Episode Details

Asana (ASAN) Q2 FY2027 — Shares closed at $10.09 the session the print landed, then traded down to about $8.95 since the release. Asana beat its own Q2 FY2027 guidance and raised the full-year outlook — and the stock fell about 11% since the release. The reason sits four lines above the profit: cost of revenues grew 50% against revenue growth of 10%, gross margin fell from 89.7% to 86.0%, and management guided next quarter's operating margin DOWN in the quarter AI ships to every paid tier. THE CALL: HOLD (2/5, LOW-MODERATE) — base-case value ~$7.60 vs ~$8.95 today. KEY METRICS: - Revenue $216.4M, +9.9% YoY — above the top of company guidance - Cost of revenues $30.3M, +50% YoY; gross margin 86.0% vs 89.7% - Incremental gross margin on new revenue: 48.2% - Non-GAAP operating income $21.8M (10.1% margin) vs 7.1% a year ago - GAAP net loss $39.2M, $(0.17)/sh; non-GAAP diluted EPS $0.10 vs $0.09 consensus - Stock-based compensation $56.3M — 26.0% of revenue - Adjusted free cash flow $42.3M (19.6% margin); net cash ~$303M - Dollar-based net retention 97% overall, 98% core, 98% for $100k+ accounts - 14.8M shares repurchased in 1H at an average of $6.52 - Q3 guide: revenue $217-219M (+8-9%), non-GAAP operating margin 8-9%, EPS $0.08 - FY2027 guide: revenue $858.5-863.5M (+9%), non-GAAP operating margin ~10%, EPS $0.37 What to watch: Gross margin holds at or above 86% while Agentic Work Management reaches every paid tier, and net retention crosses 100% Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.