Financial Data and Key Metrics Changes - Q3 revenues were $201 million, growing 9% year-over-year, exceeding the high end of guidance [4][32] - Non-GAAP operating income was $16.3 million, representing an 8% operating margin, also exceeding guidance [4][35] - Cash flow was strong at $13.4 million, or 7% on a margin basis [5][36] - Overall Net Revenue Retention (NRR) was 96%, with core customer NRR at 97% [5][32] Business Line Data and Key Metrics Changes - Revenues from core customers grew 10% year-over-year, representing 76% of total revenues [32] - The number of customers spending $100,000 or more annually grew 15% year-over-year [32] - AI Studio showed solid growth in sequential bookings, indicating strong adoption [5][12] Market Data and Key Metrics Changes - International revenue grew 12% year-over-year, with EMEA and Japan being strong markets [25] - The U.S. market grew 7% year-over-year [25] - The healthcare vertical saw significant expansions, with several large healthcare organizations increasing their usage of Asana [19][20] Company Strategy and Development Direction - The company is focusing on AI transformation as a key part of its strategy, emphasizing human-AI collaboration [4][7] - Asana aims to help companies transition to the "agentic enterprise," enhancing productivity through AI [7][12] - The introduction of AI Teammates is expected to drive durable growth and improve operational efficiency [15][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stabilization of the tech vertical, despite it being a headwind [43] - There is optimism regarding continued NRR improvement and the impact of AI Studio on renewals [33][39] - The company is committed to disciplined, profitable growth while investing in high-leverage areas, particularly AI [21][39] Other Important Information - The company announced that COO Anne Raimondi will be leaving after seven years, with leadership restructuring to enhance focus and speed [22][23] - The company is actively engaging in share repurchases, buying back $30.8 million of Class A common stock [37] Q&A Session Summary Question: Insights on AI Studio's self-serve launch and its impact on ARR - Management noted wide adoption of AI Studio self-serve, democratizing access and providing valuable insights for sales [40][41] Question: Confidence in the tech vertical's stabilization - Management highlighted that once tech customers downgrade, they tend not to downgrade again, indicating a positive shift [43][44] Question: Changes in Q4 guidance assumptions - Management cited strong enterprise strength, international growth, and improved NRR as reasons for raising the Q4 guidance [46][47] Question: Asana's competitive position in AI - Management emphasized that Asana's AI platform offers context, controls, and checkpoints, differentiating it from competitors [48][51] Question: Status of the partner ecosystem - Management expressed excitement about the channel ecosystem's growth and potential, indicating it is still in early stages [52] Question: Further optimization of costs - Management confirmed that there is still room for margin improvement through cost optimization and reallocating spend [56]

Core Viewpoint - Asana Inc. reported strong third-quarter earnings, surpassing analyst expectations for both earnings and revenue, leading to a positive stock movement in after-hours trading [1][2]. Financial Performance - Asana's adjusted earnings for the quarter were seven cents per share, exceeding the analyst estimate of six cents [2]. - The company's quarterly revenue reached $201.03 million, which was above the Street estimate of $198.83 million [2]. Management Commentary - CEO Dan Rogers described the quarter as solid, highlighting improvements in Net Revenue Retention (NRR) and momentum with the AI Studio [3]. - Rogers emphasized the potential of the newly announced AI Teammates, which are designed to enhance productivity through collaborative, context-aware agents [4]. Future Outlook - Asana raised its adjusted EPS guidance to a range of 25 to 26 cents, compared to the analyst estimate of 34 cents [5]. - The fiscal 2026 revenue outlook was also increased to between $789 million and $791 million, while the analyst estimate stood at $853.4 million [5]. - Following the earnings report, Asana's stock price increased by 3.21% to $13.82 in after-hours trading [5].

AI Transformation & Collaborative Work Management - Asana is positioning itself as the platform for human + AI collaboration, emphasizing context, checkpoints, and controls [18, 20, 22, 24] - The company is introducing AI Teammates, collaborative AI agents designed to deliver real outcomes [36] - AI Studio is designed to supercharge workflows and accelerate outcomes [28] - Early traction of AI Studio and AI Teammates has led to over $1 million in bookings in the first full quarter (Q1), with sequential growth in Q2 and Q3 [55] Financial Performance & Growth - Total revenue for the trailing twelve months (TTM) is $774 million, with a TTM revenue growth of 9% [68] - Non-GAAP gross margin stands at 89% [68] - Customer growth from customers spending $100K+ annually is 15% year-over-year [69, 80] - The company repurchased $30.8 million of Class A common stock in Q3'26, representing 22 million shares [92] - Asana is guiding for FY26 revenue between $789 million and $791 million, representing 9% revenue growth [94] - The FY26 non-GAAP operating margin is expected to be 7% [88, 94]

