Asana(ASAN)2024-12-05 21:06Financial 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]