**Asana Announces Fourth Quarter and Fiscal Year 2023 Revenues**

March 8, 2023 1:00 PM EST

_Fiscal year revenue growth up 45% year over year_

_Annualized revenues from customers spending $100,000 or more grew 80% year over year_

_Fiscal 2024 guidance reflects improvement towards profitability year over year_

SAN FRANCISCO--(BUSINESS WIRE)-- Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a leading work management platform for organizations, today
reported financial results for its fourth quarter and fiscal year 2023 ended January 31, 2023.

“Revenues for the fiscal year were up 45 percent year over year and we reported significant improvement in operating margins,” said Dustin

Moskovitz, co-founder and chief executive officer of Asana. “We are grateful to work alongside some of the largest, most innovative enterprises in the
world. This offers us unique insights into their complex business needs which helps to inform our product strategies and investments in areas that can
shape the future of work management.”

**Fourth Quarter Fiscal 2023 Financial Highlights**

Revenues: Revenues were $150.2 million, an increase of 34% year over year.
Operating Loss: GAAP operating loss was $99.2 million, or 66% of revenues, compared to
GAAP operating loss of $87.1 million, or 78% of revenues, in the fourth quarter of fiscal 2022.
Non-GAAP operating loss was $37.4 million, or 25% of revenues, compared to non-GAAP
operating loss of $43.9 million, or 39% of revenues, in the fourth quarter of fiscal 2022.
Net Loss: GAAP net loss was $95.0 million, compared to GAAP net loss of $90.0 million in the
fourth quarter of fiscal 2022. GAAP net loss per share was $0.44, compared to GAAP net loss
per share of $0.48 in the fourth quarter of fiscal 2022. Non-GAAP net loss was $33.2 million,
compared to non-GAAP net loss of $46.9 million in the fourth quarter of fiscal 2022.
Non-GAAP net loss per share was $0.15, compared to non-GAAP net loss per share of $0.25
in the fourth quarter of fiscal 2022.
Cash Flow: Cash flows from operating activities were negative $31.1 million, compared to
negative $39.3 million in the fourth quarter of fiscal 2022. Free cash flow was negative $26.5
million, compared to negative $41.2 million in the fourth quarter of fiscal 2022.

**Fiscal 2023 Financial Highlights**

Revenues: Revenues were $547.2 million, an increase of 45% year over year.
Operating Loss: GAAP operating loss was $407.8 million, or 75% of revenues, compared to
GAAP operating loss of $265.2 million, or 70% of revenues, in fiscal 2022. Non-GAAP
operating loss was $207.3 million, or 38% of revenues, compared to non-GAAP operating loss
of $157.1 million, or 42% of revenues, in fiscal 2022.
Net Loss: GAAP net loss was $407.8 million, compared to GAAP net loss of $288.3 million in
fiscal 2022. GAAP net loss per share was $2.04, compared to GAAP net loss per share of
$1.63 in fiscal 2022. Non-GAAP net loss was $207.2 million, compared to non-GAAP net loss
of $162.9 million in fiscal 2022. Non-GAAP net loss per share was $1.04, compared to
non-GAAP net loss per share of $0.92 in fiscal 2022.
Cash Flow: Cash flows from operating activities were negative $160.1 million, compared to
negative $83.8 million in fiscal 2022. Free cash flow was negative $159.6 million, compared to
negative $87.6 million in fiscal 2022.

