Asana (ASAN) 5 Dec 242025 Q3 Earnings call transcript

Hello, everyone, and welcome to Asana's Third Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

Now I will pass the call over to the Head of Investor Relations, Catherine Buan. Please proceed.

Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Asana's Third Quarter Fiscal Year 2025. our call Raimondi, Moskovitz, and our Business; Sonalee today's CEO; Co-Founder Head on and Anne Officer. and Chief Parekh, me are Asana's Dustin and of With Financial Chief Operating Officer

and our call our Studio, of product opportunities. expectations our free benefits growth for expectation include the and be market to flow, AI our statements, statements for offerings including Today's regarding financial will generated plans, expected revenue Studio, position including outlook, strategic our forward-looking by cash AI

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

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

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

the all joining on today. and call you Catherine, thank for you, Thank us

Asana. moment quarter This transformative marks a for

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financial media, sectors, impact as integrate workflows care, services customer they scale. with customers services, and demand AI professional across seeing their momentum measurable technology. gains including early significant into has been productivity exciting drive We're at everyday manufacturing, can directly The various health meaningful it where experience

achievements, highlighted and across over in guidance product of areas. in up stability delivered and those quarter, our the on line, pockets rate last bottom versus these we Total exceeding a revenues top stabilization by of guidance above board our XX% Beyond acceleration solid reflecting the growth strategic quarter. year-over-year, were

verticals and grew our quarter were array X/X impacted overall efforts a know, from diverse As tech the macro of year-over-year, into to accounted and a disproportionately of by are you industry been vertical off. XX% our growth paying slight our business. last Non-tech acceleration more broadly up has and verticals than for diversify faster

media. consumer and Customer our and quarter showed fastest-growing included trends. manufacturing this of energy, retail Some growth improving verticals

base Our story in [ and both as last and and customer our the good XX% stability retention core well a across as quarter. our XX%, cohorts. respectively, an all $X,XXX accelerating NRR is also customer ] Retention gross in-quarter grew uptick over in with customers over

X% of margin an to of non-GAAP as continue loss operating X%, to we an from towards loss year-over-year, improved profitability. margins operating operating Non-GAAP margin progress

we the accelerated multiproduct We verticals a strategy. key on and During to we a in milestone significant we our continued company. quarter, growth execute as marked ourselves enterprise established as

with a progress our was which our in New Work Now AI the hosted we Summit In customers event to for Innovation with seeing turn me let and October, Asana. Studio. momentum landmark we're York,

X,XXX we date, Innovation strategic hosted As almost our Summit growth attendance largest to executive ago. a event nearly in representing Xx Work and since our attendees, most inaugural year

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initiated are them don't changing You reaction within These like them. statuses. people are task to out AI automatically in embedded agents or filling that doing talk to things with are workflows forms

While focused wide explicit expected variety doesn't autonomously studios of execute by marks first that creative product our It's are of AI way initiated Asana on anchored It the significant to human leveraged it's step-by-step is finish. results. AI exciting also complex global getting that to asset other created. an behavior, customer a that heavily languages gives autonomously the are requests and only tool. completed are you by being take AI, consumption-based new at dozens on includes outline require translating Studio being capabilities a automating on This the adopt tasks manager user AI not unlocking also based executing automatically a AI Asana's end start as some work meetings, milestone elevating for high-quality the more. pieces the plans, production agents while program to communications The It intention with and across ensures that to new use consistent smart workflow to new pricing. profile from workflow cases. to

we through new revenue walk it how that will opportunities. believe pricing and drive me Let incremental

with be scale of additional seamlessly identify month exceed the or use they use platform fee, bets case. which initial When depending for enough consumption. per to the credit will ROI allocation recurring customers variable That's a allocation, on thousands there includes cases First, workflows high hundreds tranches. of base execute can that

seeing only will we're cases. access early many While platform that transformative our from customers strong discover we to expect as allocation base most beyond pay the evidence AI already scale customers team, the use they

add a the bind Once tied consumption-based traditional is consumption-based essential that customers' becomes can adoption of revenue changes we economics large operations, their it customer model that fundamentally the where licensing. sticky. part also workflows, to dynamic. very creates small a both our AI value. of value Studio isn't in potential an our with finding This lot of especially seat-based teams powerful is critical activated amount This stickiness own. number a driving In expansion. embedded contrast consumption. We're create where models, model with of about and of powerful board can on just a need on What's builders workflow seat-based we entire

the studio near a We to extend customers expect from pattern revenue our license AI revenue across seat-based believe customer core could in their term, some base the term. exceed we medium in

