# Asana Inc. (ASAN)’s Investors are not Happy Despite its Upbeat Quarterly Results. Problems?

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Late on June 2, 2022, the work management platform developer, Asana Inc. (ASAN) posted earnings for the first quarter of fiscal 2023. The earnings were better than expected with nice growth across most metrics. On top of earnings and revenue surpassing estimates, customer growth kept a good momentum with over a 120% overall net retention rate. Despite this, investors were not happy with the company’s losses and investments. The company’s financials revealed that its main focus is customer growth rather than profitability. While customer growth indirectly does lead to an increase in revenue, the wider losses and no focus on them at times like these is something investors do not like.

## Broader Environment & ASAN

The world is in chaos in 2022, and the stock market is even more so. Equities have had a harsh fall this year as the geopolitical and economic situation unfolds further. Russia-Ukraine conflict, China lockdowns, supply chain problems, soaring inflation, and the consequent interest rate hikes are taking a toll on economies as well as stock markets around the world. The U.S. inflation and interest rates have crossed 40-year levels and the economy is on the verge of a recession. The threat of a recession in the near term is becoming inevitable as the economic environment continues to deteriorate further.

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