Asana(ASAN)2025-06-03 20:15Customer Metrics - As of April 30, 2025, the company had 24,297 Core customers, contributing approximately 75% of revenues, up from 22,162 Core customers contributing 74% of revenues as of April 30, 2024[141]. - The dollar-based net retention rate for Core customers was 96% as of April 30, 2025, down from 102% in the prior year, indicating a decline in revenue retention from existing customers[145]. Revenue and Growth - The company reported revenues of $187.3 million for the three months ended April 30, 2025, representing a $14.8 million increase or 9% growth compared to $172.4 million for the same period in 2024[167]. - The company entered into its largest subscription agreement in history in May 2025, valued at $100 million over a three-year term, billed annually[142]. Profitability and Expenses - Gross profit for the three months ended April 30, 2025, was $168.0 million, with a gross margin of 90%, consistent with the prior year[163]. - Operating expenses totaled $211.9 million for the three months ended April 30, 2025, a decrease from $220.8 million in the same period in 2024[163]. - The net loss for the three months ended April 30, 2025, was $40.0 million, compared to a net loss of $63.7 million for the same period in 2024[163]. - Research and development expenses were $75.1 million for the three months ended April 30, 2025, down from $82.8 million in the prior year, reflecting a focus on efficiency[163]. - Sales and marketing expenses were $99.8 million for the three months ended April 30, 2025, compared to $104.3 million in the same period in 2024, indicating a strategic investment approach[163]. - General and administrative expenses increased by $3.3 million, or 10%, driven by a $1.8 million increase in personnel-related costs[174]. Cash Flow and Financial Position - Free cash flow was $3,995 thousand for the three months ended April 30, 2025, compared to a negative $4,275 thousand in the same period of 2024[186]. - As of April 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $470.8 million[188]. - As of April 30, 2025, the company had $290.3 million in deferred revenue, with $289.0 million recorded as a current liability[194]. - Net cash provided by operating activities for the three months ended April 30, 2025, was $6.8 million, reflecting a net loss of $40.0 million adjusted by non-cash items[199]. - The company reported a decrease in deferred revenue of $12.5 million due to decreased billings for subscriptions during the three months ended April 30, 2025[199]. - Net cash provided by investing activities for the three months ended April 30, 2025, was $4.2 million, primarily from $41.0 million in maturities of marketable securities[201]. - Net cash used in financing activities for the three months ended April 30, 2025, was $5.5 million, mainly due to $14.5 million in repurchases of Class A common stock[203]. - The company had cash and cash equivalents of $193.8 million as of April 30, 2025[212]. Future Outlook and Strategic Plans - The company anticipates continued investment in research and development, particularly in AI integration, with expenses expected to increase in dollar amount but decrease as a percentage of revenues over time[153]. - The company may seek to raise additional funds through equity or debt in the future to support its capital requirements[195]. - The company believes its current cash and marketable securities will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[195]. Currency and Risk Management - 27% of the company's sales for the three months ended April 30, 2025, were denominated in currencies other than U.S. dollars[216]. - The company does not currently enter into derivative or hedging transactions for foreign currency risks but may consider it if exposure increases[217].