Shares of Asana (NYSE: ASAN) jumped 15.6% in pre-market trade after the company reported better-than-expected quarterly earnings.

ASAN said it recorded a loss of $0.34 per share on an adjusted basis which is better than a loss of $0.37, but worse than $0.30 it lost a year ago. Revenue came in at $58.9 million, higher than $54.1 million expected from analysts.

The company said it has over 89,000 paying customers with the number of customers paying $5,000 a year more standing at 8,938.

“We reported a very strong quarter, with total revenue growth of 55 percent year over year and growth of revenue from customers who spend $5,000 or more on an annualized basis of over 80 percent year over year,” said Dustin Moskovitz, co-founder and chief executive officer of Asana.

“With the acceleration of digital transformation, organizations are reimagining every aspect of business operations to ensure that people can stay engaged, aligned and effective, no matter where they are. Asana’s Work Graph provides the power, flexibility and control that organizations need to orchestrate work at scale.”

As for the outlook, Asana added it expects revenue of $62 million to $63 million for its fourth fiscal quarter. EPS is expected to come between negative $0.27 per share and negative $0.25.

For the full year, revenue should climb to a rage of $220.6 million to $221.6 million, representing year-over-year growth of 55%, with an EPS loss of $1.24 to $1.21.

Analysts praised a “very strong quarter” and increased the price target on ASAN. RBC’s Alex Zukin lifted the price objective to $36.00 from prior $30.00.

“Asana reported a very strong first quarter as a public company, highlighted by 55% revenue growth and accelerated billings and net adds. We continue to believe that Asana is one of the best positioned names to capture increasing budget and mind share in the move to Work 2.0 as the TAM for Work Management expands,” Zukin said in today’s sent issued to clients.

Brent Thill from Jefferies sees room for sustainable high growth and profitability with scale for ASAN.

“ASAN reported an impressive first Q out of the gate with 55% yoy rev growth easily exceeding 42% cons. and a prudent F4Q guide, increasing our conviction. ASAN saw strength in large customers and net adds accelerated (7K vs 5K last Q). ASAN's shown success in a land/expand strategy which can support sustainable high growth and profitability with scale. ASAN trades at 19x CY21E rev which we feel is warranted given outsized growth for years,” Thill wrote in a note sent to clients this morning.

In particular, Thill says that the company’s hybrid sales model will drive margins higher in the future.

“Asana employs a hybrid sales model, with about 60% of rev generated from the self-serve channel with the remaining primarily driven by the direct sales force. A majority of Asana’s paying customers initially adopted the platform through self-service and free trials. This low touch model should benefit margin over time as it costs fewer commission dollars,” Thill, who increased the price objective to $35.00 from $30.00 on a Buy-rated ASAN, added.