Asana (ASAN) 3 Sep 242025 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Asana Second Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Catherine Buan, Head of Investor Relations. Please go ahead.

you discuss us Asana's the fiscal XXXX. thank conference on second and year to call financial afternoon, for today joining today's quarter Good results for and call Officer Operating Head Officer. of Wan, Moskovitz, With our Tim and are and Chief on Anne Raimondi, today's Asana's me Co-Founder our CEO; Business; and Chief Dustin Financial

strategic our growth cash flow free call include will for and forward-looking Today's position financial statements, plans, outlook, expectations opportunities. market including statements regarding our our

and and assumptions to including uncertainties differ statements. recent set our may cause XX-K those Forward-looking Form quarterly or annual such for results on risks, statements the the materially our forth on to that our actual cause in Please report materially expressed and SEC, involve Form actual filings results with that from refer assumptions may risks, from those to additional report differ most forward-looking uncertainties XX-Q information implied on by statements.

we the non-GAAP our of is their and measures and discussion of discuss our Investor available a Reconciliation on versus financial at posted for GAAP non-GAAP prepared using not In addition, addition superior are earnings will page measures and accordance with non-GAAP closest in of non-GAAP performance investors.asana.com. are during financial equivalents which GAAP limitations in release, measures measures. web Relations to financial a or to substitute between in measures financial call, GAAP. today's These

like I'd the that, Dustin. with And over to turn call to

leader trends then make and to the for continued and quarter strides execute today. category. enterprise from highlights be the the some Asana In the you strategy our industry enterprise informing Thank to I'll Asana you, of few AI. call Catherine, transition our shaping second are of and joining go the the jump on us to the and all in that on thank into our on quarter, the a through key

our indicators growth with key manufacturing, ahead would Anne a of about. expectations our forward. leading including XX% of baseline energy, be consistent pockets our going QX, for guidance and for and revenues year-over-year, in grew talk in transportation will great stabilization which government, that our wins In business, QX saw We

revenue Excluding mid-teens. growth the would our been in QX have vertical, the rate technology

reported positive or on discipline. margin a of flow continued free operational also We on cash million basis cash X% flow reflecting QX, $XX.X free in focus our

as industry are in partnerships customers $XXX,XXX build grew more of record redefining XX% number who a The had the or deals year-over-year. they the spending leaders world we how work. companies innovative to with over number of most We and continue multiyear

the partner QX In most us companies had fact, Asana X of significant well-known with internally adopt they and front technology as in the AI on lab well. as expansions

on the will that right and our path clearly are business are We reaccelerate. confident

remains growth. technology some and top of a Also, retail and vertical macro the goods encouraging time, and However, see we the At our on consumer verticals media as entertainment. persist. overall our the same headwinds drag signs in such

the we're enormous have AI if which is transformation potential industry. preceded has inflect work the reshape in it. at the coming to generative be management AI, a a well we're more to as more to significant software This area poised not revolutionize and than, that of transformation as, trend digital this marks Today, work moment poised quarter particularly to from quarters. stabilization We AI, in pivotal where do point

customers complex The AI groundbreaking workflows June, workflows, that we're our customers. of been Summit Asana, a unlocking to AI offering, elevate build, in launching Innovation our customers of Asana AI time will and AI workflows, we upcoming work. AI our helping These will AI. AI Studio, October. workflows some which to Asana allow on with paid the be taking and previewed of AI Work this with teammates have San deploy beta Francisco the for manage potential the in teamwork advancement for first on since At At our Studio leverages enhance laser-focused your part in June, platform work, tackle

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AI right need work they a that across strategy solution you hub productivity organizations access all also integrations practical finance, capability. using elsewhere and to important powerful your be internally. provides work Importantly, supports to don't AI employees go means across to day. existing HR, trying to systems where long-term This forward to this your every tools It's CRM, have adopt This our moves the suites for more. AI. It embedded

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currently demands potential still providing individual capabilities their to in in businesses, how to being effectively behaviors these new enterprise. cycle, the business. especially every to is adoption it it to and users. in and extract to skills currently AI successfully more There's the and leverage apps is leaving of the copilots, powerful, early a determine it up just and healthy from beginning customers chat are parts amount value but the to around are Most how we're and offered of of value. apply My view in skepticism understand it's AI

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me teams, touch due service, multiple work industry and is Let work cost that a use openings, workflows teams actual company few procurement specific all early has make difficult detail size, across and as and cases to you. for from of geographies. customer notoriously diligence. real strategic departments planning, extends store because every and this tools it implementations Regardless customer Coordinating of or functionally such

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marketing AI in can teammates global execution. and customers, our their contribute leader a global significantly our tested processes e-mail requests has how of organization their to cybersecurity taking to One improve for

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these can pain we Our address have points shown AI how teammates comprehensively.

