Group 1 - The discussion revolves around the earnings and operationalization of the business at Asana, particularly reflecting on the first year of the new CFO, Sona [1] - There is an emphasis on the surprises and insights gained by the CFO during her initial year compared to her prior perceptions of the company [1] - The conversation indicates a focus on identifying opportunities for improving business operations moving forward [1]

Summary of Asana (ASAN) 2025 Conference Call Company Overview - **Company**: Asana (ASAN) - **Event**: Citi Global TMT Conference - **Date**: September 04, 2025 Key Points Industry and Market Dynamics - The collaborative work management (CWM) category has significant growth potential, especially with the integration of AI technologies [3][4] - Asana AI Studio has been a major focus, enhancing the company's offerings and positioning in the market [4][35] Financial Performance - Asana reported a strong quarter, beating revenue expectations and significantly improving operating margins [7][8] - The company raised its guidance, reflecting positive trends in its international business and Asana AI Studio performance [7][8] AI Integration and Opportunities - The launch of Asana AI Studio has created a substantial opportunity for growth, with the company more than doubling its annual recurring revenue (ARR) from this segment last quarter [5][24] - AI is seen as a critical component for future growth, transforming Asana's offerings from a "nice to have" to a "must-have" in the current market [4][5] Leadership Transition - The transition from former CEO Dustin Moskovitz to Dan, the new CEO, is still in its early stages, but initial observations indicate a focus on customer engagement and product innovation [11][12] - Dan's approach is characterized by a high-velocity work ethic and a strong emphasis on accelerating growth [12] SEO and Marketing Strategy - Asana has adapted its SEO and SEM strategies in response to changes in the AI search landscape, focusing on content discoverability and conversion rates [15][16] - The company has seen improvements in top-of-funnel metrics and is optimistic about offsetting previous challenges by Q4 [16][19] Customer Engagement and Retention - Asana is focusing on improving customer retention, particularly among self-serve customers, who represent a significant portion of churn [28][29] - The introduction of Asana AI Studio is expected to enhance customer stickiness and retention rates [27][28] Product Development and User Experience - Asana AI Studio is designed to be user-friendly, with a no-code builder that allows customers to create workflows easily [30][33] - The upcoming introduction of Asana AI Teammates aims to further enhance user experience and engagement [33][34] Financial Outlook and Margin Improvement - Asana has improved its operating margins by 16 percentage points year-over-year, with expectations for continued margin growth [41][42] - The company maintains a strong gross margin of 90%, with plans for further improvements through operational efficiencies [42][46] Future Growth Potential - Asana anticipates that AI will play a crucial role in its growth strategy, with expectations for significant contributions to revenue in the coming years [35][38] - The company envisions a future where its platform fee and consumption-based pricing will surpass current subscription models, leading to deeper customer engagement [59][60] Conclusion - Asana is positioned to capitalize on the growing demand for AI-driven collaborative work management solutions, with a strong focus on customer retention, product innovation, and operational efficiency [60][61]

Core Insights - Proactive provides fast, accessible, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, mining, oil and gas, and emerging technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - Asana, Inc. reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, compared to a loss of $0.05 per share a year ago, representing an earnings surprise of +20.00% [1] - The company achieved revenues of $196.94 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 2.28% and showing an increase from $179.21 million year-over-year [2] - Asana has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Financial Performance - The earnings surprise of +150% was noted in the previous quarter, where actual earnings were $0.05 against an expected $0.02 [1] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $196.72 million, and for the current fiscal year, it is $0.23 on revenues of $779.28 million [7] Market Position - Asana shares have declined approximately 31.3% since the beginning of the year, contrasting with the S&P 500's gain of 9.1% [3] - The Zacks Industry Rank for Internet - Software is in the top 27% of over 250 Zacks industries, suggesting a favorable industry outlook [8] Future Outlook - The sustainability of Asana's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Asana was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Total revenues for Q2 were $196.9 million, up 10% year over year, exceeding the high end of guidance by 1% [42] - Non-GAAP operating margin expanded almost 1,600 basis points year over year to 7%, above guidance range [13] - Net income was $15.1 million, or $0.06 per share, driven by operating leverage and cost optimization [48] Business Line Data and Key Metrics Changes - Revenues from core customers (spending $5,000 or more annually) grew 12% year over year, representing 76% of total revenues [43] - The number of customers spending $100,000 or more annually grew 19% year over year [43] - AI Studio ARR more than doubled quarter over quarter, indicating strong adoption and momentum [12] Market Data and Key Metrics Changes - International revenue grew 13% year over year, while U.S. market revenue grew 8% year over year [30] - Non-tech customers continued to grow in the mid-teens, while tech customer growth remained stable [12] - Japan emerged as one of the fastest-growing markets, with significant customer expansion [30] Company Strategy and Development Direction - The company aims to leverage AI to transform collaborative work management, positioning itself as a leader in the AI-driven enterprise space [7][8] - Focus on enhancing product vision and AI differentiation, particularly in mission-critical workflows [9] - Strategic investments and resource reallocation are driving incremental impact and customer health improvements [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on AI opportunities and improve operational execution [28] - The operating environment remains challenging, with buyer scrutiny and elongated decision-making processes impacting SMB growth [52] - Management anticipates continued improvements in net retention rates and customer health, despite potential downgrade pressures [45] Other Important Information - The company repurchased $27.8 million of Class A common stock, with $128 million remaining for future repurchases [50] - Guidance for Q3 fiscal 2026 expects revenues of $197.5 million to $199.5 million, representing 7.4% to 8.5% growth year over year [50] Q&A Session Summary Question: Why Asana and why now for the new CEO? - The new CEO highlighted the transformative potential of AI in modern enterprises and Asana's unique position to deliver on that opportunity [55] Question: How repeatable are AI Studio use cases? - Management noted that deploying AI Studio across cross-functional use cases reveals further opportunities for workflow creation, indicating a strong expansion potential [65] Question: What are the impacts of SEO and top-of-funnel dynamics? - Management acknowledged ongoing pressures from AI search disruptions but emphasized improvements in conversion rates from higher intent traffic [72][73] Question: How are larger renewal deals progressing in the tech vertical? - The company is improving renewal hygiene and utilization interventions, which are expected to positively impact larger accounts [80] Question: What metrics will indicate success for AI Studio? - Key metrics include credit consumption, value-added use case deployment, and the conversion of free tier users to paid plans [97][100]

Financial Data and Key Metrics Changes - Total revenues for Q2 2026 were $196.9 million, up 10% year over year, exceeding the high end of guidance by 1% [38] - Non-GAAP operating margin expanded almost 1,600 basis points year over year to 7%, above guidance range [12][44] - Net income was $15.1 million, or $0.06 per share, driven by operating leverage and cost optimization [45] Business Line Data and Key Metrics Changes - Customer growth remained healthy, with the number of customers spending $100,000 or more growing 19% year over year [11] - Revenues from core customers (spending $5,000 or more annually) grew 12% year over year, representing 76% of total revenues [39] - AI Studio ARR more than doubled quarter over quarter, indicating strong adoption and momentum [12] Market Data and Key Metrics Changes - International revenue grew 13% year over year, while U.S. market revenue grew 8% year over year [27] - Non-tech customers continued to grow in the mid-teens, while tech customer growth was stable [11] - Japan emerged as one of the fastest-growing markets, with significant customer expansion [27] Company Strategy and Development Direction - The company is focused on enhancing its AI capabilities, particularly through AI Studio, to drive productivity and efficiency [5][20] - There is a strategic emphasis on deepening engagement in non-tech industries and expanding into regulated sectors [7] - The company aims to sharpen go-to-market execution and focus on high-propensity accounts to accelerate growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on AI-driven productivity gains [9][25] - The operating environment remains challenging, with buyer scrutiny and elongated decision-making processes impacting growth [33][49] - Management anticipates continued improvements in customer health and retention, driven by foundational service plans and AI Studio adoption [30][31] Other Important Information - The company repurchased $27.8 million of its Class A common stock during the quarter [47] - The remaining performance obligation (RPO) was $507.3 million, up 29% from the year-ago quarter [46] - The company is raising its full-year revenue guidance to $780 million to $790 million, reflecting strong Q2 results [48] Q&A Session Summary Question: Why Asana? Why now? - The CEO highlighted the transformative potential of AI in modern enterprises and Asana's unique position to deliver on that opportunity [53][54] Question: How repeatable are AI Studio use cases? - Management noted that deploying AI Studio across cross-functional use cases reveals further opportunities for workflow creation, indicating a strong expansion potential [62] Question: How are you addressing top-of-funnel pressures? - The company is focusing on driving higher quality traffic and improving conversion rates despite a decline in top-of-funnel traffic [64][70] Question: What is the outlook for tech renewals? - Management indicated improvements in renewal hygiene and utilization, with a focus on foundational service plans to enhance account health [75][76]

