ASAN - Earnings call transcript Q2 2022

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Operator

Good day and thank you for standing by. Welcome to the Asana Second Quarter Fiscal Year 2022 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Catherine Buan.

Catherine Buan

Good afternoon and thank you for joining us on today’s conference call to discuss the financial results for Asana’s second quarter fiscal 2022. With me on today’s call are Dustin Moskovitz, Asana’s Co-Founder and CEO; Tim Wan, the company’s Chief Financial Officer; Chris Farinacci, the company’s outgoing Chief Operating Officer and Head of Business; and the company’s incoming Chief Operating Officer and Head of Business, Anne Raimondi. statements forward-looking Private to of opportunities. Securities but limited include provisions Safe XXXX, will outlook, not the financial of Litigation to, call statements and the pursuant Harbor including market Today’s position our growth regarding Reform Act

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

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

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

Dustin Moskovitz

significant call revenues, dollar-based another acceleration. QX. a accelerating $XX.X today. This Thank you, accelerated XX% third quarter of versus had earnings increased in growth XX Catherine points We and board. acceleration the rates the customer Revenues and net year-over-year, We our everyone of thank grew quarter and joining across enterprise is in you a very great retention row for percentage QX. million accelerated

$XXX revenue GAAP a now are run-rate. at We million

quarter, of XXX% year-over-year. putting strong grew new customers spending last our annualized of of $X,XXX customers basis, year customers number reflected customers spending There annualized increased to spending pace growth. XXX%. continuing over or million drivers paying acceleration for full an to our the over over The basis $XX,XXX increased and grew an customers an customers, range the XXX% more our rest net or or guidance cohorts. XX% across our dollar-based over number on year, represents enterprise XX% retention on representing for all customer annualized over outlook more our the to overall several XX% $X,XXX spending on are in annualized customers for XXX% on $XXX net net and an over X% added from QX by rate over We for $XXX we for a the XX% increased million, dollar-based are year-over-year, to growth of which raising year. more XXX,XXX. basis guidance rate revenues business. on and retention basis, $XX,XXX increased of For total our XX% Based It X,XXX an largest the

First, are customers everywhere. Asana adopting

our customer around top volume, rapid within base. globe, seeing of record are demand and We expansions funnel the

seeing the we’re in Second, momentum continued enterprise.

and seats We’re larger geographies across deals and large departments expanding in closing organizations. quickly

strategy customer The Our investments unique this expansions paying Graph our model. in are our of and data is value off, This the largest recognizing Work the beginning. Graph over our the base. is and customers and the in are Work the increasing $XX,XXX reflected growth just scalability in cohort product and

is good Third, better has customer or it adoption ever and retention been. as than

adoption experiences centered right customer with great and and which customers the build human to design is experience principles away, help Asana best our version focus Our of drives revenue.

we’ve seen are NPS our result, the a scores highest date. to As

are record levels. at metrics are rates strong and adoption Our our retention

has messages, meetings our are of driver as a after survey this and Anatomy biggest clarity and that productivity. annual bandwidth Work, months, called too are video the under A we calls entirely to circumstances. the probably over difficult According past barriers key many fluid. hit one-fourth emails, is the history. of aware, meant employee limited deadlines to has missed. in changes, be The needed the the delays workloads year is wide by caused organizational to successfully for situation XX And enterprises, of of normal revenue the are inability up workplace on processes. achieve Large a to surprising currently experiencing of everyone profitability. new an is increased one and the significant transformations of resources, to As particular, It Even drain level. moment well challenge remains can in that lack unclear reality clarity can add in pivot

pains evolved, to While by for have Asana’s with of constant. remained root teams around us the to all, these together has been have help Through work causes a it thrive their enabling world’s long types mission time. the effortlessly humanity symptoms

to companies Asana help product to path the as strong. year, Work reach Partners, products shift uniquely we the along featured goals be to Our over XXX which equipped that Graph, way. continues to announced are our the and first partners, technology roadmap And we languages. and find needed new their give Network, best with to clarity executives. Channel X half Asana individuals, In We and the teams build of Partner the

languages the globe. is people spoken now in by XX X.X across Asana available billion

also integration. deep integration include calendar These supercharged My I partnership Clockwise entire focus help flow. real-time giving Vimeo, the am June, designed progress and to individuals across Reporting, actionable Tasks, with app a the Zoom. desktop our In new with messaging features Universal added in about of Asana insights launched suite greater smart into enabled by organization Graph. the team’s our we excited also achieve video assistant We Work and

