Asana shares jump over 30% as Palantir still awaits first trade


Asana Inc. was the first tech stock to roll out of the two doors slated for their first trading day on Wednesday, growing rapidly by over 30%, while Palantir Technologies Inc. was still awaiting launch.

Asana and Palantir were both scheduled to start trading Wednesday morning in direct listings for two software companies linked to Facebook Inc.

Asana started trading at 12:35 p.m. EST, priced at around $ 27, with a valuation of around $ 4.1 billion. NYSE has set a benchmark price of $ 21 for the stock. Within 15 minutes of its first trade, Asana shares rose about 40% to an intraday high of $ 29.59.Asana ASAN,
+ 34,61%
is a collaboration software company co-founded by Facebook co-founder Dustin Moskovitz, who serves as Managing Director, while Palantir PLTR,
+ 54,62%
is a data software company co-founded by the first Facebook FB,
+ 1,01%
investor and member of the board of directors Peter Thiel. Both companies have chosen to list their shares directly instead of selling new shares as part of an initial public offering, a route that was previously taken by Spotify Technology SA SPOT
and Slack Technologies Inc. WORK,
+ 0,57%,
who were also mature startups that repeatedly sold stocks in the private markets and sought to offer investors public trading options.

Palantir’s shares had not yet started trading at the last check. The New York Stock Exchange had set a benchmark price of $ 7.25 per share based on private market transactions for the stock, and the Wall Street Journal reported last week that the company expected to what stocks open around $ 10.

Palantir launched its first software platform in 2008 and has long been known as a covert software startup focused on military and law enforcement uses, courting controversy for its work with the U.S. government’s Immigration and Customs division. . The company has since launched a second offering that has drawn in private sector clients and has gotten much louder about its business, including a Silicon Valley public divorce in which co-founder and CEO Alexander Karp detailed a departure from California and championed his company’s work for the government.

See also: Five things to know about the non-IPO Palantir

Moskovitz also launched Asana in 2008, developing software tools that rival TEAM from Atlassian Corp.,
+ 0,89%
Trello. The San Francisco-based company posted revenue of $ 143 million in its fiscal 2020, up 86% year-over-year. The company also reported that losses increased to $ 118.6 million in fiscal 2020, from $ 50.9 million in fiscal 2019.

The 700-person San Francisco-based company reported revenue of $ 52 million for the three months ended July 31, up 57% year-over-year. Its net loss during the period climbed to $ 41.1 million, compared to a loss of $ 15.6 million for the same period last year. The company has not yet made a profit.

Learn More: Five Things to Know About Asana’s Direct List

Palantir is also far from profitable, revealing in its SEC filings that revenue rose to $ 742.6 million in 2019 from $ 595.4 million in 2018, while losses remained even at more. half a billion dollars a year – $ 579.6 million in 2019 and $ 580 million in 2018. In the first six months of this year, Palantir recorded a loss of $ 164.7 million on revenue of $ 481.2 million, after recording a loss of $ 280.5 million on sales of $ 322.7 million in the same period of 2019.

The choice of a direct listing instead of an initial public offering allowed the two companies to publicly offer forecasts of future performance. Palantir calls for revenue growth of 46% to 47% in the third quarter, 41% to 43% for the year 2020 and more than 30% in 2021. For the fiscal year 2021, Asana forecasts revenue of 210 to $ 213 million, which represents an annual growth of 47% to 49%.

Read: Software publishers try to go public like in 1999

Despite the COVID-19 pandemic, the IPO market has been strong in 2020. In addition to direct listings on Wednesday, Wall Street expected 11 IPOs this week, closing the busiest third quarter since the IPO boom. dot-com, according to Renaissance Capitale. Software offerings have been a big part of this, as the pandemic has created a demand for strong software offerings that can keep workers on the job at home – Snowflake Inc. SNOW,
Unity Software Inc. U,
and others thrived when they first started out in the market.

Exclusive: What Happened When Unity Software Goed Public During a Pandemic

Jonathan Swartz, editor of MarketWatch, contributed to this article.


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