extremely paid and access The already customers have to been studio feedback cybersecurity encouraging. sold We've technology, from early industry packages services. AI in financial leaders initial adoption and

enterprise Studio. Each top to One is of product, It's straight the XXX phase customers on large enable large AI seeing bypassing within entirely. the for number pilot shortly remarkable. of after customers our a week, significant only momentum we our our purchase weeks, able move customers but been

to to also accelerate strategy strong us mid-market, We're initially seeing than is in demand planned. them leading sooner accommodate our the which

we're Let seeing. me give you transformative the some potential examples of

time The demonstrating processing while has per broad the already request has advertiser outdoor The decreasing capability AI-powered overall has savings request time solution. been organization, across creative XX%, manual of work request intake workflows their leading impact XX our and by created by reduced of A substantial. team achieving hours XX%.

intelligent already having example Another seat new a XXX helping prioritization executions. mid-market over in is businesses X,XXX and seats, are and wall-to-wall XX,XXX automated X grow. their a can executions IT there deployment count. AI-powered of FAP that they're just how workflow specializes Studio demonstrating with drive ticket their over in significant customer small AI We've now independently workflow of first operations, Despite implemented workflows value online in month responses,

AI-powered This value but by to illustrates is opportunity isn't powerful particularly as penetration, creating Studios small a sea-based consumption-based across example delivers expand how organization. their rather through this revenue workflows. substantial Even AI new revenue continue their they leverage represents metrics, entire What's full about our usage potential with team IT it workflows. AI constrained seat traditional by a automated that the their is is

anticipate a of rapid to for expansion more considerably substantial deliver customer new will will which business, adoption new meaningful We value Asana. and lead the use the for cases the across revenue

on the our we our LLM margin of examples is growth are customers X saving can fundamentally top our their A customer From how customers of Studio few for cost, early initial on to early from demonstrate costs. and every These work customers workflows. the of data $X.XX Studio reshaping potential the Asana. value our have $X.XX shared for AI deliver examples, including quantified of a hour telling ROI AI

the one at edge when firms on of competitors work analyst said, management leading Asana AI top us collaborative close. comes the Studio as at of research cutting the the to in None As come AI space. it puts

serve of to a evolving launch Asana model The customers broader better seat-based Studio our vision to approach. a our pricing value-aligned AI by from is flexible

pricing will pricing AI our pricing, seat-based Studio. persona targeted summarize, and third, add-ons; To a from consumption-based include combination of

for expansion Studio our will of for We specific value the take products this customers and a approach they future core expect revenue to to on license. scale we AI allowing mix seat-based while we friction proportion pay As value-based compared see add-ons, these seat larger our receive. believe to reduce

of about we're the We're adoption leader further general While for shifts, Studio our our broader which end we and the cement availability just enablement of AI and now to AI-powered XXXX, of getting adoption. the will throughout as we're success support We're scaling position management. work started. early QX preparing our the launch fiscal excited QX in AI Studio by strategic expect accelerate efforts

as As to cross-sell care XXXX, We'll stickiness. maintaining our growth key new and growth. impact deeper will success use engagement add-ons by mission-critical retail, financial our highest organizations, across in focus QX with areas. new manufacturing, cases as and customers, improving in fiscal Elevating and help on well health towards expansion will strategic as be through primary FedRAMP, revenue commitment accelerating efficiency our with and such we services. now government our customer that in especially span growth consumer departments our This and reaccelerate winning investments investing look verticals, while recent

achieve allocations cash a this of our talk reiterate further We'll end I'll committed about all by will optimizing sustained flow which moment. operations, investment Sonalee the free that of more is QX. also our by positive we're in to

that, over I'll Anne. things to with And turn

Dustin. Thanks,

evolving the our Work and and As to partners, upmarket. Innovation to analysts needs the of investors, event in our showcased our attendees, in The with Dustin was far. history York it New alone, mentioned, commitment world milestone is deliver customers, journey successful York With Summit press including the New ability the success important an programs X,XXX almost that most cutting-edge our solutions so and in enterprises. Asana's modern in meet event innovation around

shows addition visualization our map, unveiled Studio strategy powerful organization our work we which goals. of all an and innovations AI of company-wide contributes the the happening announcement, new work up to ladders graph, In how inside to like new a

licenses even use We members Asana. expose view-only power. rely more And customers we a power also work introduced to of on us capabilities, the new request of X/X reporting and unveiled to team tracking finally, strengthens our case and that Asana new to intake which executive

received leadership innovative launch work workflows work into to our happens. approach Studio, innovation our and directly We media the on our new AI of from coverage significant embedding where AI labs thought