and can create join Zoom it Asana new meeting from inside a You task. right an

items everyone recording meeting actioned. can record needs can has Asana so the Once don’t so owners, teams over, Zoom of to in added action and what While and be transcript get quickly Asana discussed an items lost. action assigned a what task, to the to details is and and be create was

large for we’ll suite a Zoom October clear leads event of better to meetings to new at with features actionable And unveiling to and XX, called enterprise entirely fiscal the next departments our be track take our launch we geographies agendas workflows our their to end organizations new of orchestrate goals. help finally, steps. year. at and achieve Asana across On on remain work Scale, on

to world’s by that is requires reporting Stock on sheet Before to long-term our we work to ESG it the Enabling Relations consolidated fact our an on Long-Term that, Chris, our effortlessly highlight In providing strategies. over first to towards listed website. ESG with mission also I hand I launched want step was and the commitment teams a week together first conjunction officially Asana Investor expansive Exchange. last

partners We’re structures our clarity and transparency that such long-term the continuing offers. common on values. and With align as strategies these build reporting, product to with LTSE the ESG our we endeavor with to to same execute provide

expanding our in committed year. to are We reporting coming the

can information the You Investor on more about find this Relations website.

we’ve list’s to fifth Fortune as for the now, Lastly, Great proud hand Small it Chris. off Work the in Best And of for XXXX, marking XX been Places recognized by to I the one am Asana that top and I ranking. will year and highlight Medium to Workplaces

Chris Farinacci

growth revenue accelerated Dustin. year-on-year QX. Thanks, to again in We XX%

include the Some the highlights business performance quarter’s following. from

over growth another now this strong XXX,XXX new customers. quarter, posted and again we customer paying net adding X,XXX First, have customers, we

top continue We record of growth. funnel see to

rollout XX language in now additional the completed for total. languages the also year have and We

we existing or increased rate paying larger strong particularly Second, customers. off our investments us base, And to or we number see third, annually customer with The expansion quarter. over retention continue more The spending customers to XXX momentum. enterprise in the annually within $XX,XXX our spending seeing $XX,XXX are net our with customers in XXX%. driving for XXX% continued grew enterprise, more of

resonating proposition customers. our with is clearly value Our

ability IDC value and fact, ultimately, customer value business customer Participants and to the productivity, and has the on-time independent the on the impact more work higher employee Asana reported an and an recently released In focus substantial higher on more study satisfaction. delivery. higher Asana, that effectiveness of work research in of demonstrates study organization’s

investment; by our Last on shared Some of customer largest expanded the what of larger to XX,XXX processes. customers XX% validates study e-mails; seats. study we the existing X-year IDC execution The XX% know. spent our highlights time and less business deployment return some recent IDC faster XXX% quarter, on include: already from of

quarter, XX we customer their Work deployment the that scalability with entertainment enables saw quarter, more some enterprises illustrates this wins media We and further company some This Fortune expand ViacomCBS. spectacular shows another had the seats. This our of biggest including to in and is than world. Graph conglomerate resonating XX,XXX the mass the proposition value

the undergoing in Asana the provider the from highlights eighth a in expanded service customer IT Additional Founded quarter world, following: largest they’re Fujitsu, XXXX, in digital their company-wide use transformation. of the QX. include

and business planning faster. business marketing, designers, they working into more to processes office, transformation the systems across cross-functional used decisions and being visibility teams is execute clarity can Asana project and make their business so gain

Just Eat a marketplace, Takeaway, work QX employees solution the in Asana online Asana’s multiyear in enables global with agreement manage food enterprise platform. has expanded that to the a their use leading delivery all of

their network, recent global being Asana operations, marketing of building client their and logistics services is leveraged acquisitions. across heavily out campaigns, streamlining integrations

their platform strategic a a company elevating the them chain, delivers to their campaigns help data Just is Expanding brand rapidly they drive of around management deploying customer marketing because software chose Asana objectives could experience. that globe. forward: that Cohesity Eat next-generation needed and thousands businesses supply

management, of them their their drive the work streams wins. to QX, organization just them happening real-time across Cohesity to platform their and sizes coordinate the company platform you It’s as provide our and industries can work customer solution. focused leadership and their work organizations and help of processes. scale. across all alignment customer management they IT, to to used to a increase Just In regions standardize teams few and transparency data chose our across clarity Asana best Asana’s turned determined are enterprise and help and teams. adopting see, on productivity, simplifying simplify Cohesity into These engineering, heavily success are on Asana work was efficiencies across as QX organizations. is operations, But their marketing, operational to now increase

and forward X and half momentum. business customer look growth our of the major new year the expanding customers; existing focus enterprise our we’re base; beyond, continuing maintaining we drivers: on our As to to second acquiring

saw is the As working for we the us. results, from playbook

adoption and Going forward, all it’s scale. about

that, with Tim of to We’re I And go results. journey. will just this beginning over financial to the it through turn our at