Financial Performance - The company reported revenues of $201,033,000 for the three months ended October 31, 2025, representing a 9.3% increase from $183,882,000 in the same period of 2024[174]. - Revenues for the three months ended October 31, 2025, increased by $17.2 million, or 9%, to $201.0 million compared to $183.9 million in the same period of 2024, driven by new paying customers and a shift towards higher-priced subscription plans[178]. - Revenues for the nine months ended October 31, 2025, increased by $49.7 million, or 9%, to $585.2 million compared to $535.5 million in the same period of 2024, attributed to new paying customers and higher-priced subscription plans[185][186]. - The company incurred a net loss of $68,433,000 for the three months ended October 31, 2025, compared to a net loss of $57,326,000 for the same period in 2024[174]. - The company reported a net loss of 34% for the three months ended October 31, 2025, compared to a net loss of 31% in the same period of 2024[178]. Customer Metrics - As of October 31, 2025, the company had 25,413 Core customers, contributing approximately 76% of revenues for the three months ended, compared to 23,609 Core customers contributing 75% for the same period in 2024[153]. - The dollar-based net retention rate was 96% for both October 31, 2025 and 2024, while the rate for Core customers was 97% in 2025, down from 98% in 2024[157]. Expenses - Research and development expenses for the three months ended October 31, 2025, were $73,813,000, a decrease from $83,286,000 in the same period of 2024[174]. - Sales and marketing expenses were $100,243,000 for the three months ended October 31, 2025, compared to $104,708,000 in the same period of 2024[174]. - The total operating expenses for the three months ended October 31, 2025, were $248,712,000, compared to $224,264,000 in the same period of 2024[174]. - Total operating expenses increased by $24.4 million, or 11%, to $248.7 million for the three months ended October 31, 2025, with general and administrative expenses surging by $38.4 million, or 106%[180][183]. Profitability - The gross profit for the three months ended October 31, 2025, was $178,726,000, up from $164,084,000 in the same period of 2024[174]. - Non-GAAP income from operations for the three months ended October 31, 2025, was $16.3 million, compared to a loss of $7.6 million in the same period of 2024[195]. - Non-GAAP net income for the three months ended October 31, 2025, was $17.9 million, compared to a loss of $4.8 million in the same period of 2024[204]. - Free cash flow for the three months ended October 31, 2025, was $13.4 million, a significant improvement from a negative $18.2 million in the same period of 2024[195]. Cash and Liquidity - As of October 31, 2025, the company had $463.6 million in cash, cash equivalents, and marketable securities[208]. - As of October 31, 2025, cash and cash equivalents were $183.5 million, with restricted cash of $0.4 million and marketable securities totaling $280.1 million[232]. - Net cash provided by operating activities for the nine months ended October 31, 2025, was $62.8 million, compared to a negative cash flow of $0.9 million in the same period of 2024[218]. - Net cash used in financing activities for the nine months ended October 31, 2025 was $62.1 million, which included $74.2 million in repurchases of Class A common stock and $3.8 million in repayment of term loan, partially offset by $13.0 million from the employee stock purchase plan and $2.8 million from stock options[222]. Market Conditions - Current economic conditions, including inflation and geopolitical unrest, have led to uncertainty affecting customer buying patterns and sales cycles[158]. - The company’s investments are exposed to market risk due to fluctuations in interest rates, but a hypothetical increase of 100 basis points would not have a material impact on financial statements[232]. Future Outlook - The company expects to continue investing in research and development and sales and marketing to capture significant growth opportunities in the market[149].

Exhibit 99.1 Asana Announces Third Quarter Fiscal 2026 Results Q3 revenue exceeded high-end of guidance Raises both high-end of FY26 revenue and non-GAAP operating income guidance ranges Announced AI Teammates: collaborative agents that understand the context of all work across the organization and deliver real business outcomes 1 • Revenues: Revenues were $201.0 million, an increase of 9% year over year. • Operating Income/Loss: GAAP operating loss was $70.0 million, or 35% of revenues, compared to GAAP op ...

