Asana(ASAN)2025-06-03 20:08Financial Performance - Q1 revenue was $187.3 million, an increase of 9% year over year[5] - GAAP operating loss was $43.9 million, or 23% of revenues, improved from a loss of $66.2 million, or 38% of revenues, in Q1 fiscal 2025[5] - Non-GAAP operating income was $8.1 million, or 4% of revenues, compared to a non-GAAP operating loss of $15.8 million, or 9% of revenues, in Q1 fiscal 2025[5] - Revenues for the three months ended April 30, 2025, were $187,267,000, representing a 8.6% increase from $172,448,000 in the same period of 2024[27] - GAAP revenue for Q2 2025 was $187,267, up from $172,448 in Q2 2024, reflecting an increase of approximately 8.5%[34] - Revenue adjusted for the impact of foreign currency in Q2 2025 was $187,630, compared to $172,477 in Q2 2024, showing a similar growth trend[34] Customer Growth - The number of Core customers grew to 24,297, an increase of 10% year over year[5] - Customers spending $100,000 or more annually increased to 728, a 20% year-over-year growth[5] - The dollar-based net retention rate for Core customers in Q1 was 96%[7] Cash Flow and Expenses - Cash flows from operating activities were $6.8 million, compared to negative $1.9 million in Q1 fiscal 2025[5] - Cash and cash equivalents increased to $193,791,000 as of April 30, 2025, up from $184,728,000 at the end of January 2025[29] - Total operating expenses decreased to $211,944,000 from $220,813,000 year-over-year, reflecting a 4% reduction[27] - Free cash flow for Q2 2025 was $3,995, compared to a negative free cash flow of $4,275 in Q2 2024, indicating a turnaround[34] - Adjusted free cash flow for Q2 2025 reached $9,882, contrasting with a negative adjusted free cash flow of $4,275 in Q2 2024[34] - The company reported a net cash provided by operating activities of $6,764 in Q2 2025, compared to $(1,898) in Q2 2024, indicating improved operational efficiency[34] Profitability - Non-GAAP net income per share is projected to be $0.04 to $0.05, assuming diluted weighted average shares outstanding of approximately 243 million[7] - Non-GAAP income from operations was $8,137,000 for the three months ended April 30, 2025, compared to a loss of $15,770,000 in the same period of 2024[32] - GAAP net loss for Q2 2025 was $40,018, compared to a loss of $63,722 in Q2 2024, representing a 37% improvement[34] - Non-GAAP net income for Q2 2025 was $12,023, a significant recovery from a loss of $13,323 in Q2 2024[34] - GAAP net loss per share, basic, improved to $(0.17) in Q2 2025 from $(0.28) in Q2 2024[34] - Non-GAAP net income per share, basic, was $0.05 in Q2 2025, recovering from a loss of $(0.06) in Q2 2024[34] Future Outlook - For fiscal 2026, Asana expects revenues of $775.0 million to $790.0 million, representing year-over-year growth of 7% to 9%[6] - Asana entered into the largest subscription agreement in its history with a renewal exceeding $100 million over a three-year term[7] Assets and Equity - Total assets decreased to $877,133,000 from $891,415,000 since January 31, 2025[29] - Asana's total stockholders' equity increased to $236,304,000 from $227,523,000 since January 31, 2025[29] Research and Development - The company plans to continue investing in research and development, with R&D expenses at $75,127,000 for the quarter, down from $82,791,000 in the previous year[27] - The company reported stock-based compensation expense of $48,167,000 for the three months ended April 30, 2025, slightly down from $48,640,000 in the prior year[27]