Tim Wan

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

to board. great paying up QX another revenue QX. accelerated strong the with excited XXX,XXX results represents now quarter very million, year-over-year. year-over-year over of at $XX.X customers growth We the end quarter to are a XX% This have increase. across another We report XX%

or customers more larger We and growth even to $X,XXX year-over-year, XX,XXX We XX% again up XXX% now an our basis, an $XX,XXX stronger. basis, on or customers in have XXX annualized year-over-year. quarter is spending have this more annualized spending on accelerated which customers

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

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

a reminder, rate more, dollar-based net or $X,XXX increased net or is net X-quarter over increased retention calculation. a rate rate As average dollar-based retention XXX%. $XX,XXX trailing over our among customers retention spending our XXX%. our spending And dollar-based to to customers more, Among

my in expense development would XX% of million or came be remarks. discussing non-GAAP results the ago to point revenue. $XX.X to items turning Before I will the out Research up I Gross from in year of margins and quarter. XX%, in that at was the like profitability, balance XX% and

loss our I quarter. we of million, increase shares our loss was a was to million motion. per at an innovation or $XX.X million million. of converted was heavily debt $XX.X of fuel the resulted outstanding velocity. in share was margin Net continue This note revenue, invest loss self-serve $XX.X high and We million will $X.XX. or our was was Operating XX%. both operating direct revenue. loss sales Sales our reflecting XX% marketing the XX% and convertible investment XX in in that G&A during to $XX.X and and outstanding

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

Our XXX% up prior RPO $XXX.X from year. is million,

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

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

to ‘XX, year XX% for to $XX year moving million, QX $XX revenues Now million fiscal of to fiscal our ‘XX of XX% we representing and expect rates outlook, year-over-year. growth

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

year representing a XX% raising to to the be expect fiscal guidance now Looking in revenue million $XXX our out of to $XXX full million, range ‘XX, the are growth previous year-over-year. we XX% rate of to and

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

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

to the questions, for to some over Dustin operator back for it turning I’ll additional it comments. turn Before

Dustin Moskovitz

Thanks, Tim.

executive announced us Head to as our have today our achieve joins the succeed very so you co-created Her customers couldn’t helping between and of may to of Asana and of she will contributions you thrilled building in throughout organization, the enterprise now team. success get operations be the rate growth thank of Raimondi as Board achieving Asana As rapid and years the been your great that we our this much well-earned to Anne two indispensable she’ll offerings continue on serving customer-centric seen, enjoying happier COO have be kind stage. growth, be Anne background accelerating tremendous that lead. missions. has Business. I have of cycles last all I’m for executives. us continuity After work be Anne has strategy that X as years, a the help helping on to of X of a new will their as Chris, Chris independent so two for retirement. to including all to we

Chris Farinacci

to to the date and has of and significant be XXXX, with their her for want more Anne customer support of we’ve the team. privilege our I’ve the during team X career Board. are course, the base, opportunities to understanding of my It time of the the Asana business. a Thanks, of to their everyone missions. The strategic I enabling And of, end on been amazing deep and to ahead proud couldn’t proud since has be Anne. we’re transition years our thinker baton built Asana the X thank who things be two incredibly very here year. I’m the is the Dustin. the world-class over Asana success spend a fiscal ensure time past smooth more on member to closely I’m a pass worked the years of company. I’ll excited Anne I a and the company’s to over in growth most until last for

Anne Raimondi

joining leadership team, this incredible executive customer opportunity business team, a an working, continue and I’m remarkable is for and and as clearly and Thanks a was idea of myself team, opportunity. the so very had honored helped build is and member, we to and been and me strategy what Chris’ chance approached Dustin Board momentum. Asana my a The excited the scale of at business and see and part I When the has Chris about goal have. us Having fast-growing Chris thrilled. much, a first I’ve Dustin. the to

over and is It’s issue few years, is the CEOs pervasive and all C-suite across conversations the in last the market Asana top problems enormous. one of addressing most high organizations. the leaders with been

adoption am to beginning going October, our in momentum, you hosting especially event already just at curve is look of enterprise all I and there are be and seeing the Asana. to tremendous We forward I the at there. of