London in is success, huge inspired how all for Studio customers. we in we latest on our brought transforming November, and Summit global Building to for enterprises. Europe of Work platform with Frankfurt, by our saw events from innovation enthusiasm the Innovation experienced AI work constantly our and the I'm where

drive aligns a the vendor on AI to these They pipeline our Chief their approved and European shared and from Asana instance, critical they and Marketing as strategically customers our key highlighted us regions. leading initiatives transparency LLM technology how different that work measurable helps stay strengthen strategy, also business type have citing trust the enterprise For aligned for Asana deployment, drive Officer of with approach ensure events our company, relationships why multiple with to across with upmarket teams our outcomes. only reinforces engage European data This that with to decision-makers, allowing are validation security requirements.

to that execution QX. is believe now We online. machine our Turning coming

all up As uptick of growth, Also, saw energy, while stable. uptick this mentioned, and growth cohorts, across and nontech-led such NRR in as media overall retail our Dustin manufacturing consumer has and retention year-over-year. in-quarter an remained gross XX% verticals our quarter

indicator Another longer-term as had at look Asana. multiyear of We I number another is multiyear deals. customers with record investments make deals

apart processes the their the work as us to output, of transformation. our in is how structured AI looking our existing workflows on integrate thanks is increasingly directly strategic that into are model. and graph the customers adviser AI AI unique Our What power of quality transparency data approach, deployed, to

disconnected privacy these position executive point or by our to executive solutions leading controls. data structured with in compatibility trusted behaviors content to organizations workflows strict our adopt significant multiple a partnerships, their and internal security glean proven is especially to enterprise-grade with and and a mind from existing that AI way to LLM, This increase be and are share, for require compared this as Most to multiyear guidelines. new lack partner us are business AI conversations longer-term powerful importantly, Our quarter. evidenced transparency gain deals has that users privacy to critical controls or needed end lack the tools differentiated insights, as

in turning to wins customer Now QX.

to are strategic of longer-term the Our multiyear and are with deals enterprises. types partnerships expansions we large pointing forming

and solutions better manage selected automotive goals, Automotive, to collaboration the to between market the suspension and use and cars They on to will and their and monitor resources for workloads the industry, company's customized monitor manufacturing platform and all be drive leader Asana the of work. Asana report communication road race KW in Within vehicles, manage teams.

across use vertical, a and XX quarter, consumer the know to more and uses probably retail openings, pop-up store yourself, projects apparel In that their manage brand all they and than stores Asana workplace premium leading their wear other expanded this And with new company. footwear you

see have Medicaid needs the multiyear care because leader years They managed cybersecurity onto care leading their health industry, replacement a TCV had access customer the their its this of of been And its expanded signed Asana to One our $X chose win in continue a to ability health And million. industry management needs. their another key use agreement. quarter. services their to within company enterprise-grade and well. several extended in as quarter, was Asana growth use the for of over competitive segment This for our management, also Asana well increasing flexibility Asana meet CrowdStrike to this an within We we scale expanded Password, and work unique a platform.

This great expanded headquartered And of local expanded around the Japan, partner to our for was prominent support the channel in its with Japan, companies this and globe, In seeing we through are our Japan, enterprise a the East example, tier development most telecommunications NTT's quarter. also of divisions deal systems digital one technical world, transformation. in wins. largest upgraded the to its NTT in shipping Also companies world Asana. the development one and executed ease across their

some to key As companies develop continue we're strategic in we our you us deeper help world. can of and the successes. the business. these expand we on relationships continue and that with most will will and build to build see, several on transform and largest focused Today, initiatives

second, focusing to consistent engagement sales products diversify business; third, on streamlining sales and investing our and more and improve adoption; our improving AI expansions; on in drive account last, post verticals to to further by building processes. a velocity experience further strategic excitement improve First, retention around industry

In initiative sales fact, recently more course, effective. a Asana, experience simplified seller our we and across execution help with global to out capabilities deal locations, teams sales new which rolled processes introduces X be enhanced of

of our managers key that seeing majority account We're in improvements trained our strong, these already new these accelerate on capabilities. the The response segments. has helping signs been business initial with executives are and early

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

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

built the Dustin, you, entire Thank welcome. my Thank myself XX for you, the a immersed days, Anne. business you the such into warm Asana I've and thank across organization. to In and partnerships first critical team