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expressed this how previously execution. that between step, translation X can English market more this other delays Perhaps caused launches. most have Third gaps eliminate impressively, week has than and customer

to Now AI-powered can improved the solution dedicated more deprioritized, and It's services significant those organization software than market or traditionally companies services we such providing use savings deliver less that value this for and replaces globally. customers. worth cost marketing translation experience ensuring much what need noting no the tasks. feels expect all offer And happen to can translation this traditional cost, that a might launches consistent, for customer industry-specific for simultaneously,

phase, capture their to continuous update data, can the know AI fields which to meta insights reporting. effectively, This processes. suggest Last, custom reporting helps more reporting work topics for in reflection and leading learnings and improvements is you In inform retrospectives. teams

affect the Let me share their across very customer encouraged the prioritize VP here. testing the Marketing more been process global the Asana of the potential show request want advertising take AI allows outdoor has leader and impact to is regions. by example. team business things for to to bottom of A it In operations, and line. teammates them The creative in they words do another bigger

customer this for AI views thinking, creativity a for work. as an human replacement and human enabler as strategic not Importantly,

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as us work over and consolidation Now platform the this customers scale across proven environment let structural customer our capturing we're on for believe especially in essential focus at enterprise functions for enterprises, the relates the a are only XXX,XXX to large graph, makes of looking it how have seats deployed. about suited several XX,XXX collaborative with to to remain proven opportunity. seats our focused opportunities. customers consolidation capitalize with scale, advantages that's the particularly work me we and opportunity. We ability well the We talk one we're AI budget on and actively and management

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the request our also seat accounts. We're unlimited license to to Asana meaningfully We in an to with view-only path paid think to within paid add has this growth in-product a comment work. or contribute licenses potential out rolling work see to

other platform. regulated commitment unlock announced These to new work will work fully needs we opportunities critical Finally, the needed government graph initiatives official and and designed which industries. achieve our a quickly consolidate certification, mass single AI-enhanced FedRAMP powerful to agencies enterprises on their market the and help to management leverage pursue

Finally, in explain we me help AI let X drive how adoption revenue key ways. and believe us will

such enhances functionality, First, status and in get our the it what as deliver on most value This tiers. management packages smart core is depending customers goals already today, in of work we features. their our smart

and And introduce have Second, add-on, soon. third, Resource ones we're expecting of will example. license-based usage-based add-ons, we're we customers we're the new for the on AI is studio AI to every to potential continue in enabling planning here, our developing formally believe this now. us in more early front in program, our be day but to beta a specific from launch stages which AI revenue. We're we learning

flow the deals others. positive stabilization We're to We to of more we're in In We're acceleration but strategy, confident customers seen AI QX. we're to later. committed very important enterprise meet sustained the we've in business, segments cash some enterprise it pronounced beginning end by the the happen next a the demands. see of and be industries, making modest winning our clearly investing more strategic because few closing progress curve of will and quarters and with already remain it in free closing, will multiyear across shape in

share and you in York on New customer to Summit see at Innovation excited London We're our innovation in the Work more success of to XX and on stories October We there. XX. November City again hope

today Before we the over Anne, it like about our made to release. with I say conjunction a words I'd to hand announcements earnings few in also

it's announced Tim's environment. always read, a a arrival the sweet, CFO. new probably but Change we you've being of departure in is As of and bitter part high-growth

he'll already And you appreciate, the now friend partner Asana of many great be for been leader years. X has Tim As of all for almost us over and a baton. handing at of

partner journey while Asana our help us team with continue the invest public of through and as entry for part margins dramatically, financial working remain me Asana adviser He's in integral in to In scale the improving transition. into but the growth. contributions. miss joining strong in on to very operating he'll grateful to building an and your to we're infrastructure been a Tim. the been He's an help Asana markets leadership and XXXX navigating Tim, and we us many

At Chief Financial to our announce new Officer, the Parekh. same time, excited I'm Sonalee

executive Sonalee is a experience Most in technology. with seasoned recently, XX she finance over CFO of high-growth was years' RingCentral.

companies growth. deep forward and in to stage at her operational brings our look leading scale. partnering Sonalee I experience of financial and next with

it Anne. that, with over I'll hand And to

both thank Thanks, fronts. And for sentiment Tim, everything. Dustin, and Dustin I'll you just on echo

forgotten. be will You not definitely certainly missed, but

great everything adding layer the from a XXX minutes AI workflow beta database. our global top across to making customers, XXX Studio be customers. of countries to access top existing beta virtually our program program other prioritizing every our complex and on to and AI getting response part our to even are talk is early effective Asana Customers in interested mentioned, customer for communications in Dustin customer a by Asana of wanted As translating from we work When requests more applications managing Studio over

