Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:SentinelOne, Inc. (S) : This cybersecurity solutions company has seen the Zacks Consensus Estimate for its current year earnings increasing 20.5% over the last 60 days.Asana, Inc. (ASAN) : This work management platform provider has seen the Zacks Consensus Estimate for its current year earnings increasing 33.3% over the last 60 days.Prelude Therapeutics Incorporated (PRLD) : This biopharmaceutical company has seen the Zacks Consensus Es ...

courtneykThesis Asana (NYSE:ASAN) stands out as a top performer in the work management solutions sector. The company boasts impressive revenue growth and an unmatched customer retention rate, positioning it as a leader in the industry. CEO Dustin Moskovitz's consistent stock purchases have helped grow his position to represent over 51% of Asana's total outstanding shares. Asana's innovative features, exceptional gross profit margins, and seamless integration with third-party applications underscore its ...

Financial Data and Key Metrics - Q3 revenues grew 18% year-over-year to $166.5 million [5][22] - Non-GAAP operating loss margins improved to 5.9%, a 30 percentage point improvement year-over-year [5] - Gross margins came in at 90.6% [23] - Free cash flow was negative $11.5 million, an improvement from negative 34% in the year-ago quarter [24] - Dollar-based net retention rate for customers spending $100,000 or more was over 120% [5][22] Business Line Data and Key Metrics - Revenue from Core customers (spending $5,000 or more annually) grew 20% year-over-year, representing 74% of total revenue [5][22] - Revenue from enterprise customers grew faster than the overall customer base [5] - The company has 580 customers spending $100,000 or more annually, growing at 18% year-over-year [22] Market Data and Key Metrics - Strong performance in Asia, particularly Japan, and Europe [14] - Growth in diverse industries such as healthcare, financial services, media, transportation, and manufacturing [17] - Notable expansions with high-profile companies like Paramount Global and Direct TV in the media sector [17] Company Strategy and Industry Competition - Focus on enterprise growth, with investments in AI and automation to drive adoption [6][12] - New packaging strategy introduced to accelerate customer migration to Advanced and Enterprise tiers [12][15] - Emphasis on operational efficiency and cost management to improve margins [6][21] Management Commentary on Operating Environment and Future Outlook - Macroeconomic headwinds continue to impact deal cycles and budgets, but signs of stabilization in new business are emerging [6][14] - Management expects non-GAAP operating margin improvement year-over-year for the full year [6] - Positive feedback on AI-powered features like Smart Summaries and Smart Status, with early adoption by leading AI companies [8][12] Other Important Information - The company has over 3 million paid seats worldwide, indicating increasing adoption of Asana [6] - R&D expenses were $51.2 million, or 31% of revenue, showing a year-over-year improvement [23] - Sales and marketing expenses were $82.6 million, or 50% of revenue, also showing improvement [23] Q&A Session Summary Question: Shift to upmarket and enterprise focus [29] - The company feels good about its investments in go-to-market strategies and leadership changes, with early positive feedback on new packaging [30][31] Question: Target for positive free cash flow [32] - The company remains committed to achieving positive free cash flow by the end of 2024, regardless of macroeconomic conditions [33] Question: Renewal dynamics and competitive environment [34] - Renewals are impacted by seat adjustments, particularly from companies that had layoffs, but the company has good visibility into large account renewals [35] Question: Growth outside of impacted verticals like tech [39] - Non-tech sectors are growing faster than tech, with strong performance in healthcare and media [40][41] Question: Billings and bookings growth [42] - The company is not providing fiscal year 2025 guidance yet but will update on the Q4 earnings call [43] Question: Changes in OpenAI governance [45] - Dustin Moskovitz commented that higher-level regulation is needed to address AI governance issues rather than relying on private company structures [46] Question: Early renewal deals [67] - Early renewals are driven by customer interest in AI features and scalability, with potential for more such deals in the future [68][69] Question: Q4 revenue guidance [70] - The Q4 revenue guide reflects current business trends, with the company aiming to over-deliver as it has in the past [71]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________________ FORM 10-Q ___________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File N ...

Asana, Inc. (NYSE:ASAN) Q2 2024 Earnings Conference Call September 5, 2023 4:30 PM ET Company Participants Catherine Buan - Head of Investor Relations Dustin Moskovitz - Co-Founder and Chief Executive Officer Anne Raimondi - Chief Operating Officer and Head of Business Tim Wan - Chief Financial Officer Conference Call Participants Andrew DeGasperi - Berenberg Steve Enders - Citi George Iwanyc - Oppenheimer Jackson Ader - MoffettNathanson Alex Zukin - Wolfe Research Josh Baer - Morgan Stanley Robert Simmons ...

Asana Investor Overview ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________________ FORM 10-Q ___________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Numb ...

Asana Investor Overview ...