Here are initial observations. some

user up strengthening have and have and the able company, my daily I impactful goals with team, my the feedback more of Asana, coordination overall experienced the the team's many been the of from a customers with leading thus platform. manual my By engagement firsthand significant work I of As a aligning amount is work. the from had speak to the of to with time same I hear far. free which chance the work, I've to power

and Asana innovation The of value offering. proposition Asana are benefits significant pace value targeted of AI the realizing proposition the platform customers and core are The Our introduced demonstrable. features use the from of is new TAM, using our of in clear at increases Studio unlocks cases rapid is combination new and the and focused. being and and launch our stickiness

in opportunity go-to-market pay investments to positioning and us. are our Our capitalize well in on And us of off. the and upmarket are beginning large to transition market growing front

just to company. We surface multiproduct are with and to channel-led starting growth, scratch traction verticals a in becoming key respect the

has ability to expanding margins. flow. more leverage Asana the given expand of throughout a business. operating growth, while on operating scaling initial spend confident materially the the reaccelerate I to I'll efficiency I in and targeting this, levers drive margins free to both cash the we in are increase and share see moment am productivity

plan. the then me third for highlight more outlook comment year-over-year. at came the up quarter XX% financial QX in Let and $XXX.X results and revenues on million,

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

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

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

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

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

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

However, the it's we important transition. go this through to highlight as trends in-quarter

stabilizing dollar-based better rates in-quarter were than slightly and Our dollar-based retention QX. net are retention net rates QX

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

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

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

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

while in We $XX have an in for $XX.XX repurchased and our repurchases. million been share per of QX shares shareholders QX. committed price remaining to and dilution, via average at our of $XX capital million remain share us. expect This ROI a has flow investing to free great We positive excess our growth in We cash returning managing authorization. in

Moving to guidance.

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

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

fiscal year year-over-year. per million, of And operating full the rate now growth loss from assuming negative $X.XX XX% $XXX $XXX diluted million approximately in operations we representing representing $XXX share a $XX million to million. shares of million, expect of of margin range to non-GAAP XXXX, to $XX X%. to outstanding $X.XX, average be Non-GAAP revenues loss For the of of and basic an net weighted

leading reaccelerate believe to in Studio and go-to-market continues traction to customer growth. the platform $XXX,XXX cycles in potential motion our early the the the in to that stabilization we the with our in-quarter and of growth revenue improvement, AI made sector, our channel. segments, we investments a be NRR to macro above are sales see adoption in in of and with headwind particular, the our signs While and have We early core pipeline and and growth and tech

of and a finish While fiscal drive still year heads executing to to our our planning we are midst in the strong XXXX. down

new and the efficiency we on one, drive of shared and focusing non-GAAP is year, next will packaging for material making including both keep productivity thus features customer drive much pricing margin and to one, NRR am both expansion and in operating growth we For investments include: are on be retention and than GAAP far and ability seeing new user customers benefits acquire acceleration. growth more time. a I and a improving revenue areas gross expand to The profitable levers It the improvements experience, basis the over the will with to help and in a expansion. our onboarding, some

Two, R&D. in

capabilities investments is locations years to where deliver the and enterprise-grade by scalability enabled in said, us have an such competition and the we differentiate talent. readiness. work through to tremendous enterprise Our as Ricuvic, resources graph, optimize That geographic there opportunity and of Warsaw have ahead Asana R&D

to on significant into core headcount. have the studio consolidate us In AI AI opportunity capitalize without addition, the product, allowing the new to we R&D with opportunity

and sales Three, in marketing.

opportunity leverage We to accelerate our have existing growth. resources the and

on market channels We to that marketing growth. are routes and focusing the efficient maximize

functions we and geographies. scale grow and drive in more headcount the G&A, in Four, G&A automation lower-cost throughout can

and In addition, our non-headcount opportunity spend, there discretionary is optimizing rationalizing to and a third-party reduce large spend. by

of this on and plan while next fiscal plan. I forward higher more Dustin, expenses and operating a to A while reducing revenue executing key grow be XXXX on building focused Anne will to dilution. that than on expanding reaccelerate our long-term to sharing are allows significantly quarter Asana profitability. materially principle growth look I

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

Morgan with [Operator Josh Instructions] First question of comes Stanley. line Baer from the

fee Studio the Want that's there credits. for business on how Appreciate model All to into AI and Welcome commentary leverage year. back the consumption expansion. though really Sonalee. platform going exciting. change Thanks of with next come economics to all that's the customer to the

existing wondering there AI expectations that all other -- is and growth seek customers? opportunity hand, as your up expansion? what potential headwinds the value for use is On the an hand, for And cases that from On for one I'm Just just trend there are a opens the AI on new Studio? to from broader

It seeing manifest weren't things Definitely we're Thanks they're often question. thinking part in new sort in But net that for Or lot for Asana are the doesn't I of while of of couple longer. before. doing that Asana using is cases Dustin. something that things licenses. the a this they a we're would headwinds for about. a think that Like cases, the use contractors add initial

it incremental. So feels

we customer in penetration base. still quite existing lot our under have a of Additionally,

