ASAN - Earnings call transcript Q1 2021

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Operator

Good day, and thank you for standing by. Welcome to Asana First Quarter Fiscal Year 2022 Earnings Call. [Operator Instructions].

Catherine Buan

I would now like to hand the conference over to your speaker today, Catherine Gowan. Please go ahead. you the us first financial year thank call today's quarter and XXXX. discuss to results afternoon, for on joining conference fiscal Good for Asana's CEO; Duston on and Officer; Business. the Officer Asana's call me Operating Varanasi, the are Chief Head With Co-Founder Chief today's Chris and and Tim company's Financial Wan, company's Moskovitz, of regarding Act safe our limited the private of call include will provisions not position market forward-looking Today's outlook, but Litigation financial statements of Reform and harbor to, including, pursuant statements to the opportunities. XXXX, Securities growth

and Forward-looking statements achievements risks involve from by may that cause materially statements. be actual known those or unknown performance forward-looking and or implied the uncertainties results, expressed different our to

date company's titled on the affect in from made. that January report could Forward-looking the results filings including financial for factors the Information section ended Risk by the assumptions statements represent our the beliefs the the XXXX. management's included to XX, company time, year SEC and on with filed Factors in is time Form its XX-K annual of only the as

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

Dustin Moskovitz

X,XXX paying first from today a QX, accelerating continue the and to quarter QX year-over-year. previous strong. customer Revenues growth And new third be X,XXX everyone of Thanks, added earnings Year growth XX% and paying in quarter. the customers across to our number grew expansions. to in Catherine, for rates in see for up remarkable quarter continue call. We revenues, net with accelerate row over fiscal added We business the and accelerated for row. year-over-year, joining retention for the customers to XX% XXXX in net second you a us a had in the customers dollar-based quarter Also, paying thank

For XX% million raising we're $XX,XXX it for customers or over XXX%. overall, it XXX% over is several based our spending over $XXX customers on and was was year, XXX%. it This guidance full customers for for $X,XXX year-over-year Based growth the $XXX spending to million, more, X% outlook the over, And of XX% on things. a rest to by rate. to year representing was

momentum to foremost, and see in we First continue enterprise.

spending we're of We're traction, organizations. As year-over-year. market, our and customers graft investments and the in expanding seeing work clearly flywheel Asana's $XX,XXX closing number auto effect XX% of product gains paying larger deals off. in The strategy momentum are grew over more and model the our in

that customer rates, delivering the pre is third, and want. is strong and both Asana is retention users are strong volume Second, than This seeing up. of translating scores indicating that organizations better growth that And and geographically rates affirmation metrics universal solving into new increasing adoption satisfaction levels. or and expansion, NPS at pandemic a we're top broad-based, net the going conversion funnel, and continued record seat of the we're paying features seeing at demand probe. capabilities customer the rates customer interest We're and

on of X.XX survey e-mail, called of workers work Knowledge on it itself. when. new. Workers about awareness According may work, and is pandemic XX% on the to outdated achieve largely time clarity what, doing name knowledge billion is before spreadsheets the status a at annual who spent tools, the than have difficult how is meetings to the work, relied clarity Even to not pandemic, problems themselves our work heightened While by are the of work get rather global the

Over same even each average working missing The out year. have day, impact. the to XX% are or year, more person of people is the experienced have less and effort people last still XX burnout deadlines last X later expanded

Asana more provides to productive a way sustainable and work.

Going doing for clarity clarity Weather geographies, our and for by persistent to office departments of in across many spectrum durable essential. teams secular forward, work or be coordinating is business. a a driver there are is hybrid when what, and of on from offices need an will working environments both. types cases, remote be who fully will This a back home fully in

size, clarity of of Assonora, craft get regardless our and a Customers you at model, view and worked eye of the the co-founder, be social thousands the to we're with of Japan have is level Asana, J those who and growth key provide use to others Sky, a work to Armour as new r&I Asana expansion today an on, may the data my our The enables Usana to bird's budget of work market It faster, powering For like and organization. Like every better up-to-date Assonora an structure fully graph, Under airlines, the map flexible connected of products asana. complexity. business. in differentiator. accelerating organization, a resources

and executives the on shared enabled solution model, truth of can teams individuals, source graph. proprietary the based the provide for our that are a by data clarity sonar We

wide visibility for and with executives, alignment portfolios. or and goals provide we First,