Financial Performance - Asana reported quarterly earnings of six cents per share, beating the Street estimate of five cents [1] - Quarterly revenue reached $196.94 million, exceeding the analyst estimate of $193.01 million and increasing from $179.21 million in the same period last year [1] Business Highlights - The CEO emphasized the importance of AI in enhancing productivity, stating that Asana's AI workflows help teams operate more efficiently and achieve better business outcomes [2] - Asana is focusing on AI-driven solutions, including AI Studio and Smart Workflows, to capitalize on a significant market opportunity [3] Customer Growth - The number of Core customers, defined as those spending $5,000 or more annually, grew to 25,006, marking a 9% year-over-year increase [5] - Customers spending $100,000 or more annually increased to 770, reflecting a 19% year-over-year growth [5] - The overall dollar-based net retention rate for the second quarter was 96% [5] Outlook - Asana raised its fiscal 2026 adjusted EPS guidance to a range of 23 cents to 25 cents, compared to the previous estimate of 34 cents [3] - The fiscal 2026 revenue outlook was also raised to between $780 million and $790 million, versus the prior estimate of $852.16 million [3]

Asana's Core Business & AI Vision - Asana aims to enable global teams to work together effortlessly, focusing on coordination to improve productivity[6, 18] - Asana is positioning itself as a platform for Human + AI collaboration, driving clarity, accountability, and maximizing impact[18] - Asana's AI vision is to define the platform for human + AI collaboration, leveraging its Work GraphⓇ for transparency, control, and security[45, 46] - Asana AI offers smart assists, a smart workflow gallery, and AI Studio to enhance team workflows and automate tasks[48] Customer Base & Recognition - Asana has over 170,000 paying customers across more than 200 countries and territories, with 41% of revenue coming from outside the US[41] - Asana is recognized as a leader in work and project management, with 90% of users rating it as easy to use[32] - Asana is named as a Leader in The Forrester Wave™ Collaborative Work Management Tools, Q2 2025[36] Financial Performance & Guidance - Asana's total revenue for the trailing twelve months (TTM) is $756 million, with a TTM revenue growth of 10%[77] - Asana's non-GAAP gross margin is 90%[77] - Asana's Q3FY26 revenue guidance is between $197.5 million and $199.5 million, representing a growth of 7.4% to 8.5%, with a non-GAAP operating margin of 6% to 7%[101] - Asana's FY26 revenue guidance is between $780 million and $790 million, representing a growth of 8% to 9%, with a non-GAAP operating margin of 6%[101]

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) Asana, Inc. filed its Quarterly Report on Form 10-Q for the period ended July 31, 2025, as a large accelerated filer - Asana, Inc. filed its Quarterly Report on Form 10-Q for the period ended July 31, 2025, as a **large accelerated filer** and not an emerging growth or shell company[2](index=2&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) Outstanding Common Stock as of August 28, 2025 | Class | Shares Outstanding | | :-------------------- | :----------------- | | Class A Common Stock | 156,685,245 | | Class B Common Stock | 79,561,680 | [Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section cautions investors about forward-looking statements, which are subject to risks and uncertainties that may cause actual results to differ materially - The report contains forward-looking statements subject to substantial risks and uncertainties, including future financial results, AI deployment, and macroeconomic conditions, cautioning investors that **actual results may differ materially**[8](index=8&type=chunk)[9](index=9&type=chunk)[11](index=11&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) This section defines company references and identifies Asana's registered trademarks - References such as 'we' and 'Asana' refer to Asana, Inc. and its consolidated subsidiaries, with 'Asana' and 'Work Graph' identified as registered trademarks[14](index=14&type=chunk) [Select Risk Factors Affecting Our Business](index=5&type=section&id=SELECT%20RISK%20FACTORS%20AFFECTING%20OUR%20BUSINESS) Investing in Asana's Class A common stock involves numerous risks, including growth rate uncertainty, limited operating history, and intense competition - Investing in Class A common stock carries risks such as **unpredictable future growth rates**, a **limited operating history at current scale**, a **history of losses**, and significant quarterly fluctuations, alongside challenges in customer acquisition, market acceptance, and intense competition, particularly with **AI integration**[15](index=15&type=chunk)[16](index=16&type=chunk) - Further risks include reliance on **third-party mobile app marketplaces**, exposure to **international operational risks**, stringent and evolving **AI, privacy, and data protection regulations**, and potential **stock price volatility** due to the dual-class stock structure concentrating voting control[17](index=17&type=chunk)[18](index=18&type=chunk) [Part I—Financial Information](index=7&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This part presents Asana's unaudited financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents Asana's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, revenue recognition, fair value measurements, debt, commitments, and other financial components for the periods ended July 31, 2025 and 2024 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of Asana's financial position, detailing assets, liabilities, and stockholders' equity as of July 31, 2025, and January 31, 2025 Condensed Consolidated Balance Sheets (in thousands) | As of | July 31, 2025 | January 31, 2025 | | :---------------------------------- | :-------------- | :--------------- | | **Assets** | | | | Cash and cash equivalents | $184,146 | $184,728 | | Marketable securities | $291,074 | $282,156 | | Total current assets | $598,511 | $600,741 | | Total assets | $883,157 | $891,415 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $424,082 | $415,817 | | Total liabilities | $658,601 | $663,892 | | Total stockholders' equity | $224,556 | $227,523 | - Total assets decreased by **$8.258 million (0.9%)** from January 31, 2025, to July 31, 2025, primarily due to slight decreases in cash and cash equivalents and net accounts receivable[21](index=21&type=chunk) [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines Asana's financial performance, presenting revenues, gross profit, operating loss, and net loss for the three and six months ended July 31, 2025 and 2024 Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $196,936 | $179,212 | $384,203 | $351,660 | | Gross profit | $176,715 | $159,225 | $344,755 | $313,869 | | Loss from operations | $(49,456) | $(76,797) | $(93,360) | $(142,966) | | Net loss | $(48,360) | $(72,189) | $(88,378) | $(135,911) | | Net loss per share (Basic and diluted) | $(0.20) | $(0.31) | $(0.38) | $(0.59) | - Revenues increased by **10%** for the three months and **9%** for the six months ended July 31, 2025, with net loss significantly improving from **$(72.189) million to $(48.360) million** for the three-month period and from **$(135.911) million to $(88.378) million** for the six-month period[23](index=23&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section details Asana's comprehensive loss, including net loss and other comprehensive income (loss), for the three and six months ended July 31, 2025 and 2024 Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(48,360) | $(72,189) | $(88,378) | $(135,911) | | Total other comprehensive (loss) income | $(692) | $1,694 | $5,114 | $(542) | | Comprehensive loss | $(49,052) | $(70,495) | $(83,264) | $(136,453) | - Comprehensive loss improved for both the three and six months ended July 31, 2025, primarily due to a **reduction in net loss**, with other comprehensive income positively shifting for the six-month period from foreign currency translation adjustments[25](index=25&type=chunk) [Condensed Consolidated Statements Stockholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20Stockholders'%20Equity) This section tracks changes in Asana's stockholders' equity, reflecting the impact of net loss, stock-based compensation, and share repurchases Changes in Stockholders' Equity (in thousands) | Metric | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2025 | | :---------------------------------- | :------------------------------- | :----------------------------- | | Balances at April 30, 2025 | $236,304 | N/A | | Balances at January 31, 2025 | N/A | $227,523 | | Stock-based compensation expense | $64,280 | $113,876 | | Repurchases and retirement of common stock | $(27,792) | $(43,398) | | Net loss | $(48,360) | $(88,378) | | Balances at July 31, 2025 | $224,556 | $224,556 | - Stockholders' equity decreased from **$227.523 million** at January 31, 2025, to **$224.556 million** at July 31, 2025, influenced by net losses and common stock repurchases, partially offset by significant stock-based compensation expense[21](index=21&type=chunk)[31](index=31&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details Asana's cash inflows and outflows from operating, investing, and financing activities for the six months ended July 31, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :---------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $46,599 | $13,960 | | Net cash used in investing activities | $(14,742) | $(21,305) | | Net cash used in financing activities | $(36,079) | $(9,281) | | Net decrease in cash, cash equivalents, and restricted cash | $(192) | $(16,808) | - Net cash provided by operating activities significantly increased to **$46.599 million** for the six months ended July 31, 2025, from **$13.960 million** in the prior year, largely offset by increased cash used in financing activities due to higher common stock repurchases[36](index=36&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of Asana's accounting policies, financial statement components, and other relevant disclosures [Note 1. Organization](index=16&type=section&id=Note%201.