So that Studio last be initial the to But the to even doesn't kind be that Asana for conversations, that get expansion enterprises. shape. removing the to side or recent opportunities changes for if of unstick could yes, we're or taken And or that license. out this are especially an about way also We've there A and lengthening, those sale sort quarters some have the seat in we've expansion. AI a on sales of then cycles in deals all larger talked of of could of both expansion. you seen a your mean headcount point, results Yes couple that. tailwind seat it the seat

example. incremental for that seeing of a I'll renewal give Studio our was and to they It's it's studio customers -- even getting roll Yes, Anne. more a AI to just value implementing across the our already I'll out organization part did an one Josh, want seeing and workflows with X-year in benefit pilot a expansion. been have of with that We already workflows combination they're seeing their seed -- us program just and give the teams. of

So example then a seen to customer fees. of again, growing that and value was where incremental significant number a part but with had us early, as committed a great

-- just if can thing thing Sorry, one just if there. And I could I one add

I terms and but think expansion also not in incremental, AI benefits, of Studio in being also as terms we customers. of stickier helpful see just

customer the not you you a do stickier higher get only a get and So upsell, lifetime also value. but

comes the of next Rob Our Baird. question with Oliver from line

and is as Great. mentioned be a little Sonalee, can AI well. welcome versus the relative me seat-based about opportunity you the if for numbers first guys -- to Studio And Dustin, also Dustin curious some bold for bit Anne. from business. question My I'd or current talk you

color So rollout clearly, seeing any for of workflow of VO-only some Any would where of Asana's of pretty be and you for talk cases the rollout you seeing to And there broader Sonalee. subset I it a bit builder of the Are internally? enables follow-up technology? the users internally. leverage AI from, helpful. what Studio non-seat-based signs perhaps then had a little Can the are a -- are drivers the exciting early about the use you're say, example, benefit

Yes.

So taking the customers are is seeing this Studio automations to is existing thing we're AI initial really workflows The -- them. adding Dustin. and

require it And sticky really doesn't so being that a because up ends behavior change.

you're workflow an that integrated from filled triggers a with. that starts AI then system might form coming an You perhaps or a out with And being interaction. have a

people like and lit doesn't been require existing sort kind part just it And -- so back to it I'm remember doesn't to that's the a it of up. come of workflow child, it again. to require of use It's

different many, the pop customers kind many one use then found somebody could that the charts, jumping to saw cases just a can it look they is had workflow have the those it we me to who of we're there kept then to people of out internally, the literally tool was take use expanding. like bug. that. figured one the of were it's the of sort that internally organization of They when the got light a ourselves many thing hard power powerful different And their and that's moment, activating few things of using and see But them workflows. at. lot get people are like tried out cases a out in a exciting a And eyes of started kind So thing up that this

X,XXX earlier is in And So had the now executions multiple part one ones to did they're of they're reason in I they first mentioned months the their the call, over XX,XXX. month, of workflow the pilot. up

they're since So in Summit. the Innovation everybody of Work the sort who's like funnel than further joined

that's others so and compounding and into because of the pilot months. they finding there's handful more get to sign sign And usage into week-over-week companies getting and a fee really their third the see and hopefully of only of second that really beyond usage in a and a were platform an cases is more amount their one things use once for clearly the come that's good to

really that really and leverage incremental tremendous only seeing of opportunity amount the and individual value activation results to sort revenue with big builder So X X a a seeing in takes of builders really or it for an viral customer create of us.

will be think AI the that very need in in but give be only valuable. lot long people for run workflow of opportunities to a involved value in actually the more do kind don't I of you organization an it you us the for even to help So some creation, extent, to to

into more see. the you, headed for you and I going of to you some very leverage then laying detail just appreciate and one this FY helpful. of appreciate get 'XX That's And we're out that Sonalee, that points on

and, a there, as more partners. move then and One hiring Japan to and guys company after of you initial sales nice I'd think, it market worked know marketing. trying perspective be well. was enterprise, curious partner-led I for in your nice with I in a the think win, I was Asia do or called out is and ones ad have you Asana been that just mentioned up

great there, clearly, momentum have logos you So added. guys there's

the it to have seems may of going lot other the now and a like there's logos skill in force selling hand, sales set on, consumption a to On and seats. add selling new addition

just think more might of high So just that quarter? get next we'll level curious how detail from you a knowing