Asana excited we quality, most inside can workflow. AI groundbreaking. do their personalization are is at are scale customers the with seeing Importantly, efficiency deliver can what and that Customers

us seen strategy executive kinds access opening program, our and budget more we're of groups. us studio studio dollars. we've As significant program, and helping base, AI help AI beta beta leadership gain up AI share incremental customer in and AI our our with offering seeing new across executive conversations our new Through create is mind inroads

workflows are of capabilities intake, and to use level the the our Asana work allowing but AI workflows us flexibility traditional tools rely on is opportunity X, our support while offering. to as enhance of not product the of to access and due customers Our just us giving AI strategic strategic operational planning, ease such assets. new also launches power, and This

to workflow. engagement want We're and their already AI work, managing finding in AI employees another embedded where that tool are This don't silo They want their customers their at for introduce that's Asana. up AI for of direct AI and highest a opportunities. levels partner sets strategies positions key councils partnerships growth with our expanded Asana the organizations and as collaboration shaping us customers' in well and

We and consistent longer QX. into the scrutiny as to continue our last cycles Turning budget expected to quarter, going sales impact we with ongoing business, quarter.

of pipeline. As our a pushed result, but deals in we out, remained saw a number they

continue manufacturing, others. weigh Secondly, some the headwinds, continued we closed many the vertical across strategic revenue headwinds energy, industries in as technology government, deals down overall among the Despite such automotive, very our to growth.

the growth verticals exposure. well when was technology energy international sector year-over-year, impact. team successes key such as in and geography, heavily the impacted technology we pressured led currency at be in QX By Overall to in XX.X% sector. X% we reported the early In growth by year-over-year exclude XX.X% The the revenue and continued by manufacturing. international execute to particular continues U.S., success with U.S.

last we as Fortunately, behind put we stabilizing have dollar-based at rate that and point. our adjustments now retention us quarter, the seat largest in-quarter is believe net of a

today. on need to that's are where first we get in As you through to go Dustin we order believe a to mentioned previous stabilization, and call, reacceleration,

in poised term the for the well substantial near are out We and slight in more reacceleration acceleration quarters.

expand strategic types forming Now partnerships jumped multiyear in large our this We significantly we customers dynamics of deals longer-term are turning continue with enterprises. quarter, the customer pointing and to to enterprise QX. to and

very you sector familiar may with. first mention, The be I'll

are sector very such where specific AI, overall cohorts the various buying technology healthy. cycling through dynamics, is as growth has there been While

well-known standard their manage programs example, the expanded For can central across Asana, facto use X a both of so of the are we de most labs, their departments work in and AI significantly platform. strategic more

improved most and is growth Both in value both security of sales, more which Enterprise rapid like get our and adoption release work and products cross capabilities effectively. Asana engineering, to platform. department marketing, companies Plus finance the organic thanks have departments more, also them They upgraded solution enabling collaboration, enhanced to to access faster seen from our to

efficiency need vertical demand and The is the innovation energy for for another is place where Asana. fueling

energy fiber use more. Asana's For networks after Iceland largest in example, will the Plus construction the evaluation. Asana investments hydro to a of selected and companies their solution one like plants, geothermal, power, They strategic long-term energy of Enterprise competitive manage high-temperature and low-temperature projects

in to specializing millions across impairing their Energy quarter. British sustainable X Asana entire renewed Renewable of the of energy, work use countries company homes their manage Also, Group this in

teams hub the vendor deliver to activities development to so and all to innovate value for planning and is to management everything strategy they execute hardware business can their manage business continued Asana customers. from quickly

Asana leader features, solution deal our ], fleet a gain In They entire who and to manage data-driven manufacturing transportation, this And had decisions the can upgraded Asana company on so AI. management across make we latest work access software their the to use including execute closed deals we [ Fledio across with they core their a to plus our sector. to in goals. enterprise quarter several

of a this a partners, are prominent landed after Enterprise with replacing of Plus. Korean Asana's we automotive legacy subsidiary system project competitive their manufacturer RFP. one management Through winning quarter They a our

of Asana their ability to and current across ability Additionally, in a like this XXX. enable of into our electronics stack Microsoft of their manufacturing tech Japan-based integrate departments global collaboration innovator seamless quarter expanded to use ease use, Asana because

drive Asana will faster. departments like more in Engineering Management, manage Chain Now innovation their work to

track to and establish the policy to project office their and and department current operations within so from complex executive resources, Asana offices. separate intake projects management they and Asana, needed and projects in management public first of have charge satellite the together government planning, they're and across they selected Asana. for U.S. a they visibility project major process strategy, team's complex satellite work to their leadership new to to the offices. tool manage collaborative on providing organization a use will management support and sector, finance the units all budget the Within X government work progress report They management, With can bring

our the announcement as just customer our execute. stories FedRAMP seen illustrate punctuates Asana pursue to These are certification. This government of few well a sector to public by recent importance great can win how strategy

the to initiatives driving scale consistent We are and playbooks these replicate to processes. methodologies repeatable,

on and us that several business. initiatives develop transform focused will key our help We're

a consistent to sales more in investing experience First, expansion. post drive

improving sales Second, velocity further streamlining by processes.

products on building AI adoption business. account strategic on and industry further diversify excitement around Third, finally, to and improve our engagement verticals focusing to

these expansion, can summary, seat strategies greater with ability deliver path are the to we our joining confident We're In value excited customers. our grow about customer drive the execute ultimately to our relationships on team, ARR. and And initiatives. in ahead deepen designed AI to our and even

with I'll Tim. it And hand that, to over

you, Thank XX% $XXX.X revenues Anne. million, year-over-year. QX at in up came

or We This core QX, in the grew customers have up XX,XXX Revenue year in customers customers core XX% or year-over-year. XX% on spending cohort XX% from from our revenues an of more annualized represented $X,XXX basis. ago quarter.

