Asana Inc (NYSE:ASAN) announced its first-quarter financial results on Thursday after market close. The company also announced the acquisition of StackAI.

Here are the key highlights.

• Asana shares are powering higher. Why are ASAN shares rallying?

Asana Q1 Financials

The company reported first-quarter revenue of $205.1 million, up 9.5% year-over-year. The revenue beat a Street consensus estimate of $203.6 million, according to data from Benzinga Pro.

The company reported earnings of 10 cents per share in the quarter, beating a Street consensus estimate of seven cents per share.

Asana reported record GAAP and non-GAAP operating margins in the first quarter.

"The business continues to show improving fundamentals, supported by momentum in AI product adoption, customer expansion, and operating efficiency," Asana Chief Financial Officer Aziz Megji said.

Asana had 26,103 Core customers, who spend at least $5,000 or more on an annualized basis, at the end of the quarter. This figure was up 7% year-over-year. Revenue from Core customers was up 10% year-over-year in the quarter.

Customers who spend $100,000 or more on an annualized basis with Asana were 817 in the quarter, up 12% year-over-year.

StackAI Acquisition

Alongside quarterly earnings, Asana announced the acquisition of StackAI. The acquisition is expected to add cross-system execution for human-agent teams.

"StackAI is a no-code AI workflow platform that enables companies to design, test, deploy and govern custom AI agents and intelligent automation of business-critical workflows," the company said.

StackAI offers end-to-end operations with multi-agent workflows and compatibility in Salesforce, AWS, Docusign, Oracle, document systems and industry applications, the company added.

Terms of the acquisition were not disclosed.

"The acquisition of StackAI further differentiates our operating system for human-agent teams and reinforces our confidence in Asana's long-term growth and profitability potential," Megji said.

Asana CEO Dan Rogers said the acquisition accelerates the company's roadmap.

"We're seeing real momentum with AI Teammates and AI Studio," Rogers said.

What's Next for Asana

Asana is guiding for second-quarter revenue to be in a range of $213 million to $215 million, up 8.2% to 9.2% year-over-year. Analysts currently expect second-quarter revenue of $211.9 million.

For the second quarter, Asana is guiding for earnings of eight cents to nine cents per share. The Street estimate is currently nine cents per share.

Asana raised its full-year guidance for revenue to $855 million to $863.5 million, up from a prior range of $850 million to $858 million. The analyst estimate is currently $854.3 million.

The full-year revenue includes around 50 basis points of growth from the StackAI acquisition.

For the full year, Asana expects earnings of 37 cents per share, raised slightly from the previous range of 36 cents to 37 cents per share. Analysts currently expect full-year earnings per share of 37 cents.

Asana Stock Price Action

Asana stock is up 3.3% to $6.88 in after-hours trading on Thursday, versus a 52-week trading range of $5.38 to $19.

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