**Asana Announces First Quarter Fiscal 2024 Results**

June 1, 2023 8:05 PM EDT

_Significant improvement in profitability year over year_

_Largest customer deployment now at 200,000 paid seats_

_Revenues from customers spending $5,000 or more grew 32% year over year_

SAN FRANCISCO--(BUSINESS WIRE)--Jun. 1, 2023-- Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a leading work management platform for
organizations, today reported financial results for its first quarter fiscal 2024 ended April 30, 2023.

“As organizations move rapidly to leverage the benefits of AI, our partnerships with some of the largest most strategic companies in the world will be

instrumental in informing our product roadmap," said Dustin Moskovitz, co-founder and chief executive officer of Asana. “The Asana Work Graph [Ⓡ]
brings together AI and human collaboration, giving our customers a powerful platform to manage and automate work within their organization.”

**First Quarter Fiscal 2024 Financial Highlights**

Revenues: Revenues were $152.4 million, an increase of 26% year over year.
Operating Loss: GAAP operating loss was $65.2 million, or 43% of revenues, an improvement
year over year compared to GAAP operating loss of $96.2 million, or 80% of revenues, in the
first quarter of fiscal 2023. Non-GAAP operating loss was $22.3 million, or 15% of revenues,
an improvement year over year compared to non-GAAP operating loss of $54.7 million, or
45% of revenues, in the first quarter of fiscal 2023.
Net Loss: GAAP net loss was $61.5 million, compared to GAAP net loss of $98.9 million in the
first quarter of fiscal 2023. GAAP net loss per share was $0.28, compared to GAAP net loss
per share of $0.52 in the first quarter of fiscal 2023. Non-GAAP net loss was $18.5 million,
compared to non-GAAP net loss of $57.4 million in the first quarter of fiscal 2023. Non-GAAP
net loss per share was $0.09, compared to non-GAAP net loss per share of $0.30 in the first
quarter of fiscal 2023.
Cash Flow: Cash flows from operating activities were negative $14.6 million, compared to
negative $41.1 million in the first quarter of fiscal 2023. Free cash flow was negative $16.6
million, compared to negative $42.2 million in the first quarter of fiscal 2023.

**Business Highlights**

The number of customers spending $5,000 or more on an annualized basis in Q1 grew to
19,864, an increase of 19% year over year. Revenues from these customers in Q1 grew 32%
year over year.
The number of customers spending $100,000 or more on an annualized basis in Q1 grew to
510, an increase of 31% year over year.
Overall dollar-based net retention rate in Q1 was over 110%.
Dollar-based net retention rate for customers with $5,000 or more in annualized spend in Q1
was over 115%.
Dollar-based net retention rate for customers with $100,000 or more in annualized spend in
Q1 was over 130%.
Hired Ike Tateyama, as GM of Japan, and Veit Brücker, as GM of DACH (Germany, Austria,
and Switzerland) to continue to expand footprint in regions.
Announcing Asana Intelligence - our latest products and partnerships focused on automating
work, reducing team friction and improving business outcomes with an expanded integration of
generative artificial intelligence technologies.
[Announced Asana Collaborative Intelligence for enterprise customers with product updates](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fasana.com%2Fpress%2Freleases%2Fpr%2Fasana-unlocks-collaborative-intelligence-for-enterprise-customers%2Fe596fb4c-1ed0-44db-9ecc-a64b62c74e07&esheet=53410540&newsitemid=20230531005803&lan=en-US&anchor=Asana+Collaborative+Intelligence&index=1&md5=83d999d87d3e43655a22ed8fdc962a61)
that aid in real-time progress insights and process standardization to accelerate business


-----

has evolved during a time of rapid volatility – focusing this year on how collaboration and goals
are integral to creating positive business opportunities.
[Named to Inc. Magazine's Best Workplaces for the sixth year in a row.](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.inc.com%2Fbest-workplaces%2F2023&esheet=53410540&newsitemid=20230531005803&lan=en-US&anchor=Inc.+Magazine%27s+Best+Workplaces&index=3&md5=fdd54bb69933bcb5a14ba0916ae08020)

**Financial Outlook**

For the second quarter of fiscal 2024, Asana expects:

Revenues of $157.5 million to $158.5 million, representing year over year growth of 17%.
Non-GAAP operating loss of $26.0 million to $24.0 million.
Non-GAAP net loss per share of $0.12 to $0.11, assuming basic and diluted weighted average
shares outstanding of approximately 218 million.