XXX and year-over-year. on have XX% customer We more basis, cohort annualized grew spending this $XXX,XXX or customers an at

these given revenues based a customer we in reminder, on annualized quarter. As GAAP define cohorts a

rate retention net XX%. dollar-based overall Our was

core XXX%. rate Our was dollar-based among rate customers was And XX%. retention customers spending $XXX,XXX for net or our more, net dollar-based our retention

calculation trailing our is net a thus retention reminder, and X-quarter rate a lagging a As average indicator. dollar-based

as go believe transition. rate net QX. is this trends point it's a we to at through in the that highlight We in-quarter important dollar-based the stabilization However, retention in-quarter

to was million remarks. out XX%. revenue. my non-GAAP I or be expense development or at the $XX.X XX% margins million point of and of to will of G&A in million Sales $XX.X in turn came I marketing Gross I profitability, discussing of and or As $XX.X results Research XX% revenue. that XX% and was was would revenue. like items balance

our X%. our realized Operating item. margin was million. was expenses Net related million, an which a $XX.X net During and loss was This was per each loss tax million, and share $X.XX. by $X.X our operating credit our operating headquarter, we line corporate allocation $XX.X the also OpEx quarter, loss loss to impacting lowered property was onetime

Moving on the and balance to flow. $XXX.X end securities cash and at were approximately million. sheet Cash of the marketable QX

be or XX% That from over of XX% quarter, obligation, ago million, our of was Our is RPO ago the from $XXX.X quarter. This next remaining XX% driven reacceleration months. quarter. recognized portion up performance XX last deals. by RPO a the grew the RPO, current from year multiyear year will

XX% deferred flow year-over-year. a Our total cash ending was QX on million margin $XX.X revenue QX was basis. million, up free X% or $XXX.X

see cash by will seasonally to but positive expect However, cash end free lower, flow remember durable be the flow QX of that QX. free we

June. We investing As of price stock share. know, million returning In via repurchase program a you an committed we share while to repurchased per growth $XX.X repurchases. in QX, million in excess shares $XXX dilution managing average remain we at our and capital of announced our $XX.XX to shareholders

for to to of representing X% Moving guidance expect of QX $XXX revenues fiscal growth million, XXXX, $XXX to X% million we year-over-year.

operating margin guidance. non-GAAP net expect representing average $XX operations we of of of assuming basic an per We weighted expect million. million, million of at the XX% midpoint diluted and outstanding approximately share $XX negative shares from And $XXX of $X.XX, to loss loss

range XX% million, representing be $XXX full rate expect of $XXX to the growth million of we fiscal to year-over-year. year a XXXX, in For revenues the

and We million, weighted at negative margin midpoint approximately the net average to an $XX diluted million. of And expect non-GAAP of $X.XX share representing to shares $XX loss $X.XX, we from million assuming of operating guidance. per basic loss outstanding operations expect of X% $XXX of

growth expect see As see you guidance we drag continue with to continue. and quarter, dramatically. headwinds vertical to our environment last The the our we consistent macro continues overall technology commentary, software these from to can and

across gross poised last we moderate pockets and X retention mentioned in coming Also, as that we're net key our reacceleration for and noted stabilized, the see the of Anne dollar wins our quarters. of the in of verticals significant quarters. we some in-quarter rate revenue some rates However, reacceleration retention believe in have

range But guidance back fiscal be conservative trends be to year the the underlying in continue tightening to overall, half. stabilizing. are we Therefore, more

deal our growth flow approach progress disciplined great we a addition, cash have In made a margins on operating profitability. and free through and of improving to balancing

a in of big you Asana, to There's amongst make. It's thank is the solution company thank just been this our we been to community investment incredibly to years Dustin, and you, the has CFO. nearly greater and and I here, The thank the I've been and our the thanks had I'll few an add at also things to Anne, enterprises X time incredibly believe have so need before be I also Q&A. been lead decision grown to you, about a a especially I words never fortunate want in even much company potential, I those and been the an poised shareholders of have for employees. continue years feel go opportunity bullish you who Asana's a greater years. hasn't several to for Asana. as over Thank last so fulfilling to the like ahead. easy