Catherine Buan

And we Thanks, will questions. that, it with Wonderful. operator, turn everyone. to over

Operator

question first Piper with Our go Brent Instructions] [Operator Sandler. ahead. Bracelin from comes Please

Brent Bracelin

has more taking afternoon been thanks deployed we for Historically, Asana Good as departmental with here. and questions will the solution. maybe a you. Dustin, of start

I the is pace I here of think what enterprise interesting expansions. find

at of Fujitsu. kind deployments Just seeing Eat, You’re broader Cohesity,

enterprise resonating other the wall? most adoption hybrid here, here it the that XX. You work wall Is seat a to go broader question are Why are My see much to reasons you’re why with Fortune XX,XXX talked what’s Thanks. Or now? there customers starting about here? to at deployment reality? looking

Dustin Moskovitz

accentuated think creating I Well, really, by things alignment from more and work term we’re that and we’re and customers home need those pandemic brought have But part solving. of existing the I strategy then But pain deliver that really think smaller solving be really in able are the in certainly, their and longer have awareness and space they clarity enterprise seeing success a within the to much are the preexists pay momentum clarity quickly. the COVID problems organizations. and for trends. The deployments. expand of years. for to problem to at lot the that They seeing might are customer these And creating off on and great own that the product our wanting the generating our for success what really that is replicate company is deployments seeing many workflows and they

anything Chris? you to want So add,

Chris Farinacci

just Maybe customer examples of add sort customer to couple the a perspective. give you I’ll more just Yes.

So really remarks, Cohesity and and their to simplify processes get my company-wide and they about projects Eat clarity in I Cohesity transparency talked could needed and streamline at prepared Just so scale.

the use expanded their Enterprise that. standard Asana to tool So as do of they

to really and typical, case to quarter work – across interesting countries and Asana move needs, a a with I they all sustain use this or quickly. lot support a And of rapidly fastest-growing that’s delivery is their cross-functional Europe. to for a this sort killer use faster that’s growth Another their mention X-year did for grocery we Gorillas. that case to into sweet – any company drive cities expanding is in the services rapid new didn’t the one ELA think previous scaling and seeing is we And of I Gorillas really rapid spot the standard projects creating case growth. quarter, for They a their unicorn prior And use launches like their past I and processes and kind broad business. think a of in coordinate them remarks wall-to-wall German the and any are processes is adoption. pretty are launching Asana

Brent Bracelin

than faster happening see. Great certainly Well, have you. I Thank would expected. to

Operator

question KeyBanc. Enders next with is Steve Your from

Steve Enders

question the taking teams any saw seats and kind Thanks retention driving in between new expand people about more quicker? drive to change environment of Hi, I more is the net I wanted in here. I your great. demand that. there is a that that’s bringing kind Is of the something just Or and for reps just expansion that there? get activity customer broadly, want planned success are here. touch that for guess you to what’s better the And sense beginning your upsells? on the expanding to it something quarter this some of to about mix

Tim Wan

thanks. Hi, Tim. this Steve, is

say it’s would adoption a a standpoint, we’re cohort seeing on twofold. increased a and from think definitely we’re cohort metric improved I I basis, seeing on expansion basis.

terms over of net have of helped really both quarter. – the kind those rate this expansion of over past So, last improving the in

really by the the encouraged So going And right the trends direction. are results. we’re all in

Chris Farinacci

now – is growing. Tim on what business like just I top imperative is add, right might might I this mean, of said, just add I Chris. Yes. the

the their for and preparing they want to where capabilities no now matter are. work normal, are new coordinate employees organizations So

investments And some the and year, in you of, are adoption made the rising. growth going bottoms-up that sort lot we’re we’re we adoption So also as terms well. think for And starting And to see strong related of is I seeing mix. the of of really And over just support of, product customer seat it ACV fruits that. this to seeing the growth the really of that up, it’s product. but mentioned success balanced really we to bear last and need in a

Steve Enders

video across great That’s introduced in of the are you Reporting to-date? far And seeing new and functionality, some I some hear. within curve adoption Universal Okay. so how you’ve of messaging the customer the of on guess, base to kind quarter that of just the new the that products

