Asana(US:ASAN)2025-12-02 21:24Financial Performance - The company reported revenues of $201,033,000 for the three months ended October 31, 2025, representing a 9.3% increase from $183,882,000 in the same period of 2024[174]. - Revenues for the three months ended October 31, 2025, increased by $17.2 million, or 9%, to $201.0 million compared to $183.9 million in the same period of 2024, driven by new paying customers and a shift towards higher-priced subscription plans[178]. - Revenues for the nine months ended October 31, 2025, increased by $49.7 million, or 9%, to $585.2 million compared to $535.5 million in the same period of 2024, attributed to new paying customers and higher-priced subscription plans[185][186]. - The company incurred a net loss of $68,433,000 for the three months ended October 31, 2025, compared to a net loss of $57,326,000 for the same period in 2024[174]. - The company reported a net loss of 34% for the three months ended October 31, 2025, compared to a net loss of 31% in the same period of 2024[178]. Customer Metrics - As of October 31, 2025, the company had 25,413 Core customers, contributing approximately 76% of revenues for the three months ended, compared to 23,609 Core customers contributing 75% for the same period in 2024[153]. - The dollar-based net retention rate was 96% for both October 31, 2025 and 2024, while the rate for Core customers was 97% in 2025, down from 98% in 2024[157]. Expenses - Research and development expenses for the three months ended October 31, 2025, were $73,813,000, a decrease from $83,286,000 in the same period of 2024[174]. - Sales and marketing expenses were $100,243,000 for the three months ended October 31, 2025, compared to $104,708,000 in the same period of 2024[174]. - The total operating expenses for the three months ended October 31, 2025, were $248,712,000, compared to $224,264,000 in the same period of 2024[174]. - Total operating expenses increased by $24.4 million, or 11%, to $248.7 million for the three months ended October 31, 2025, with general and administrative expenses surging by $38.4 million, or 106%[180][183]. Profitability - The gross profit for the three months ended October 31, 2025, was $178,726,000, up from $164,084,000 in the same period of 2024[174]. - Non-GAAP income from operations for the three months ended October 31, 2025, was $16.3 million, compared to a loss of $7.6 million in the same period of 2024[195]. - Non-GAAP net income for the three months ended October 31, 2025, was $17.9 million, compared to a loss of $4.8 million in the same period of 2024[204]. - Free cash flow for the three months ended October 31, 2025, was $13.4 million, a significant improvement from a negative $18.2 million in the same period of 2024[195]. Cash and Liquidity - As of October 31, 2025, the company had $463.6 million in cash, cash equivalents, and marketable securities[208]. - As of October 31, 2025, cash and cash equivalents were $183.5 million, with restricted cash of $0.4 million and marketable securities totaling $280.1 million[232]. - Net cash provided by operating activities for the nine months ended October 31, 2025, was $62.8 million, compared to a negative cash flow of $0.9 million in the same period of 2024[218]. - Net cash used in financing activities for the nine months ended October 31, 2025 was $62.1 million, which included $74.2 million in repurchases of Class A common stock and $3.8 million in repayment of term loan, partially offset by $13.0 million from the employee stock purchase plan and $2.8 million from stock options[222]. Market Conditions - Current economic conditions, including inflation and geopolitical unrest, have led to uncertainty affecting customer buying patterns and sales cycles[158]. - The company’s investments are exposed to market risk due to fluctuations in interest rates, but a hypothetical increase of 100 basis points would not have a material impact on financial statements[232]. Future Outlook - The company expects to continue investing in research and development and sales and marketing to capture significant growth opportunities in the market[149].