Q&A, operator me for the Before hand it comments. some I to turn over it Dustin for to closing let over

formal be to Tim. cooling-off Thanks, add purchase thing penetration in plan common The as to comments is XX.X while low planning of investors. to we've ahead plan my September X trading path enter to work is required management I XXbX-X A the believe personally million to our to the as chartered I Asana and period. I'm entering trust relatively And I'm of the I the subject market. leader this value up into given shares Class into the a continue One early that shares to are our to plan delivering new stock. want to in category the size undervalued because

Dffustin. Thank you,

note no that the plan time. purchase is and in volume it be to stock price open our him Class statements considered risks to and line subject may trading be common expectations from and terminated of separate program be its our company's A will that result suspended forward-looking to that any regarding repurchase such shares including ongoing There its plan Q&A, is modified, may common of wanted plan Moskowitz's can statements I plan statements. purchases stock share parameters shares the of up by in that Class uncertainties, trading I at or forward-looking our Mr. with Before his are assurance in A trading of to

with that, questions. are And operator, we for ready

Our Instructions] McGinnis the Taylor come first question will [Operator UBS. from of with line

Just the first one.

rates and about in quarter the of due sounds renewal might also been talked some you being worst But the the like deal little delays. So optimization. to through and seeing bit expansion it stabilization upside lighter have a

So start of that in gives you're of can what you based the just XQ? a at you offer confidence XQ implied the just in on seeing Is acceleration function retention what verticals improving see net companies? growth technology an other acceleration Or rates inflection an amongst or and need starting see an improvement to in in maybe you revenue do to in upsells?

knew like kind needed our reaccelerate business. will past that And is these kind we the be of and -- the talked that point had a that in earnings about feel the call essentially stabilization Taylor, really would that of getting about downgrades. now, this renewals to we I be are we that likely and is just past tailwind of bigger previous what Tim. Yes, to even say we I wanted kind

Some of to the hoped QX deals, close in we into out of say had pipeline. and I that QX, have would the they fallen moved haven't

We those deals the and expect QX. in to businesses essentially the team close

but it of rate. out the just pipeline, kind lot think bottoming renewal gross is of a So by our I of the really we're

packaging. AI what you pricing lot And innovation doing around it then Dustin, just are tinkering well and a and and would about guys Asana as you there one around talked for maybe, relates you be, as Great. to some

the line talk maybe heard growth down of the be you changes So those driving when bigger about that's can just those you've driver feedback could customer some that decisions? a and of

Yes.

I ability around still the the you're last revenue starting all I think that but this call custom build able from in and workflows we're new term I the package they was about we're time, to what to to that think This will earnings that idea, QX customers consumption-based engagement be referring customers workflows. which the same to is we a proceed. introducing possibility call, in purchase a is of the great called studio, So new incredibly talking them pilot, give the in in seeing really those custom will want AI

have be but but of is material is have of expect hoping next also quickly able early even I volume talking the next to that, I hundreds to hopes the in be quarters for something the revenue still far the pretty sales goes. doing incremental start pilot hope pretty And when how And know amount into QX, thousands customers it. early about and workflows Asana What will I'm in or that's triggering to I revenue. do consumption those they're year we get revenue. huge to some enough see quantify here then to not now of it's early that customers that into of from year some sell building

So give some becomes I will revenue. we'll begin by it it next think professional us a buying guidance. in services quantify will just I'm material as customers know -- better QX. for and package, and will including like we then And more And probably start year, in pilot that by hoping what to ability along look see funnel. the and can go the the more That later with they

line Our of next with Morgan will from the come Baer question Josh Stanley.

pushed? that working they many? Any sense the the why next big And confidence you great quarter? How to deals Wanted with chapter. they'll How next that in And gives luck Good ask pushed. been were what close they for about Tim, were? were it's you.

for your Josh, it's Anne. much question. Thanks so

has is we selling in terms elongated, quarter sentiment. are what larger especially So things larger for deals organizations in last stable compared environment cycle the but of in to relatively was saw been decision-making the

a quarter, closed them actually of are push out of a deals we August saw number pipeline. the remaining percentage these good rest of in did While the in and

So a lot this a on of deal rates conversion our in focus environment. really team is as big

the that so largest into the through around and ones And quarter. got what working ones are in working that the that deals, that's both quarter swarming this are -- we're the we're on pushed teams that the

line. across to is them really focus our where making finish deals right that's resources those have So large is, the get sure the

or Any Tim provide if change? as context and far CFO could wondering color more as the for as maybe more any just And the Dustin, there's as it. far timing you transition? the Got

have look trying last the too. what's happening before transition is up, This because to take a it's reactions something now, and move our I speak Tim he and that maybe think been about figure then wanted time having this in and reality to some just him at time the retirement. and it's off But to make is is Dustin. one right think big easy out for like should conversation to this also but career think right like I Tim