Dustin Moskovitz

a seen of around We’ve especially excitement, Yes. lot Reporting. Universal

hearing feedback large we’re And some conversations. So we are dashboards of just of into sales customers past also and in our prospect of stats we from weeks. our of in are few that largest the lot back-to-sales a are each created the excited And on actually being a coming see It’s shared. when diving calls. them, in team customers, they up number hundreds

Steve Enders

my for questions. I think, Thanks great. taking

Operator

next is Jefferies. from Thill question Your with Brent

Brent Thill

and a just X scale of in Dustin, today, curious, can maybe understand the afternoon. I just the these to thing color enterprise you’re networks. over the I’m and building of back know just provide scale that that’s how more a you you and next starting out you Good of to large think have terms out where about deployments about deployments, large reach complexity you better building some larger deployments to little X think seat when us about years? help

Dustin Moskovitz

Yes.

So of it’s variety a really things.

really a excited XX Both XX,XXX the companies. and what announced of – that’s XX,XXX of are deployment. seat Fortune deployment top those with the seat we last on quarter about We’re

we’re do are the to to it’s we’re additionally, starting at an to wall-to-wall range, in of then they parts or entire number division of of see, divisions. we of, thousands. customers see with when the that more, a are that other of see And starting that more multiple customers seats have scale, many And examples thousands also We and sort maybe in tend deployment. – are

adopt seeing all management for Asana their across really of employees. work customers So

are aligned the model able of data magic both to Asana start the really And workflows of and Gorillas to where So cross-functional leverage for sort about you with organization. that’s have of Cohesity everyone the we’ve deploying truth. in throughout source when to see unique about engage Work Graph a really who excited flexibility around the they that shared been talking recently, customers and

part? Was the of covered that a second first think question. part there your I

Brent Thill

think quarter you’ve coming need XX% midpoint we at Maybe know that something next think next comps said there specific the and there highest billings quarters. that up? we just off to you investors just XX% but a us for in of for five just to I is into many growth asking coming you’re guide quarter, always think billings, don’t I it. Tim, look are then be been big how something that relative lapping an Is what about would anomaly? curious should to to is pushing? you’re through the Or these might frame guide putting you’ve there Just

Tim Wan

Yes.

I would we us. essentially, off, a a are think monthly first more or revenue half a – comp the easy coming of third SKU. our I bit we say, about that’s were base And still have the on even of for customer still

So and enterprise so the that like the necessarily the substantial the the the our we’re on and momentum – growth. by not both of billings larger. we’re best contracts having growth, really indicator calculated but side, that of encouraged that’s strong really are deals growing seeing really RPO billings getting is indicative And

with doing even multiyear us. are customers Some deals

So those enterprise all are think I side the of the side around really business. encouraging

Brent Thill

Great. Thank you.

Operator

Your RBC Markets. Jaluria next is with from question Capital Rishi

Unidentified Analyst

market the talent Rishi. is and for capacity. you you revising to Hi, maybe and for And about just sales I Nice accelerating acquisition the the in on line then continued competitive capacity sales expectations This in talk are talk revenue, [indiscernible] can quota-carrying quarter your more about line. hires? thanks. Thanks. the broadly, outperformance had If leverage think you kind sales marketing see on for top of on Thanks the taking about question.

Dustin Moskovitz

of Yes. say and we’ve I and – the really the sales been the us. all would the we’re by sales hired, sales that performance that’s reps team encouraged with

continues think any much the But are kind we’re time. is I be a changes thoughtful in are the and of more The over We’re conversations strong. period types that the complex deals demand becoming strategic market now. right more of longer and not seeing making what to of being

So just What encouraging do I think, those like signs. you think are really Chris? all

Chris Farinacci

Yes. just color have Maybe we and some more sales on hiring. capacity

big ensure differentiation, go-to-market the States. to how we’re global how to our growing world the demand. of tech. in beyond for op around teams would and to And real bit the the sales coverage untapped a to the us strength aggressively serve attract keep this I office new as that’s us helping we’re new growing thing talent year opportunity One quickly. So and add United then that best demand help opening a is to is other hiring on we’re as news Chicago work that it’s places And and fast the and seeing one we is we’re see market in of the

Unidentified Analyst

That’s one implies of of it on guidance, about just Can it. the helpful. year guidance XQ then a deceleration Got more for full implied kind like your looks a assumptions – us bit And there. on you talk guide?

