**Asana Announces Second Quarter Fiscal 2024 Results**

September 5, 2023 8:05 PM EDT

_Significant improvement towards profitability year over year_

_Revenues from customers spending $5,000 or more grew 24% year over year_

SAN FRANCISCO--(BUSINESS WIRE)--Sep. 5, 2023-- Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a leading work management platform, today
reported financial results for its second quarter fiscal 2024 ended July 31, 2023.

“Asana’s Q2 results beat expectations on the top and bottom line. Revenue growth was better than our guidance, operating margin improved 37

percentage points, and we posted positive free cash flow,” said Dustin Moskovitz, co-founder and chief executive officer of Asana. “In Q2, we
continued to expand our commitments with some of the largest companies in the world across industries including financial services, healthcare & life
sciences, retail, media, manufacturing, professional services, among others. More and more, the world’s leading companies are choosing Asana –
powered by Asana’s Work Graph® and AI – to drive clarity and accountability, maximize impact, and scale with confidence.”

**Second Quarter Fiscal 2024 Financial Highlights**

Revenues: Revenues were $162.5 million, an increase of 20% year over year.
Operating Loss: GAAP operating loss was $73.4 million, or 45% of revenues, an improvement
year over year compared to GAAP operating loss of $111.3 million, or 82% of revenues, in the
second quarter of fiscal 2023. Non-GAAP operating loss was $10.4 million, or 6% of revenues,
an improvement year over year compared to non-GAAP operating loss of $62.6 million, or
46% of revenues, in the second quarter of fiscal 2023.
Net Loss: GAAP net loss was $71.4 million, compared to GAAP net loss of $113.0 million in
the second quarter of fiscal 2023. GAAP net loss per share was $0.33, compared to GAAP net
loss per share of $0.59 in the second quarter of fiscal 2023. Non-GAAP net loss was $8.4
million, compared to non-GAAP net loss of $64.3 million in the second quarter of fiscal 2023.
Non-GAAP net loss per share was $0.04, compared to non-GAAP net loss per share of $0.34
in the second quarter of fiscal 2023.
Cash Flow: Cash flows from operating activities were $20.2 million, compared to negative
$41.6 million in the second quarter of fiscal 2023. Free cash flow was $14.6 million, compared
to negative $42.3 million in the second quarter of fiscal 2023.

**Business Highlights**

The number of customers spending $5,000 or more on an annualized basis in Q2 grew to
20,782, an increase of 15% year over year. Revenues from these customers in Q2 grew 24%
year over year.
The number of customers spending $100,000 or more on an annualized basis in Q2 grew to
553, an increase of 20% year over year.
Overall dollar-based net retention rate in Q2 was over 105%.
Dollar-based net retention rate for customers with $5,000 or more in annualized spend in Q2
was over 110%.
Dollar-based net retention rate for customers with $100,000 or more in annualized spend in
Q2 was over 125%.
[Appointed Ed McDonnell to the Asana leadership team as Chief Revenue Officer, responsible](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fasana.com%2Fpress%2Freleases%2Fpr%2Fasana-appoints-new-chief-revenue-officer-ed-mcdonnell%2F30e94630-ce86-4e7f-8a1a-c5e6cb9892d5&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=Appointed+Ed+McDonnell&index=1&md5=11d1c0d73c4983957bafc1ad30c3ee97)
for all facets of global revenue and field operations.
[Recognized with a Customers’ Choice Distinction in Gartner® Peer Insights™ for](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fasana.com%2Fpress%2Freleases%2Fpr%2Fasana-recognized-with-a-customers-choice-distinction-in-gartner-peer-insights-for-collaborative-work-management%2F4ad0da29-4543-42a1-aae3-c814b7f2251e&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=Customers%26%238217%3B+Choice+Distinction+in+Gartner%26%23174%3B+Peer+Insights%26%238482%3B+for+Collaborative+Work+Management&index=2&md5=548e35f65a7cf05519f9e74f513b6b91)
Collaborative Work Management – given to vendors who meet or exceed both the market
average ‘Overall Experience’ and ‘User Interest and Adoption’ criteria set by the analyst firm.
[Announced intelligent product capabilities that revolutionize how PMO teams drive strategic](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fasana.com%2Fpress%2Freleases%2Fpr%2Fasana-fuels-productivity-for-enterprise-program-management-offices-through-the-power-of-artificial-intelligence%2F456d1180-ad05-4ea1-a362-5910be22693a&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=intelligent+product+capabilities&index=3&md5=f91f5f905f65bf425146571dab2003f9)
alignment and build smarter enterprise processes that scale.