for ended you And with how while. And it about and a so I know lose I because the talking I worked it's see But just we're out about see opportunity CFO talking of up the said, from after up, shake this sweet walks it's chance things being just go. with but Tim's important something I ended a kind in we're love this a it's and talented coincidence experience, think up eyes. don't Asana. new pretty also sad somebody much him getting really a for things bitter with really timing to while, also, door, out experience also how the work but it as new when to to a

love very there really next. to about wanted and what's years, honestly, every is an we I time been was solve. think decision. I I like love Josh, love problems off, was Dustin that And opportunity company. the and reset, I with was incredibly difficult it work and refresh an people my this this day. the X mind had to I this long take a -- -- almost for conversation, some Tim. here I've it Yes, was mentioned,

comes Our George line of with the Iwanyc Oppenheimer. from next question

that you in wish give best customers well? with there? have]. also you're I put you to Tim, technology of color of perspective with the starting a And stability the your you maybe bit with what as reached most what that Can logo there. point Have a [ just little standpoint from us churn vertical. And And maybe of seeing of

a in dive little to Happy more tech. on George. Thanks, Yes. bit

for where drag X companies While work a the world choice companies expanded to the of innovative and a largest for as we're closely in It's our out we we We tech platform them we important products. with the us solutions. of of to was with as reasons. well number most continues build do really LLM and build to the to be with mentioned continue this to for earlier, just tech quarter, we as quarter, reiterate them our AI super that us on want partner growth pause some this I

companies going. our really to technology who the to us ability differentiate where So to and innovators early partner continue are adopters is our category helps really shape and product with

feel as and that's energy, And our to in such verticals quite important developing growth consumer, health the transportation we care. and so also manufacturing, retail

actually growth quarter. sector this good non-tech had Our mid-teens

to that's technology some important the they these of leading securely and the implementing customers organizations solution is organizations scale care available because about non-tech really innovatively can And with. partnership with best that that

stability. So -- we're saw we

of mentioned we retention think I are. our and -- where terms in renewals

But is partner pleased we're diversification I with sectors. focus positive companies. and those areas, of in to signs and think see we'll to our the one continue tech indicators technology outside some main of early

And with that the that of the and following respect where sense maybe initiatives on highlighting? up you points logo churn X sales us Okay. with a across to then you're give are just

post areas Yes. we The services. focus sales, consistent including mentioned in investing that more

migration We important are in incredibly seeing are services for larger that deals, particular, deployment. and

with important, mentioned by partner really processes so And us further I bigger especially our deals, sales velocity. streamlining growing so That's either those systems. services provided and improving or our ecosystem. the

the about also products. and our In customer. especially interest excited energy in particular, we're AI largest from

of conversation new a actually councils kind have to people are us So initiative within or that AI AI it particular different and CIO in up a us. for opens avenues gives with opportunity leading organization an

from important early piloting customers customers to it's to most GA. we're largest go while positive and So the excited of great, we when more and our feedback we're and our bring that been has

diversify strategic earlier point, And to focusing my business. to on our then just really industry verticals reiterate

continue well place fronts all in the be really is our that revenue hard working we're and to is on and leadership that excited together. working those global So most team us important for

Wolfe next Zukin will the come Alex line Our question Research. of from with

on Alex. trends the last XX us about evolved billings on talk you over how more This has And over some X more is landscape Rich months? about how you to next the give the quarters? think color for Can Magnus separately, [ ] competitive can

Yes, this not Dustin. hear I'm this. going is to be surprised to

recent We change whole in haven't lot of in competitive a the months. seen landscape

deals, I decision think make to -- consolidation we're we're a the way. hesitate seeing a in either we're of we lot seeing customers and think

think that was in what what of as those half you do well X seeing question take competitors in the definitionally our that's quarters. confidence I so the So to And like Is just second us giving sort are the deals. And about billings are who want that? next is fair? of

sure. for Yes,

Yes.

I just the operations continued giving improvement on think us confidence is what's revenue and across execution. it our

our of just but mentioned strategically things frankly, reps. customers signs. been investment systems that's and sure, processes. some we're That's big streamlining think the also making that of operational initiative. new ramping I early also is and processes, reps' earlier, We've more spent enablement And our a with a that lot investing in been seeing in time just prospects. I both

able deals. being consistency close larger to around the And then just

in of that work deeper. So in little I'll seeing I also dig all as we're maybe and -- regions, bit across continues our think that a