Dustin Moskovitz

ACV, seat in would kind momentum to the million $XX increased we’ve on really and as encouraged we’ve are business, – think I What growth ASP seeing say seen momentum business. the of the I we’re encouraged already of as well the in guidance by that and by kind of growth growth. the both the top is we really the customer funnel,

Unidentified Analyst

the on quarter. Perfect. Thanks everyone and congrats

Dustin Moskovitz

Thanks.

Operator

with Your next question is from JMP. Pat Walravens

Pat Walravens

to see. my you. Thank let really congratulations. is me remarkable momentum And The Great. add

that, on the about And you a the taking space what the to talk about right you took role, to senior sort priority love to the heard. job. what’s and guessing executives am to that opportunity of then congratulations Anne, of now? one I And related Asana know your So before number maybe I new would bunch

Anne Raimondi

of of year, executives, an I’ve things and the over top importance really that Thanks have their environment And such change last right, uncertainty so the especially doing knowing be of rapid the for to so to has solve. much, who’s had here. when conversations you’re to I’m – and excited the in boiled clarity list Pat. they of what by

continue strategy, really we Board so the in spent the priorities strength my X the that having are of team. to team last the invest to and momentum years on the And just and and the the Asana seeing have incredible

Pat Walravens

And you that? do how Okay. do

Anne Raimondi

marketing teams we are the we Well, people in Chris sure in ramping and every had best are continuing as to that geography. and bringing sales so make mentioned, our

our been with have the with impressed progress We really GM.

large continuing key we that that’s that top about that those for a priority. successful our priorities all are I to And think been then are adoption, have make sure and fueling talking So, deployments of us. really

Pat Walravens

Alright. Awesome. again. Congratulations

Anne Raimondi

Thank you.

Operator

Your next Research. Wolfe question with Alex from is Zukin

Alex Zukin

traction Congrats I seeing great anybody, fairly – the They same quarter. you at But in guys. history. from questions Clearly, two great in the for net half. also the are maybe maybe parts. the in enterprise time, strongest customers. Hi exceptional are are another guess adds on your your first the existing

think how of how of beyond? first, pace how existing the adds as these bookings trend half bookings and versus within much if at in the maybe you we net you And we the thinking opportunities you – your get about new of kind second how forward about about mix, of base? does the should larger or thinking So, are are from look split that And some customers? also,

Tim Wan

Yes. Hey is this Alex, Tim.

I there from Just net is always perspective, think obviously, be of a to kind quarterly adds going fluctuations. some

business mentioned Europe on QX, I our may think that a little outside August, I XX% the call U.S. of And is before is slower. this generally in it have in bit

net to I we perspective. in a a little But look customer of terms kind year-over-year. can our base on XX% growing of bit if over from Europe between long-term, of think our customer you of basis, a month XX% slower anywhere the kind at you expect add been a So, customer have adds

would is towards from increases. seen generally, on focused a really those bookings trend continue it’s get tend XX% that’s between as I But to anywhere as trend, of see more we drive. we the us customers as larger spend move think And from it’s expansion for and are their trend deals. to more say then of we more from and to get they you shifting add rates that adopt we because continue all more adopted, have I XXX%, would as I we XX%. And expansion new say, up over and what perspective, sizes, net to want a once are bookings, know our existing that XX% new important is to XX% seeing rate, teams teams we anywhere to customer then to So, from expansion that like

Alex Zukin

Perfect.

Operator

from with And Berenberg. DeGasperi is your next question Andrew

Andrew DeGasperi

Yes. taking question. Thanks for my

the on you international. guess, mix I I U.S. outside the know First, addressed

is So, earlier launched year. how You program channel trending? plan just wondering, I was expansion have this that that

how you on an if maybe could us elaborate going? Just and provide update on that’s that

Chris Farinacci

for Okay. is Hey, Thanks your Chris. question. this

we So, see The we growth the markets global hasn’t the regional strong that split on across side, really changed much. focus too in.

so is Zoom in languages, clearly, the all are they of And markets. Asana that available will a live growth in now drive lot XX now.

