Financial Data and Key Metrics Changes - In Q1, total revenues reached $187.3 million, representing a 9% year-over-year increase, exceeding the midpoint of guidance by 1% [37] - Non-GAAP operating margins improved by over 1,300 basis points year-over-year, achieving a 4% operating income margin for the first time [5][43] - Adjusted free cash flow margin improved by over 700 basis points year-over-year, reaching 5% for the quarter [5][45] - The company reported a net income of $12 million, or $0.05 per share [43] Business Line Data and Key Metrics Changes - The number of core customers (spending $5,000 or more annually) grew to 24,297, with revenues from core customers increasing by 10% year-over-year [37] - Customers spending $100,000 or more annually grew by 20% year-over-year, totaling 728 customers [38] - Non-tech verticals grew in the mid-teens year-over-year, with notable growth in manufacturing, energy, media, and financial services [5][27] Market Data and Key Metrics Changes - International revenue grew by 11% year-over-year, with strong demand particularly in EMEA and Japan [25][26] - The company has not observed a material change in demand across segments or regions compared to previous quarters, although there are signs of increased buyer scrutiny [26][48] Company Strategy and Development Direction - The company aims to position itself as the leader in human and AI coordination, with a focus on AI Studio as a key growth driver [20][23] - Strategic initiatives include launching the Smart Workflow Gallery and AI Studio Plus to enhance customer engagement and adoption [15][17] - The company is committed to long-term profitable growth, focusing on customer health, acquisition, and value through product innovation, especially in AI [23][49] Management's Comments on Operating Environment and Future Outlook - Management noted early signs of budget pressures and tool consolidation among enterprise customers, particularly in the Americas region [82] - The company expects net retention rates to be pressured in Q2 due to downgrades, particularly in the enterprise and tech verticals [39][48] - Despite short-term challenges, management remains confident in long-term improvements in net retention due to investments in customer success and AI Studio [41][84] Other Important Information - The company repurchased $15.6 million of its Class A common stock during the quarter, with an increased share repurchase authorization of $100 million [46] - The company updated its full-year revenue guidance to $775 million to $790 million, reflecting a 7% to 9% year-over-year growth [47][49] Q&A Session Summary Question: Can you provide details on the $1,000,000 ARR for AI Studio? - The $1,000,000 ARR consists of diverse customers across regions and industries, primarily from the AI Studio Pro platform fees, with potential for increased consumption in the future [54][55] Question: What impact does the $100,000,000 contract renewal have? - The renewal represents the largest deal in Asana's history, with a modest downgrade in annual contract value (ACV) impacting net retention, particularly in the tech vertical [60][61] Question: How is the company addressing competition in AI? - The company differentiates itself by integrating AI into workflows, allowing for seamless human-AI collaboration, which enhances customer success across various use cases [71][72] Question: What are the expectations for revenue from tech customers? - The tech vertical remains stable, with non-tech growing in the mid-teens, despite the impact of the recent large renewal [78][79] Question: How is the company navigating macroeconomic pressures? - The company is actively working to mitigate churn and contraction through enhanced customer success management and flexible pricing strategies [83][84]