%20Organization) This note describes Asana, Inc.'s incorporation details, headquarters, and its role as a work management platform - Asana, Inc., incorporated in Delaware on December 16, 2008, and headquartered in San Francisco, California, operates as a leading work management platform for **human + AI coordination**[41](index=41&type=chunk) [Note 2. Basis of Presentation and Summary of Significant Accounting Policies](index=16&type=section&id=Note%202.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis of financial statement preparation, significant accounting policies, and the impact of macroeconomic conditions and new accounting standards - Financial statements are prepared under GAAP, incorporating wholly-owned subsidiaries and management estimates for key areas, while global macroeconomic events like **inflation and fluctuating interest rates** continue to create uncertainty and may adversely affect IT spending and platform demand[42](index=42&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - Asana operates as a **single operating segment**, with the CEO reviewing consolidated financial information, and adopted **ASU 2023-07** on Segment Reporting in fiscal 2025 while evaluating other ASUs for future adoption[56](index=56&type=chunk)[57](index=57&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) [Note 3. Revenues](index=18&type=section&id=Note%203.%20Revenues) This note details Asana's revenue recognition policies, including deferred balances and remaining performance obligations from customer contracts Revenue Recognition from Deferred Balances (in thousands) | Period | Revenues Recognized from Prior Deferred Balances | | :---------------------------------- | :--------------------------------------------- | | Three Months Ended July 31, 2025 | $88,700 | | Three Months Ended July 31, 2024 | $76,700 | | Six Months Ended July 31, 2025 | $220,400 | | Six Months Ended July 31, 2024 | $194,100 | - As of July 31, 2025, remaining performance obligations from customer contracts totaled **$507.3 million**, with approximately **75%** expected to be recognized as revenue within the next 12 months[70](index=70&type=chunk) Deferred Contract Acquisition Costs (in thousands) | Metric | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :---------------------------------- | :----------------------------- | :----------------------------- | | Beginning balance | $40,518 | $39,381 | | Capitalization of contract acquisition costs | $14,631 | $12,511 | | Amortization of deferred contract acquisition costs | $(13,769) | $(12,493) | | Ending balance | $41,380 | $39,399 | [Note 4. Fair Value Measurements](index=20&type=section&id=Note%204.%20Fair%20Value%20Measurements) This note describes Asana's fair value measurements for financial assets, primarily cash equivalents and marketable securities Fair Value of Financial Assets (in thousands) as of July 31, 2025 | Asset Category | Level 1 | Level 2 | Level 3 | Total | | :-------------------- | :------ | :------ | :------ | :------ | | Cash equivalents | $88,604 | $2,481 | $— | $91,085 | | Marketable securities | $155,120 | $135,954 | $— | $291,074 | | Total assets | $243,724 | $138,435 | $— | $382,159 | - Marketable securities, primarily U.S. government, corporate, and agency bonds, are classified as available-for-sale and carried at fair value, with unrealized losses mainly due to **unfavorable interest rate changes**, though full carrying value recovery is expected[61](index=61&type=chunk)[62](index=62&type=chunk)[75](index=75&type=chunk) [Note 5. Balance Sheet Components](index=22&type=section&id=Note%205.%20Balance%20Sheet%20Components) This note provides a detailed breakdown of specific balance sheet items, including property and equipment, and accrued expenses Property and Equipment, Net (in thousands) | As of | July 31, 2025 | January 31, 2025 | | :---------------------------------- | :-------------- | :--------------- | | Total gross property and equipment | $166,202 | $155,276 | | Less: Accumulated depreciation and amortization | $(69,879) | $(59,440) | | Total property and equipment, net | $96,323 | $95,836 | - Depreciation and amortization expense increased to **$10.1 million** for the six months ended July 31, 2025, from **$8.3 million** in the prior year period[79](index=79&type=chunk) Accrued Expenses and Other Current Liabilities (in thousands) | As of | July 31, 2025 | January 31, 2025 | | :---------------------------------- | :-------------- | :--------------- | | Accrued payroll liabilities | $17,225 | $22,623 | | Accrued sales and value-added taxes | $13,304 | $13,140 | | Accrued taxes for fringe benefits | $13,255 | $13,055 | | Total accrued expenses and other current liabilities | $70,853 | $83,031 | [Note 6. Debt](index=22&type=section&id=Note%206.%20Debt) This note outlines Asana's debt structure, including its Senior Secured Credit Facility, outstanding term loan, and compliance with financial covenants - Asana holds a November 2022 Senior Secured Credit Facility of **$150.0 million**, comprising a **$50.0 million term loan** and a **$100.0 million revolving loan facility**, with **$41.9 million** outstanding on the term loan and **$78.3 million** available under the revolving facility as of July 31, 2025[85](index=85&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - The Company was in **compliance with all financial covenants** as of July 31, 2025, with the facility acquired by First Citizens BancShares, Inc. on March 27, 2023[85](index=85&type=chunk)[89](index=89&type=chunk) Expected Future Principal Payments (in thousands) | Fiscal year ending January 31, | Expected Principal Payments | | :----------------------------- | :-------------------------- | | Remainder of fiscal year 2026 | $2,500 | | 2027 | $39,375 | | Total | $41,875 | [Note 7. Commitments and Contingencies](index=24&type=section&id=Note%207.%20Commitments%20and%20Contingencies) This note details Asana's contractual commitments, including standby letters of credit and a significant AWS hosting services contract - Asana has **$21.7 million** in standby letters of credit for operating leases and a 60-month AWS contract from November 2024, committing **$255.0 million** for hosting services, with **$233.4 million** remaining as of July 31, 2025[95](index=95&type=chunk)[96](index=96&type=chunk) Remaining Purchase Commitments under AWS Contract (in thousands) | Fiscal year ending January 31, | Purchase Commitments | | :----------------------------- | :------------------- | | Remainder of fiscal year 2026 | $20,367 | | 2027 | $45,000 | | 2028 | $54,000 | | 2029 | $56,000 | | 2030 and thereafter | $58,000 | | Total | $233,367 | [Note 8. Leases](index=25&type=section&id=Note%208.%20Leases) This note outlines Asana's operating lease obligations for real estate facilities and associated sublease income Future Minimum Operating Lease Payments (in thousands) | Fiscal year ending January 31, | Operating Lease Payments (Net) | | :----------------------------- | :----------------------------- | | Remainder of fiscal year 2026 | $21,898 | | 2027 | $42,466 | | 2028 | $40,116 | | 2029 | $36,811 | | 2030 and thereafter | $162,830 | | Total undiscounted operating lease payments | $304,121 | | Less: imputed interest | $(88,595) | | Total operating lease liabilities | $215,526 | - The Company holds non-cancelable operating leases for real estate facilities expiring through fiscal 2034, with sublease income increasing to **$1.2 million** for the six months ended July 31, 2025, from **$0.9 million** in the prior year[100](index=100&type=chunk) [Note 9. Net Loss Per Share](index=25&type=section&id=Note%209.%20Net%20Loss%20Per%20Share) This note presents Asana's net loss per share calculations, including basic and diluted figures, and weighted-average shares outstanding Net Loss Per Share (in thousands, except per share data) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(48,360) | $(72,189) | $(88,378) | $(135,911) | | Weighted-average shares used in calculating net loss per share | 236,218 | 229,760 | 235,550 | 228,430 | | Net loss per share, basic and diluted | $(0.20) | $(0.31) | $(0.38) | $(0.59) | - Net loss per share improved to **$(0.20)** for the three months and **$(0.38)** for the six months ended July 31, 2025, from **$(0.31)** and **$(0.59)** respectively in the prior year, despite an increase in weighted-average shares outstanding[106](index=106&type=chunk) [Note 10. Stockholders' Equity](index=26&type=section&id=Note%2010.