For fiscal year 2024, Asana expects:

Revenues of $640.0 million to $648.0 million, representing year over year growth of 17% to
18%.
Non-GAAP operating loss of $120.0 million to $110.0 million.
Non-GAAP net loss per share of $0.55 to $0.50, assuming basic and diluted weighted average
shares outstanding of approximately 219 million.

These statements are forward-looking and actual results may materially differ. Refer to the “Forward-Looking Statements” section below for
information on the factors that could cause Asana’s actual results to materially differ from these forward-looking statements.

A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable
effort due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that may be incurred in the future. Asana has
provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its first quarter of fiscal 2024 non-GAAP results
included in this press release.

**Earnings Conference Call Information**

Asana will hold a conference call and live webcast today to discuss these results at 1:30 p.m. Pacific Time. A live webcast and replay will be available
[on the Asana Investor Relations website at: https://investors.asana.com. The conference call can also be accessed by dialing (844) 200-6205, or +1](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.asana.com&esheet=53410540&newsitemid=20230531005803&lan=en-US&anchor=https%3A%2F%2Finvestors.asana.com&index=4&md5=dd46f599e3ca7a61f242427e1b263d7f)
929-526-1599 (outside of the US). The conference access code is 395746.

**Forward-Looking Statements**

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on
management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not
limited to, statements about our ability to execute on our current strategies, our technology and brand position, Asana’s outlook for the second fiscal
quarter and the full fiscal year ending January 31, 2024, expected benefits of our offerings, Asana’s market position, and potential market
opportunities. Forward-looking statements generally relate to future events or Asana’s future financial or operating performance. Forward-looking
statements include all statements that are not historical facts and in some cases can be identified by terms such as “anticipate,” “expect,” “intend,”

“plan,” “believe,” “continue,” “could,” “potential,” “may,” “will,” “goal,” or similar expressions and the negatives of those terms. However, not all forward
looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors,
including factors beyond Asana’s control, that may cause Asana’s actual results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks
and uncertainties related to: Asana’s ability to achieve future growth and sustain its growth rate, Asana’s ability to attract and retain customers and
increase sales to its customers, Asana’s ability to develop and release new products and services and to scale its platform, including the successful
integration of artificial intelligence, Asana’s ability to increase adoption of its platform through Asana’s self-service model, Asana’s ability to maintain
and grow its relationships with strategic partners, the highly competitive and rapidly evolving market in which Asana participates, Asana’s international
expansion strategies, and the impact of the COVID-19 pandemic and broader macroeconomic conditions. Further information on risks that could
cause actual results to differ materially from forecasted results are included in Asana’s filings with the SEC, including Asana’s Annual Report on Form
10-K for the year ended January 31, 2023 and subsequent filings with the SEC. Any forward-looking statements contained in this press release are
based on assumptions that Asana believes to be reasonable as of this date. Except as required by law, Asana assumes no obligation to update these
forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

**Use of Non-GAAP Financial Measures**

To supplement Asana’s consolidated financial statements, which are prepared and presented in accordance with GAAP, Asana utilizes certain
non-GAAP financial measures to assist in understanding and evaluating its core operating performance. In this release, Asana’s non-GAAP gross
profit, gross margin, operating expenses, operating expenses as a percentage of revenue, operating loss, operating margin, net loss, net loss per
share, free cash flow are not presented in accordance with GAAP and are not intended to be used in lieu of GAAP presentations of results of
operations. These non-GAAP financial measures, which may be different from similarly titled measures used by other companies, are presented to
enhance investors’ overall understanding of Asana’s financial performance and should not be considered a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to
their most directly comparable GAAP financial measures which can be found in the accompanying financial statements included with this press
release.

Asana is presenting these non GAAP financial measures because it believes that these non GAAP financial measures provide useful information


-----

Asana s management for financial and operational decision-making.

