Asana(ASAN)2025-03-10 20:12Financial Performance - Q4 revenue was $188.3 million, a 10% year-over-year increase, and $189.1 million when adjusted for foreign exchange impact, reflecting a 10.5% increase[4] - GAAP operating loss for Q4 was $63.6 million, or 34% of revenues, improved from a loss of $67.9 million, or 40% of revenues, in Q4 of fiscal 2024[4] - Non-GAAP operating margin improved by 820 basis points year-over-year in Q4, with a non-GAAP operating loss of $1.7 million, or 1% of revenues[4] - Asana achieved positive free cash flow of $12.3 million in Q4, compared to a negative $17.0 million in the same quarter of fiscal 2024[4] - The net loss for the three months ended January 31, 2025, was $62,299,000, slightly lower than the net loss of $62,398,000 in the prior year[27] - GAAP net loss for Q1 2025 was $62.30 million, slightly improved from a net loss of $62.40 million in Q1 2024[35] - Non-GAAP net loss for the twelve months ended January 31, 2025, was $29.59 million, compared to $45.13 million in the previous year, indicating a reduction of 34.5%[35] Customer Metrics - The number of Core customers grew to 24,062 in Q4, an increase of 11% year-over-year, with revenues from Core customers also growing by 11%[7] - The dollar-based net retention rate for Core customers in Q4 was 97%[7] - Asana's dollar-based net retention rate is expected to fluctuate due to factors such as revenue growth and customer retention capabilities[22] Future Guidance - For Q1 FY26, Asana expects revenues between $184.5 million and $186.5 million, representing year-over-year growth of 7% to 8%[7] - Asana anticipates a non-GAAP operating profit of $2.0 million to $3.0 million for Q1 FY26, with an operating margin of 1% to 2%[7] - The company expects FY26 revenues between $782.0 million and $790.0 million, indicating year-over-year growth of 8% to 9%[8] - Non-GAAP net income per share for FY26 is projected to be between $0.19 and $0.20, assuming approximately 247 million diluted weighted average shares outstanding[8] Operating Expenses - Total operating expenses for the three months ended January 31, 2025, were $232,319,000, compared to $221,691,000 in the same quarter of the previous year, reflecting a 4.9% increase[27] - Asana's research and development expenses for the twelve months ended January 31, 2025, were $341,467,000, compared to $324,688,000 in the previous year, showing a commitment to innovation[27] - The company expects to continue investing in sales and marketing, which accounted for $102,261,000 in the most recent quarter[27] Cash and Equity - Cash and cash equivalents decreased to $184,728,000 as of January 31, 2025, down from $236,663,000 a year earlier[30] - The company had a total stockholders' equity of $227,523,000 as of January 31, 2025, a decrease from $326,396,000 in the prior year[30] Revenue and Profitability - Asana reported revenues of $188,334,000 for the three months ended January 31, 2025, representing a 10.3% increase from $171,135,000 in the same period of the prior year[27] - The gross profit for the same quarter was $168,730,000, up from $153,743,000, indicating a gross margin improvement[27] - GAAP gross profit for Q1 2025 was $168.73 million, up from $153.74 million in Q1 2024, representing an increase of 9.7%[33] - Non-GAAP gross profit for the twelve months ended January 31, 2025, was $648.10 million, compared to $589.57 million in the previous year, reflecting a growth of 9.9%[33] - Non-GAAP operating margin for Q1 2025 was -0.9%, an improvement from -9.1% in Q1 2024[33] - The company reported a GAAP operating loss of $63.59 million for Q1 2025, compared to a loss of $67.95 million in Q1 2024, showing a decrease of 6.5%[33]