Asana reports of organization for used across top real-time to announced by prepare level that Unlike across portfolios reviews of leaders single data particular entire selecting quarterly and week, a available Universal leaders This reporting level for create their together to Executives of automatically. just is in instantly, manually the we their insight not visibility team teams across tools, to work view other teams dynamically this their gives organizations. projects, or Just real-time enables into and rash. company model and directly Warcraft capability individual to which wait their work graphical dashboarding reporting our reporting, universal insight. have makes built on this projects. progress chart,

responsibility lines, road within efficiency or of or dashboard area an their clicks, charts entire with made They attainment maps across For data. in or example, within and within a then company or track track departments a ensuring can can that objectives. to an product decisions progress track reporting them few important across are add shareable making across executive create budgets product and teams single that easy up-to-date

truth across resourcing Second, reports, to progress quickly. a of reporting single to need we teams provide teams. gives work move Universal and the power source they

automation our app version aiming the gallery store. end year, of continue we're the workflow of also to new to workflow an our enhance capabilities, and We launch by a

Lastly, help productivity. maximize individuals we their

week, and on Asana be Next Wednesday, hosting we'll focus June Summit. X, our flow

researchers on optimal a performance, organizational joined will world-class and renowned best-selling Grant, Dr. We including on Adam and neuroscientists athletes the of Dr. by be psychologist XXX author, Michael psychologist Berkeley; high UC leading USAF, Sahara performance Serve, and some at Fortune cognitive for CEOs.

productivity We are unveiling prioritize distractions new reduce suite help work, features personal focus. and that a of improve their individuals

Asana calendar more of requests the include top automate to time the an features prioritize for and messaging to an to upgraded create more our of from A new work. experience Some video and desktop my smart assistant enable community. to your meetings, task focus ways one app, reduce

the demos benefits air Asana will be are based featuring We graft. that on capabilities of the of unique

X Pacific this please from XX for join event time. XX:XX June a.m. on So to a.m. us

this product ever. and stronger our Our aggressively making than map road our great in towards year product investing is We're progress strategy vision.

XXX Asana's featured a partners We continue personal over market Adobe suite network launched the in launched and features including to languages. shift capabilities Asana QX, pace partner a introduced have QX, of new channel Universal rapid productivity We ServiceNow, including expanded at technology integrations. coming new which to next we In and Zendesk X Wednesday. and this year, partners, we reporting, and

take to have also and entire enterprise QX. on in our on track of end we're We workflows news the QX, additional launch by leading platform

Singapore by list offices it fourth the languages XX workplaces Before on named expanding end row. I for Chris, bringing I our opened We're in XX been year We the of scale us for the Paris, evolving XXXX over year. the and continents. want to a continue X new hand developing that to X culture. by to total and conclude of highlighting for company Asana year while of has this a we best our to annual in magazine's And lastly, offices to Inc, to

fits to rapidly, also ensuring into everyone and their continues level scale them focus evolving continue a about we how company of our intentionally built work as culture, higher goals. our to what's clarity expected on has So around great real-time

hand As the now and faster better foundation, strong delivering And company our the of we it for get grows off to Chris. customers. at ever I'll value top on

Christopher Farinacci

Dustin. Thanks,

growing revenues the a quarter year. growth, quarter another great with XX% revenue first Asana off of We year-over-year. start had accelerating had to

large We are from funnel the firing enterprise of all on the expansions. top cylinders to

this X,XXX net from performance business milestone. over quarter's first, we new quarter the to this include following: and passing be continues adding Top-of-funnel customers accelerated strong Some customer XXX,XXX customer paying performance globally. the growth, highlights new

our was Second, or we're more net retention $XX,XXX particularly customers. expansion with our customers larger customer existing annually for base, strong spending us The seeing XXX%. rate within again with over

our growing Dustin number enterprise mentioned, XXX off XX% grew paying $XX,XXX of or as we're our The customers Third, to annually investments momentum. more with seeing customers. spending

story speak for numbers the the trends held our best. adoption customer While themselves,

have of core saw vision world our the scalability is benefits, enterprises We biggest enables customers a who the range value seats especially This industries. in our are of complex and world. and deployment across a largest realizing cross-functional some highlights our in QX to a our Our product expanded competitive which teams with around It's largest XX,XXX customer is the credit this data the workflows. Customers and traction model, differentiator. with graft quarter. shows work the to proposition the resonating of

our We continue to expansions see significant customer within base. current

the needed the just are independent silos our spread to upgraded teams company, to highlights. place are QX, seats. In into it visibility improve departments organization the that Group, work solution centralize and Media and across added a of new youth enterprise in to between eliminate Vice its hundreds largest world's happening more across one company They couple media world. Here and

production will marketing their to wide their operations advertising one work With in and can to now from teams work be everything their timelines. Asana track with place, aligned Now individual manage using department goals. to see strategic video how teams

center the decisions. for Institute Chapel at targeting Additionally, workflows Hill, for the leadership reporting in Asana cross-functional have clinical make of at Due health federally business to research progress scale research and program Carolina equity University solution North real-time a will large populations. selected at COVID-XX manage informed funded blockers on to underserved

