Financial Data and Key Metrics Changes - Total revenues increased by over 10% year-over-year, exceeding guidance and reflecting stabilization of the growth rate compared to the previous quarter [10][81] - Non-GAAP operating margins improved year-over-year from an operating loss margin of 6% to 4%, indicating progress towards non-GAAP profitability [12][62] - Q3 revenues were reported at $183.9 million, up 10% year-over-year, with revenues from core customers growing 11% [58][60] Business Line Data and Key Metrics Changes - Non-tech verticals grew faster than overall growth, up 15% year-over-year, and accounted for over two-thirds of the business [11][82] - Customer growth showed improving trends, with core customer base and customers spending $100,000 or more growing by 11% and 18% respectively [12][60] - The dollar-based net retention rate for core customers was 98%, and for customers spending $100,000 or more, it was 99% [60] Market Data and Key Metrics Changes - Significant customer demand was noted across various sectors including media, financial services, manufacturing, healthcare, professional services, and technology [7][80] - The company hosted nearly 1,000 attendees at the Work Innovation Summit, marking a 4x growth in attendance compared to the previous year [13][85] Company Strategy and Development Direction - The launch of AI Studio marks Asana's transition into a multi-product company, expected to create new revenue streams and enhance customer value [7][10] - The company aims to evolve from a seat-based pricing model to a flexible, value-aligned approach, incorporating consumption-based pricing from AI Studio [29][100] - Focus areas include improving financial efficiency, strategic investments in growth, and winning new customers in key verticals such as manufacturing and healthcare [32][103] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilization in revenue growth and early signs of potential re-acceleration, despite macroeconomic headwinds [68] - The company is committed to achieving positive free cash flow by the end of Q4 and is focused on expanding operating margins [33][66] - Management highlighted the importance of customer engagement and the transformative potential of AI Studio in reshaping the value delivered to customers [98][99] Other Important Information - Cash and marketable securities at the end of Q3 were approximately $455.3 million, with remaining performance obligations (RPO) up 21% year-over-year [63][64] - The company repurchased $55 million of its shares in Q3, indicating a commitment to managing dilution while returning capital to shareholders [65] Q&A Session Summary Question: What are the expectations for AI Studio's impact on revenue? - Management believes AI Studio has the potential to eclipse current revenue scales over time, with early access customers showing strong evidence of scaling beyond initial allocations [7][21][93] Question: How is the company addressing macroeconomic challenges? - Management noted that investments in the platform and go-to-market strategies are leading to stabilization in revenue growth, despite ongoing macroeconomic headwinds [68][70] Question: What are the key initiatives for the upcoming quarters? - Key initiatives include improving account engagement, focusing on strategic industry verticals, and streamlining sales processes to enhance efficiency and drive growth [119][120][122]

Core Viewpoint - Asana, Inc. reported a quarterly loss of $0.02 per share, outperforming the Zacks Consensus Estimate of a loss of $0.07, indicating a significant earnings surprise of 71.43% [1][2] Financial Performance - The company achieved revenues of $183.88 million for the quarter ended October 2024, exceeding the Zacks Consensus Estimate by 1.79% and showing an increase from $166.5 million in the same quarter last year [2] - Over the last four quarters, Asana has consistently surpassed consensus EPS estimates [2] Stock Performance - Asana shares have declined approximately 16.7% since the beginning of the year, contrasting with the S&P 500's gain of 27.6% [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $187.52 million, and for the current fiscal year, it is -$0.19 on revenues of $719.83 million [8] - The estimate revisions trend for Asana is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [7] Industry Context - The Internet - Software industry, to which Asana belongs, is currently ranked in the top 16% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