big traction with way. seeing wins continued they the in and expansions combined integration the is like on embedded Asana workers a technology partners, really we the one we the announced on investment over talked sort across mentioned And two X languages really that really with net areas synchronous were and integration were And quarter are technology or things early focus think to side, the focused there; big us – engaging and channel new an TAM our billion regions We and the good we across I and enables new video Vimeo, of – quarter wins regions. for the status to that updates with about messaging spread couple there, this note. of information worldwide. bring the this the

channel other regions, The really to also their brings grow about and are store. structure side partnership we did to continues It when seeing Zoom accountability the there. a feature fast-growing And we the deep I Zoom integration partner. they is And customer actually the launched And growing with app is excited program and in am meetings. quickly. a on the

enterprise fruit. is It’s across a It’s not business. a material of one yet part deals but particular channel it’s the seeing our in growing of largest part business, definitely XX channel QX traction from example, network The important India. countries. and our closed are like And channel focused partners. our bearing an in of We we as

Andrew DeGasperi

multi-year I helpful. just agreements should am then expand seeing last so more as through the speak? wondering, maybe deferred up quarters. inching And That’s you we non-current few up-market, seeing coming the to over on be I – was

Chris Farinacci

Yes.

being a engaging companies in usage, So, XX That Global tool large eat Maybe that to with do two with We used global use employee on work for with of structure well. driven X-year common tiered all were earnings. more that rapid It’s better Dustin more. the I We things. some that mentioned give ELAs by talked we of ELA. production, we ELAs as really that’s planning, talked deals scales more. X-year including the as are or or work. by pricing ELAs and hundreds top was that’s mentioned roadmap contracts – campaigns, larger on multi-year you number of to about I typically sorts recruiting, coordinate seat those about, customers ELAs. new demand examples adoption, so the and And and all enterprises you for of X-year are a numbers. of a And forever of customer more one some more other don’t We content hire color marketing cases, can little can a of

So we as yes, up-market. common more that’s becoming move

Andrew DeGasperi

Thank you.

Operator

Morgan from Our Stanley. Keith Weiss next with is question

Keith Weiss

kind there. guys And the One, sort first on number Excellent. up go-to-market? added I you, Thank in investment or to Is any a overall demand that this outstanding seen know, up of expanded this go-to-market to change that account congratulations seems talking just some have that XX,XXX year that’s Tim, are and is in you these two, increase from an pent-up channels, It a there want guys release the really does market count really allow over. on traditional, that. opened little quarter solutions. the increase? Catherine from what really you I comps, in you your outstanding quarter, guys dig you for wary you easier of, and question about prove on period. that a you but coming spreadsheet last we to sent extending hot type from well. of customer in right across like right the come much. for Anything of really that how guys Two solely then quickly in questions an about far last ago more year, customer the are for that of I think as going the is now was XXX% at looking competitors of nice and types half fiscal bit lot for good a results came we in am trends demand should be very within too time terms this of to into this a over or to bit strength of marketplace? the these do That’s X,XXX future, of Thank durable year. really from number. that taking little

Tim Wan

was Yes, make question? was What heard sure. correctly. That I want make a lot. first got. to I I I that to sure want the sure

Keith Weiss

significant more grow was question Any distribution, distribution. so count first the that enables changes to about So, customer that in much.

Tim Wan

Yes.

working top our I mean strategy funnel So, is of well. really

mentioned, we product-led thing of in your is new funnel recently have growth approach. that’s of sort to or a paid top The demand. languages. we It’s record new net As organic blended those incremental question

new new driving new are So, new those Asana and are opening new it. definitely expanding, markets in languages where are seeing terms those those in of customer growth markets, up in languages and we logos

Dustin Moskovitz

as be Yes. I thing. see I demand a would add really to that straight-forward, it pent-up just just don’t

our product it’s and maturing. category think more maturing offering I about the

and this is So, proposition resonating, just the is the really beginning. value really

in greater not be deals new also think way the new are there of deals. landed framed than big expansion. I a just more first and customers note, lot the in to I would is you all our lot future that more So, the segment a X,XXX going question,

the Some across that them of as smaller than part moved and model. are our ones land-and-expand of that line started

all think needs serving event And these Enterprise a October called Scale, momentum. so that just the to we segment. we event in hosting I about an really are be are of going that the customers building reiterate And just to take want moment the to XXth, larger I on on is that

scale, So, a unveil I is a to align help automate really mentioned teams, hosting work some going to of large enterprises we the this security segment. going little platform team be teamwork, CIOs business insights, she with going executives to well product have And more suite will that demoing are global workflow fluid and new teams. earlier, have designed team for of Anne functionality cross about also is be their that to adapt and new innovations alignment, features to as are to help IT going our going that. flexibly and and environment. we talk that’s as to

all about that’s how we future. into the continue So, that growth

Keith Weiss

guys. much so you Thank Outstanding.