U.S. and good some We're we areas growth. the consistent actually outside that quarter, This of saw regions of the

year-over-year. and Japan our grew revenue So led and by XX% growth geography, EMEA about

well, longer teams bit deals team. so those in execute our place And those have on continue really than been a especially leadership Americas teams larger to

and indicators quarters. that able see really grid North has of in been sort America, with the those been leading in where working X has quarters place team So we'll there, our we've -- coming where are general that managers for to be the

line of will Michael America. Funk the come with of from Our next question Bank

help thank the Tim, again company. the for you with And all

if could. I couple a So

You some where certainty to you're the of pipeline stalled? deal quarter. the mentioned in the of beginning. they closer about deal rate specific be deals Can end of a more closure pipeline times versus on the you pipeline the during that couple stalled the Presumably, as in the metrics

appreciated. So or any additional there would color be commentary

add more Happy commentary. Sure. some to

loading upmarket more are seeing focus quarter back-end has on moving larger deals. our larger customers, and As we with been the -- on in working the enterprise

of I think market. that's natural a our sort focus at of evolution just

And saw so in of I again, we're QX. But that was from into we're able end QX, slipped signals in those sort what that of as QX. seeing in close the mentioned, those we they deals to

is with and customers. So larger quarter, pattern the that part of larger us. a that seeing is to strengthening able muscle enterprise focus deals those be we're a lot and just in close to our that work we And that's for of as

focus on on reaction weighting and the primarily investor think stock XQ aftermarket I then greater is guide And Okay. now. XQ the the

implied for presume in moves step-up of be sequential the one to think the last I larger dollar of years. couple

in confidence would step be you large towards of breakdown more appreciated. pipeline, end year can forecast go-lives that give the Whether have or churn, the your seat help kind that up? factor what revenue anything get is you people us confidence deal to XQ So the to us of back-end give in for for is the less that loading

is Tim. Michael, this Yes.

know confident around and many happened, I and already we downgrades to larger into that there's feel as the mentioned, like One, going we to really renewals rates lap what that think looks had points. respect the I the of renewal the renewal. have we on X based base we're quarter really the and with

a So we of that view less headwind.

that's So one.

good continues converting The a majority from like in have of closed. deals. dials levers QX move did those healthy, have Two, the and QX really that we feel deals already terms and be good I of the to the visibility and pipeline

have; what two, like, of some the So of combination we quarter hey, kind with. more the into renewals, just really of difficult a we're and going lapping it's which

if generally, in revenue, GAAP deals will see those So QX, you'll close we QX. the impact

the with next Our of come question Thill Jefferies. line Brent will from

you're that it things not forward or and think is Is your this What going there what's of in Is looking run are if many I like at look seeing? the X-year do guess industry. consuming take stall? you is It Dustin, on have? on the actually alone you're in of congrats feels things a what Tim, blend the customers next it a think seeing out a level, causing terms to from guide down industry? AI pushed perspective, to do you happening taking what out. had XX,XXX-foot stall you across chapter. software is

And deprovisioning about think we're seats. overhiring budget big thing budgets, the to overspending of We're consolidate Obviously, is seeing the few with Yes. control. we're our of the internal and that beginning incredibly I vendors. pandemic being of the starting just tech There trends. saw unwinding same kind We're at especially new is of IT that actively judicious just all what the vendor are a is own it's relationships. we about and in doing we're still that trying

opportunity the going that choose And IT is through do the the and and dollar live both and to and bet to trying think long that that I do taking a to internally, energy a to to time, of to and within and same they're management while. consolidate with But procurement takes for make consolidation run. big it going a environment constrained at push it they're decisions for little sort vendors of try on additionally, that to bit change and those they're the

a have capacity like do less bit to just that. they little so And

that economic environment what then I think massive also out. in AI the then couples And uncertainty just how is and is with going all play with to

digital out be going the of something that time and kind been So have technology else of XX leapfrog weather obsoleted I actually that's years. it invest calling years. are in enterprises just actually lately a some figure by be their coming and or to X X where transformation it think past may sort of And for even a what we've to digital transformation, idea of been waste in would talking is bigger than a transformation people lot to this about the that AI trying wave

doing concept, trying some difficult things up pretty with Asana Asana. and environment a internally often of faced Again, vendor, that's another of decisions back are make sorts solve or decisions. and same pulling end we proofs to to not trying So in then and those things ourselves

digital that meet workflows continuity I'm is delivering AI and of to the in part trying answer by their them AI studio by live. sympathetic. to we're the strategically, AI moment opportunity provide and embedding the embed And what -- transformation a the in and where very for solution so they do directly can studio giving transformation to customers AI And be the already them

give joined And some Can for you're one year about walk Anne. in Tim took that the maybe since implementing us or a of quick actions, Ed of kind over or you're last through a side. far that changes made changes he's you just the if those but journey, on ago, and know don't sales A Great. August? of at they're having on fine-tuned. how characterize you strategic through board would of his I you how can sense where kind

I'm Yes. happy cover that. to

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really been both also Global important customer important, Ed renewals Channel post brought working across has a quarters of So almost been services, X which really region. now every really is that's been who's sales diligently board team, new success, with our on with also also head teams us

and And so world ensuring around been most in team important just I'd markets. have say the all thing the of that we the has right our top

verticals verticals, on have focus other diving our been technology. some in of think I outside important areas really most