We sort Thanks. guidance guide call AI are going that prepared to It's efficiency an even heard contractors terms, AI mix, identified way but speak many across absolutely also employees program you're the benefits sales at all ahead. employee as that's believe spend end can we marketing scale sit Yes. it's remarks the early those existing great follow expansion and believe, ask, of Studio. can resources perspective. And as margin to leveraging just achieve to out, it both opportunities from year. of I'm me our I provide and question. you operational there a And even high-cost, in also and to low-cost combined, full look drive And a the more bit Studio specifically, other great right. traction I the our productivity said, you for to I'm but a general productivity we drive we can force when from do today, by then R&D things in go-to-market my and year I've add perspective, But significant of but where

One moment of comes Piper line with from for our next the Sandler. Bracelin Brent question that

growth third of deals. there and that the pipeline guide business. quarter driving straight Anne, the I seeing frame type of little the of to here down some the land wanted lands? The stabilization drill see what's And momentum mark provide XX% on color you're Can start overall? large and into in you're improving to smaller wanted part the non-tech lands? you here. seeing? through us non-tech broader a number you Walk stabilization a non-tech Are certainly enterprise of non-tech Is implies growth. profile starting to this activity with the where you business non-tech of I the would QX maybe

for that we've government. wins in been question. seeing energy going retail, that and where we're care, non-tech is think growth thanks traction health verticals, investment manufacturing, the in deeper Brent, making in really particular, that and Yes, I in

focus, are them lot the that get how enterprises a halo larger of the making then tailoring down mid-market, FedRAMP. building that it's both the are with but into that we commitment relationships, that and and of customers deeper going And in Asana, and we from as these really that well. to so more we've can work quickly also cascades like investment value And longer-term all has effect shared a verticals market

really with is that just regulated. over that -- the also sectors only but think are not agencies going with just government with heavily I but well, not government, also

to that's financial a have think health effect services for great I also So care going customers. and

the to on. EMAR customers. continue expanding in then investments So that, in all been region, approach focus vertical And particular, been how that's But going really our our we're of team, the to verticals. piloting it's really in and we

there. color Helpful

was you you, for you us But Sonalee I for to free through bogey know in hearing in flow to walk to there because get plan. just I'm and QX. it's ask think really a have to I flow? rationalization path $XX here forward burn cash cash trying an look rationalization early through the here positive the QX. here free more to about do QX. and Can ability million the cost positive

sure. Yes,

some which operating next spend, into timing I should already the what spend, cash you R&D free to reiterated where margin we've But were really really again, there, to provide meaningful QX. quarter. March. there our sales QX, steps third-party then cash of think some movement and part started are would that terms And get where the I to positive we is and in is improvements to on rationalization the hiring. saw, you a in which urge do of more you see continued start But expect look in in benefit you of flow is some secondly, But year, come as to due as see current do you'll flow. detail we've helpful. around the So and spend we'll was hires, of timing actually positive of ahead there And of taking marketing

that. cash wanted looking add to -- a Dustin. Yes. lumpy. free at always bit really This mean to flow I on is we're just little is I

from progress and the the looking on at So into operational we're year. here thing leverage really next trend

QX, to at So build do just cash is margin not free the year, but good arrive the feel goal real flow. you about up through next the to

Steven for moment from comes Enders next line Citi. that our of the with question One

guess look a on comes from maybe about it together Studio, more how but that want may an like today. But impact to have sounds guess to some beginning you us numbers you're that? like potentially other How maybe seeing metrics if what And of any for help the maybe here? be either we're maybe can kind it monetization? would revenue about go I ask back time of I today line about AI impacts to just model thinking in or the perspective? RPO the I And think

Sonalee It's here.

at So substantial, it's growth At we material but you're look the will base. moment, terms a small very, forward, very off small, of be of the right. very -- as in all. But obviously, absolutely not

really that of what Dustin is And every use more it the think are meaningful using driving. we're by and before. of won't see early there cases benefits more day. and and in you the the our any But a both from impact So extremely ROI on we're seeing engagement. encouraged they're customer back the Anne usage I top talked customers about diversity

but And mitigating And stabilize some so likely macro. of a see big to to we're not earlier seen in leg time. upsell a third being in customers But come over upsell us And my be not we that time. cross-sell, out the of on challenges only actually other AI to through retention a we I'm meaningful so factor really to the the the about factor back revenue, and stickier contributor but helping to of encouraged. point And very stool, going see is to to speak. upsell call only and net current would we've again, I see it we take benefits much will only see as improve be will the in these the one as this come Studio and thing

there, about a early too. access little general I access. just talked want to bit versus on add We've something

that exposed our and the could quicker. just of early and thought thought product between it part like be ones customers, seeing this all. can not surprised. engaging state most customers, So it largest really at to in -- that would But focused just successful we We've of a on move found they adopters any smaller actually right engage a our we're We it but of customers we're for honestly now, got doing we've little of weren't early. enterprise be We we're lot very in sort of not the marketing is sort we're kind and it of outreach -- group. select

