, not short-term fluctuations, to see how things will turn out.
I'm bag holding as well. I suppose I should cut my losses but it's hard to sell at a loss.