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markets. has That year. strong really We been of all to that pacing event brought this our

most kind said, customers investment. to customer as and to global their important in medium- of our at responses November our and meet the have Dustin long-term really I We to with AI prospects the who also where they looking meet just the are and team but volume the ability and our up think engagement of have events October are, coming and decision-makers

has excited more I a over to the and of So year, the see been think in putting we're to result come. that investment are those place all last

comes of from the Jackson Our next question line KeyBanc Markets. with Ader Capital

AI you the impact the much frequent coming the that back of think of being subdued then now? used How the adopter in Anne of the a question to the by slope the of could in kind of Dustin, or of due assume, one you an modest be much some for is future sector the, on And or curve curve guys innovations? sector. early doctor reacceleration first spending tech that steepening your I of how do that as tech

that. the sure is we've clear quite overall I tech a that Not quite answer to been think drag on growth. how But

are right that look our growth And they're rate growing now so we're and segments than starting to faster seeing like overall accelerate. some

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employees again. all some just but XXbX-X. like of then asked you before, point, I've on away take a quick to million think plan and I it's counterproductive know then shares second, in relevant this Okay. versus again operational Dustin, anything send And there And couple year? we All a you're of Do of follow-ups about and again stepping is the at that from size worry last from starts should at message right. the this I now discipline? XX the company days financial that from the or around And relative couple

would pretty sense I independent. more The discipline to funding I me But it's thing think if of company. was operations the make operational the

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or read days market plans they're In even market buying into people out, going I in or the to timing, the business, have often the the point terms put and wanted in on advance. the actually sort on like going what's of when I in in to I of just way plan but

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say price people shares I'll original to plan I the of to And a number sort had decision emphasize in have more The plans, is to not that. -- a also it's happened around sort plan prevailing interesting what number put conditions of just around I then that price amount announced do is again. of of much with the is But put schedule. sizing, just I I'll made anchor with market do and I again a sort found last the a something to and the of and it And up really money. what the my were. in intentions function mean there think of as schedule,

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come Our from Patrick last JMP. Citizens of Walravens with the line will question

Great.

you highlight to guys mean from bigger said out agent [indiscernible] and and Dustin. just have your playing that ] How that X So you do Bret of world I picture this announced have are slides. AI here, launched Dreamforce. just available one of generally force be whole think, I [ features, you different going of see Taylor the yours was agents Sierra,

should differentiated? it And investors things going So out? how these are what to you of do expect in terms see playing be how

Yes.

because ag it people. think means a is of I term interesting an things different different to lot

and deliver of really and and the try to things lot and replacement the that of I've that be seen that try robot, the HR, a be an HRS even you org. in buy is One could person system. almost have them a humanoid with drop-in equivalent theoretically of the a had wanting of Bamboo people actual cycle like something have to onboard them We part physical

the a want we're that, of I robot, think is think, in more years you we're point with on specific jobs And AI -- meantime, few focus And to as least. humanoid view from to I still at be done. away our

are that its engagement. and of little rules Amazon robots to purpose have for a objectives more uses especially in it's and well-defined the So that warehouses designed of more factory analogous that sort

agents And are I show going think is how up. Asana to that

the worrying a of or give You're a because lot process and a make that offers be off without I it's knowledge specific will able to about that chat the successful bases customers the be a sort instructions a the for didn't of road. going to them that each that exactly for say, places you workflow go workflow, to rails give deploy where step it of it And intend. predefined kind things going productive able think more yes, to possible they'll to agent refund off specific customer rules in of be

Just I more the how predefined into slope customers think going is to find being of these of sort able much productivity. workflows, are put to

of I things. agents sort mentioned, the relevant terms In will think do context you that competitors, of specific

to they're it, is, they're introduced the think the more it a Swiss run. deployed will into. it Army little a think approach, more sort difficult and about I what to so coming going whole And I get Sierra, at I think be but from knife I matter that in the it's that of being know product don't short And ton

Awesome. could follow-up. And ask a you Tim, if I

year be investors getting metric I over you on thing the Asana mean, to and what's around? with looking it's the X, you is go, next, looking this be -- or again. I do that #X at forward So working after we and the don't great you see is #X been for should But think should do turning to to know, it what that focused business

Yes.

think important I thing seats. most the is

over run think I one the value we be add more that's North deliver SKUs time. business where and And really as an power some metrics of demonstrate of differentiate and able more can the think we'll these a AI the more Star to functionality, value lot product across we'll have pricing can we the I we organization. more on, the seats deploy, that more we

closing to like turn Catherine the That today's I'd Buan remarks. to for question-and-answer call back concludes session.

Thank again. just you Conference, look be KeyBanc York are forward New Conference, Thank to a road and our you you forward we Innovation own the seeing few so the and Wolfe those we us you Bus at on We'll today, Most much off seeing there. Bus Tour, XX for and join quarter. of Sandler top Deutsche Tour, all, please look Piper this us Bank the head. the joining my on in of Work at October Summit, to the the

Thank This conference you participating. for concludes call. today's

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