Core Insights - Asana reported Q3 fiscal 2026 revenue of $201.0 million, a 9% increase year-over-year, exceeding the high end of guidance [5][6] - The company raised its revenue and non-GAAP operating income guidance for the fiscal year 2026 [1][6] - Asana introduced AI Teammates, collaborative agents designed to enhance productivity and deliver business outcomes [1][10] Financial Performance - GAAP operating loss for Q3 was $70.0 million, or 35% of revenues, compared to a loss of $60.2 million, or 33% of revenues, in Q3 fiscal 2025 [5] - Non-GAAP operating income was $16.3 million, or 8% of revenues, compared to a non-GAAP operating loss of $7.6 million, or 4% of revenues, in the same quarter last year [5] - GAAP net loss was $68.4 million, with a net loss per share of $0.29, compared to a loss of $57.3 million and $0.25 per share in Q3 fiscal 2025 [5][24] Customer Metrics - The number of Core customers (spending $5,000 or more annually) grew to 25,413, an 8% increase year-over-year [5] - Customers spending $100,000 or more annually increased to 785, a 15% year-over-year growth [5] - The overall dollar-based net retention rate was 96%, with Core customers at 97% and high-value customers at 96% [5] Cash Flow and Liquidity - Cash flows from operating activities were $16.2 million, compared to negative $14.9 million in Q3 fiscal 2025 [5] - Adjusted free cash flow was $13.4 million, improving from negative $18.2 million in the same quarter last year [5] Business Highlights - Asana held its largest Work Innovation Summit events in London and New York, showcasing its vision for the future of work [10] - The company was named a Leader in the Gartner Magic Quadrant for Adaptive Project Management and Reporting, as well as for Collaborative Work Management [10]

Asana, Inc. (NYSE:ASAN) will release earnings results for the third quarter after the closing bell on Tuesday, Dec. 2.Analysts expect the San Francisco, California-based company to report quarterly earnings at 6 cents per share, versus a year-ago loss of 2 cents per share. The consensus estimate for Asana's quarterly revenue is $198.78 million, compared to $183.88 million a year earlier, according to data from Benzinga Pro.On Sept. 3, Asana reported better-than-expected second-quarter financial results and ...

Core Insights - Asana has launched Asana Gov, a secure work management platform aimed at helping government agencies manage mission-critical programs while ensuring compliance with federal security standards [1][2][3] Product Features - Asana Gov is designed to connect teams, tools, and mission objectives in a single secure workspace, addressing the challenges of siloed data and manual workflows that hinder program execution [2][4] - The platform utilizes the Asana Work Graph® to provide a clear view of work ownership and timelines, enabling agencies to manage work effectively across multiple departments [3][4] - Built to meet federal security standards, Asana Gov includes features such as role-based access controls, audit trails, and multi-factor authentication, allowing for scalable collaboration [4][5] Market Positioning - Asana Gov is expected to be available by mid-December 2025 for U.S. federal, state, and local government agencies, as well as contractors and regulated industries [8] - The platform is currently listed as "In Process" on the FedRAMP Marketplace, indicating its compliance journey towards federal security standards [8] Expert Opinions - Industry experts emphasize that the challenge of innovation in government often lies in securing buy-in from leadership and IT, and Asana Gov aims to bridge this gap by providing an easy-to-use, compliant platform [5][6] - The visibility of work and outcomes in Asana Gov is seen as a means to build public trust, empowering government employees to demonstrate their contributions to society [7]

AI Implementation Strategy - Leadership's intentional involvement is crucial for successful AI application, not just providing tools [1] - Asana's CIO, Saket Srivastava, discussed AI experimentation and application at the 2025 ForbesCIO Summit [1]

Core Insights - The article discusses the experiences of Dustin Moskovitz, co-founder of Facebook and former CEO of Asana, highlighting his reluctance to take on the CEO role and the challenges he faced during his tenure [1][10]. Group 1: Career Background - Dustin Moskovitz co-founded Facebook in February 2004 while studying economics at Harvard University, alongside Mark Zuckerberg and others [3]. - Initially, Facebook was designed as an online directory for Harvard students, later expanding to a broader audience as user growth surged [4][5]. - Moskovitz served as CTO and VP of Engineering at Facebook, focusing on technical architecture and team building [6]. Group 2: Transition to Asana - After leaving Facebook, Moskovitz co-founded Asana, a software company aimed at improving work efficiency and collaboration, retaining about 8% of Facebook shares, which made him a billionaire [7]. - Asana went public in 2020 with a market valuation of approximately $5.5 billion [7]. Group 3: CEO Experience - Moskovitz expressed that he never intended to be a CEO and found the role exhausting, stating he felt pushed into it over time [9][10]. - He described himself as an introvert who struggled with the demands of managing a rapidly growing company, often feeling like he was merely reacting to crises rather than building the company [9]. - After 13 years as CEO, he stepped down to become Chairman, retaining 53% of the company's shares while no longer participating in daily management [10][11]. Group 4: Broader Perspectives on the CEO Role - Other CEOs, like Steve Kaufer of TripAdvisor and Emad Mostaque of Stability AI, have also expressed dissatisfaction with the CEO role, indicating a common sentiment among leaders in high-pressure environments [12]. - Elon Musk has similarly articulated his aversion to the CEO position, preferring to focus on product and technology rather than management responsibilities [13].