Asana program sponsor. to help them the portfolios and reporting provide monitor will the

we towards look I'm year and excited. beyond, As the rest very the of

growth on to new drivers: momentum. enterprise and our expansion acquiring continue customer business We X existing focus major customers,

the of world's traditional new Asana customer by new one Chinese, accessible expand in largest We're a to Asana this initiatives executing Polish, larger Dutch We've with acquisition. on First, teams make our expansion new continuing languages made in to Russian, market reach and to to available portion year, on of the more date. X way. customer already significantly X our

our launched reach. channel our also We network to partner expand

customer Second, we are on expansion. focused

continue opportunity we're expansion existing XXX,XXX to growing our Summit in paying flow announced I'm reporting suites now a quarter, particularly large focus next recently week capabilities. universal the of excited product over the new our this and and our launches customers. productivity We launching new at and see base including personal about

broadly, company. some enterprise. for product imperative Not and only and across and world's accelerating. growth valuable alignment momentum is seeing teams are in The adoption clarity are in organizations major seeing third of most our real-time rapid enterprises the driver of is business we expansion Our we

recent to and demand significantly in in and service can asano. and manufacturing, entertainment, as choosing scaling technology is this enterprise our platform financial our services, We're in fast we're our we and as sales Our most enterprise to capabilities. enterprise also seeing demand. continuing We're quarter. industries media our retail sales across growing organization, leaders growing organizations building, include Examples team invest

uniquely over go is suited alignment that, a to results. our to for financial partner it to through I'll Asana of turn clarity trusted provider large scale and as Tim With now real-time enterprises.

Tim Wan

Thanks, Chris, for today. everyone, us joining and thank you,

increase now great another of a our accelerating to growth. quarter million, last XXX,XXX the quarter have revenue added from We the X,XXX over year-over-year strong the board. results paying customer new are across growth over net QX. accelerated very XX% at quarter represents This XX% year-over-year. with end report to and third consecutive excited QX customers of and We up $XX.X

year-over-year. XX% XX,XXX our more have spending We And an up $X,XXX even is or on customers stronger. basis, larger in growth annualized customers

which have customers $XX,XXX more We on spending to annualized quarter XX% XXX or an accelerated basis, year-over-year. this

to a more of or ago XX% year more compared quarter. and in our reminder, revenue revenue $X,XXX a quarter. in define grew given annualized the This As in spending GAAP XX% or $XX,XXX we or year-over-year. QX spending $X,XXX based Revenue customers on XX% our business customers more of represented from part

was over Our overall rate dollar-based XXX%. net retention

a rate among customers net reminder, calculation. or spending a dollar-based average more, our retention rate As or $X,XXX with retention and further our customers customers. net more, retention our This XXX% was and particularly our dollar-based net Among demonstrates largest expand our our with trailing strategy rate XXX%. is resonating, and spending Asana land again dollar-based is $XX,XXX over was X-quarter success how

we a revenue, million Before the at reflecting million to million, of to I motion. balance came XX% G&A margins Operating results was was investments fuel both up XX% development our like ago year of Gross and will continue or share velocity. was to would non-GAAP direct operating XX.X% I loss high XX% discussing million, point items $X.XX. $XX.X self-serve marketing that was Sales million of in as expense remarks. turning in and was margin Research quarter. and at per XX%. innovation was heavily $XX.X loss profitability, revenue and loss be was and $XX.X Net of revenue. in the the our from or and out or $XX.X in invest to XX.X%, my sales $XX.X loss

to sheet of investments Cash on flow. marketable Moving QX at the the and million. were $XXX cash securities, approximately and long-term including balance end

capitalized property excluding million. activities, Our items $X.X our negative software and free nonrecurring San equipment expenses cash direct listing is operating as in such cash free used cash our costs, In the net cash and defined fees and and office. flow build-out as flow from of was less QX, Francisco

our proud of We and the are business very achievements momentum.

