Financial Data and Key Metrics Changes - In Q1 2026, total revenues reached $187.3 million, representing a 9% year-over-year increase, exceeding the guidance midpoint by 1% [37] - Non-GAAP operating margins improved significantly, achieving a positive operating income margin of 4%, a 1,300 basis point improvement year-over-year [4][42] - Adjusted free cash flow margin was 5%, reflecting an improvement of over 700 basis points year-over-year [4][44] Business Line Data and Key Metrics Changes - Non-tech verticals grew in the mid-teens year-over-year, outpacing overall growth, with notable growth in manufacturing, energy, media and entertainment, and financial services [4][27] - The number of customers spending $100,000 or more annually grew by 20% year-over-year, indicating strong enterprise customer acquisition [5][38] 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 overall dollar-based net retention rate was 95%, with core customer NRR at 96% [38] Company Strategy and Development Direction - The company is focusing on AI Studio as a key growth driver, with plans to enhance customer adoption through initiatives like the Smart Workflow Gallery and AI Studio Plus [14][17] - A strategic emphasis is placed on customer health, acquisition, and value delivery through product innovation, particularly in AI [22][27] Management's Comments on Operating Environment and Future Outlook - Management noted early signs of increased buyer scrutiny and elongated decision-making processes, particularly in enterprise and tech segments [26][47] - The company remains confident in long-term NRR improvement due to investments in customer success and AI Studio [40][48] Other Important Information - The company achieved non-GAAP profitability for the first time, marking a significant milestone [3][4] - A landmark $100 million contract renewal was secured, providing greater visibility into future revenues despite a modest downgrade in annual contract value [5][60] Q&A Session Summary Question: Breakdown of AI Studio's $1,000,000 ARR - 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 [52][54] Question: Details on the $100,000,000 contract renewal - The renewal was in the tech vertical, representing the largest deal in Asana's history, with a modest downgrade in annual contract value but significant long-term visibility [57][60] Question: ROI perspective on AI Studio - The company is seeing instances where AI Studio ARR exceeds seat-based ARR, indicating strong value delivery, and is optimistic about achieving larger accounts by year-end [66][73] Question: Impact of macroeconomic pressures - Early signs of customer budget pressures and tool consolidation were noted, particularly in enterprise and mid-market segments, but the company is implementing strategies to mitigate churn [81][84] Question: Revenue guidance adjustments - The lower end of the revenue guidance reflects prudent assumptions about potential macroeconomic pressures and their impact on net retention [88]

Asana, Inc. (NYSE:ASAN) Q4 2025 Earnings Conference Call March 10, 2025 4:30 PM ET Company Participants Eva Leung - Head of Investor Relations Dustin Moskovitz - Co Founder, President, CEO & Chair Anne Raimondi - COO & Head of Business Sonalee Parekh - CFO and Head of Finance Conference Call Participants Pinjalim Bora - JP Morgan Michael Funk - Bank of America Rob Oliver - Baird Brent Bracelin - Piper Sandler Steve Enders - Citi Arsenije Matovic - Wolfe Research Brent Thill - Jefferies Operator Thank you fo ...