Financial Data and Key Metrics Changes - Q4 revenues were $205.6 million, growing 9% year-over-year [4][29] - Non-GAAP operating income was $18.2 million, representing a 9% non-GAAP operating margin, a 10 percentage point improvement year-over-year [32] - Adjusted free cash flow for Q4 was $25.7 million, or 13% on a margin basis [5][35] - Full fiscal year revenue grew 9% year-over-year to $790.8 million [34] Business Line Data and Key Metrics Changes - Revenue from core customers grew 10% year-over-year, representing 76% of Q4 revenues [29] - The number of core customers reached 25,928, with 817 customers spending $100,000 or more annually, growing at 13% year-over-year [29] - The overall dollar-based net retention rate was 96%, with core customer NRR at 97% [29][30] Market Data and Key Metrics Changes - U.S. revenue accelerated in Q4, with the technology vertical returning to flat year-over-year performance after declines [7] - International revenues grew 11% year-over-year, with strong performance in non-tech sectors [8] - The remaining performance obligation (RPO) was $524.8 million, up 22% from the year-ago quarter [35] Company Strategy and Development Direction - The company aims to scale the agentic enterprise platform, focusing on R&D investments to enhance AI capabilities and workflows [22] - A shift towards product-led growth is being emphasized, with efforts to improve user discovery and value realization [23] - The strategy includes enhancing go-to-market excellence and aligning sales efforts with high-intent leads [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of AI offerings, expecting them to represent nearly 15% of new ARR in FY 2027 [37] - The company anticipates headwinds in the self-serve segment, particularly affecting the PLG motion, which is expected to create a 2-point drag on ARR growth [36][62] - Management noted improvements in NRR and sales productivity, indicating a more stable outlook for the tech vertical [55] Other Important Information - The company announced a leadership change, with Aziz Megji promoted to CFO following Sonalee Parekh's departure [26][27] - The board increased the share repurchase authorization by $160 million, reflecting a commitment to maximizing long-term shareholder value [35] Q&A Session Summary Question: How sticky are Asana workflows in an AI world? - Management emphasized that AI amplifies the need for structured context and coordination, enhancing Asana's role as a foundational layer for work [44][46] Question: How is the tech vertical performing amid AI-related workforce reductions? - Management noted that tech exposure is structurally lower, with a more diverse revenue base, and highlighted improvements in NRR from tech customers [53][54] Question: What changes are being made to adapt to the new environment around PLG? - Management discussed ongoing improvements in top-of-funnel dynamics and the introduction of AI-driven offerings to enhance user experience and conversion [60][62]

Financial Data and Key Metrics Changes - Q4 revenues were $205.6 million, growing 9% year-over-year [3][27] - Non-GAAP operating income was $18.2 million, representing a 9% non-GAAP operating margin, a 10 percentage point improvement year-over-year [31] - Adjusted free cash flow for Q4 was $25.7 million, or 13% on a margin basis [4][33] - Full fiscal year revenue grew 9% year-over-year to $790.8 million [32] Business Line Data and Key Metrics Changes - Core customers spending $5,000 or more annually grew to 25,928, with revenues from this cohort increasing 10% year-over-year [28] - Customers spending $100,000 or more annually grew to 817, with this cohort increasing 13% year-over-year [28] - Overall dollar-based net retention rate was 96%, with core customer NRR at 97% [28][29] Market Data and Key Metrics Changes - U.S. revenue accelerated in Q4, with the technology vertical returning to flat year-over-year performance after declines [5] - International revenues grew 11% year-over-year, with notable growth in non-tech sectors [6] - The remaining performance obligation (RPO) was $524.8 million, up 22% from the year-ago quarter [33] Company Strategy and Development Direction - The company aims to scale the agentic enterprise platform, focusing on R&D investments to enhance AI capabilities and workflows [20] - A product-led growth strategy is being refined to improve user discovery and value realization [21] - The company is prioritizing go-to-market excellence and operational efficiency to drive growth and margin expansion [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of AI offerings, expecting them to represent nearly 15% of new ARR in FY 2027 [35][36] - The company anticipates headwinds in the self-serve segment, particularly in the SMB market, which may create a 2-point drag on ARR growth [35] - Management noted improvements in tech sector NRR and a more balanced renewal profile compared to previous years [52] Other Important Information - The company announced a leadership change with Aziz Megji promoted to CFO, succeeding Sonali Parekh [24][25] - The board increased the share repurchase authorization by $160 million, reflecting a commitment to maximizing long-term shareholder value [34] Q&A Session Summary Question: How sticky are Asana workflows in an AI world? - Management believes AI amplifies the need for structured context and coordination, enhancing Asana's role as a foundational layer for work [42][44] Question: How does the Asana app work with Claude? - Claude can access the Asana Work Graph and UI, allowing users to turn AI chats into actionable work within Asana [45] Question: How is the tech vertical performing amid AI-related workforce reductions? - Management noted that tech exposure is structurally lower, with a more diverse revenue base, and emphasized the strength of enterprise relationships [51][52] Question: What changes are being made to improve the PLG motion? - The company is focusing on AI-enhanced search, funnel optimization, and product experience improvements to rebuild PLG as a growth driver [57][58] Question: What gives confidence in achieving both growth and margin expansion? - Management highlighted advancements in AI models and operational efficiencies as key factors supporting simultaneous growth and margin improvement [73][74]

Financial Performance - Asana reported quarterly earnings of six cents per share, beating the Street estimate of five cents [1] - Quarterly revenue reached $196.94 million, exceeding the analyst estimate of $193.01 million and increasing from $179.21 million in the same period last year [1] Business Highlights - The CEO emphasized the importance of AI in enhancing productivity, stating that Asana's AI workflows help teams operate more efficiently and achieve better business outcomes [2] - Asana is focusing on AI-driven solutions, including AI Studio and Smart Workflows, to capitalize on a significant market opportunity [3] Customer Growth - The number of Core customers, defined as those spending $5,000 or more annually, grew to 25,006, marking a 9% year-over-year increase [5] - Customers spending $100,000 or more annually increased to 770, reflecting a 19% year-over-year growth [5] - The overall dollar-based net retention rate for the second quarter was 96% [5] Outlook - Asana raised its fiscal 2026 adjusted EPS guidance to a range of 23 cents to 25 cents, compared to the previous estimate of 34 cents [3] - The fiscal 2026 revenue outlook was also raised to between $780 million and $790 million, versus the prior estimate of $852.16 million [3]