our moving outlook. XXXX Now to and QX fiscal year

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

weighted $XX million of We expect outstanding million and and $XX shares. assuming approximately XXX to loss non-GAAP expect average loss $X.XX, per basic million, from of diluted to operations share of we $X.XX shares

Now looking revenue and XX% a year-over-year. now million, are XXXX, previous we $XXX XX% growth rate to up to of year guidance to the million fiscal full our raising be $XXX representing to expect

for continue invest growth opportunity position. the we Given ahead, maintain will large to to our leadership

growth invest will best-in-class will economics this provide lineup non-GAAP year strong to XXXX. to the and strategy that market best-in-class opportunity. full margins on that margins improve and open investment year flexibility expect from growth sustainable We operating we market we believe and term, and this slightly the our leverage We Longer product. enormous we durable for fiscal can Operator, as gross the execute the unit our into large believe pursue let's questions. opportunity with provide

Operator

Instructions]. [Operator

question Your from standard. Bracelin Brent line Piper the of first from comes

Brent Bracelin

as across year. we've any re-acceleration teams to like Why well of this now? new Slack It's go wanted kind reacceleration with as a on above a more resonating is was expands in with fix? I get in revenue of net or highest most shifts the to back And growth number XX%. love seen sort in Atlassian? It clients? to looks record new channel, are strong customers it the material to partner little Just color driving a adds. what's tied this What of XX,XXX or you seeing both

Dustin Moskovitz

Well, board. you saw we Yes. the fact at point I strength the that really across

three factor that's drivers. there's So one any driving The the big really growth. not

you which momentum, all, enterprise of mentioned. first So the

also So really spending the we saw over. customers excited a XX% XX,XXX growth and with We're about.

now Our largest XX,XXX deployment users. is active

And probably seeing of really demand, then some color Chris additionally, of that and customers also there, lot X.X scale Variety and that users. strong regions. we're top-of-funnel paid of after milestones across and a then on front. us geographies funnel improving. over that the me So And helped paying achieve and and we're momentum will all metrics million XXX,XXX new add company. seeing And of industries

adoption and that than the So seeing we rates levels pandemic, but definitely saw even now a in before dip started. we're during COVID are retention higher

because because more the be acceleration. driving of to feel contributing fact us growth -- reacceleration. will single a those just confident the it's durable we there not drivers sort that of all that's really are of And the So that, for

Christopher Farinacci

is mix. you about because guess would question this And of had a channel a maybe I the Yes. there just couple things think competitive I add Chris. and I

As and around growth seeing customers, acquiring said, expansion our enterprise. momentum Dustin we're strong in new base, across and particularly

see side, and On our continue particular. partners. our the partner the focusing technology customers, needs we're momentum to channel in growth we our with XXX-plus And efforts there, on of enterprise

an We channel our quickly, seeing Zoom, with I'd business, partners. large, and then but I grow anything it's partners a not in key think the strategic a growing Salesforce, important our Some part also And asked is note particular Microsoft, open. recently not channel enterprise-focused that mix, market and Jira. continues is part new you about our side, the channel we're and Slack, and channel announced of are greenfield new And we're to partner yet. Adobe business competitive with of wide seeing really those partnership and By ServiceNow. there. of program material our just and traction on Google, really

remains business. when competitor we Great or see the status anyone of quo. we primary in mine to mix compete, And mix don't do see in the change Our the a particular.

Operator

Your of from question comes Thill from next Brent Jefferies. line the

Brent Thill

you're success that surprising upstream. What's maybe Duston business, you seeing pretty metrics enterprise team, that showcasing could of ongoing this metrics the you deeper upstream? kind some highlight is a and would if there? Any you're I'm little kind just as On into you impressive curious, dive of what moving key

Christopher Farinacci

Thanks, Brent. It's Chris.

to spending more real-time from QX teams imperative the that so alignment the XX% was We than year that and organizations quarter across numbers. us same saw We spending $X,XXX $XX,XXX accelerating. number with customers year-on-year. mean, up the a for from customer yes, clarity I XX% in cohort revenues, and is XX% enterprise XX%. So growing mentioned of And And the accelerated exceeding revenues annually annually, before. of business

seeing industries, functions. world's and Our valuable companies. enterprise and demand the We're build we're most in some product also regions expansion is of seeing the building, of across it adoption and rapid

more you customer my than gave seats. now examples is maybe give just you XX,XXX some color, remarks. prepared largest I give to in Our more couple could And a I

visibility leading one leadership and work enterprise entire our happening media Let's XXX-plus to manage its the world's workflows a couple of chose -- a solution with quarter projects the and company, see properties of the across thousand users into company. for provide

of transformation EMEA, initiative bank is objectives Sonatrach an with its chose happening digital and deal okay results in who's the example key a enterprise work connect associated the organization. undergoing and large Another that is or and in

yes, I'd say, for suited uniquely So clarity and and differentiated -- large is trusted to so enterprise seeing a and believe driving. scale demand as orgs, partner we of the asana provider we're

