Asana, Inc. Q4 FY2026 earnings call

• FY26 was a year of progress with evolution into a multi-product platform via AI Studio launch and AI capabilities advancement.
• Q4 revenues grew 9% y-o-y, non-GAAP operating income was $18.2 million with 9% margin. Adjusted free cash flows were strong at $25.7 million.
• Customer health improvements continued with in-quarter NIR improvement and top 10 renewals above 100% NRR.
• AI Studio scaled rapidly with over $6 million in ARR in FY26 and strong sequential growth in Q4. AI teammates beta had over 200 customers, and examples like KW Automotive and Living Spaces showed productivity gains.
• International markets were a strength with 11% y-o-y growth and notable vertical wins. Government represented new opportunity for TAM expansion.
• Channel ecosystem had consistent progress with partner-attached deals improving, and notable wins via partners.
• FY27 priorities included scaling the agentic enterprise platform, product-led growth, go-to-market excellence, and speed and discipline.

Q4 revenues were $205.6 million, growing 9% year-over-year. There were 25,928 core customers (spending $5,000 or more annually), and revenues from core customers grew 10% year-over-year, representing 76% of Q4 revenues. There were 817 customers spending $100,000 or more annually, and this cohort grew 13% year-over-year. Overall dollar-based net retention rate was 96%, core customer NRR was 97%, and for customers spending $100,000 or more, NRR was 96%. AI Studio exited FY26 with over $6 million in ARR and grew over 50% quarter-on-quarter in Q4. International revenues grew 11% year over year.

For Q1 fiscal 2027, expected revenues of $202.5 million to $204.5 million (8.1%-9.2% growth y-o-y), non-GAAP operating income $15 million to $17 million (7.4%-8.3% margin), and non-GAAP net income per share $0.07 to $0.08. For full fiscal year 2027, expected revenues in range of 850 million to 858 million (7.5%-8.5% growth y-o-y), non-GAAP operating margin at least 9.5%, and non-GAAP net income per share $0.36 to $0.37.

• PLG business faces headwinds from LLM-driven changes in search and paid media, expected to be a drag on fiscal year 27.
• Tech vertical stabilization is not assumed in FY27 guidance yet, and it's too early to call a bottom.
• Minimal contribution from AI teammates in first half of FY27, with more meaningful ramp in Q4.
• Potential impact of AI-related workforce reduction in tech vertical on renewals, though tech exposure is structurally lower now.

Q: Taylor McGinnis asked about stickiness of Asana workflows in AI world and moat, and how Asana app and Claude work.

A: AI amplifies need for structured context, etc. Asana's work graph provides framework for human-agent collaboration. Claude application allows access to Asana work graph and UI for Asana customers.

Q: Billy Fitzsimmons double-clicked on tech vertical commentary.

A: Tech vertical has stabilized with third straight quarter of in-quarter NRR improvement, tech ARR flat for first time in seven quarters, renewal profile more balanced.

Q: Rob Oliver asked about top of funnel and PLG motion.

A: Made changes like AI enhanced search, funnel optimization, new leaders, phased roadmap with H1 product experience improvements and H2 new product introductions.

Q: Rishi Jaluria asked about growth trajectory beyond FY27.

A: Combination of AI-driven monetization, PLG stabilization, compounding SLG productivity, improved retention dynamics, and expansion into broader TAM.

Q: Steve Enders asked about guide and finance strategy.

A: Guide is disciplined, reflects what's seen, no philosophical shift.

Q: Josh Baer asked about growth and margins.

A: AI is accelerant for growth and efficiency, margins can continue expanding with levers like headcount shift, third party spend, etc.

Q: Jackson Adder asked about AI being additive vs replacement.

A: AI is a combination of incremental net new use cases, new buying centers, and replacement of less efficient work with AI-enhanced solutions.