**Business Highlights**

The number of customers spending $5,000 or more on an annualized basis in Q4 grew to
19,432, an increase of 26% year over year. Revenues from these customers in Q4 grew 42%


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506, an increase of 49% year over year.
Overall dollar-based net retention rate in Q4 was over 115%.
Dollar-based net retention rate for customers with $5,000 or more in annualized spend in Q4
was over 120%.
Dollar-based net retention rate for customers with $100,000 or more in annualized spend in
Q4 was over 135%.
Hired Shannon Sullivan Duffy as Chief Marketing Officer, and Neeracha Taychakhoonavudh
as Head of Customer Experience, along with Sanj Bhayro as General Manager EMEA, to
continue to drive enterprise growth.
[Named as a Leader in The Forrester Wave™: Collaborative Work Management Tools, Q4](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fasana.com%2Fresources%2Fforrester-wave-collaborative-work-management-2022&esheet=53357776&newsitemid=20230307005962&lan=en-US&anchor=The+Forrester+Wave%26%238482%3B%3A+Collaborative+Work+Management+Tools%2C+Q4+2022&index=1&md5=99d3e7c6a3db3f2453b8e864fc556133)
2022 report. Recognized for differentiators including: Objectives & Key Results (“OKR”) and
performance management, Work Graph Model®, and our outstanding support for product,
strategy, and implementation, ready for complex enterprise deployment, to name a few.
[Recognized as a top 100 employer in Glassdoor's Best Places to Work Award for the fourth](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.glassdoor.com%2FAward%2FBest-Places-to-Work-LST_KQ0%2C19.htm&esheet=53357776&newsitemid=20230307005962&lan=en-US&anchor=Glassdoor%27s+Best+Places+to+Work+Award&index=2&md5=559375afccbd19687e9653f1c59fd6e3)
time.
[Awarded one of America's Greatest Workplaces for Diversity 2023 by Newsweek in](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.newsweek.com%2Frankings%2Famericas-greatest-workplaces-2023-diversity&esheet=53357776&newsitemid=20230307005962&lan=en-US&anchor=America%27s+Greatest+Workplaces+for+Diversity+2023&index=3&md5=00ef18fb5280c9c2e0a086aaa48f7955)
cooperation with Plant-A Insights Group.This award honors the collaboration of people with
different worldviews who are fostering a more creative and innovative workforce in support of
better decision-making.

**Financial Outlook**

For the first quarter of fiscal 2024, Asana expects:

Revenues of $150.0 million to $151.0 million, representing year over year growth of 24% to
25%.
Non-GAAP operating loss of $40.0 million to $38.0 million.
Non-GAAP net loss per share of $0.19 to $0.18, assuming basic and diluted weighted average
shares outstanding of approximately 215 million.

For fiscal year 2024, Asana expects:

Revenues of $638.0 million to $648.0 million, representing year over year growth of 17% to
18%.
Non-GAAP operating loss of $130.0 million to $120.0 million.
Non-GAAP net loss per share of $0.59 to $0.55, 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 fourth quarter and fiscal year 2023
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=53357776&newsitemid=20230307005962&lan=en-US&anchor=https%3A%2F%2Finvestors.asana.com&index=4&md5=7ef2b54c9af33ca446383ea5d5c4ca6a)
929-526-1599 (outside of the US). The conference access code is 310454.

**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 first 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


-----

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, 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 Quarterly Report on Form 10-Q for the quarter ended October 31, 2022 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
about its financial performance, enhance the overall understanding of Asana’s past performance and future prospects, facilitate period-to-period
comparisons of operations against other companies in Asana’s industry, and allow for greater transparency with respect to important metrics used by
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-cash and non-recurring expenses. Non-cash expenses include the amortization of debt_
discount, non-cash interest related to the senior mandatory convertible promissory notes, and
non-recurring expenses include direct listing fees and costs related to restructuring. Asana
believes the exclusion of the non-cash and 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, $50,000, and $100,000 on an annualized basis_

We define customers spending over $5,000, $50,000, and $100,000 as those organizations on a paid subscription plan that had $5,000 or more,
$50,000 or more or $100,000 or more in annualized GAAP revenues in a given quarter, respectively, inclusive of discounts.