Dustin Moskovitz

quickly our And deployments, and but think couple differentiated for solution superior larger growing mostly large product very some with seeing others, and quite the to quickly. The because one very, have adopt organizations. are at part particular, not that there seats. of of of just these the just and large is it, It's of now to surprising growth patterns. very it's I in this active a similar quite been going going. And team answer a scale, strategy how that still that cross XX,XXX just And is needs part the the ability be of to of scale the is surprise we're that's according plan, enterprises work

our customers So the us helping existing a lot and distribution that's we're just deployments seeing grow quickly. organic within really enthusiasm of

Brent Thill

Tim, follow-up. quick just a

doing overall given walk off you're at? well? hey, margin Is so that slight just you saw theme? the for but going keep improvement the reacceleration. that gas through to You and take a margin on Is the year. We're can foot Why you're the Or your seeing it to improvement, that, expense. XX-point guiding

Tim Wan

it. that's That's Yes, Brent, exactly is Yes, exactly Tim. it. this

leader a continue capture think market and to we we're this fast, opportunity extremely growing I huge be believe grow we in there's space. want and to that the just continue and to

Operator

of from line comes Enders Market. the Capital Steve question from next Your KeyBanc

Steven Enders

to Is new you net on better in up? levers Great. But growth line. of sense the of and that drive think resonating that to distributed you what opportunities is think work coming a adds the Pretty pulling helping and XX,XXX are more that? is want prospect and on conversion there impressive you're just get the hybrid billings market. leading Or the top-of-funnel rates customer

Dustin Moskovitz

themselves the of workers would that in I pandemic Well, what who's I to say doing And the made but you meetings. moving the with the I and still general e-mail long addressable using them. about get of are that serving them pain how majority think of problems the think were just and to awareness win And your vast billion clarity the new. those problems solutions work that this aren't update really vast, remote and market threads have of if trying work team, really tighten X.XX globally, about about shared just the remote the status spreadsheets of status quo, clear poorly it

I and And adopt that, sort really pains that the longer-term think so to helps but well awareness drive of beyond work. and remote some go the Asana, urgency trends

a for that pandemic, teams, are fully we're post Asana work. work customers to versions having going In hybrid into with of of clarity at a we between. And with those in going to going continue situations, drive to spectrum to helping are office. a variety critical need see the back that come you -- that is know the represent remote So any some lot of

Steven Enders

Great. to Okay. hear. Great

trend I far you how think that And share within some But now it's kind that since how of you release? universal functionality. announced you're of year so the the new reporting kind about releasing broad-based been of within your seen there? functionality OKR opportunity augment a the have I customers guess, does first

Christopher Farinacci

start. Yes. This is Chris. I'll

This functionality differentiated year, provide at airlining, we've at of individual seen It's level execution. clarity the goals you vision last another graph real sort the I executive enterprise the right, the strong with as leveraging the of differentiation the work We've and this of adoption. So strategy at data that to set clarity, our level. but mentioned, -- think and last team work yes, And out for of and couple we've building summer this been against at adoption. examples customer carrier phone we I saw empowered where really one, owned I'll to a one QX customers worksets to an the starting you of -- tracking how their remarks and world's mobile telcos connection are large seen with well of give examples, company by as wall in enable transparency where truth do their another solution. leading is goals. strong that. innovative enterprise provide mentioned went in pyramid against connecting model work our was in into the actual

So just around the we're the real that down from and of demand, buy-in It's seeing business strong about clarity work. the functionality. not goals it's really and driving to actual imperative top companies

Dustin Moskovitz

universal And reporting. speak I'll to

very really would few to we dashboards this a launched We're quarters to little different the that where And X project best even place really able for we it's powerful appeals -- functionality building capabilities it excited multiple it. And while ago. to reporting purview. above work are they're use it. a we their internally projects that a or programs, entire expect ago, So well. the that across gives because ways. across had this really And sort in But by individuals only you them the it of project really the as portfolio managing on allows being and of just days the we where report on a is working craft at group entire this data but launched level how organization showcase of focused aggregate once power or or it see in a the that exciting little had customers and departments. We've flexible -- most is clearly teams the

going just on there, more and other integrate appeal way to it more VX it this make the we're for the powerful we graph, think this organization layers people that start in functionality, and even it work in the the building to we as all senior C-suite. to So to will us. up the is keep We're starting with and