Asana believes excluding the following items from its non-GAAP financial measures is useful to investors and others in assessing Asana’s operating
performance due to the following factors:

_Share-based compensation expenses. Although share-based compensation is an important_
aspect of the compensation of our employees and executives, management believes it is
useful to exclude share-based compensation expenses to better understand the long-term
performance of Asana’s core business and to facilitate comparison of its results to those of
peer companies.
_Employer payroll tax associated with RSUs. The amount of employer payroll tax-related items_
on employee stock transactions is dependent on Asana’s stock price and other factors that are
beyond its control and that do not correlate to the operation of the business.
_Non-recurring expenses. Non-recurring expenses include costs related to restructuring. Asana_
believes the exclusion of non-recurring items provides useful supplemental information to
investors and facilitates the analysis of its operating results and comparison of operating
results across reporting periods.

There are a number of limitations related to the use of non-GAAP financial measures as compared to GAAP financial measures, including that the
non-GAAP financial measures exclude stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a
significant recurring expense in Asana’s business and an important part of its compensation strategy.

In addition to the non-GAAP financial measures outlined above, Asana also uses the non-GAAP financial measure of free cash flow, which is defined
as net cash from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs, plus
non-recurring expenditures such as capital expenditures from the purchases of property and equipment associated with the build-out of Asana’s
corporate headquarters and costs related to restructuring. Asana believes free cash flow is an important liquidity measure of the cash that is available,
after capital expenditures and operational expenses, for investment in its business and to make acquisitions. Asana believes that free cash flow is
useful to investors as a liquidity measure because it measures Asana’s ability to generate or use cash. There are a number of limitations related to the
use of free cash flow as compared to net cash from operating activities, including that free cash flow includes capital expenditures, the benefits of
which are realized in periods subsequent to those when expenditures are made.

**Definitions of Business Metrics**

_Customers spending over $5,000 and $100,000 on an annualized basis_

We define customers spending over $5,000 and $100,000 as those organizations on a paid subscription plan that had $5,000 or more, or $100,000 or
more in annualized GAAP revenues in a given quarter, respectively, inclusive of discounts.

_Dollar-based net retention rate_

Asana’s reported dollar-based net retention rate equals the simple arithmetic average of its quarterly dollar-based net retention rate for the four
quarters ending with the most recent fiscal quarter. Asana calculates its dollar-based net retention rate by comparing its revenues from the same set of
customers in a given quarter, relative to the comparable prior-year period. To calculate Asana’s dollar-based net retention rate for a given quarter,
Asana starts with the revenues in that quarter from customers that generated revenues in the same quarter of the prior year. Asana then divides that
amount by the revenues attributable to that same group of customers in the prior-year quarter. Current period revenues include any upsells and are
net of contraction or attrition over the trailing 12 months, but exclude revenues from new customers in the current period. Asana expects its
dollar-based net retention rate to fluctuate in future periods due to a number of factors, including the expected growth of its revenue base, the level of
penetration within its customer base, and its ability to retain its customers.

**About Asana**

Asana helps organizations orchestrate their work, from small projects to strategic initiatives. Headquartered in San Francisco, CA, Asana has millions
of users in over 200 countries and territories. Global customers such as Amazon, Affirm, Japan Airlines, and Sky rely on Asana to manage everything
[from company objectives to digital transformation to product launches and marketing campaigns. For more information, visit www.asana.com.](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.asana.com&esheet=53410540&newsitemid=20230531005803&lan=en-US&anchor=www.asana.com&index=5&md5=fb42d9c0106000731b0b2743c0273fb1)

**Disclosure of Material Information**

Asana announces material information to its investors using SEC filings, press releases, public conference calls, and on its investor relations page of
Asana’s website at [https://investors.asana.com. Asana uses these channels, as well as social media, including its Twitter account (@asana), its blog](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.asana.com&esheet=53410540&newsitemid=20230531005803&lan=en-US&anchor=https%3A%2F%2Finvestors.asana.com&index=6&md5=ec20b4ef6a4cd26660aea94efa4b1700)
[(blog.asana.com), its LinkedIn page (www.linkedin.com/company/asana), its Instagram account (@asana), and its Facebook page](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fblog.asana.com&esheet=53410540&newsitemid=20230531005803&lan=en-US&anchor=blog.asana.com&index=7&md5=8f58ae15ab2f34e4a792aac0248fffc7)
[(www.facebook.com/asana/), to communicate with investors and the public about Asana, its products and services and other matters. Therefore,](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.facebook.com%2Fasana%2F&esheet=53410540&newsitemid=20230531005803&lan=en-US&anchor=www.facebook.com%2Fasana%2F&index=9&md5=2ae0affeea90ee8ff771d1a883c73618)
Asana encourages investors, the media and others interested in Asana to review the information it makes public in these locations, as such
information could be deemed to be material information.