%20Stockholders'%20Equity) This note details Asana's dual-class common stock structure, stock-based compensation expense, and share repurchase program - Asana operates with a **dual-class common stock structure**, featuring Class A shares with one vote and Class B shares with ten votes, with **156,783,538 Class A** and **79,561,680 Class B shares outstanding** as of July 31, 2025[107](index=107&type=chunk) Stock-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenues | $497 | $393 | $841 | $676 | | Research and development | $30,977 | $34,045 | $55,341 | $60,785 | | Sales and marketing | $18,100 | $17,249 | $32,923 | $32,497 | | General and administrative | $12,580 | $8,420 | $21,216 | $14,789 | | Total stock-based compensation expense | $62,154 | $60,107 | $110,321 | $108,747 | - In July 2025, **1,179,776 performance-based restricted stock units (PSUs)** were granted to the new CEO, vesting over three years based on market and revenue conditions, with **$0.3 million** in stock-based compensation expense recognized for Market-Based Awards during the three and six months ended July 31, 2025[116](index=116&type=chunk)[118](index=118&type=chunk) - The stock repurchase program was amended on May 30, 2025, authorizing an additional **$100.0 million** for repurchases with **$128.2 million remaining available** as of July 31, 2025, following the repurchase of **3.0 million shares for $43.4 million** during the six months ended July 31, 2025[126](index=126&type=chunk)[128](index=128&type=chunk) [Note 11. Interest Income and Other Income (Expense), Net](index=31&type=section&id=Note%2011.%20Interest%20Income%20and%20Other%20Income%20(Expense),%20Net) This note details Asana's interest income and other non-operating income and expenses, including foreign currency impacts Interest Income and Other Income (Expense), Net (in thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $4,121 | $5,409 | $8,353 | $10,785 | | Unrealized gains (losses) on foreign currency transactions | $(1,081) | $1,407 | $(1,839) | $882 | | Other non-operating income (expense) | $267 | $(56) | $2,623 | $(547) | | Total interest income and other income (expense), net | $3,307 | $6,760 | $9,137 | $11,120 | - Total interest income and other income (expense), net decreased by **51%** for the three months and **18%** for the six months ended July 31, 2025, primarily due to **lower interest income** on marketable securities and **unfavorable foreign currency transaction impacts**[130](index=130&type=chunk) [Note 12. Income Taxes](index=31&type=section&id=Note%2012.%20Income%20Taxes) This note outlines Asana's income tax expense, primarily from foreign jurisdictions, and the impact of recent tax legislation - Income tax expense was **$1.4 million** and **$2.6 million** for the three and six months ended July 31, 2025, respectively, primarily from foreign jurisdictions, with the **One Big Beautiful Bill Act (OBBB Act)** having no material impact due to a full valuation allowance against deferred tax assets[131](index=131&type=chunk)[132](index=132&type=chunk) [Note 13. Geographic Information](index=31&type=section&id=Note%2013.%20Geographic%20Information) This note provides a breakdown of Asana's revenues and long-lived assets by geographic area, highlighting international growth Revenues by Geographic Area (in thousands) | Geographic Area | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $116,499 | $108,232 | $228,036 | $212,658 | | International | $80,437 | $70,980 | $156,167 | $139,002 | | Total Revenues | $196,936 | $179,212 | $384,203 | $351,660 | - International revenues grew by **13.3%** for the three months and **12.3%** for the six months ended July 31, 2025, indicating continued global expansion and accounting for **41% of total revenues** for the six-month period[133](index=133&type=chunk)[233](index=233&type=chunk) Long-Lived Assets by Geographic Area (in thousands) | Geographic Area | As of July 31, 2025 | As of January 31, 2025 | | :-------------------- | :------------------ | :--------------------- | | United States | $242,267 | $248,698 | | International | $14,293 | $13,683 | | Total long-lived assets | $256,560 | $262,381 | [Note 14. Restructuring](index=32&type=section&id=Note%2014.%20Restructuring) This note details Asana's restructuring plan, including a workforce reduction and associated charges incurred to improve operational efficiencies - In the fourth quarter of fiscal 2025, Asana approved a restructuring plan with a **5% global workforce reduction** to improve operational efficiencies, recording total restructuring charges of **$6.7 million**, with **$2.2 million** incurred during the six months ended July 31, 2025[136](index=136&type=chunk)[137](index=137&type=chunk) Restructuring Costs for Six Months Ended July 31, 2025 (in thousands) | Expense Category | Severance and Related Charges | Stock-Based Compensation Expense (Benefit) | Total | | :-------------------- | :---------------------------- | :----------------------------------------- | :---- | | Research and development | $1,042 | $(94) | $948 | | Sales and marketing | $885 | $(54) | $831 | | General and administrative | $460 | $(22) | $438 | | Total | $2,387 | $(170) | $2,217 | [Note 15. Related Party Transactions](index=32&type=section&id=Note%2015.%20Related%20Party%20Transactions) This note discloses Asana's transactions with affiliated companies, including lease and advertising expenses - Asana incurred **$0.4 million** in lease expenses for the three months and **$0.8 million** for the six months ended July 31, 2025, from an affiliated company, while advertising expenses with another affiliate were not material, decreasing from **$0.4 million** and **$1.0 million** in the prior year periods[139](index=139&type=chunk)[140](index=140&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Asana's financial condition and operational results, highlighting revenue growth, improved operating loss, and significant cash flow from operations, along with key business metrics and non-GAAP measures [Overview](index=33&type=section&id=Overview) This overview introduces Asana as a leading work management platform for human + AI coordination, detailing its product offerings and go-to-market strategy - Asana is a leading work management platform for **human + AI coordination**, offering a tiered, seat-based core product and a consumption-based, no-code **Asana AI Studio** for AI integration to help customers connect work to company goals[142](index=142&type=chunk)[148](index=148&type=chunk) - The Company utilizes a **hybrid go-to-market approach**, integrating a product-led model with direct sales and channel partners[143](index=143&type=chunk) [Key Business Metrics](index=33&type=section&id=Key%20Business%20Metrics) This section highlights Asana's focus on growing high-value customers and details changes in dollar-based net retention rates - Asana focuses on growing 'Core customers' (spending over **$5,000**) and those spending over **$100,000** annually, with Core customers increasing to **25,006** and contributing **76% of revenues** for the three months ended July 31, 2025, and customers over $100,000 increasing to **770**[145](index=145&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - The dollar-based net retention rate was **96%** as of July 31, 2025, down from **98%** in the prior year, with Core customers at **96%** and customers spending over $100,000 at **95%**, reflecting impacts from macroeconomic conditions on renewal decisions[153](index=153&type=chunk)[154](index=154&type=chunk) - During the fiscal quarter ended July 31, 2025, Asana secured its **largest subscription agreement in history**, a **$100.0 million** three-year term with a global technology leader[151](index=151&type=chunk) [Current Economic Conditions](index=34&type=section&id=Current%20Economic%20Conditions) This section discusses how global macroeconomic events, including inflation and fluctuating interest rates, continue to create economic uncertainty and affect IT spending - Global macroeconomic events, including **inflation, fluctuating interest rates, and geopolitical unrest**, continue to create economic uncertainty, expected to adversely affect global IT spending, customer buying patterns, and sales cycles[155](index=155&type=chunk) [Components of Results of Operations](index=34&type=section&id=Components%20of%20Results%20of%20Operations) This section breaks down Asana's revenue sources, cost of revenues, and operating expenses, outlining their key drivers and expected trends - Revenues are primarily derived from **subscription fees** for the cloud-based platform, driven by paying customers, user count, and subscription plan level, with a consumption-based **AI product** also contributing[156](index=156&type=chunk)[157](index=157&type=chunk) - Cost of revenues encompasses hosting fees, personnel expenses, third-party implementation fees, and amortization of capitalized internal-use software, with gross profit expected to increase in dollar amount while **gross margin remains relatively consistent long-term**[158](index=158&type=chunk)[160](index=160&type=chunk) - Operating expenses (R&D, Sales & Marketing, G&A) are significantly influenced by personnel-related costs and stock-based compensation, with R&D expenses expected to increase in dollar amount but **decrease as a percentage of revenues** over time, driven by **AI integration investments**[161](index=161&type=chunk)[162](index=162&type=chunk) - Sales and marketing expenses are projected to remain the largest operating expense in dollar amount, increasing absolutely but **decreasing as a percentage of revenues** over time, while general and administrative expenses are also expected to increase in dollar amount due to public company costs but **decrease as a percentage of revenues**[164](index=164&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section analyzes Asana's financial performance, comparing key metrics for the three and six months ended July 31, 2025, against the prior year periods [Comparison of Three Months Ended July 31, 2025 to Three Months Ended July 31, 