Jim Cramer: Asana's Pretty Good, But Stock 'Too High'
Asana went public via a direct listing on the New York Stock Exchange on Wednesday.
In a direct listing, a company and its current holders sell shares to the public. New shares are not created and no underwriters are involved.
Asana’s IPO was overshadowed by Palantir (PLTR) - Get Report, a provider of data-analytics software to the government. Backed by venture capital icon Peter Thiel, Palantir also went public Wednesday with a direct listing on the NYSE.
Asana, started up in 2008, has 910 employees and produces software that competes with Atlassian’s TEAM Trello.
“We have experienced rapid growth in recent periods,” Asana said in its prospectus. Revenue registered $76.8 million and $142.6 million for fiscal 2019 and fiscal 2020, respectively, representing growth of 86%.”
Sales totaled $28 million and $47.7 million for the three months ended April 30, 2019, and 2020, respectively.
The company reported net losses of $50.9 million for fiscal 2019 and $118.6 million and fiscal 2020. It posted deficits of $15 million and $35.8 million for the three months ended April 30, 2019, and 2020, respectively.
As for risks, “we have a limited operating history at our current scale, which makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful,” Asana said.