**ASANA, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands, except per share data)**

**(unaudited)**

**Three Months Ended April 30,**

**2023** **2022**


-----

Gross profit 137,564 108,208

Operating expenses:

Research and development[(1)] 76,316 65,205

Sales and marketing[(1)] 93,237 96,123

General and administrative[(1)] 33,256 43,112

Total operating expenses 202,809 204,440

Loss from operations (65,245) (96,232)

Interest income and other income (expense), net 5,666 (1,346)

Interest expense (967) (357)

Loss before provision for income taxes (60,546) (97,935)

Provision for income taxes 922 933

Net loss [$] (61,468) $ (98,868)

Net loss per share:

Basic and diluted [$] (0.28) $ (0.52)

Weighted-average shares used in calculating net loss per share:

Basic and diluted 216,413 189,590

_______________
(1) Amounts include stock-based compensation expense as follows:

**Three Months Ended April 30,**

**2023** **2022**

Cost of revenues $ 322 $ 321

Research and development 23,497 21,129

Sales and marketing 11,533 12,489

General and administrative 6,146 5,970

Total stock-based compensation expense [$] 41,498 $ 39,909

**ASANA, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In thousands)**

**(unaudited)**

**April 30, 2023** **January 31, 2023**

**Assets**

Current assets

Cash and cash equivalents $ 382,234 $ 526,563

Marketable securities 141,315 2,739

Accounts receivable, net 98,906 82,363

Prepaid expenses and other current assets 48,088 48,726

Total current assets 670,543 660,391

Property and equipment, net 96,876 94,984

Operating lease right-of-use assets 194,365 176,189

Other assets 22,503 23,399

Total assets [$] 984,287 $ 954,963

**Liabilities and Stockholders’ Equity**
Current liabilities

Accounts payable $ 8,871 $ 7,554

Accrued expenses and other current liabilities 69,564 83,488

Deferred revenue, current 257,734 226,443

Operating lease liabilities, current 17,164 14,831

Total current liabilities 353,333 332,316

Term loan, net 46,082 46,696

Deferred revenue, noncurrent 6,215 7,156

Operating lease liabilities, noncurrent 226,604 210,012

Other liabilities 3,968 2,209

Total liabilities 636,202 598,389

Stockholders’ equity

Common stock 2 2

Additional paid-in capital 1,647,422 1,595,001

Accumulated other comprehensive loss (315) (873)

Accumulated deficit (1,299,024) (1,237,556)

Total stockholders’ equity 348,085 356,574

Total liabilities and stockholders’ equity $ 984,287 $ 954,963


-----

**SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

**(unaudited)**

**Three Months Ended April 30,**

**2023** **2022**

**Cash flows from operating activities**

Net loss $ (61,468) $ (98,868)

Adjustments to reconcile net loss to net cash used in operating activities:

Allowance for expected credit losses 737 627

Depreciation and amortization 3,288 3,104

Amortization of deferred contract acquisition costs 4,871 3,045

Stock-based compensation expense 41,498 39,909

Net amortization (accretion) of premium (discount) on marketable securities (444) 55

Non-cash lease expense 5,263 3,639

Amortization of discount on convertible notes and term loan issuance costs 30 4

Changes in operating assets and liabilities:

Accounts receivable (17,252) (8,531)

Prepaid expenses and other current assets (4,625) (11,803)

Other assets 881 (2,196)

Accounts payable (14) 4,681

Accrued expenses and other liabilities (13,417) 791

Deferred revenue 30,350 27,801

Operating lease liabilities (4,291) (3,391)

Net cash used in operating activities (14,593) (41,133)

**Cash flows from investing activities**

Purchases of marketable securities (139,294) (46,554)

Maturities of marketable securities 1,615 35,581

Purchases of property and equipment (1,866) (1,048)

Capitalized internal-use software costs (821) (70)

Net cash used in investing activities (140,366) (12,091)

**Cash flows from financing activities**

Repayment of term loan (625) (667)

Proceeds from exercise of stock options 1,798 2,228

Proceeds from employee stock purchase plan 8,558 9,156

Net cash provided by financing activities 9,731 10,717

Effect of foreign exchange rates on cash and cash equivalents 899 (568)