Operator

[indiscernible]. line from question Your of next the comes

Unidentified Analyst

you that can funnel seeing, the all type leverage you're Given a you're the initiatives maybe that strong get activity sense you top channel partners asana can you from of do of us of the and incremental give implementing? the think

Dustin Moskovitz

Yes.

think earlier little the bit call. on this mentioned a I Chris

I out and think we're partner both continuing ecosystem. channel to ecosystem our our build

is But integrations We there partner to the a of already number of technical right base. really revenue has part different kind now our have still quite view opportunities a small we business channels of products. into and both upside because

Tim Wan

I maybe And opportunity. just the greenfield would rehighlight

still the or scale of will anything to reach industry and will the them other depending using category. of marketing. be on the We're more -- customers region able of there's the performance successful -- So majority in appropriate vast reaching with teams types in. in those aren't But world some channels be or the channels in

into just every it's really of market. So us reach the giving part about

Christopher Farinacci

and which is We the about the well. top executing of funnel Yes. channel, this mentioned, continue Chris. connection ultimately we're channel right, to to because our network And this to got world's in as expand to make coverage the our investing is I'd add year, thing one market. it we shipped Swedish, and reach reach expand by I we languages. think And question to of your accessible coming, customer and crean portion more markets X on those our teams, a larger partner this in and X additional Italian already in between

the languages, those as we And as new launch they markets reaching so help us with channel. those new

Unidentified Analyst

plans right. for of the and following the a up maybe rest Tim, enterprise an you seeing can the sales with hiring what of strength. are update perspective? on success And this the you're just All from on give year us kind

Tim Wan

front-load pretty tell hirings, aggressively. And you think of try that We most Yes. a where that we're I would QX. folks say would are we with start I will goals, hired I in to we're but we -- quarter aggressive and we happy we are. this have of our number hiring

for opportunity of the capacity in building us. large we're So front

Operator

the comes question Your Murphy Mark line from JPMorgan. from of next

Mark Murphy

I'm see if net reopens. XXX% potential this as dollar improve wondering you above economy level plus Tim, the that for retention to

you'd and perhaps of sounds SMBs Just and anniversary employment commentary, it up have past period picking you pandemic might like some your rates improving? then based And expansion the healthier on getting churn.

Tim Wan

would would a Yes. to NRR calculation a it's because point of things. the is one, two I indicator. our lag say, calculation, I lagging

expect lap, So say, the would their kind customers then we've thing that we're QX, is the once pick the that behavior seeing been And acquiring what I COVID say in to our other the one. we of is up would pre NRR to cohorts stronger and I than QX, the we of kind adoption pre-pandemic back levels.

needing in their a acceleration terms clarity, work product do customers needing of work. whole this So management to

those basis. bolster all help NRR on a things the think will we So go-forward

Mark Murphy

And COVID-XX. Federal FedRAMP a try focused larger you just some the just follow-up, to that -- was could you funded directly quick perhaps you little wondering are business, a I the on just you if government as win that how more I to us believe Okay. a was Dustin, agencies to relating U.S. more of target or remind approaching in process private federally are mentioned industry?

Dustin Moskovitz

Yes.

to replay just So that.

So of We're of the research. what customers they're do clinical really deployment this doing. proud because

funded, to the they're Institute, program large ones populations. work cross-functional manage and in but underserved Asana So their and are a research they're that running federally using reaching

a think future, do a little that's So government example. in further our that, entity but I in out. it's really maybe not that

Operator

from line question the Your Research. from Alex Wolf of Zukin comes next

Unidentified Analyst

it selling the moment change better of them saw understood, seeing categorize possible? couple sales would you're what just So makes differentiation teams because there? that of kind been have And does first in you -- the is the and has classify about deals then to kind seeing qualify want of awareness talk started of at of there's these COVID, customers the on going is the you of last to AHA for gotten it of a a category it the the quarter. terms that those with how in a this been like -- wall-to-wall more I deals competitive bit pipeline, respect Is you maybe Tim it? kind increased your feel on your what's quarter, to wall-to-wall of just better us on

Tim Wan

Okay.