And try to rate. be QX the next could of when to of so really strategy think kind to what is forward-looking going more commitments And that start to earnings some to release that we call, bring straight selling about the have add-on, of we stats excited our GA yes, through next flow I'm the terms will it so then. will year sign for growth because should start to other also in sort actually and as timing, in we But now. some correct. not show in I earlier shifted plan in we'll it for it quarter-over-quarter. just an absolutely up all tailwind NRR by I of hope a it hope we'll huge building and at you think customers for QX. QX of that kinds adding But of revenue is It's I I

of how much a line quite on top learning our reflected surprised I pay in So week-over-week expectations up it our soften to lot But about think high we're showing the QX, of guidance. to been directions. and yes, is. numbers, good in how in really sort is, want there any willingness And I demand that's we've

And to should another about the have much guidance able so weeks for give more that more timing trajectory. and and model I think be those able XX we learnings, ourselves calibrated with you a of to be details exact

hear can more one there. great That's I in squeeze Perfect. helpful guess, to I context if in here. Okay.

of and little of I metrics is helping support the it see the should getting that's the Or there? retention, underlying that? starting more just metrics And -- stabilize Is a guess, fewer it guess net numbers I support we the peel see those expansion downsells of when the I tech initiatives of it Just back through to that are quarter. kind little you good bit that? a kind what guess, to of maybe kind on net on and impact of see begin stabilize some side of retention, net we hear metric retention some bit? reported begin in that if to to

Yes.

So one. I'll take that

and heard some comps. make, one point think us you've we're before, I point lagging make would this I tough

over a Studio sorry, over ultimately in say really of it's seen about that of is and so post-sales that encouraging. improvement well, point off. would we've which then, the from and and also which tough becomes cross-sell or to tailwind tech off some investments, stabilization going So pay it just my talking time, falling as -- easier or are talked improvement. as what XX% And -- there, those to and the made has starting upsell about fall to continue AI course, been time, X/X sorry, about the off, lapping to we've shows should also, But a seen other business so. we've And which I we've comps vertical been those about non-tech back net like drive Then of our or our so retention. thing is business that

will retention the together up. net combine So think I ultimately all those number drive overall to help

One moment for of our question the Bank comes next America. of with Funk line from Michael that

an hear it's Studio of that good to well than or better And thank for and you, Dustin. the you AI expected. one again as First going for details

early users learnings on some mentioned and enterprises. power You

size and just balanced your bucket that how token of And time how trying to so thoughts over kind the trends win adjust projected profitability? you wondering pricing usage are might affecting a around

know about I'm the getting question. your into... What if asking of you're don't what salience I building Sorry, we're margin

initial Yes. credits that users specific for you that later, early tranches that No, at of you have users. But mentioned mentioned then some seen the even even heavier and internally. prior, you had power sell, you've launch, you incremental adopters buckets

about across of if patterns buckets those sizing usage the influenced project customers? you try thought price and your just your to in how So wondering the

customers distribution workflows. reason designed power I I pricing the how we Well, generally, think use a the is way was expecting -- of this really system

will consumption we'll customers figures really year. and spending out some incremental on So X maybe next stand be

designed we And most is be handle credits landing so really customers. most We buying a mean sense how calibrating size unit sort increments, we're volume. about irrelevant. really, to really we'll kind big will and right be. for tranches they overall number but of the the on to are of expect them, you some of The the will give bucket tranches, the included the sizes be platform customers. I $XXX, just the to really of fee now But

So there's selling a question consumption. earlier about sales

getting in think mostly for that of platform look And customers sort and the standing I other into are those some going hopefully, like then terms the an out number there in within sort to I will a And deals of businesses. consumption-based fee they're of be be incremental add-on. book, similar selling of will think from negotiated credit each conversations. terms

quarter over the you're or that. directly carte a to paying multiple agreeing out la and in looking commit quarters contrast really literally and sort discount, work labs if things of of metered at sort we're to But minimum like like a APIs a is So It volume not costs. doesn't using a this that. we're --

inconsistent And I it. built really, quite think think is So how all validated. assumptions anything the we with were I don't

customers' feedback deploy to on our I also and so across excitement but really Studio enthusiasm A budget just meet many we the We customers. designed try then was desire to different their add. that reason both wanted we only AI could workflows. based predictability, designed it have try not from pilot but it and to diverse

or platform. -- over the certainly that with next just of value measure matched. was really the majority outsized get matched other and to And and then tranches to and able able a they are choose customers had to allow with. to to can they was that transparently either be increase offerings which for a something shared negative said, results they in as value, the that lacking period those pay to predictable willingness customers to seeing budget is be through our anticipation customers and time. price. are ROI, our then they ability Our vast the are of were considering going had to was working -- the getting then that well was what to -- already LLM then was predict that ton then the us experiences Dustin through their that of having But platform over And And see