Customer Metrics - As of October 31, 2024, the company had 23,609 Core customers, contributing approximately 75% of revenues for the three months ended, compared to 21,346 Core customers contributing 74% for the same period in 2023[162] - The company had 683 customers spending over $100,000 annually as of October 31, 2024, an increase from 580 customers in the same period of 2023[164] Revenue Performance - The company reported revenues of $183,882,000 for the three months ended October 31, 2024, representing a 10.5% increase from $166,503,000 for the same period in 2023[186] - Revenues increased by $17.4 million, or 10%, to $183.9 million for the three months ended October 31, 2024, compared to $166.5 million for the same period in 2023[189] - Revenues for the nine months ended October 31, 2024, increased by $54.2 million, or 11%, to $535.5 million compared to $481.4 million in the same period of 2023[200] Profitability and Loss - The company incurred a net loss of $57,326,000 for the three months ended October 31, 2024, compared to a net loss of $61,750,000 for the same period in 2023[186] - Non-GAAP loss from operations for the nine months ended October 31, 2024, was $(39.1) million, an improvement from $(42.5) million in the same period of 2023[212] - Non-GAAP net loss for the nine months ended October 31, 2024, was $(29.2) million, compared to $(35.1) million for the same period in 2023[221] - Free cash flow for the nine months ended October 31, 2024, was $(9.7) million, an improvement from $(13.4) million in the same period of 2023[221] Expenses - Research and development expenses for the three months ended October 31, 2024, were $83,286,000, slightly up from $81,028,000 in the same period of 2023[186] - Sales and marketing expenses increased to $104,708,000 for the three months ended October 31, 2024, from $98,349,000 in the same period of 2023[186] - Total operating expenses for the three months ended October 31, 2024, were $224,264,000, compared to $213,871,000 for the same period in 2023[186] - Research and development expenses increased by $2.3 million, or 3%, to $83.3 million for the three months ended October 31, 2024, driven by higher personnel-related costs[194] - Sales and marketing expenses rose by $6.4 million, or 6%, to $104.7 million for the three months ended October 31, 2024, primarily due to increased personnel-related costs[195] - Total operating expenses for the nine months ended October 31, 2024, increased by $44.8 million, or 7%, to $681.1 million compared to $636.3 million in 2023[203] Cash Flow and Liquidity - As of October 31, 2024, the company had $455.3 million in cash, cash equivalents, and marketable securities[224] - The company had an accumulated deficit of $1,762.5 million as of October 31, 2024[223] - The company had $282.1 million in deferred revenue, with $279.6 million recorded as a current liability[230] - Cash and cash equivalents as of October 31, 2024, were $196.8 million, with marketable securities totaling $258.5 million[251] - Net cash used in operating activities for the nine months ended October 31, 2024, was $0.9 million, reflecting a net loss of $193.2 million[235] - The company experienced a net cash outflow of $10.3 million from changes in operating assets and liabilities for the nine months ended October 31, 2024[235] - The company may seek to raise additional funds through equity and debt to support future capital requirements[232] Other Financial Metrics - The dollar-based net retention rate as of October 31, 2024, was 96%, down from over 100% in the same period of 2023, while the rate for Core customers was 98%, down from over 105%[167] - Interest income and other income increased by $1.5 million, or 42%, to $4.9 million for the three months ended October 31, 2024, mainly due to foreign currency transaction gains[199] - Interest income and other income (expense), net increased by $2.8 million to $16.1 million for the nine months ended October 31, 2024, representing a 21% increase compared to the same period in 2023[209] - Interest expense decreased by $116,000 to $(2.8) million for the nine months ended October 31, 2024, a 4% reduction compared to the same period in 2023[209] - The total available borrowing capacity under the revolving credit facility was $78.4 million as of October 31, 2024[227] - The company had $45.0 million outstanding under the revolving credit facility as of October 31, 2024[252] - The company generated negative cash flows from operating activities in prior years, supplementing working capital through equity sales[234]

Financial Performance - Revenues for Q3 fiscal 2025 were $183.9 million, representing a 10% year-over-year increase[4] - GAAP operating loss was $60.2 million, or 33% of revenues, an improvement from a loss of $63.4 million, or 38% of revenues, in Q3 fiscal 2024[4] - Asana expects Q4 fiscal 2025 revenues to be between $187.5 million and $188.5 million, reflecting a year-over-year growth of 10%[9] - For fiscal 2025, Asana anticipates revenues of $723.0 million to $724.0 million, indicating an 11% year-over-year growth[10] - Revenues for the three months ended October 31, 2023, were $183,882 million, a 10.3% increase from $166,503 million in the same period last year[34] Customer Growth - The number of Core customers grew to 23,609, an increase of 11% year-over-year, with revenues from Core customers also growing 11%[5] - The dollar-based net retention rate for Core customers was 98% in Q3[5] - The number of customers spending $100,000 or more annually increased to 683, an 18% year-over-year growth[5] Cash Flow and Expenses - Free cash flow for Q3 was negative $18.2 million, compared to negative $11.5 million in Q3 fiscal 2024[4] - Net cash used in operating activities for the three months ended October 31, 2023, was $(14,890) million, compared to $(8,233) million in the same period last year[38] - Net cash provided by investing activities was $41,516 million for the three months ended October 31, 2023, compared to $(140,738) million in the same period last year[38] - Net cash used in financing activities was $(48,919) million for the three months ended October 31, 2023, compared to $6,669 million in the same period last year[38] Profitability Metrics - Gross profit for the nine months ended October 31, 2023, was $477,953 million, compared to $434,237 million for the same period last year, reflecting a 10.1% increase[34] - GAAP gross profit for the three months ended October 31, 2023, was $164,084, compared to $150,450 for the same period last year, representing a 9.9% increase[40] - Non-GAAP gross profit for the nine months ended October 31, 2023, was $479,005, up from $435,446, reflecting a 10% growth year-over-year[40] - GAAP net loss for the three months ended October 31, 2023, was $(57,326), an improvement from $(61,750) in the prior year, indicating a 3.9% reduction in losses[42] - Non-GAAP net loss per share for the three months ended October 31, 2023, was $(0.02), compared to $(0.04) in the same quarter last year, showing a 50% improvement[42] Operating Expenses - Total operating expenses for the three months ended October 31, 2023, were $224,264 million, up from $213,871 million, indicating an increase of 4.8%[34] - GAAP research and development expenses for the three months ended October 31, 2023, were $83,286, up from $81,028, representing a 2.8% increase[40] - Non-GAAP sales and marketing expenses for the nine months ended October 31, 2023, were $268,455, compared to $243,769, reflecting a 10.1% increase year-over-year[40] - GAAP general and administrative expenses for the three months ended October 31, 2023, were $36,270, up from $34,494, reflecting a 5.2% increase[40] Future Outlook - The launch of AI Studio is expected to unlock a significant Total Addressable Market (TAM) and enhance productivity for customers[3] - Non-GAAP operating loss for Q4 fiscal 2025 is projected to be between $6.5 million and $5.5 million, with a 3% operating loss margin[9] - GAAP operating margin for the three months ended October 31, 2023, was (32.7)%, an improvement from (38.1)% in the prior year[40] - Non-GAAP operating margin for the three months ended October 31, 2023, was 28.6%, compared to 32.2% in the same quarter last year, indicating a decline[40]