2024](index=37&type=section&id=Comparison%20of%20Three%20Months%20Ended%20July%2031,%202025%20to%20Three%20Months%20Ended%20July%2031,%202024) This comparison highlights revenue growth, gross margin improvement, and reduced operating loss for the three months ended July 31, 2025 Key Financials (Three Months Ended July 31, in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :-------------------------- | :----- | :----- | :------- | :------- | | Revenues | $196,936 | $179,212 | $17,724 | 10% | | Cost of revenues | $20,221 | $19,987 | $234 | 1% | | Gross margin | 90% | 89% | | | | Research and development | $79,376 | $91,151 | $(11,775) | (13)% | | Sales and marketing | $106,677 | $108,649 | $(1,972) | (2)% | | General and administrative | $40,118 | $36,222 | $3,896 | 11% | | Loss from operations | $(49,456) | $(76,797) | $27,341 | (36)% | | Net loss | $(48,360) | $(72,189) | $23,829 | (33)% | - Revenue growth of **10%** was driven by new paying customers and higher-priced subscription plans, with gross margin improving to **90%**; operating expenses decreased by **4%**, primarily from a **13% reduction in R&D** and **2% in Sales and Marketing**, leading to a significant improvement in loss from operations[176](index=176&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) - Interest income and other income (expense), net decreased by **51%** due to lower interest income and unfavorable foreign currency impacts, while interest expense decreased by **17%** from lower interest rates[184](index=184&type=chunk) [Comparison of Six Months Ended July 31, 2025 to Six Months Ended July 31, 2024](index=39&type=section&id=Comparison%20of%20Six%20Months%20Ended%20July%2031,%202025%20to%20Six%20Months%20Ended%20July%2031,%202024) This comparison details revenue growth, gross margin improvement, and reduced net loss for the six months ended July 31, 2025 Key Financials (Six Months Ended July 31, in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :-------------------------- | :----- | :----- | :------- | :------- | | Revenues | $384,203 | $351,660 | $32,543 | 9% | | Cost of revenues | $39,448 | $37,791 | $1,657 | 4% | | Gross margin | 90% | 89% | | | | Research and development | $154,503 | $173,942 | $(19,439) | (11)% | | Sales and marketing | $206,518 | $212,981 | $(6,463) | (3)% | | General and administrative | $77,094 | $69,912 | $7,182 | 10% | | Loss from operations | $(93,360) | $(142,966) | $49,606 | (35)% | | Net loss | $(88,378) | $(135,911) | $47,533 | (35)% | - Revenue increased by **9%** for the six-month period, driven by new customers and higher-priced plans, with gross margin improving to **90%**; total operating expenses decreased by **4%**, with **R&D down 11%** and **Sales & Marketing down 3%**, resulting in a **35% reduction in net loss**[185](index=185&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - Interest income and other income (expense), net decreased by **18%** due to lower interest income on marketable securities, partially offset by favorable foreign currency impacts, while interest expense decreased by **16%** from lower interest rates[192](index=192&type=chunk) [Non-GAAP Financial Measures](index=41&type=section&id=Non-GAAP%20Financial%20Measures) This section presents Asana's non-GAAP financial measures, including adjusted operating income, net income, and free cash flow, highlighting operational efficiency Non-GAAP Financial Measures (in thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Non-GAAP income (loss) from operations | $14,007 | $(15,658) | $22,144 | $(31,428) | | Non-GAAP net income (loss) | $15,103 | $(11,050) | $27,126 | $(24,373) | | Free cash flow | $35,382 | $12,760 | $39,377 | $8,485 | | Adjusted free cash flow | $35,439 | $12,760 | $45,321 | $8,485 | - Non-GAAP income from operations and non-GAAP net income showed significant improvements, turning **positive** for the three and six months ended July 31, 2025, compared to prior year losses, excluding stock-based compensation, related payroll tax, and restructuring costs[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) - Free cash flow and adjusted free cash flow saw substantial increases for both periods, indicating improved liquidity and operational efficiency, with adjusted free cash flow for the six months ended July 31, 2025, at **$45.3 million**, up from **$8.5 million** in the prior year[195](index=195&type=chunk)[199](index=199&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses Asana's liquidity sources, including cash, marketable securities, credit facility, and deferred revenue, and future capital requirements - As of July 31, 2025, Asana's primary liquidity sources totaled **$475.2 million** in cash, cash equivalents, and marketable securities, with an accumulated deficit of **$1,960.3 million** offset by positive cash flows from operating activities[202](index=202&type=chunk)[203](index=203&type=chunk) - The November 2022 Senior Secured Credit Facility provides up to **$150.0 million**, with **$41.9 million** outstanding on the term loan and **$78.3 million** available under the revolving credit facility as of July 31, 2025; the stock repurchase program was amended to authorize an additional **$100.0 million**, with **$128.2 million remaining available**[204](index=204&type=chunk)[206](index=206&type=chunk)[208](index=208&type=chunk) - Deferred revenue totaled **$313.6 million** as of July 31, 2025, with **$312.5 million** as a current liability; current liquidity is deemed sufficient for the next 12 months, but future capital needs depend on revenue growth, **AI R&D investments**, and international expansion[210](index=210&type=chunk)[211](index=211&type=chunk) [Cash Flows](index=44&type=section&id=Cash%20Flows) This section analyzes Asana's cash flow activities, highlighting significant increases in operating cash flow and changes in investing and financing activities Summary of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :---------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $46,599 | $13,960 | | Net cash used in investing activities | $(14,742) | $(21,305) | | Net cash used in financing activities | $(36,079) | $(9,281) | - Net cash provided by operating activities increased significantly to **$46.6 million** for the six months ended July 31, 2025, from **$14.0 million** in the prior year, driven by non-cash adjustments to net loss and favorable changes in accounts receivable and deferred revenue[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) - Net cash used in investing activities decreased to **$14.7 million**, primarily due to higher maturities of marketable securities offsetting purchases, while net cash used in financing activities increased to **$36.1 million**, mainly due to higher common stock repurchases[217](index=217&type=chunk)[219](index=219&type=chunk) [Contractual Obligations and Commitments](index=45&type=section&id=Contractual%20Obligations%20and%20Commitments) This section confirms no material changes to contractual obligations beyond those previously disclosed, including the AWS contract - No material changes in contractual obligations occurred during the six months ended July 31, 2025, beyond those disclosed in the Annual Report on Form 10-K and the **AWS contract** mentioned in Note 7[221](index=221&type=chunk) [Indemnification Agreements](index=45&type=section&id=Indemnification%20Agreements) This section notes Asana's indemnification agreements with various parties and the absence of material demands for indemnification - Asana enters into indemnification agreements with directors, officers, customers, vendors, and partners for matters including intellectual property infringement, with **no material demands for indemnification** made during the six months ended July 31, 2025 or 2024[223](index=223&type=chunk) [Critical Accounting Estimates](index=46&type=section&id=Critical%20Accounting%20Estimates) This section highlights the significant estimates and assumptions required for financial statement preparation, particularly for stock-based compensation - Financial statement preparation requires significant estimates and assumptions, particularly for **stock-based compensation expense** related to Performance-Based Awards, which involve market and performance conditions[224](index=224&type=chunk)[226](index=226&type=chunk) [Recent Accounting Pronouncements](index=46&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 2 for information on recently adopted and issued accounting pronouncements, including those related to segment reporting and income taxes - The Company refers to Note 2 for information on recently adopted and issued accounting pronouncements, including **ASU 2023-07 (Segment Reporting)**, **ASU 2023-09 (Income Taxes)**, and **ASU 2024-03/2025-01 (Expense Disaggregation Disclosures)**[227](index=227&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details Asana's exposure to market risks, specifically interest rate risk and foreign currency risk, and assesses their potential impact on the Company's financial statements - Asana faces **interest rate risk** from highly liquid investments and variable-rate borrowings under its credit facility, though a hypothetical **100 basis point increase** in interest rates would not materially impact financial statements[229](index=229&type=chunk)[230](index=230&type=chunk) - The Company faces **foreign currency risk** as **27% of sales** for the six months ended July 31, 2025, were non-U.S. dollar denominated, and a portion of operating expenses are in foreign currencies, though a hypothetical **10% change** would not result in material gains or losses[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of Asana's disclosure controls and procedures, concluding they were effective as of July 31, 2025, with no material changes in internal control over financial reporting identified - As of July 31, 2025, Asana's **disclosure controls and procedures were deemed effective**, providing reasonable assurance of timely recording, processing, summarizing, and reporting of required information[235](index=235&type=chunk) - No changes in internal control over financial reporting were identified during the quarter ended July 31, 2025, that materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting[236](index=236&type=chunk) [Part II—Other Information](index=48&type=section&id=PART%20II%E2%80%94Other%20Information) This part covers other information including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=48&type=section&id=ITEM%201.