Financial Data and Key Metrics Changes - Q1 revenues grew 26% year-over-year, reaching $152.4 million [28] - Non-GAAP operating margins improved by 30 percentage points year-over-year [5] - Gross margins were reported at 90.5% [30] - Net loss was $18.5 million, with a net loss per share of $0.09 [31] - Free cash flow was negative $16.6 million, an improvement from negative 35% year-over-year [32] Business Line Data and Key Metrics Changes - Revenue from customers spending $5,000 or more annually grew 32% year-over-year, representing 73% of total revenue [28] - The cohort of customers spending $100,000 or more annually grew at 31% year-over-year [28] - The Goals product is gaining traction within buying committees, with enterprise customers being the fastest-growing segment [21] Market Data and Key Metrics Changes - Revenue from the US grew 31% year-over-year, accounting for 61% of total revenue, while international revenue grew 20% [28] - The overall dollar-based net retention rate was over 110%, with higher rates among larger spending cohorts [29] Company Strategy and Development Direction - The company is focusing on AI capabilities to enhance productivity and efficiency, with the launch of Asana Intelligence [10][15] - Asana aims to be a leader in the intelligence transformation wave, leveraging its Work Graph to integrate AI into workflows [35][78] - The company is committed to maintaining a disciplined approach to cost optimization while investing in future growth opportunities [34] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic headwinds impacting expansions and longer sales cycles, but some market segments are stabilizing [19] - The company expects continued growth in enterprise accounts and is seeing more multiyear deals and vendor consolidation [26] - Management expressed confidence in achieving positive free cash flow by the end of calendar 2024 [34] Other Important Information - The company is beta-testing new pricing and packaging strategies aimed at enterprise customers [87] - Asana is actively working on AI features that enhance customer decision-making and operational efficiency [9][10] Q&A Session Summary Question: Concerns about AI impacting customer seat count - Management believes AI will enhance productivity rather than reduce the number of knowledge workers, allowing for better leverage of existing staff [41][42] Question: Macroeconomic impact on guidance - Management does not foresee significant downside in guidance but remains cautious about potential market fluctuations [44] Question: Insights on macro stabilization - Stabilization varies by segment, with non-tech sectors showing positive traction while tech remains under pressure [47] Question: Sales productivity target update - The company is focused on building enterprise selling infrastructure and has added strong leadership to enhance sales operations [53] Question: Profitability drivers in the quarter - Profitability improvements are attributed to disciplined resource management and prioritizing high ROI initiatives [56][58] Question: Demand environment throughout the quarter - The company is seeing steady pipeline build and positive conversations in strategic accounts, particularly outside of tech [66] Question: Large language model features and governance - Management emphasizes transparency and customer data protection in the deployment of AI features [82][83] Question: Update on pricing and packaging changes - The company is in early beta testing of pricing updates aimed at creating a frictionless journey for enterprise customers [87]

Customer Metrics - As of April 30, 2023, Asana had 19,864 customers spending over $5,000, contributing approximately 73% of revenues, up from 70% with 16,689 customers in the same period of 2022[128]. - The dollar-based net retention rate for Asana was over 110% as of April 30, 2023, compared to over 120% in the same period of 2022[132]. Financial Performance - Revenues for the three months ended April 30, 2023, were $152,411,000, an increase from $120,646,000 for the same period in 2022, representing a year-over-year growth of approximately 26.4%[149]. - Gross profit for the three months ended April 30, 2023, was $137,564,000, compared to $108,208,000 for the same period in 2022, indicating a significant increase[149]. - The net loss for the three months ended April 30, 2023, was $61,468,000, compared to a net loss of $98,868,000 for the same period in 2022[149]. - Non-GAAP net loss for the three months ended April 30, 2023, was $18.5 million, compared to a non-GAAP net loss of $57.4 million for the same period in 2022[172]. - Free cash flow for the three months ended April 30, 2023, was $(16.6) million, compared to $(42.2) million for the same period in 2022[173]. Operating Expenses - Total operating expenses for the three months ended April 30, 2023, were $202,809,000, slightly down from $204,440,000 in the same period of 2022[149]. - Research and development expenses increased to $76,316,000 for the three months ended April 30, 2023, from $65,205,000 in the same period of 2022[149]. - Sales and marketing expenses decreased by $2.9 million, or 3%, to $93.2 million for the three months ended April 30, 2023, mainly due to reduced fees to marketing vendors[159]. - General and administrative expenses decreased by $9.9 million, or 23%, to $33.3 million for the three months ended April 30, 2023, primarily due to a reduction in other operating expenses[160]. Cash and Liquidity - As of April 30, 2023, the company had cash, cash equivalents, and marketable securities totaling $523.5 million[175]. - The company had cash and cash equivalents of $382.2 million and marketable securities of $141.3 million as of April 30, 2023[198]. - The company reported a net cash used in operating activities of $14.6 million for the three months ended April 30, 2023, reflecting a net loss of $61.5 million[186]. - Net cash used in investing activities was $140.4 million for the three months ended April 30, 2023, primarily due to $139.3 million in purchases of marketable securities[188]. - The company reported net cash provided by financing activities of $9.7 million for the three months ended April 30, 2023, mainly from employee stock purchase plans and stock options[191]. Future Outlook - The company expects to continue investing in research and development to enhance its software architecture and add new features[141]. - Current macroeconomic conditions, including elevated inflation and interest rate hikes, are expected to impact global IT spending and customer buying patterns[133]. - The company may seek to raise additional funds through equity or debt in the future to support its operations and growth strategies[182]. - The company plans to continue making additional borrowings under the November 2022 Senior Secured Credit Facility, which is now held by First Citizens BancShares, Inc.[178]. Deferred Revenue - As of April 30, 2023, the company had $263.9 million in deferred revenue, with $257.7 million recorded as a current liability, indicating strong future revenue recognition potential[179]. - For the same period, the company generated a $30.4 million increase in deferred revenue due to increased billings for subscriptions[186]. Currency Exposure - As of April 30, 2023, 22% of the company's sales were denominated in currencies other than U.S. dollars, exposing it to foreign currency exchange rate fluctuations[201]. Workforce Reduction - Asana announced a reduction of its global workforce by approximately 9% on November 15, 2022, to improve operational efficiencies[134].