Asana, Inc. Q1 FY2026 earnings call

• Q1 was a milestone quarter with achievement of non-GAAP profitability and AI Studio reaching general availability with over $1M ARR. • Total revenues up 9% YOY, exceeding guidance top end. Non-GAAP operating margins improved significantly. • Enterprise customer acquisition: $100k+ customers grew 20% YOY, including the largest deal in Asana's history. • AI Studio momentum: over $1M ARR, global interest, everyday usage, launch of Smart Workflow Gallery, introduction of AI Studio Plus. • Key initiatives: Smart Workflow Gallery for prebuilt AI-powered workflows, AI Studio Plus tier, goal-oriented AI teammates in H2. • Customer health focus: new CCO, retention efforts, foundational service plans to boost health and retention.

Q1 total revenues were up 9% year over year, reaching $187.3 million. Core customers (spending $5,000 or more annually) numbered 24,297 and grew 10% year over year, accounting for 75% of revenues. The number of customers spending $100,000 or more annually was 728, growing 20% year over year. Non-GAAP operating margins improved from an operating loss margin of 9% to an operating income margin of 4%, and adjusted free cash flow margin was 5%. Non-tech verticals grew mid-teens year over year. AI Studio reached over $1 million in ARR.

• Q2 2026: Revenues expected $192-$194 million (7-8% YOY growth); non-GAAP operating income $8M-$10M, margin 4-5%. • Full-year 2026: Revenue guidance $775M-$790M (7-9% YOY growth). Raised full-year non-GAAP operating margin guidance to at least 5.5%, expecting sequential margin expansion throughout the year. • Net income per share expected 22¢ assuming diluted weighted average shares outstanding of ~243 million.

• Early signs of increased buyer scrutiny, elongation of decisions related to broader consolidation or software stack transformation efforts. • Downgrade pressure, particularly in enterprise and middle market segments, especially in the tech vertical.

Q: Matt Bullock asked about the breakdown of AI Studio's $1 million ARR and potential upside scenarios for the back half of fiscal 2026.

A: Dustin Moskovitz responded that the $1 million ARR is diverse, with upside from incremental consumption, Smart Workflow Gallery, AI Studio Plus SKU, and AI teammates.

Q: Matt Bullock followed up on the $100 million contract renewal, asking about renewal process details and AI Studio embedding.

A: Sonalee Parekh said the renewal was in the tech vertical, slipped into Q2, had a modest ACV downgrade, and Anne Raimondi highlighted the strategic importance and diverse use cases.

Q: Alan Burkowski asked about ROI perspective on AI Studio and confidence in whales spending 6-7 figures by year end.

A: Dustin Moskovitz discussed AI Studio's diversity of use cases, customer adoption, and catalysts like AI teammates.

Q: Steve Enders inquired about macro pressure on enterprise and mid-market segments.

A: Anne Raimondi mentioned customer budget pressures, workforce reductions, and mitigation via customer success management, AI Studio, and foundational service plans.

Q: Josh Baer asked about billings growth and trade-off in the large deal.

A: Sonalee Parekh said Q1 billings impact from FX was minimal, trade-off was worth it for long-term commitment, and Dustin Moskovitz noted Asana being named in Forrester's collaborative work management wave.

Q: Taylor McGinnis pressed on NRR and margin levers.

A: Sonalee Parekh discussed NRR pressure from the large deal and enterprise trends, and margin expansion from productivity, marketing spend, and vendor rationalization.

Q: Lucky Schreiner asked about consolidation in work management space and AI Studio's role.

A: Anne Raimondi talked about consolidation from point solutions to Asana due to data context and cross-team collaboration benefits.

Q: Patrick Walravens asked about the future of work and Asana's role.

A: Dustin Moskovitz discussed AI's impact, need for wealth redistribution, and Asana's role in making work easier with AI tools.