Asana, Inc. Q4 FY2025 earnings call

• Dustin noted solid Q4 results with over 10% revenue growth, non-GAAP operating margin improved over 800 basis points, and positive free cash flow for FY2025. AI Studio had strong momentum with hundreds of large customers using it, self-serve offering to launch mid-year, and strong adoption in EMEA. - Anne discussed enterprise investments, vertical growth (non-tech verticals growing mid-teens, over 70% of business), channel strategy, and pricing and packaging alignment. - Sonalee talked about Q4 results, profitability with non-GAAP operating loss margin 1%, cost efficiency initiatives like workforce reduction, RPO growth to $430.8 million, and free cash flow milestone.

In Q4, total revenues were $188.3 million, up 10% year-over-year. Adjusted for currency impact using prior-year FX rates, revenues would have been $189.1 million, up 10.5% year-over-year. There are 24,062 core customers (spending $5,000 or more annually), and revenues from core customers grew 11% year-over-year, representing 75% of Q4 revenues. There are 726 customers spending $100,000 or more annually, and this cohort grew 20% year-over-year. Overall dollar-based net retention rate was 96%, core customers' dollar-based net retention rate was 97%, and for customers spending $100,000 or more, it was 96%.

For Q1 FY2026, revenues are expected to be $184.5 million to $186.5 million, representing 7%-8% growth year-over-year. Non-GAAP operating profit is expected to be $2 million to $3 million, with an operating margin of 1%-2%. For FY2026, revenues are expected to be in the range of $782 million to $790 million, representing 8%-9% growth year-over-year. Non-GAAP operating margin is at least 5%, and non-GAAP net income per share is $0.19 to $0.20. AI Studio is expected to have a modest contribution in FY2026 as it's early stage.

• Macro-economic uncertainty, particularly affecting the tech vertical, impacting expansion. - Uncertainty in accurately forecasting AI Studio adoption and usage patterns. - Risks associated with labor cost adjustments and vendor consolidation initiatives.

Q: Unpack the assumptions in the guidance, NRR, and efficiency success definition.

A: Sonalee discussed Q1 guide factors like leap year and FX, Dustin talked about AI Studio adoption variables.

Q: Refining pricing and packaging impact on guidance.

A: Dustin said pricing and packaging alignment is crucial, with intention to have accretive changes.

Q: Shift in strategy to new business acquisition.

A: Dustin said it's a reflection of math with non-tech and channel opportunities.

Q: Channel strategy color.

A: Anne talked about underpenetrated channel, AI Studio partnership, and growth monitoring.

Q: Succession plan and uncertainty impact.

A: Dustin talked about search for new CEO, Anne discussed customer sentiment and AI Studio pipeline.

Q: CEO characteristics and RPO vs guide.

A: Dustin mentioned strategic first principles thinker, Anne explained RPO not including monthly business.

Q: NRR in $100k+ customers and new business.

A: Anne said $100k+ customer NRR impact from tech vertical, new business strength from investments.

Q: Sales changes and RPO vs growth.

A: Anne said it's a finetune, Dustin added on multiyear deal impact on CRPO.