Net decrease in cash and cash equivalents (144,329) (43,075)

**Cash and cash equivalents**

Beginning of period 526,563 240,403

End of period [$] 382,234 [$] 197,328

**ASANA, INC.**

**Reconciliation of GAAP to Non-GAAP Data**

**(In thousands, except percentages)**

**(unaudited)**

**Three Months Ended April 30,**

**2023** **2022**

**Reconciliation of gross profit and gross margin**

GAAP gross profit $ 137,564 $ 108,208

Plus: stock-based compensation and related employer payroll tax associated with RSUs 335 332

Non-GAAP gross profit [$] 137,899 [$] 108,540

GAAP gross margin 90.3% 89.7%

Non-GAAP adjustments 0.2% 0.3%

Non-GAAP gross margin 90.5% 90.0%

**Reconciliation of operating expenses**

GAAP research and development $ 76,316 $ 65,205

Less: stock-based compensation and related employer payroll tax associated with RSUs (24,550) (22,081)

Non-GAAP research and development [$] 51,766 [$] 43,124

GAAP research and development as percentage of revenue 50.1% 54.0%

Non-GAAP research and development as percentage of revenue 34.0% 35.7%

GAAP sales and marketing $ 93,237 $ 96,123

Less: stock based compensation and related employer payroll tax associated with RSUs (11 884) (12 849)


-----

Non-GAAP sales and marketing [$] 81,526 [$] 83,274

GAAP sales and marketing as percentage of revenue 61.2% 79.7%

Non-GAAP sales and marketing as percentage of revenue 53.5% 69.0%

GAAP general and administrative $ 33,256 $ 43,112

Less: stock-based compensation and related employer payroll tax associated with RSUs (6,349) (6,254)

Less: restructuring costs (26) —

Non-GAAP general and administrative [$] 26,881 [$] 36,858

GAAP general and administrative as percentage of revenue 21.8% 35.7%

Non-GAAP general and administrative as percentage of revenue 17.6% 30.6%

**Reconciliation of operating loss and operating margin**

GAAP loss from operations $ (65,245) $ (96,232)

Plus: stock-based compensation and related employer payroll tax associated with RSUs 43,118 41,516

Plus: restructuring costs (147) —

Non-GAAP loss from operations [$] (22,274) [$] (54,716)

GAAP operating margin (42.8)% (79.8)%

Non-GAAP adjustments 28.2% 34.4%

Non-GAAP operating margin (14.6)% (45.4)%

**ASANA, INC.**

**Reconciliation of GAAP to Non-GAAP Data**

**(In thousands, except percentages and per share data)**

**(unaudited)**

**Three Months Ended April 30,**

**2023** **2022**

**Reconciliation of net loss**

GAAP net loss $ (61,468) $ (98,868)

Plus: stock-based compensation and related employer payroll tax associated with RSUs 43,118 41,516

Plus: restructuring costs (147) —

Non-GAAP net loss [$] (18,497) [$] (57,352)

**Reconciliation of net loss per share**

GAAP net loss per share, basic $ (0.28) $ (0.52)

Non-GAAP adjustments to net loss 0.19 0.22

Non-GAAP net loss per share, basic [$] (0.09) [$] (0.30)

Weighted-average shares used in GAAP and non-GAAP per share calculation, basic and diluted 216,413 189,590

**Three Months Ended April 30,**

**2023** **2022**

**Computation of free cash flow**

Net cash used in investing activities [$] (140,366) [$] (12,091)

Net cash provided by financing activities [$] 9,731 [$] 10,717

Net cash used in operating activities $ (14,593) $ (41,133)

Less: purchases of property and equipment (1,866) (1,048)

Less: capitalized internal-use software costs (821) (70)

Plus: restructuring costs paid 707 —

Plus: purchases of property and equipment from build-out of corporate headquarters — 2

Free cash flow [$] (16,573) [$] (42,249)

[View source version on businesswire.com: https://www.businesswire.com/news/home/20230531005803/en/](http://businesswire.com/)

Catherine Buan
Asana Investor Relations
[ir@asana.com](mailto:ir@asana.com)

Stephanie Hess
Asana Corporate Communications
[press@asana.com](mailto:press@asana.com)

Source: Asana, Inc.


-----