%20Legal%20Proceedings) Asana is not currently a party to any material pending legal proceedings, though it may be subject to various claims in the ordinary course of business - Asana is not a party to any **material pending legal proceedings**, but may face claims in the ordinary course of business[238](index=238&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=ITEM%201A.%20Risk%20Factors) This section details a comprehensive list of risks that could materially and adversely affect Asana's business, financial condition, results of operations, and growth prospects, categorized into business and industry, government regulation and legal matters, capital allocation, ownership of Class A common stock, and general risks [Risks Related to Our Business and Industry](index=48&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) This section outlines risks related to Asana's business and industry, including growth uncertainty, competition, AI integration, and operational challenges - Asana's future growth rates may not match prior performance due to factors like customer acquisition, retention, pricing, and market acceptance of new features, especially **AI**, with a limited operating history at current scale and a history of losses offering no assurance of future profitability[240](index=240&type=chunk)[241](index=241&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk) - The Company's focus on long-term growth over short-term profitability may lead to continued losses, with quarterly results fluctuating significantly due to demand, retention rates, new feature success (including **AI**), economic conditions, and security breaches[246](index=246&type=chunk)[249](index=249&type=chunk) - Key risks include attracting new customers, converting free/trial users, expanding organizational usage, and developing market-accepted new features; failure to manage growth, maintain high-quality customer support, or adapt to evolving work management trends could harm the business[253](index=253&type=chunk)[254](index=254&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[260](index=260&type=chunk)[309](index=309&type=chunk)[310](index=310&type=chunk) - The highly competitive work management industry, with rapid technological changes, requires Asana to depend on technology developments, including successful **AI deployment**, platform adaptability, brand strength, and effective sales and marketing; security incidents, including **cyber-attacks and data compromises**, pose significant risks leading to potential regulatory actions, litigation, reputational harm, and financial losses[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk)[279](index=279&type=chunk) - The use of **AI and machine learning technologies** introduces legal, business, and operational risks, including regulatory scrutiny (e.g., **EU AI Act**), potential for inaccurate content, and ethical concerns, while reliance on **third-party infrastructure (like AWS)** and software presents risks of service outages or disruptions[284](index=284&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk) - The loss of key personnel, intense competition for talent, and challenges in maintaining company culture during growth could adversely affect business, while international operations expose Asana to various regulatory, economic, and political risks, including **data localization laws** and **geopolitical conflicts**[300](index=300&type=chunk)[301](index=301&type=chunk)[303](index=303&type=chunk)[315](index=315&type=chunk)[316](index=316&type=chunk) [Risks Related to Government Regulation and Legal Matters, including Taxation and Intellectual Property](index=65&type=section&id=Risks%20Related%20to%20Government%20Regulation%20and%20Legal%20Matters,%20including%20Taxation%20and%20Intellectual%20Property) This section covers risks from intellectual property claims, evolving regulations (AI, privacy, data protection), anti-corruption laws, and changes in tax laws - Asana may face **intellectual property rights claims** and other expensive litigation, potentially resulting in unfavorable outcomes, and failure to protect its intellectual property (trademarks, copyrights, patents, trade secrets) could diminish brand value and competitive advantage[327](index=327&type=chunk)[328](index=328&type=chunk)[330](index=330&type=chunk)[331](index=331&type=chunk) - Reliance on **'open source' and third-party software** could impose unanticipated conditions or lead to litigation, while stringent and evolving U.S. and foreign laws related to **AI, privacy, data protection, and security (e.g., EU GDPR, CCPA)**, pose risks of regulatory actions, fines, litigation, and reputational harm for non-compliance[338](index=338&type=chunk)[341](index=341&type=chunk)[342](index=342&type=chunk)[343](index=343&type=chunk)[345](index=345&type=chunk)[350](index=350&type=chunk) - Asana is subject to **anti-corruption, anti-bribery, and export/import/trade sanction laws**; past inadvertent violations of U.S. sanctions laws were resolved with warning letters, but future non-compliance could lead to significant penalties and business harm[356](index=356&type=chunk)[357](index=357&type=chunk)[358](index=358&type=chunk)[359](index=359&type=chunk) - Changes in tax laws (e.g., **One Big Beautiful Bill Act**) or their application could increase costs and harm business, and the Company may be required to collect sales, value-added, or other taxes in new jurisdictions, creating administrative burdens and potentially increasing customer costs[362](index=362&type=chunk)[363](index=363&type=chunk)[364](index=364&type=chunk)[365](index=365&type=chunk) [Risks Related to Our Capital Allocation Strategy](index=73&type=section&id=Risks%20Related%20to%20Our%20Capital%20Allocation%20Strategy) This section addresses risks related to Asana's capital allocation, including the need for future capital and restrictions imposed by credit facility covenants - Asana may require additional capital in the future, with no assurance of favorable financing terms, and an inability to raise capital could adversely affect business growth[367](index=367&type=chunk) - Operating activities may be restricted by covenants under the **November 2022 Senior Secured Credit Facility**, including financial covenants like a consolidated adjusted quick ratio and minimum cash adjusted EBITDA, where default could lead to immediate repayment obligations[369](index=369&type=chunk)[370](index=370&type=chunk) [Risks Related To Ownership of Our Class A Common Stock](index=74&type=section&id=Risks%20Related%20To%20Ownership%20of%20Our%20Class%20A%20Common%20Stock) This section discusses risks associated with owning Asana's Class A common stock, including price volatility, concentrated voting control, and potential dilution - The trading price of Asana's Class A common stock may be **volatile and decline significantly** due to factors like fluctuations in operating results, macroeconomic conditions, analyst coverage, and sales by major stockholders[371](index=371&type=chunk)[372](index=372&type=chunk) - Dustin Moskovitz, co-founder and Chair, beneficially owns a **majority of the voting power**, concentrating control and limiting other stockholders' influence, further reinforced by the **dual-class structure** (Class B with 10 votes, Class A with 1 vote) concentrating voting control with insiders[374](index=374&type=chunk)[375](index=375&type=chunk) - The dual-class structure may lead to a **lower or more volatile trading price** for Class A common stock and potential ineligibility for certain stock indices, while sales of substantial amounts of Class A common stock, especially by insiders, could cause the trading price to decline[377](index=377&type=chunk)[379](index=379&type=chunk)[380](index=380&type=chunk) - Asana's share repurchase program does not obligate the Company to acquire any specific amount of stock and may not enhance long-term value, while future stock issuances could result in **significant dilution** to existing stockholders[384](index=384&type=chunk)[386](index=386&type=chunk)[390](index=390&type=chunk) - Provisions in corporate charter documents and Delaware law may prevent or hinder attempts to change management or acquire a controlling interest, potentially affecting stock price, and exclusive forum provisions restrict stockholders' choice of judicial forum for certain disputes[391](index=391&type=chunk)[392](index=392&type=chunk)[393](index=393&type=chunk)[394](index=394&type=chunk) [General Risks](index=79&type=section&id=General%20Risks) This section covers general risks including changes in accounting principles, control deficiencies, foreign currency fluctuations, and catastrophic events - Changes in GAAP or their interpretations could adversely affect reported financial results, and failure to maintain effective disclosure controls and internal control over financial reporting could impact financial statement accuracy and compliance, potentially leading to **restatements or delisting**[396](index=396&type=chunk)[397](index=397&type=chunk)[399](index=399&type=chunk)[400](index=400&type=chunk) - Asana faces exposure to **foreign currency exchange rate fluctuations**, which can adversely affect revenues and results of operations, and incorrect estimates or judgments related to critical accounting policies could also negatively impact financial results[401](index=401&type=chunk)[402](index=402&type=chunk) - Catastrophic events, health epidemics, or geopolitical conflicts (e.g., Ukraine-Russia, Middle East) may disrupt business operations, international commerce, and the global economy, potentially causing **system interruptions, reputational harm, and data loss**[403](index=403&type=chunk)[404](index=404&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=82&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no recent unregistered sales of equity securities and details the Company's stock repurchase activity under its authorized program - No unregistered sales of equity securities were reported; the stock repurchase program was amended on May 30, 2025, to authorize an additional **$100.0 million** for repurchases, with **$128.2 million remaining available** as of July 31, 2025[405](index=405&type=chunk) Stock Repurchase Activity (Three Months Ended July 31, 2025, in thousands, except per share data) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet Be Purchased | | :-------------------- | :------------------------------- | :--------------------------- | :--------------------------------------------------------- | | May 1 - May 31 | — | $— | $156,041 | | June 1 - June 30 | 1,631 | $14.10 | $133,048 | | July 1 - July 31 | 327 | $14.67 | $128,248 | | Total | 1,958 | | | [Item 3. Defaults Upon Senior Securities](index=82&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to Asana for the reported period - This item is not applicable[407](index=407&type=chunk) [Item 4. Mine Safety Disclosures](index=82&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Asana for the reported period - This item is not applicable[408](index=408&type=chunk) [Item 5. Other Information](index=82&type=section&id=ITEM%205.%20Other%20Information) No other information is reported under this item for the period - No other information is reported[409](index=409&type=chunk) [Item 6. Exhibits](index=82&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents, offer letters, equity incentive plan forms, and certifications - Exhibits include the Restated Certificate of Incorporation, Amended and Restated Bylaws, Offer Letter for Daniel Rogers (new CEO), 2020 Equity Incentive Plan forms, and certifications from the CEO and CFO[411](index=411&type=chunk) [Signatures](index=84&type=section&id=SIGNATURES) The report is duly signed on behalf of Asana, Inc. by its Chief Executive Officer, Daniel Rogers, and Chief Financial Officer, Sonalee Parekh - The report is signed by Daniel Rogers, Chief Executive Officer, and Sonalee Parekh, Chief Financial Officer, on September 3, 2025[417](index=417&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 FY26 Performance Overview](index=1&type=section&id=Q2%20FY26%20Performance%20Overview) Asana exceeded its Q2 FY26 revenue guidance, demonstrating significant year-over-year improvements in both GAAP and non-GAAP operating margins, with NRR stabilizing quarter-over-quarter driven by AI Studio expansion - **Q2 revenue** exceeded the high end of guidance[1](index=1&type=chunk) - **Q2 GAAP operating margin** improved **18 percentage points** year over year[1](index=1&type=chunk) - **Q2 non-GAAP operating margin** improved **16 percentage points** year over year[1](index=1&type=chunk) - **NRR** stabilized quarter over quarter with improvement in expansion as **AI Studio** ramps[2](index=2&type=chunk) [FY26 Guidance Update](index=1&type=section&id=FY26%20Guidance%20Update) Asana has raised the midpoint of its full fiscal year 2026 revenue guidance and increased its non-GAAP operating margin guidance, reflecting strong confidence in the company's ability to achieve long-term durable growth and sustained profitability - Raises **midpoint of FY26 revenue guidance range**[1](index=1&type=chunk) - Raises **FY26 non-GAAP operating margin guidance**[1](index=1&type=chunk) - CFO expressed confidence in Asana's ability to drive **long-term durable growth and sustained profitability**[2](index=2&type=chunk) [Second Quarter Fiscal 2026 Results](index=1&type=section&id=Second%20Quarter%20Fiscal%202026%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Asana reported Q2 FY26 revenues of $196.9 million, a 10% year-over-year increase, significantly reducing its GAAP operating loss and achieving a non-GAAP operating income of $14.0 million, with positive non-GAAP net income and increased cash flow | Metric | Q2 FY26 (Millions) | Q2 FY25 (Millions) | YoY Change | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Revenues | $196.9 | $179.2 | +10% | | GAAP Operating Loss | $(49.5) (25% of rev) | $(76.8) (43% of rev) | Improved 18 pp | | Non-GAAP Operating Income (Loss) | $14.0 (7% of rev) | $(15.7) (9% of rev) | Improved 16 pp | | GAAP Net Loss | $(48.4) | $(72.2) | Reduced | | GAAP Net Loss per Share | $(0.20) | $(0.31) | Reduced | | Non-GAAP Net Income (Loss) | $15.1 | $(11.1) | Turned positive | | Non-GAAP Net Income (Loss) per Share | $0.06 | $(0.05) | Turned positive | | Cash from Operating Activities | $39.8 | $15.9 | +150% | | Adjusted Free Cash Flow | $35.4 | $12.8 | +177% | [Business Highlights](index=1&type=section&id=Business%20Highlights) Asana demonstrated strong customer growth, particularly among higher-value segments, advanced its AI integration with new product launches, secured a FedRAMP 'In Process' Designation, expanded key partnerships, and appointed a new CEO - The number of **Core customers** (spending **$5,000 or more** on an annualized basis) grew to **25,006** in Q2, an increase of **9%** year over year[5](index=5&type=chunk) - Revenues from **Core customers** in Q2 grew **12%** year over year[5](index=5&type=chunk) - The number of customers spending **$100,000 or more** on an annualized basis in Q2 grew to **770**, an increase of **19%** year over year[5](index=5&type=chunk) - Overall **dollar-based net retention rate** in Q2 was **96%**[5](index=5&type=chunk) - Appointed **Dan Rogers** to **Chief Executive Officer**[8](index=8&type=chunk) - Launched the new **Smart Workflow Gallery**, a suite of prebuilt, **AI-powered workflows**[8](index=8&type=chunk) - Announced **FedRAMP 'In Process' Designation**, marking commitment to secure work for the public sector[8](index=8&type=chunk) - Expanded Asana's partnership with **Mastercard**, giving small businesses access to Asana at a discounted rate[8](index=8&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) [Third Quarter Fiscal 2026 Outlook](index=2&type=section&id=Third%20Quarter%20Fiscal%202026%20Outlook) For the third quarter of fiscal 2026, Asana anticipates revenues between $197.5 million and $199.5 million, representing a year-over-year growth of 7.4% to 8.5%, with non-GAAP operating income of $12.0 million to $14.0 million and non-GAAP net income per share of $0.06 to $0.07 | Metric | Range | YoY Growth | | :-------------------------- | :-------------------- | :--------- | | Revenues | $197.5M - $199.5M | 7.4% - 8.5% | | Non-GAAP Operating Income | $12.0M - $14.0M | | | Non-GAAP Operating Margin | 6% - 7% | | | Non-GAAP Net Income per Share | $0.06 - $0.07 | | [Full Fiscal Year 2026 Outlook](index=2&type=section&id=Full%20Fiscal%20Year%202026%20Outlook) Asana has updated its full fiscal year 2026 guidance, projecting revenues between $780.0 million and $790.0 million, indicating an 8% to 9% year-over-year growth, with non-GAAP operating income of $46.0 million to $50.0 million and non-GAAP net income per share forecasted at $0.23 to $0.25 | Metric | Range | YoY Growth | | :-------------------------- | :-------------------- | :--------- | | Revenues | $780.0M - $790.0M | 8% - 9% | | Non-GAAP Operating Income | $46.0M - $50.0M | | | Non-GAAP Operating Margin | 6% | | | Non-GAAP Net Income per Share | $0.23 - $0.25 | | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Purpose and Rationale](index=3&type=section&id=Purpose%20and%20Rationale) Asana uses non-GAAP financial measures to complement its GAAP financial statements, aiming to provide a clearer understanding of its core operating performance, enhance investor understanding, facilitate period-to-period comparisons, and offer greater transparency into management's operational decision-making metrics - **Non-GAAP financial measures** assist in understanding and evaluating Asana's **core operating performance**[12](index=12&type=chunk) - They enhance the overall understanding of Asana's **past performance and future prospects**[14](index=14&type=chunk) - **Non-GAAP measures** facilitate **period-to-period comparisons** of operations against other companies in the industry[14](index=14&type=chunk) - They allow for greater transparency with respect to important metrics used by Asana's management for **financial and operational decision-making**[14](index=14&type=chunk) [Adjustments and Exclusions](index=4&type=section&id=Adjustments%20and%20Exclusions) Asana's non-GAAP adjustments primarily exclude stock-based compensation expenses (including related employer payroll tax), non-cash expenses such as impairment charges, and restructuring-related costs, as these are considered non-core to long-term business performance, with revenues also adjusted for foreign currency impact and free cash flow defined as a key liquidity measure - **Non-GAAP financial measures** exclude **stock-based compensation expense**, which is a significant recurring expense and an important part of compensation strategy[15](index=15&type=chunk)[16](index=16&type=chunk) - **Employer payroll tax associated with RSUs** is excluded due to its dependence on stock price and other uncontrollable factors not correlated to business operations[16](index=16&type=chunk) - **Non-cash expenses**, such as charges for impairment of long-lived assets, are excluded to provide useful supplemental information and facilitate analysis of operating results[16](index=16&type=chunk) - **Restructuring related costs (benefits)** are excluded to better understand core business performance and facilitate comparisons[16](index=16&type=chunk) - **Revenues** are adjusted for the impact of **foreign currency** by applying prior period average exchange rates to current period non-USD billed revenues, to assess underlying business performance[16](index=16&type=chunk) - **Free cash flow** is defined as net cash