_Dollar-based net retention rate_


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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 more
than 139,000 paying customers and millions of free organizations 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=53357776&newsitemid=20230307005962&lan=en-US&anchor=www.asana.com&index=5&md5=b9aebf86267dc8362a8577e0c5eed17f)

**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=53357776&newsitemid=20230307005962&lan=en-US&anchor=https%3A%2F%2Finvestors.asana.com&index=6&md5=87bdbaa66d6669b4f03c310d41005196)
[(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=53357776&newsitemid=20230307005962&lan=en-US&anchor=blog.asana.com&index=7&md5=d28bf8ba0f1a626f87c459ebccce34c7)
[(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=53357776&newsitemid=20230307005962&lan=en-US&anchor=www.facebook.com%2Fasana%2F&index=9&md5=f2463d34618dfc6b15e0c1034ac49f14)
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 January 31,** **Twelve Months Ended January 31,**

**2023** **2022** **2023** **2022**

Revenues $ 150,231 $ 111,949 $ 547,212 $ 378,437

Cost of revenues[(1)] 15,205 11,533 56,559 38,897

Gross profit 135,026 100,416 490,653 339,540


Operating expenses:

Research and development[(1)] 81,262 60,915 297,209 203,124

Sales and marketing[(1)] 114,733 88,888 434,961 282,897

General and administrative[(1)] 38,245 37,676 166,309 118,703


Total operating expenses 234,240 187,479 898,479 604,724

Loss from operations (99,214) (87,063) (407,826) (265,184)


Interest income and other income (expense), net 7,152 (770) 6,933 (1,536)

Interest expense (875) (307) (2,000) (18,385)


Loss before provision for income taxes (92,937) (88,140) (402,893) (285,105)

Provision for income taxes 2,089 1,909 4,875 3,237


Net loss $ (95,026) $ (90,049) $ (407,768) $ (288,342)

Net loss per share:

Basic and diluted $ (0.44) $ (0.48) $ (2.04) $ (1.63)

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

Basic and diluted 214,195 187,435 200,034 176,401

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

**Three Months Ended January 31,** **Twelve Months Ended January 31,**

**2023** **2022** **2023** **2022**

Cost of revenues $ 458 $ 344 $ 1,658 $ 806

Research and development 29,477 22,739 100,083 57,480

Sales and marketing 15,476 12,990 58,504 29,631

General and administrative 7,717 6,223 28,717 16,644

Total stock-based compensation expense [(1)] $ 53,128 $ 42,296 $ 188,962 $ 104,561


__________________
(1) The table above includes $0.9 million of stock-based compensation expense for the three and twelve months ended January 31, 2023 that was
incurred as a result of the restructuring.

**ASANA, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In thousands)**

**(unaudited)**


-----

**2023** **2022**

**Assets**


Current assets

Cash and cash equivalents $ 526,563 $ 240,403

Marketable securities 2,739 71,628

Accounts receivable, net 82,363 59,085

Prepaid expenses and other current assets 48,726 40,278

Total current assets 660,391 411,394


Property and equipment, net 94,984 99,632

Operating lease right-of-use assets 176,189 174,083

Investments, noncurrent — 2,760

Other assets 23,399 19,166


Total assets $ 954,963 $ 707,035

**Liabilities and Stockholders’ Equity**
Current liabilities

Accounts payable $ 7,554 $ 11,557

Accrued expenses and other current liabilities 83,488 60,915

Deferred revenue, current 226,443 170,143

Operating lease liabilities, current 14,831 12,573

Total current liabilities 332,316 255,188


Term loan, net 46,696 34,612

Deferred revenue, noncurrent 7,156 4,082

Operating lease liabilities, noncurrent 210,012 208,422

Other liabilities 2,209 891


Total liabilities 598,389 503,195

Stockholders’ equity


Common stock 2 2

Additional paid-in capital 1,595,001 1,034,252

Accumulated other comprehensive loss (873) (626)

Accumulated deficit (1,237,556) (829,788)


Total stockholders’ equity 356,574 203,840

Total liabilities and stockholders’ equity $ 954,963 $ 707,035


**ASANA, INC.**

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

**(In thousands)**

**(unaudited)**

**Three Months Ended January 31,** **Twelve Months Ended January 31,**

**2023** **2022** **2023** **2022**

**Cash flows from operating activities**

Net loss $ (95,026) $ (90,049) $ (407,768) $ (288,342)