Operator

question next is with from Mark Murphy JPMorgan. Our

Matt Coss

any for Murphy. And which in lend best are do sales of themselves marketing afternoon. the that Coss lend and there activities, questions. conversion? and our sales seeing or Thanks you in Hi, good themselves, In areas the of Matt Mark taking This that is on to greater behalf ROI all might among spending think you are efficiency your areas near-term? marketing

Tim Wan

– Hey would channels of the are Matt, two There we say marketing. this more in that are when to and pour that more continued channels funnel of looked the last is our has back would that we time. more maintained mid-teens. money we channels and we acquire I the there has Even payback like thing were strong. sales top customers, the payback Tim. I And at quarters, our is been all test. and say efficient testing different in the obviously are we And at the looking really to our be – has that

sometimes they mid-teens a the payback over efficient, of on in time, and And unit less couple basis, our economics we to been blended those and the be the dial are has back continue last channels. But over quarters. strong,

we we marketing. and really the – that investments are sales on really confident So, feel about making the we

Dustin Moskovitz

larger better, have higher I faster, customers spending side leads of to answer. other $XX,XXX or would But is very sales for – the our really that And expand this those about they of sort and net our rates, dollar retain so acquisition-focused also XXX% just customers a add, expansion. much so and that’s more. retention

make and customers marketing our that sales successful, on directly And and them so support can efforts. more translates better efficiency those when we just to

Matt Coss

much. it. Thank very you Got

Operator

our Rob question, For with last Oliver Baird. have we

Rob Oliver

as my afternoon. Thank a two, questions. you have guys for you, taking Good Great. then for had follow-up I well. Dustin and I Chris. for one you

opportunities, seat larger just enterprise start into am cases, in these guys much much, break whole some So you to I as Dustin, companies. really curious,

in this prepared laid on framework your about guys around talked one teams of clarity and remarks, things. executives. individual pyramid was you product early those your of You And out and

deployments deals, the where you these the at suite benefiting larger are see clarity C-level, worker you that that level? up clarity guys some of assuming executive in So, at – starting operational and of had And is knowledge that just then one are you happening I of they driving follow-up. even of the know kind to that’s curious extend some we these as are involved to from Asana with to some of pyramid for

Dustin Moskovitz

but that always of pyramid product the executives perspective, And Particularly I with the of large at absolutely. top have clarity Yes, the the that’s a universal true. include going from to reporting we themselves, not goals. these all yes, senior really wall-to-wall, very in terms when think even leaders those of that’s use customers. And in portfolios about and resonating well been the when functionality,

success. our So, I big of that’s think a part

Rob Oliver

congrats but partner I and Thanks. had – on question well-deserved Chris, retirement, for great. just then And just Okay, before one you, the network. a on a

is You And bearing talked it fruit sounds response question. little to previous it in internationally. like a a bit it about

guys large and are guys that India these currently a now in in for couple assuming that much. and you And involved partners how next that you will there how maybe conceiving the deal being very see over channel are in lot channel some more in that’s that matter North whether of they evolving larger or talk partners mentioned with Can just countries internationally. with You you America you Anne? as you also well? the here Thank deployments guys of years, about

Chris Farinacci

and congratulations. Yes, the you sure. question, No, for great thank

would U.S., international. is different that in partner is channel bit than thing. the a are talked little about seeing really our and of yes, traction. a as have markets new the coverage lot say focus lot recently. a In of it we America I we in kind international, typically, is we strategic about where reps that North So don’t In reach more and and

folks a with it’s the Sometimes they where the about the of North what’s American of want team, also mind deals. and deployment sort coverage to and providing complement services services have to lot total don’t with and the on share side, it’s segments but the around customer, we driving with that’s new work

able in partners be on could So, the would with some share involvement I we you think in probably in we future, that expect these of to the will I of future. color add the deals,

Rob Oliver

It’s helpful. Thanks again.

Operator

I you. call the with to turn now that, Thank And back over Catherine will Buan.

Catherine Buan

are joining this again. Great. looking as reach have Thanks the over you, call us questions, forward everyone, feel very Zoom thank And road usual. you quarter. and free we today. to follow-up Thanks or operator, you Please for much, and any out to on if seeing

Operator

This call. today’s does conclude you conference Thank for your participation.

now disconnect. may You

Asana (ASAN) 2 Sep 212022 Q2 Earnings call transcript