Asana Inc (NYSE:ASAN) stock fell 12.72% (As on December 6, 11:27:45 AM UTC-4, Source: Google Finance) after the company beats in earnings and revenue in its fiscal third quarter and forecasting a better-than-expect outlook for its fourth quarter. For the quarter that ended Oct. 31, Asana reported an adjusted net loss of $8.2 million, up from a year-ago loss of $52.4 million. Non-GAAP operating loss was $9.8 million, or 6% of revenues, an improvement year over year compared to non-GAAP operating loss of $52.6 million, or 37% of revenues, in the third quarter of fiscal 2023. Cash flows from operating activities were negative $8.2 million, compared to negative $46.2 million in the third quarter of fiscal 2023. Free cash flow was negative $11.5 million, compared to negative $48.5 million in the third quarter of fiscal 2023.

ASAN in the third quarter of FY 23 has reported the adjusted loss per share of 4 cents, beating the analysts’ estimates for the adjusted loss per share of 11 cents. The company had reported the adjusted revenue growth of 18 percent to $166.5 million in the third quarter of FY 23, beating the analysts’ estimates for revenue of $164.09 million. Asana’s top-line growth was led by continued success in enterprise, with revenue from “core customers” — customers spending over $5,000 annually growing 20% — and revenue from enterprise customers growing even faster. The company’s dollar-based retention rate among customers spending $100,000 or more annually was over 120%. The company ended the quarter with over three million paid seats.

Highlights in the quarter include Asana announcing on Oct. 3 that it was integrating artificial intelligence into multiple aspects of its work management platform. The embrace of AI was said to take advantage of Asana’s Work Graph architecture to maximize the impact, clarity, accountability and scale of various work-related projects.

For its fiscal fourth quarter, Asana expects an adjusted loss of nine to 10 cents per share on revenue of $167 million to $168 million. Analysts expected a loss of 16 cents per share on revenue of $166 million. It was a similar story with the company’s full-year outlook, with Asana expecting an adjusted loss of 26 to 27 cents per share on revenue of $648.5 million to $649.5 million versus an expected loss of 38 cents per share on revenue of $646.1 million. For fiscal 2024, Asana expects Non-GAAP operating loss of $66.0 million to $64.0 million.