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

Allowance for expected credit losses 873 1,019 1,918 2,257

Depreciation and amortization 3,162 2,963 12,669 8,464

Amortization of deferred contract acquisition costs 4,589 2,708 15,098 8,647

Stock-based compensation expense 53,128 42,267 188,962 104,527

Net amortization of premium on marketable securities 12 83 62 784

Non-cash lease expense 4,169 3,347 15,595 16,589

Amortization of discount on convertible notes and term loan issuance
costs 28 5 41 10,645

Non-cash interest expense — — — 6,670

Changes in operating assets and liabilities:

Accounts receivable (23,802) (13,014) (25,179) (26,993)

Prepaid expenses and other current assets (1,887) (14,664) (24,042) (23,652)

Other assets (907) (4,408) (4,108) (10,724)

Accounts payable (1,058) (1,804) (4,391) 7,259

Accrued expenses and other liabilities 10,314 13,111 25,539 23,682

Deferred revenue 18,761 19,512 59,375 68,339

Operating lease liabilities (3,455) (401) (13,829) 8,063


Net cash used in operating activities (31,099) (39,325) (160,058) (83,785)

**Cash flows from investing activities**


Purchases of marketable securities — (471) (72,216) (62,394)

Sales of marketable securities — — — 373

Maturities of marketable securities 33,661 7,713 143,865 132,301

Purchases of property and equipment (2,211) (1,284) (5,351) (41,587)


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**Cash flows from financing activities**

Proceeds from term loan, net of issuance costs 49,555 — 49,555 9,000

Repayment of term loan (35,666) (500) (38,333) (1,667)

Proceeds from private placement—related party, net of offering costs (95) — 347,289 —

Repurchases of common stock (7) (4) (9) (40)

Proceeds from exercise of stock options 1,146 3,740 5,773 16,567

Proceeds from employee stock purchase plan 1 — 17,116 13,350

Net cash provided by financing activities 14,934 3,236 381,391 37,210


Effect of foreign exchange rates on cash and cash equivalents 1,542 (639) 335 (461)

Net increase (decrease) in cash and cash equivalents 15,973 (31,415) 286,160 (19,475)


**Cash and cash equivalents**

Beginning of period 510,590 271,818 240,403 259,878


End of period $ 526,563 $ 240,403 $ 526,563 $ 240,403

**ASANA, INC.**

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

**(In thousands, except percentages)**

**(unaudited)**

**Three Months Ended January 31,** **Twelve Months Ended January 31,**

**2023** **2022** **2023** **2022**

**Reconciliation of gross profit and gross margin**

GAAP gross profit $ 135,026 $ 100,416 $ 490,653 $ 339,540

Plus: stock-based compensation and related employer payroll tax
associated with RSUs 425 350 1,651 843

Plus: restructuring costs 550 — 550 —

Non-GAAP gross profit $ 136,001 $ 100,766 $ 492,854 $ 340,383


GAAP gross margin 89.9% 89.7% 89.7% 89.7%

Non-GAAP adjustments 0.6% 0.3% 0.4% 0.2%


Non-GAAP gross margin 90.5% 90.0% 90.1% 89.9%

**Reconciliation of operating expenses**

GAAP research and development $ 81,262 $ 60,915 $ 297,209 $ 203,124

Less: stock-based compensation and related employer payroll tax
associated with RSUs (29,676) (23,202) (101,892) (59,206)

Less: restructuring costs (35) — (35) —

Non-GAAP research and development $ 51,551 $ 37,713 $ 195,282 $ 143,918


GAAP research and development as percentage of revenue 54.1% 54.4% 54.3% 53.7%

Non-GAAP research and development as percentage of revenue 34.3% 33.7% 35.7% 38.0%

GAAP sales and marketing $ 114,733 $ 88,888 $ 434,961 $ 282,897

Less: stock-based compensation and related employer payroll tax
associated with RSUs (14,904) (13,243) (58,648) (30,695)