-----

[Released fiscal 2023 environmental, social, and governance (ESG) report.](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fasana.com%2Fpress%2Freleases%2Fpr%2Fasana-announces-fiscal-2023-environmental-social-and-governance-report%2F2250a7f4-2b8b-476e-a306-09105129c99a&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=environmental%2C+social%2C+and+governance+%28ESG%29+report&index=5&md5=715e10428df8aa54045e2e8ce201cc51)
[Named to Fortune Great Place to Work 2023 in the top 10 best places to work for Millennials](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.greatplacetowork.com%2Fbest-workplaces%2Fmillennials%2F2023&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=Millennials&index=6&md5=7ee6b054bab9df8224bc7fe0ab617f90)
[and top 20 in the Bay Area categories.](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fgreatplacetowork.com%2Fbest-workplaces%2Fbay-area%2F2023%3Futm_campaign%3Dbw2023-bayarea%26utm_medium%3Dreferral%26utm_source%3Dpress-release%26utm_content%3D%26utm_term%3D20230612%26utm_audience%3Dall&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=Bay+Area&index=7&md5=c0c6d5a46142a57debbfc3a294f13834)
[Launched Asana for Startups to support early stage, venture backed startups, and ensure they](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fasana.com%2Fstartups&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=Asana+for+Startups&index=8&md5=01144e630da8adf418954a00b0a5cd2e)
scale successfully.

**Financial Outlook**

For the third quarter of fiscal 2024, Asana expects:

Revenues of $163.5 million to $164.5 million, representing year over year growth of 16%.
Non-GAAP operating loss of $25.0 million to $23.0 million.
Non-GAAP net loss per share of $0.11 to $0.10, assuming basic and diluted weighted average
shares outstanding of approximately 221 million.

For fiscal 2024, Asana expects:

Revenues of $642.0 million to $648.0 million, representing year over year growth of 17% to
18%.
Non-GAAP operating loss of $93.0 million to $85.0 million.
Non-GAAP net loss per share of $0.42 to $0.39, 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 second 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 webpage at: https://investors.asana.com.](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.asana.com&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=https%3A%2F%2Finvestors.asana.com&index=9&md5=4d93956319ef757bbb79ac5a811a97a8)

**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 fiscal quarter
ending October 31, 2023 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. Forwardlooking 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 Quarterly
Report on Form 10-Q for the quarter ended April 30, 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 forwardlooking 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, and 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


-----

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 charges for impairment of_
long-lived assets. Non-recurring expenses include costs related to restructuring. Asana
believes the exclusion of certain 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 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 empowers organizations to work smarter. Headquartered in San Francisco, CA, Asana has 139K+ paying customers, and millions of users in
200+ countries and territories. Global customers such as Amazon, Accenture, Roche, and T-Mobile rely on Asana to manage everything from goal
[setting and tracking to capacity planning, product launches, and employee onboarding. For more information, visit www.asana.com.](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.asana.com&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=www.asana.com&index=10&md5=1d6e8ac3e277820a8b0b6b1379c9ecb2)

**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 X (formerly Twitter) account](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.asana.com&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=https%3A%2F%2Finvestors.asana.com&index=11&md5=089647242d9721290f9f82dec870d136)
[(@asana), its blog (blog.asana.com), its LinkedIn page (www.linkedin.com/company/asana), its Instagram account (@asana), its Facebook page](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fblog.asana.com&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=blog.asana.com&index=12&md5=8d9e8940da71c0ceee264edbd8937686)
[(www.facebook.com/asana/), and Threads profiles (@asana and @moskov), to communicate with investors and the public about Asana, its products](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.facebook.com%2Fasana%2F&esheet=53548879&newsitemid=20230904243256&lan=en-US&anchor=www.facebook.com%2Fasana%2F&index=14&md5=debb93ec80214915170fe7bb318fca08)
and services and other matters. Therefore, 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.**


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**(unaudited)**

**Three Months Ended July 31,** **Six Months Ended July 31,**

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

Revenues $ 162,455 $ 134,896 $ 314,866 $ 255,542

Cost of revenues[(1)] 16,232 13,756 31,079 26,194

Gross profit 146,223 121,140 283,787 229,348

Operating expenses:

Research and development[(1)] 84,371 75,233 160,687 140,438

Sales and marketing[(1)] 96,448 110,392 189,685 206,515

General and administrative[(1)] 38,787 46,787 72,043 89,899

Total operating expenses 219,606 232,412 422,415 436,852

Loss from operations (73,383) (111,272) (138,628) (207,504)

Interest income and other income (expense), net 4,165 (164) 9,831 (1,510)

Interest expense (968) (311) (1,935) (668)

Loss before provision for income taxes (70,186) (111,747) (130,732) (209,682)

Provision for income taxes 1,228 1,222 2,150 2,155

Net loss $ (71,414) $ (112,969) $ (132,882) $ (211,837)

Net loss per share:

Basic and diluted $ (0.33) $ (0.59) $ (0.61) $ (1.11)