from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs[17](index=17&type=chunk) - **Adjusted free cash flow** is defined as free cash flow plus costs paid related to restructuring[17](index=17&type=chunk) [Definitions of Business Metrics](index=5&type=section&id=Definitions%20of%20Business%20Metrics) [Core Customers](index=5&type=section&id=Core%20Customers) Core customers are defined as organizations on a paid subscription plan that generate $5,000 or more in annualized GAAP revenues within a given quarter, inclusive of any discounts - **Core customers** are organizations on a paid subscription plan with **$5,000 or more** in annualized GAAP revenues in a given quarter, inclusive of discounts[18](index=18&type=chunk) [Customers Spending $100,000 or More](index=5&type=section&id=Customers%20Spending%20%24100%2C000%20or%20More) This metric identifies organizations on a paid subscription plan that have generated $100,000 or more in annualized GAAP revenues during a specific quarter, including any applied discounts - **Customers spending $100,000 or more** are organizations on a paid subscription plan that had **$100,000 or more** in annualized GAAP revenues in a given quarter, inclusive of discounts[19](index=19&type=chunk) [Dollar-based Net Retention Rate](index=5&type=section&id=Dollar-based%20Net%20Retention%20Rate) Asana's reported dollar-based net retention rate is calculated as the simple arithmetic average of its quarterly rates over the most recent four fiscal quarters, comparing revenues from the same customer cohort year-over-year, accounting for upsells, contractions, and attrition, but excluding new customers, and is expected to fluctuate based on various factors - The **dollar-based net retention rate** equals the simple arithmetic average of quarterly rates for the four quarters ending with the most recent fiscal quarter[20](index=20&type=chunk) - Calculated by comparing revenues from the same set of customers in a given quarter relative to the comparable prior-year period, including **upsells** and net of **contraction or attrition**, but excluding new customers[20](index=20&type=chunk) - Expected to fluctuate in future periods due to factors such as **revenue base growth, customer penetration, retention ability, and the macroeconomic environment**[20](index=20&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) [About Asana](index=5&type=section&id=About%20Asana) Asana is a leading work management platform that facilitates collaboration between humans and AI, serving over 170,000 customers globally by helping them align teams, accelerate organizational impact, and bring clarity to complex initiatives through AI-powered workflows - **Asana** is a leading work management platform for **human and AI collaboration**[21](index=21&type=chunk) - Over **170,000 customers**, including Accenture, Amazon, Anthropic, and Suzuki, rely on Asana[21](index=21&type=chunk) - Helps organizations align teams, accelerate organizational impact, and bring clarity to complexity with **AI**[21](index=21&type=chunk) [Earnings Conference Call Information](index=3&type=section&id=Earnings%20Conference%20Call%20Information) Asana will host a conference call and live webcast on September 3, 2025, at 1:30 p.m. Pacific Time to discuss its second quarter fiscal 2026 financial results, with a replay available on the Asana Investor Relations webpage - Conference call and live webcast to discuss results on **September 3, 2025, at 1:30 p.m. Pacific Time**[10](index=10&type=chunk) - A live webcast and replay will be available on the **Asana Investor Relations webpage** at: https://investors.asana.com[10](index=10&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements based on management's current beliefs and assumptions, covering areas such as market opportunity, AI impact, product launches, and financial outlook, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially, and Asana disclaims any obligation to update these statements unless legally required - Statements are based on management's beliefs and assumptions and are not historical facts, identifiable by terms like **'anticipate,' 'expect,' 'intend,' 'plan,' 'believe,'** etc[11](index=11&type=chunk) - Cover topics including **market opportunity, potential and impact of AI, expected benefits of AI Studio, product launches, and financial outlook for Q3 and FY26**[11](index=11&type=chunk) - Involve **known and unknown risks, uncertainties, and other factors** that may cause actual results to differ materially[11](index=11&type=chunk) - Risks include Asana's ability to achieve **future growth, attract and retain customers, develop new products (including AI integration), and broader macroeconomic conditions**[11](index=11&type=chunk) - Asana assumes **no obligation to update these forward-looking statements**, except as required by law[11](index=11&type=chunk) [Disclosure of Material Information](index=5&type=section&id=Disclosure%20of%20Material%20Information) Asana communicates material information to its investors through official channels such as SEC filings, press releases, public conference calls, and its dedicated investor relations website, also utilizing various social media platforms to engage with the public and disseminate information, encouraging stakeholders to review these sources for potentially material updates - Asana announces **material information** using **SEC filings, press releases, public conference calls, and its investor relations page** (https://investors.asana.com)[22](index=22&type=chunk)[23](index=23&type=chunk) - The company also uses **social media channels (X, blog, LinkedIn, Instagram, Facebook, Threads, TikTok)** to communicate with investors and the public[23](index=23&type=chunk) - Investors, media, and others are encouraged to review information made public in these locations, as it could be deemed material[23](index=23&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) This section presents Asana's unaudited condensed consolidated statements of operations for the three and six months ended July 31, 2025, and 2024, detailing key financial metrics including revenues, gross profit, operating expenses, loss from operations, net loss, and net loss per share, along with a breakdown of stock-based compensation expenses | Metric (in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $196,936 | $179,212 | $384,203 | $351,660 | | Gross profit | $176,715 | $159,225 | $344,755 | $313,869 | | Loss from operations | $(49,456) | $(76,797) | $(93,360) | $(142,966) | | Net loss | $(48,360) | $(72,189) | $(88,378) | $(135,911) | | Net loss per share (Basic and Diluted) | $(0.20) | $(0.31) | $(0.38) | $(0.59) | | Total stock-based compensation expense | $62,154 | $60,107 | $110,321 | $108,747 | [Balance Sheets](index=8&type=section&id=Balance%20Sheets) This section provides Asana's unaudited condensed consolidated balance sheets as of July 31, 2025, and January 31, 2025, detailing the company's financial position, including current and non-current assets, current and non-current liabilities, and stockholders' equity | Metric (in thousands) | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :-------------- | :--------------- | | Total current assets | $598,511 | $600,741 | | Total assets | $883,157 | $891,415 | | Total current liabilities | $424,082 | $415,817 | | Total liabilities | $658,601 | $663,892 | | Total stockholders' equity | $224,556 | $227,523 | [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) This section outlines the cash generated from or used in operating, investing, and financing activities for the three and six months ended July 31, 2025, and 2024, providing insight into the company's liquidity and cash management | Metric (in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $39,835 | $15,858 | $46,599 | $13,960 | | Net cash (used in) provided by investing activities | $(18,918) | $56 | $(14,742) | $(21,305) | | Net cash used in financing activities | $(30,556) | $(19,228) | $(36,079) | $(9,281) | | Net decrease in cash, cash equivalents, and restricted cash | $(9,408) | $(2,194) | $(192) | $(16,808) | | Cash, cash equivalents, and restricted cash, End of period | $184,672 | $219,855 | $184,672 | $219,855 | [Reconciliation of GAAP to Non-GAAP Data](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Data) This section provides detailed reconciliations of Asana's GAAP financial measures to their corresponding non-GAAP counterparts for the three and six months ended July 31, 2025, and 2024, covering gross profit, operating expenses, operating income/loss, net income/loss, net income/loss per share, free cash flow, adjusted free cash flow, and revenue adjusted for foreign currency impact, highlighting adjustments for items like stock-based compensation and restructuring costs | Metric (in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP loss from operations | $(49,456) | $(76,797) | $(93,360) | $(142,966) | | Plus: stock-based compensation and related employer payroll tax associated with RSUs | $63,463 | $61,139 | $113,287 | $111,538 | | Adjustment for: restructuring costs | — | — | $2,217 | — | | Non-GAAP income (loss) from operations | $14,007 | $(15,658) | $22,144 | $(31,428) | | GAAP operating margin | (25.1)% | (42.9)% | (24.3)% | (40.7)% | | Non-GAAP operating margin | 7.1% | (8.7)% | 5.8% | (8.9)% | | Metric (in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP net loss | $(48,360) | $(72,189) | $(88,378) | $(135,911) | | Plus: stock-based compensation and related employer payroll tax associated with RSUs | $63,463 | $61,139 | $113,287 | $111,538 | | Adjustment for: restructuring costs | — | — | $2,217 | — | | Non-GAAP net income (loss) | $15,103 | $(11,050) | $27,126 | $(24,373) | | Non-GAAP net income (loss) per share, diluted | $0.06 | $(0.05) | $0.11 | $(0.11) | | Metric (in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $39,835 | $15,858 | $46,599 | $13,960 | | Free cash flow | $35,382 | $12,760 | $39,377 | $8,485 | | Adjusted free cash flow | $35,439 | $12,760 | $45,321 | $8,485 |