Asana(US:ASAN)2024-05-30 20:14Customer Metrics - As of April 30, 2024, Asana had 22,162 Core customers, contributing approximately 74% of revenues, up from 19,864 Core customers contributing 73% of revenues a year earlier [136]. - The number of customers spending over $100,000 annually increased to 607 as of April 30, 2024, from 510 in the same period of 2023 [138]. - The dollar-based net retention rate for Core customers was 102% as of April 30, 2024, down from over 115% in the previous year [141]. Financial Performance - For the three months ended April 30, 2024, revenues were $172,448,000, a 13.2% increase from $152,411,000 for the same period in 2023 [154]. - Gross profit for the same period was $154,644,000, resulting in a gross margin of 90% [154][158]. - Revenues increased by $20.0 million, or 13%, to $172.4 million for the three months ended April 30, 2024, compared to $152.4 million for the same period in 2023 [159]. - Gross margin remained consistent at 90% for both the three months ended April 30, 2024, and April 30, 2023 [160]. Operating Expenses - Total operating expenses for the three months ended April 30, 2024, were $220,813,000, compared to $202,809,000 for the same period in 2023 [154]. - Total operating expenses increased by $18.0 million, or 9%, to $220.8 million, driven by higher research and development, and sales and marketing expenses [163]. - Research and development expenses increased to $82,791,000 for the three months ended April 30, 2024, from $76,316,000 in the same period of 2023 [154]. - Research and development expenses increased by $6.5 million, or 8%, to $82.8 million, mainly due to increased personnel-related costs [163]. - Sales and marketing expenses rose by $11.1 million, or 12%, to $104.3 million, attributed to higher headcount and travel costs [164]. Net Loss and Cash Flow - The net loss for the three months ended April 30, 2024, was $63,722,000, compared to a net loss of $61,468,000 for the same period in 2023 [154]. - Non-GAAP net loss improved to $(13.3) million for the three months ended April 30, 2024, compared to $(18.5) million for the same period in 2023 [168]. - Free cash flow was $(4.3) million for the three months ended April 30, 2024, an improvement from $(16.6) million in the same period last year [176]. - The net cash used in operating activities for the three months ended April 30, 2024, was $1.9 million, reflecting a net loss of $63.7 million, adjusted for non-cash items [187]. Deferred Revenue and Future Outlook - As of April 30, 2024, the company had $297.1 million in deferred revenue, with $292.2 million classified as a current liability, indicating strong future revenue recognition potential [181]. - For the same period, the company reported a $25.9 million increase in deferred revenue due to higher subscription billings [187]. - Current economic conditions, including elevated inflation and interest rate hikes, are expected to impact customer buying patterns and sales cycles [142]. - The company may seek additional funding through equity or debt in the future to support growth and operational needs [182]. Cash and Marketable Securities - As of April 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $524.3 million [178]. - Cash and cash equivalents stood at $222.0 million as of April 30, 2024, down from $236.7 million as of January 31, 2024 [197]. - The company had $46.9 million outstanding under its revolving credit facility as of April 30, 2024 [198]. Foreign Currency Exposure - Approximately 25% of the company's sales for the three months ended April 30, 2024, were denominated in currencies other than U.S. dollars, exposing it to foreign currency risk [200]. - Interest income and other income (expense), net decreased by $1.3 million, or 23%, to $4.4 million, primarily due to foreign currency transaction impacts [166]. Investment Activities - The net cash used in investing activities for the three months ended April 30, 2024, was $21.4 million, primarily due to $70.5 million in marketable securities purchases [189]. - The company generated $9.9 million in net cash from financing activities for the three months ended April 30, 2024, mainly from employee stock purchase plan proceeds [191]. Cash Flow from Operating Assets and Liabilities - The company experienced a net cash outflow of $8.4 million from changes in operating assets and liabilities for the three months ended April 30, 2023 [188].