I'm make sure to your I answer question. So going

model journey all over go with the lands platform. the expands. the a time, and and wall. team beauty And in transition and that of the and it that to that's From part beauty, wall-to-wall data seed right? I sales wall from would part like -- value customers the there, deploy, of more to going. tend And we companies the more we self-serve customer So work of our business, the they see I map all organically So tend and to mean get was to value natural in the from creates that users is, graft the power and first there, the sizes. say more our how Yes, it's engages

tend that And of department up to just while that And penetrated paying spread we from companies. growing of are in to are there. part there, terms go our on or in a all then maybe land in critical then whole workflow departments is across where So in cross-functionally of a the couple again, we we a a journey, customer it's also X% base. X%, and

say maturity, we're high. as better top wall-to-wall And to And like going maybe is seeing I customers Churn pre-pandemic the the interest, of of our And so we're across expect second to rates, in the I to volumes customer opportunity front as of think than So at Conversion And up. like that our funnel. rate, are question pipeline, of at record intentionally scores starting level. see what's ACV, well so to NPS and much pay going of rate free the there metrics customer or mix us. here. it can conversion we an like sat companies all-time think lot adoption companies. continue are funnel, around I businesses of that large-sized our in grow. was and departments would and midsized a grow is expansion grow

really sort we're all to is is ensure team sales It growing growing take board. global And -- times it that arising. terms So in of really to team, yes, the demand. aggressively of sales advantage the of coverage then across the

Christopher Farinacci

add may to that I if And well. on as

the is X we In play from differentiators. what AHA moment, terms of the hear customers back

is to adopt, Asana personal designed productivity. and easy first, it's to So maximize

sort sort And their or if practice, teams we to see often viral of means self-serve, give then And the in light of adoption. to that green that it's organic so they deploy. teams to easy allow

teamwork. the is best Asana cross for platform The is second

those then sort and able platform teams do consolidation of cross-functional by in favored when feel by end And the of or so we're choice often we conversations, well goals the and because a lot to up the work And to teams we're just third the really them constituents different strategy we're those work. connects is all the together. underlying that execution most and

the going overviews makers. be executives helps but for it's for decision the that these everyone, are provide leaders and senior to also that clarity So powerful creating

more they experience of it their to more that a and they And power, so they when get organization. want in it of want chance

Unidentified Analyst

work then your of more, overdrive, most organic up? be continue scale of forward innovation you, not What capabilities versus video terms looks most the Would an calendar. from Understood. which try your about a Dustin, thought one is automation it productivity wanted lot features? And products The engine or as these into announcing be process the lead -- just because customer news that you. could or from a you're of I inorganic going base? don't excited new to I what's approach you the upsell of for children, maybe product innovation that And your all in for perspective from want then functionalities to tools, but to you're impactful you pick I'm smart or new It's say new product. company the capabilities amount ask messaging, to of your on to

Dustin Moskovitz

Yes.

The first ways couple of question, answering of that. a

holistic really product single important to it's one, to experience. us So a have

a sometimes that And that can of customer part deliver experience be sort integrate. I the of of a having think all actually think we products Asana feature unrelated we them a advancing product. presents much sets as by single is suite better

have I organic strong product with So we great as that you means we towards described pretty said, to think building organizations. other opportunities bias what a That in-house. partner often have so innovation,

basically the that video a mentioned technology. messaging label capability is white you So

the integration, have UI. calendar be products, our integrating -- that The build somebody just a it great into it, UI of experience. partners nature, customize it powerful and of to experiences to also really the more week enabling we're and our So to within and is more them allowing actually we're part else be video built we're talking next about

get Yes. So I think that's of the the mentioned. more leverage we you way inorganic that

about asked the choose will drive for the especially additional the it's what's my ones part to of hard in children. the leverage in enterprise most But You of business. terms business. exciting Yes, I the that most, think

customers we Galleries set within we towards help And we're new around that the of for for is businesses. investment and in And in platform. it's So going adoption enterprise with launch, then QX, lot our team workflow really that's like unveiling think better to of going have existing for of store, a well And sort the a of app customers announcements to lot to new QX, product it's workflows. but an support enticing as particular this year a do our that use driving platform the cases. as because our

Operator

question Stan comes the Slaski Stanley. Your from next Morgan line from of

Unidentified Analyst

Dunn is Stan. for Melissa This on

net on to the one first back I was going rate. question your retention The wanted to ask

necessarily quarter. Or new purely seen expansion retention a if dynamic net the there expansion the that of momentum of is bit just business in quarter or finer calculation? rate retention to maybe momentum the any a put trends you net to XXX% the lags a in that hoping nature the XX-month the curious that the the was in And reason saw where way? the that didn't translate So and on point

