Shares of Asana, Inc. (ASAN) surged 26% in Friday's intraday trading on the back of the company's strong fiscal third-quarter 2025 results and a promising outlook driven by the launch of its new AI-powered product suite.

The work management software provider reported a non-GAAP loss of $0.02 per share for the quarter ended October 31, 2024, significantly better than analysts' estimates of a $0.07 loss. Revenues grew 10.4% year-over-year to $183.9 million, surpassing expectations of $180.7 million.

The robust performance was underpinned by solid growth across key metrics. Asana saw an 11% year-over-year rise in the number of Core customers (spending $5,000 or more annually), reaching 23,609. Additionally, the company's $100,000+ annualized recurring revenue (ARR) customer count grew by an impressive 18% to 683.

More importantly, Asana unveiled its new AI Studio product during the quarter, which the company's CEO Dustin Moskovitz described as "the birth of a new category, unlocking a massive Total Addressable Market (TAM) and growth opportunity for the company." This AI-powered offering helps teams design and deploy workflows embedded with AI agents, driving productivity gains across various use cases.

Encouraged by the strong Q3 results and the promising prospects of AI Studio, Asana raised its fiscal 2025 revenue guidance to a range of $723 million to $724 million, up from the prior forecast of $719 million to $721 million. The company now expects a non-GAAP net loss of $0.14 to $0.15 per share for the full year, an improvement from the previous guidance of $0.19 to $0.20 loss per share.

Analysts were upbeat about Asana's performance and outlook, citing the earnings beat, raised guidance, and the potential of the new AI-powered product as catalysts for further growth. Several firms reiterated their bullish ratings on the stock, emphasizing the company's ability to capitalize on the emerging AI opportunity in the work management space.