It’s entirely possible that you haven’t heard of workforce-management software company Asana (NYSE:ASAN) or traded ASAN stock. Yet, this company is solving a major problem in the modern workplace — and there’s strong growth potential here.
To put it simply, Asana seeks to help teams orchestrate their work, from daily tasks to strategic initiatives. When work is unstructured, Asana’s tech-infused tools provide not only structure, but also clarity and accountability.
It’s a lucrative business model. In fact, Asana’s second-quarter 2021 revenue growth accelerated to 72% on a year-over-year (YOY) basis.
As we’ll see, there’s a huge addressable market to be captured here and Asana’s on the leading edge of the opportunity. So, let’s commence with a quick breakdown of ASAN stock’s progress so far.
ASAN Stock at a Glance
There’s an old saying among market technicians: the longer the base, the higher in space. In other words, sometimes a stock might go sideways or “consolidate” for a long time in preparation for a massive buying spree.
This phenomenon seems to have happened to ASAN stock in 2021. Until the middle of May, the stock was stuck around $30 and going nowhere fast. Then, the big moonshot happened. Patient investors were, very quickly, able to book 3x returns or more.
The rally took ASAN stock all the way up to a 52-week high of $145.79 in November. However, a sudden drop to the $100 level took place later in the month.
What happened? Was there something wrong with the company?
Not really. The primary culprits were the emergence of the omicron Covid-19 variant, along with a late November rise in 10-year U.S. Treasury bond yields which sent high-growth stocks lower.
Therefore, you may now have a chance to own ASAN stock at a reduced price point, even while the company itself is doing just fine.
Big Market, Big Problems
We already touched upon the revenue growth behind ASAN stock, but here are a couple more stats to impress prospective investors. According to the company, the company operates in 190 countries worldwide. Asana seeks to capture a total addressable market valued at $50 billion-plus.
But, what is that market, exactly?
Really, it encompasses any modern business in which teams have to collaborate to get work done.
As Asana sees it, there are serious problems going on with businesses today. Teams are facing an impact gap, with 26% of deadlines being missed and high levels of burnout.
That’s unacceptable. And to a certain extent, it’s because the team members are spending too much time on busywork. Startlingly, Asana reports that employees are spending 40% of their time doing “strategic” work and the other 60% doing “work about work” — taking unnecessary meetings, answering emails and more.
One Platform, Many Solutions
There’s room for improvement here, obviously.
Asana seeks to address an expansive, underserved market with 1.25 billion workers. And it’s international, as Asana generates 43% of its revenues from outside of the United States.
Already, the company has more than 107,000 paying customers. What makes Asana’s software-as-a-service (SaaS) platform so appealing is that it helps to solve a wide variety of problems. The platform that can facilitate anything from customer onboarding, training and implementation, vendor management, product launches, event planning and much more.
In fact, the full list of what Asana’s platform can do is actually much longer than that.
Asana asserts that its platform can help workers spend 33% “less time on emails” and improve “employee satisfaction” by 72%. That’s a value proposition that should appeal to any business today — as well as potential ASAN stock investors.
The Takeaway on ASAN Stock
Don’t be too surprised if workflow-efficiency tools become a high-growth market over the coming years.
Asana is an early and aggressive competitor in this market. At the same time, ASAN stock’s growth reflects the company’s successful business model.
So, you might consider a position in Asana today. The company effectively helps to eliminate busywork and keep employees happy.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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