Dustin Moskovitz

combination larger a the talked on One, it's or end second towards It's some the the about then And is the Melissa. expansion that both, of of calculation. call, highlighted quarter. we they generally Yes. happen the of the

effect period quarter. within don't the short same over you the So see that

So kind we essentially pick quarter. would in up benefit subsequent that of

Unidentified Analyst

more around been commentary that And trends adoption quick a sense. makes That you've Okay. positive seeing. clarification on the your

the greater land cohort XXXX I about were you greater or you referencing more customers, adoption? the better when of think expands for recent talked

Dustin Moskovitz

Yes. We're entire really across our funnel. It's really seeing both. strength

as we So -- as successfully. growth. in seeing expand they then successfully talked first adopting days more in And translates always We're adopt demand XXX retain about later and and customers cycle to topic the well more that continue life their to better. XX

really complete that So it's picture.

Okay. helpful. And really That's on the congrats quarter.

Operator

Dasari from the of comes Andrew from question Berenberg. line next Your

Andrew DeGasperi

channel I had that on launched. recently the partner one program was

elaborate Just bit exactly consist partners they And curious terms that. follow-up a have? that in the I they maybe to of? on What's international have know breadth you what if can a of do

Christopher Farinacci

Yes.

this So Chris. is

building really of the at focus beyond It's more years and X and of also in sort mentioned the we for the mentioned we as partner formally the strategic more launched year. So when last been this channel we've put call network. beginning something

moving channel geographic new we very traction We're in As enterprise-focused beginning now geographic guess, and that I focus or see an is the countries. channel I tend is in partner ways. then network perspective, One across coverage, to markets particular a XX we is our And coverage mix to from X perspective. mix markets are from targeted. And into. in think focus

In that's Asia, now like Munich offices quickly Paris, some and Singapore tend over So out partners segments things. we those either those field focused there there. where growing new in markets, from incremental from focusing Dublin, time. kinds on growing in of a in specifically and augment hub we the we and in in and and particular office markets maybe about particular have field and have up talked support cover growing in Sydney we And in in moving services new the markets existing coverage yet Europe, -- a Japan London, where of to our reps and/or where those and have we don't channel selling language markets, and in need hubs

Andrew DeGasperi

financials released rise? Asana? expansion, referral to financial set something just should a peers expect expect fees. I that Should included that one similar of know cost of that customer And terms some acquisitions to we recently we of from your in

Dustin Moskovitz

Not short in term. the

I think now still for us. like we said, stages it's right early

Operator

Pat comes from of Walravens question from the line Securities. Our last JMP

Patrick Walravens

things not so for but this for What year, year. here. for your time, Great. many going Dustin, you ask all right top strategic imperatives with can I are X this

Dustin Moskovitz

Yes, a question. absolutely. It's great

the first is to differentiated vision delivering really product, the So the customers. product

the QX workflow week. productivity and So news Universal in that's then, again, enterprise the platform on This the set combination doing that that we enterprise reporting got a in flow launch. next focus to features week, the second everything is strategic of the of think, gallery number then whole the serve And be of I better to package QX, customers. has one. things, personal And really imperative can

launch, that, too, a strength a including, customer seen global there. in And a is again, focus that product ecosystem. lot scaling of expansion. that partner means lot in we've road map, our and QX And of also and of investing So investing sales our applications but a teams, of the lot success on

of a languages into So we XX total translating Asana we're that mentioned this year.

about We iterate all us that and team, part then third helping sort And really the also the in of the more That's of is to scaling well. X, it sales of scaling culture and a opened and thoughtfully larger Paris global headcount get relates the we're hiring making work up especially reach. course. Singapore evolve offices. But and that as deal and other the our R&D to able sure to with

execution and product the So and reach the then really, product, customers on helping it's the delivering larger customers delivering our team. especially with internal and scaling

Operator

questions Catherine. no turn at time. I back are this There further call over to the

Catherine Buan

have Thank course, any reach and me look you everyone, appreciate your the always, questions, can of today. call and the time. this we We And follow-up forward out and to you Thank as joining seeing Great. if team, on you, us summer. really you road for you.

Operator

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

You now may disconnect.

Asana (ASAN) 4 Jun 212021 Q1 Earnings call transcript