Less: restructuring costs (6,582) — (6,582) —


Non-GAAP sales and marketing $ 93,247 $ 75,645 $ 369,731 $ 252,202

GAAP sales and marketing as percentage of revenue 76.4% 79.4% 79.5% 74.8%

Non-GAAP sales and marketing as percentage of revenue 62.1% 67.6% 67.6% 66.6%

GAAP general and administrative $ 38,245 $ 37,676 $ 166,309 $ 118,703

Less: stock-based compensation and related employer payroll tax
associated with RSUs (7,585) (6,376) (29,095) (17,385)

Less: restructuring costs (2,093) — (2,093) —

Non-GAAP general and administrative $ 28,567 $ 31,300 $ 135,121 $ 101,318


GAAP general and administrative as percentage of revenue 25.5% 33.7% 30.4% 31.4%

Non-GAAP general and administrative as percentage of
revenue 19.0% 28.0% 24.7% 26.8%

**Reconciliation of operating loss and operating margin**

GAAP loss from operations $ (99,214) $ (87,063) $ (407,826) $ (265,184)

Plus: stock-based compensation and related employer payroll tax
associated with RSUs 52,590 43,171 191,286 108,129

Plus: restructuring costs [(1)] 9,260 — 9,260 —


Non-GAAP loss from operations $ (37,364) $ (43,892) $ (207,280) $ (157,055)

GAAP operating margin (66.0)% (77.8)% (74.5)% (70.1)%

Non-GAAP adjustments 41.1% 38.7% 36.6% 28.6%


Non-GAAP operating margin (24.9)% (39.1)% (37.9)% (41.5)%


-----

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

**(unaudited)**

**Three Months Ended January 31,** **Twelve Months Ended January 31,**

**2023** **2022** **2023** **2022**

**Reconciliation of net loss**


GAAP net loss $ (95,026) $ (90,049) $ (407,768) $ (288,342)

Plus: stock-based compensation and related employer payroll tax
associated with RSUs 52,590 43,171 191,286 108,129

Plus: restructuring costs [(1)] 9,260 — 9,260 —

Plus: amortization of debt discount — — — 10,628

Plus: non-cash interest — — — 6,670

Non-GAAP net loss $ (33,176) $ (46,878) $ (207,222) $ (162,915)


**Reconciliation of net loss per share**

GAAP net loss per share, basic $ (0.44) $ (0.48) $ (2.04) $ (1.63)

Non-GAAP adjustments to net loss 0.29 0.23 1.00 0.71

Non-GAAP net loss per share, basic $ (0.15) $ (0.25) $ (1.04) $ (0.92)


Weighted-average shares used in GAAP and non-GAAP per share
calculation, basic and diluted 214,195 187,435 200,034 176,401

_______________
(1) Restructuring costs for the three and twelve months ended January 31, 2023 were composed of severance and related charges of $8.4 million and
stock-based compensation expense of $0.9 million. These charges are non-recurring and not reflective of underlying trends in our business.

**Three Months Ended January 31,** **Twelve Months Ended January 31,**

**2023** **2022** **2023** **2022**

**Computation of free cash flow**

Net cash provided by investing activities $ 30,596 $ 5,313 $ 64,492 $ 27,561

Net cash provided by financing activities $ 14,934 $ 3,236 $ 381,391 $ 37,210

Net cash used in operating activities $ (31,099) $ (39,325) $ (160,058) $ (83,785)

Less: purchases of property and equipment (2,211) (1,284) (5,351) (41,587)

Less: capitalized internal-use software costs (854) (645) (1,806) (1,132)

Plus: restructuring costs paid $ 7,663 $ — $ 7,663 $ —

Plus: purchases of property and equipment from build-out of
corporate headquarters — 59 2 38,610

Plus: direct listing expenses $ — $ — $ — $ 270


Free cash flow $ (26,501) $ (41,195) $ (159,550) $ (87,624)

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.


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