And if I one could, more, please.

improving Inter add-in improvement. on the mentioned the reasons Or during quarter. improvement for But trend? be on were of upward factors is quarterly the once some quarters weigh a now again And do those on the an some of You maybe will some believe They where the you on basis? NRR I heard sustainable. comment there

Yes.

expect obviously, So NRR, the continue improve I comments end around a NRR, particularly that's overall that to X-quarter quarter. do NRR, I trailing. The to think in quarter my

very if numbers there. there X are look high quarters So NRR in back, some you still

that's improve. that we come in-quarter those should all continue the the AI one out. As because of yes, And the But definitely to number it's I think, should confident reasons us. be to Studio number and off, of overall improve, NRR start called NRR

of Jeffries. moment line Thill One our that Brent for next question from comes with the

it's a on also And is Dustin, a the like but just things feels of what's come better. you're tech-specific maybe it you the like like and terms what little bit. next know seeing better, seeing haven't characterize are installed if you getting X can commented, could to up. there? starting feel what I us your routes just you give seems base back you're That months just of tech seems X over demand It sense the are in happening to environment. opening

implying as seeing there. we're a as demand think don't I you're rosy Yes. change

on bottomed there I and expectations predict. be over to we're hard I the macro the the strength. but be I feel going there's months. will is generally inflation stable. think mainly But don't -- yes, maybe it's a what maybe good know, looks subsector, to I now, are saying volatility, out on side, different think think and lot things there areas of Fed They've some few depending of next The

not like from next on a banking perspective. I'm of sort So a year macro really bullish year

signaling be able we the really about can to control in is strength the think things I products. the multiple we're market being and with

how And that would base? tech, inside you characterize

sort rapidly mean lot enormous Yes. at at budgets. disrupted of risk an harder. the you're by And hiring the any you're being of you're in AI getting I maybe if if maybe I I quite company, a and have think things that's are with obviously, mean was I And you the certainly what kind from pre public of just our subsectors. don't of still to as entrepreneurs But yes, signal like budget of on Silicon talking impression and to much I with not talking very companies sort of they're mostly But the well. seem take yet. struggling rather like a sort Valley see tech that's quite than customers constraints.

Our Lucky line last with question comes from the Davidson. of Schreiner DA

follow to up on a little Congrats longer that actually. out like little with but to Last bit you a of might wanted on the question working sales starting flip and quarter, bit. macro I cycles, quarter the looking called sounds a to it macro tougher and Sonalee. forward be

to they're bit your be entirely. You mentioned the more? a little Is sense What's skipping may POC where going? on are their customer cycles sales it that starting contract

the about of seeing still think inspection for got better cycles our sales sales management. Yes. But we're definitely and pipeline landscape, It's remain that same. question. we've Anne. begets, a our I'll Quarter-over-quarter, us, the answer the by understanding I better driven I GMs

for speed on And a so our improving and our larger -- especially certainly, lot closures, deals. consistency we've deal focused and and

the So go-to-market is macro we I improving. would say quarter-over-quarter, hasn't while changed definitely think backdrop execution our significantly,

been so that's And on. we've focusing what

extent the talked And biggest say as about key Great. stands out -- for of but is maybe can you one I margin the then the opportunity there that X early, to for that it's areas Sonalee, you know efficiencies, expansion?

it's say out. quite spread evenly would I

out in this probably board, going space. Anne all are But to we we I than stands marketing areas said, deep diving as the see across myself of terms Dustin, think anything. and driving opportunities, to productivity, and in and be sales I watch more

concludes call the I the to and his Q&A comments. And this closing will session, back turn Dustin for

recognize years. here to been real this the working to moving a It's earnings wanted as last her with truly call on that few us we past I over quick adventure. pleasure is the with Catherine's call. one Just a she's before end just another

So contributions. her you for many to Catherine thank

you you, years honor wonderful. Sonalee. been to much, here all Everybody. on thank honor Anne, the we'll thank and you soon It's road. you last Thank see a absolute and guys Thank Dustin, be so to have the X.X to and hope an you, and pleasure

who disconnect. all you thank in now program, today's you and And participated may