Core Viewpoint - Asana's disappointing earnings report and guidance have led to a significant decline in its stock price, reflecting ongoing struggles with growth and profitability [1][5]. Financial Performance - Asana reported a revenue increase of 10% to $179.2 million, slightly surpassing estimates of $177.7 million [2]. - The company experienced a 17% growth in customers spending over $100,000, indicating potential momentum in high-value customer segments [2]. - GAAP operating loss widened from $73.4 million to $76.8 million, highlighting continued challenges in achieving breakeven [2]. - The adjusted per-share loss was $0.05, which was worse than the $0.04 loss from the same quarter last year but better than the expected loss of $0.08 [2]. Future Guidance - Asana's guidance for Q3 revenue is projected to be between $180 million and $181 million, representing an 8%-9% increase, but falling short of the consensus estimate of $182.3 million [4]. - The company anticipates an adjusted loss per share of $0.07, compared to estimates of a $0.04 loss [4]. - Full-year revenue guidance was lowered from $719 million-$724 million to $719 million-$721 million, below the consensus of $722.9 million [4]. Management Outlook - Despite the disappointing results, CEO Dustin Moskovitz expressed optimism regarding the company's enterprise transition and advancements in AI, noting momentum in key areas and a record number of multi-year deals [3].

Asana Inc ASAN shares tanked in early trading on Wednesday, even after the company reported upbeat second-quarter results.The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.JMP Securities On AsanaAnalyst Patrick Walravens maintained a Market Outperform rating while cutting the price target from $27 to $21.Asana reported mixed quarterly results, with a non-GAAP loss of five cents per share coming in better than consensus of a loss of eight cents per share, ...

DNY59 Investment Thesis Asana, Inc. (NYSE:ASAN) delivered fiscal Q2 2025 earnings results and guidance that were unpleasant and led to its share price falling by slightly more than 10% after hours. More specifically, it was a reminder that Asana is no longer a high-growth business. Even though Asana carries nearly 20% of its market cap as cash once its debt profile is factored in, Asana is still not attractively priced to entice investors to buy the dip on this stock. In summary, I continue to make the ...

Asana, Inc. (NYSE:ASAN) Q2 2025 Earnings Call Transcript September 3, 2024 4:30 PM ET Company Participants Catherine Buan - Head of IR Dustin Moskovitz - Co-Founder and CEO Anne Raimondi - COO and Head of Business Tim Wan - CFO Conference Call Participants Taylor McGinnis - UBS Josh Baer - Morgan Stanley George Iwanyc - Oppenheimer Rich Magnus - Wolfe Research Michael Funk - Bank of America Brent Thill - Jefferies Jackson Ader - KeyBanc Capital Markets Patrick Walravens - Citizens JMP Operator Good day and ...

Asana, Inc. (ASAN) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 37.50%. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced a loss of $0.06, delivering a surprise of 25%.Over the last four quarters, the company has surpassed conse ...

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, 2024 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 ...