Asana Inc (NYSE:ASAN) stock plunges 26.32% (As on Mar 10, 11:22:38 AM UTC-4, Source: Google Finance) despite the company’s better-than-expected results for the company’s fourth-quarter. That earnings news was overshadowed by Asana’s plans to step up its rate of investment in the business, and its forecast for a higher-than-expected loss for fiscal 2023. Asana has ended the year with over 119,000 paying customers. Of that group, 15,437 are paying over $5,000 a year, up 52% from a year ago, and 894 are paying more than $50,000 a year, up 125%. Cash flows from operating activities were negative $39.3 million, compared to negative $18.2 million in the fourth quarter of fiscal 2021. Free cash flow was negative $41.2 million, compared to negative $17.5 million in the fourth quarter of fiscal 2021. Overall dollar-based net retention rate in Q4 was over 120%. Dollar-based net retention rate for customers with $5,000 or more in annualized spend in Q4 was over 130%. Dollar-based net retention rate for customers with $50,000 or more in annualized spend in Q4 was over 145%

ASAN in the fourth quarter of FY 21 has reported the adjusted loss per share of 25 cents, beating the analysts’ estimates for the adjusted loss per share of 28 cents. The company had reported the adjusted revenue growth of 64 percent to $111.9 million in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $105.5 million. Non-GAAP operating loss was $43.9 million, or 39% of revenues, compared to non-GAAP operating loss of $34.8 million, or 51% of revenues, in the fourth quarter of fiscal 2021.

For the January 2023 fiscal year, Asana sees revenue of $527 million to $531 million, up 39% to 40%, and above the old Wall Street consensus of $506 million. The company plans to increase its sales and support teams, boostings costs. Asana sees full year non-GAAP operating margin losses on a percentage basis in the mid-40s, widening from -39% in the January 2022 fiscal year.

For the fiscal first quarter, Asana is projecting revenue of $114.5 million to $115.5 million, up roughly 50% and above the Wall Street consensus forecast at $110.9 million, with a non-GAAP loss of 35 to 36 cents a share, wider than analysts’ estimate for a loss of 27 cents a share. Q1 2023 Non-GAAP operating loss is expected to be in the range of $68.0 million to $66.0 million.