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

Basic and diluted 219,004 191,352 217,730 190,486

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

**Three Months Ended July 31,** **Six Months Ended July 31,**

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

Cost of revenues $ 442 $ 418 $ 764 $ 739

Research and development 31,047 24,447 54,544 45,576

Sales and marketing 16,321 15,521 27,854 28,010

General and administrative 8,395 7,548 14,541 13,518

Total stock-based compensation expense $ 56,205 $ 47,934 $ 97,703 $ 87,843

**ASANA, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(in thousands)**

**(unaudited)**

**July 31, 2023** **January 31, 2023**

**Assets**

Current assets

Cash and cash equivalents $ 413,697 $ 526,563

Marketable securities 123,809 2,739

Accounts receivable, net 66,330 82,363

Prepaid expenses and other current assets 47,230 48,726

Total current assets 651,066 660,391

Property and equipment, net 97,938 94,984

Operating lease right-of-use assets 185,112 176,189

Other assets 22,291 23,399

Total assets $ 956,407 $ 954,963

**Liabilities and Stockholders’ Equity**
Current liabilities

Accounts payable $ 5,188 $ 7,554

Accrued expenses and other current liabilities 67,472 83,488

Deferred revenue, current 254,905 226,443

Operating lease liabilities, current 16,246 14,831

Total current liabilities 343,811 332,316

Term loan, net 45,469 46,696

Deferred revenue, noncurrent 6,230 7,156

Operating lease liabilities, noncurrent 223,275 210,012

Other liabilities 3,369 2,209

Total liabilities 622,154 598,389


-----

Additional paid-in capital 1,706,006 1,595,001

Accumulated other comprehensive loss (1,317) (873)

Accumulated deficit (1,370,438) (1,237,556)

Total stockholders’ equity 334,253 356,574

Total liabilities and stockholders’ equity $ 956,407 $ 954,963

**ASANA, INC.**

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

**(in thousands)**

**(unaudited)**

**Three Months Ended July 31,** **Six Months Ended July 31,**

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

**Cash flows from operating activities**

Net loss $ (71,414) $ (112,969) $ (132,882) $ (211,837)

Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:

Allowance for expected credit losses 652 733 1,389 1,360

Depreciation and amortization 3,588 3,199 6,876 6,303

Amortization of deferred contract acquisition costs 5,432 3,527 10,303 6,572

Stock-based compensation expense 56,205 47,934 97,703 87,843

Net amortization (accretion) of premium (discount) on
marketable securities (488) 2 (932) 57

Non-cash lease expense 4,781 3,729 10,044 7,368

Impairment of long-lived assets 5,009 — 5,009 —

Amortization of discount on revolving credit facility and
term loan issuance costs 30 4 60 8

Changes in operating assets and liabilities:

Accounts receivable 31,910 13,734 14,658 5,203

Prepaid expenses and other current assets (4,432) (15,899) (9,057) (27,702)

Other assets 467 173 1,348 (2,023)

Accounts payable (3,231) (6,150) (3,245) (1,469)

Accrued expenses and other liabilities (800) 15,692 (14,217) 16,483

Deferred revenue (2,814) 8,148 27,536 35,949

Operating lease liabilities (4,663) (3,505) (8,954) (6,896)

Net cash provided by (used in) operating activities 20,232 (41,648) 5,639 (82,781)

**Cash flows from investing activities**

Purchases of marketable securities — (25,664) (139,294) (72,218)

Maturities of marketable securities 16,526 20,309 18,141 55,890

Purchases of property and equipment (4,100) (635) (5,966) (1,683)

Capitalized internal-use software costs (1,527) — (2,348) (70)

Net cash provided by (used in) investing activities 10,899 (5,990) (129,467) (18,081)

**Cash flows from financing activities**

Repayment of term loan (1,250) (1,000) (1,875) (1,667)

Repurchases of common stock — (2) — (2)

Proceeds from exercise of stock options 1,275 1,419 3,073 3,647

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

Taxes paid related to net share settlement of equity
awards (7) — (7) —

Net cash provided by financing activities 18 417 9,749 11,134

Effect of foreign exchange rates on cash, cash equivalents,
and restricted cash 314 (150) 1,213 (718)

Net increase (decrease) in cash, cash equivalents, and
restricted cash 31,463 (47,371) (112,866) (90,446)

