Businesses such as Asana have an advantage currently – they’re perfect for adapting to the rapidly changing work-from-home lifestyle requirements. However, looking at Asana’s business track-record, many investment professionals have questions regarding the value of the stock itself. Below, we examine the pros and cons of investing in Asana when it launches its IPO to help you determine if it’s a valuable investment currently or something you’d like to pass on for the time being.
What Is Asana?
Launched in 2008 by Facebook co-founder Dustin Moskovitz, Asana is a productivity software that helps teams collaborate on projects. Ultimately, teammates can check in with each other, see real-time analysis of project completion and stay up-to-date on any changes that take place to the project deliverables.
It gives project managers the ability to view, edit and assign tasks to certain workgroups. Overall, it provides managers with the ability to easily and effectively manage their teams, even when working remotely.
Currently, economic advisors see cloud computing software increasing in value within the next three to five years. Many companies are currently working on moving their entire workforce to a work-from-home office, making software like Asana invaluable in ensuring employees complete projects on time. All the same, Asana does have several marketplace competitors at the moment.
Is Asana Profitable?
According to the experts at Money Morning, Asana IPO has decent chances of being profitable after launch. There are several reasons we can be led to believe this, despite the company’s hit-or-miss past.
Financial records for Asana show the company is currently holding a deficit of approximately $365.6 million. This number sounds devastating, especially for a startup. Still, between 2019 and 2020, Asana saw revenue growth of 82%. Current business and marketplace projections expect the company to continue to grow in the next three to five years, especially as part of the technology and cloud computing sector’s growth. Asana, realistically speaking, has the chance to continue to grow thanks to our rapidly changing economy.
Is Asana A Buy After the IPO?
Currently, Asana does not have a date set for its IPO. However, the company did complete the S-1 filing on August 24, 2020. Therefore, the company should be making its debut soon. Interested buyers should consider the pros and cons before deciding if they will invest after the IPO.
According to their financial advisors, Asana will participate in a direct public offering, or DPO, instead of the traditional IPO. This process allows shares to go to market faster. Additionally, it allows investors to purchase the stock for their market value, eliminating the usual up-charge associated with IPOs.
Keeping all of this in mind, Asana may become valuable in the near future. As it stands now, though, many investors advise that interested parties closely monitor updated financial releases from Asana before they decide to make a purchase.
Overall, Asana stock may be a good purchase. It will require careful review of the company’s current financial status, however, to determine if it’s a good long-term investment.