Asana(US:ASAN)2022-06-02 16:00Customer Growth and Retention - As of April 30, 2022, the company had over 126,000 paying customers, an increase from over 100,000 as of April 30, 2021[125] - Customers spending over $5,000 increased to 16,689, contributing approximately 70% of revenues for the three months ended April 30, 2022, up from 64% in the same period of 2021[128] - The dollar-based net retention rate was over 120% as of April 30, 2022, compared to over 115% in 2021, with rates for customers spending over $5,000 and $50,000 at over 130% and 145%, respectively[131] - The dollar-based net retention rate was over 120% as of April 30, 2022, indicating strong customer expansion and retention[149] Financial Performance - Total revenues for the three months ended April 30, 2022, were $120.646 million, a significant increase from $76.673 million in the same period of 2021[145] - Revenues increased by $44.0 million, or 57%, to $120.6 million for the three months ended April 30, 2022, compared to $76.7 million for the same period in 2021[149] - The net loss for the three months ended April 30, 2022, was $98.868 million, compared to a net loss of $60.658 million in the same period of 2021[145] - Non-GAAP loss from operations was $(54.7) million for the three months ended April 30, 2022, compared to $(33.3) million for the same period in 2021[159] - Free cash flow was $(42.2) million for the three months ended April 30, 2022, compared to $(7.7) million for the same period in 2021[169] Operating Expenses - Operating expenses for the same period were $204.440 million, up from $118.741 million in 2021, with research and development expenses rising to $65.205 million[145] - Total operating expenses increased by $85.7 million, or 72%, to $204.4 million, driven by significant increases in research and development, sales and marketing, and general and administrative expenses[153] - Research and development expenses surged by $25.2 million, or 63%, to $65.2 million, largely due to increased headcount[153] - Sales and marketing expenses rose by $39.3 million, or 69%, to $96.1 million, primarily from higher personnel-related expenses[154] - General and administrative expenses increased by $21.1 million, or 96%, to $43.1 million, mainly due to higher headcount and operating expenses[155] Cash Flow and Liquidity - Cash and cash equivalents as of April 30, 2022, totaled $197.3 million, with marketable securities amounting to $85.2 million, indicating a strong liquidity position[189] - The company reported a net cash used in operating activities of $41.1 million for the three months ended April 30, 2022, compared to $7.4 million for the same period in 2021, reflecting a net loss of $98.9 million[178][179] - The company generated a $27.8 million increase in deferred revenue due to higher subscription billings, contributing to cash inflows from changes in operating assets and liabilities[178] - Net cash used in investing activities was $12.1 million for the three months ended April 30, 2022, primarily due to $46.6 million in purchases of marketable securities[180] - Financing activities provided net cash of $10.7 million for the three months ended April 30, 2022, mainly from $9.2 million in proceeds from the employee stock purchase plan[182] - The company anticipates that its current cash and marketable securities will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[173] Future Outlook and Investments - The company anticipates continued investment in research and development, expecting expenses to increase in dollar amount but decrease as a percentage of revenues over time[138] - Sales and marketing expenses are expected to remain the largest operating expense, increasing in dollar amount but decreasing as a percentage of revenues over time[139] - The company plans to invest in research and development for new and enhanced products and features, as well as expand sales and marketing activities[173] - The company may seek to raise additional funds through equity or debt to support its operations and growth strategies[174] Foreign Currency Exposure - Approximately 22% of the company's sales for the three months ended April 30, 2022, were denominated in currencies other than U.S. dollars, exposing it to foreign currency risk[191] - The company has not entered into derivative or hedging transactions for foreign currency exposure but may consider doing so in the future if necessary[192] Impact of COVID-19 - The impact of COVID-19 has led to operational disruptions, but the dollar-based net retention rates for higher spending customers have remained consistent and increased throughout the pandemic[132]