**Cash, cash equivalents, and restricted cash**

Beginning of period 382,234 197,328 526,563 240,403

End of period $ 413,697 $ 149,957 $ 413,697 $ 149,957

**ASANA, INC.**

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

**(in thousands, except percentages)**

**(unaudited)**

**Three Months Ended July 31,** **Six Months Ended July 31,**

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

**Reconciliation of gross profit and gross margin**


-----

payroll tax associated with RSUs 456 424 791 756

Non-GAAP gross profit $ 146,679 [$] 121,564 [$] 284,578 [$] 230,104

GAAP gross margin 90.0% 89.8% 90.1% 89.7%

Non-GAAP adjustments 0.3% 0.3% 0.3% 0.3%

Non-GAAP gross margin 90.3% 90.1% 90.4% 90.0%

**Reconciliation of operating expenses**

GAAP research and development $ 84,371 $ 75,233 $ 160,687 $ 140,438

Less: stock-based compensation and related employer
payroll tax associated with RSUs (32,078) (24,842) (56,628) (46,923)

Non-GAAP research and development $ 52,293 [$] 50,391 [$] 104,059 [$] 93,515

GAAP research and development as percentage of revenue 51.9% 55.8% 51.0% 55.0%

Non-GAAP research and development as percentage of
revenue 32.2% 37.4% 33.0% 36.6%

GAAP sales and marketing $ 96,448 $ 110,392 $ 189,685 $ 206,515

Less: stock-based compensation and related employer
payroll tax associated with RSUs (16,809) (15,710) (28,693) (28,559)

Less: restructuring costs — — 173 —

Non-GAAP sales and marketing $ 79,639 [$] 94,682 [$] 161,165 [$] 177,956

GAAP sales and marketing as percentage of revenue 59.4% 81.8% 60.2% 80.8%

Non-GAAP sales and marketing as percentage of revenue 49.0% 70.2% 51.2% 69.6%

GAAP general and administrative $ 38,787 $ 46,787 $ 72,043 $ 89,899

Less: stock-based compensation and related employer
payroll tax associated with RSUs (8,666) (7,669) (15,015) (13,923)

Less: impairment of long-lived assets (5,009) — (5,009) —

Less: restructuring costs — — (26) —

Non-GAAP general and administrative $ 25,112 [$] 39,118 [$] 51,993 [$] 75,976

GAAP general and administrative as percentage of revenue 23.9% 34.7% 22.9% 35.2%

Non-GAAP general and administrative as percentage of
revenue 15.5% 29.0% 16.5% 29.7%

**Reconciliation of operating loss and operating margin**

GAAP loss from operations $ (73,383) $ (111,272) $ (138,628) $ (207,504)

Plus: stock-based compensation and related employer
payroll tax associated with RSUs 58,009 48,645 101,127 90,161

Plus: impairment of long-lived assets 5,009 — 5,009 —

Plus: restructuring costs — — (147) —

Non-GAAP loss from operations $ (10,365) [$] (62,627) [$] (32,639) [$] (117,343)

GAAP operating margin (45.2)% (82.5)% (44.0)% (81.2)%

Non-GAAP adjustments 38.8% 36.1% 33.6% 35.3%

Non-GAAP operating margin (6.4)% (46.4)% (10.4)% (45.9)%

**ASANA, INC.**

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

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

**(unaudited)**

**Three Months Ended July 31,** **Six Months Ended July 31,**

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

**Reconciliation of net loss**

GAAP net loss $ (71,414) $ (112,969) $ (132,882) $ (211,837)

Plus: stock-based compensation and related employer
payroll tax associated with RSUs 58,009 48,645 101,127 90,161

Plus: impairment of long-lived assets 5,009 — 5,009 —

Plus: restructuring costs — — (147) —

Non-GAAP net loss $ (8,396) $ (64,324) $ (26,893) $ (121,676)

**Reconciliation of net loss per share**

GAAP net loss per share, basic $ (0.33) $ (0.59) $ (0.61) $ (1.11)

Non-GAAP adjustments to net loss 0.29 0.25 0.48 0.47

Non-GAAP net loss per share, basic $ (0.04) $ (0.34) $ (0.13) $ (0.64)

Weighted-average shares used in GAAP and non-GAAP per
share calculation, basic and diluted 219,004 191,352 217,730 190,486

**Three Months Ended July 31,** **Six Months Ended July 31,**

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

**C** **t ti** **f f** **h fl**


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Net cash provided by financing activities $ 18 $ 417 $ 9,749 $ 11,134

Net cash provided by (used in) operating activities $ 20,232 $ (41,648) $ 5,639 $ (82,781)

Less: purchases of property and equipment (4,100) (635) (5,966) (1,683)

Less: capitalized internal-use software costs (1,527) — (2,348) (70)

Plus: restructuring costs paid — — 707 —

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

Free cash flow $ 14,605 $ (42,283) $ (1,968) $ (84,532)

[View source version on businesswire.com: https://www.businesswire.com/news/home/20230904243256/en/](http://businesswire.com/)

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

Marianne Ridgeway
Asana Corporate Communications
[press@asana.com](mailto:press@asana.com)

Source: Asana, Inc.


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