Earnings call transcript Q1 2024

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Operator

Good afternoon, and thank you for joining the Asana First Quarter Fiscal Year '24 Earnings Call. My name is Kate, and I will be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end.

I would now like to pass the call over to our host, Catherine Buan, you may proceed.

Catherine Buan

Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Asana's first quarter fiscal year 2024. Chief call our Moskovitz, Head Chief and Wan, today's CEO; Co-Founder of on Tim Raimondi, Anne Operating our me are Asana's Dustin and Business; With Officer. Financial Officer and

free and include will strategic statements expectations financial statements, Today's cash market call our position, forward-looking flow, our opportunities. regarding including our for growth plans, outlook,

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

with the report actual filings and including our Quarterly Please on those Annual our refer may for results uncertainties, SEC most recent materially from on set Form Report cause to differ assumptions that risks, and forth XX-K to statements. additional in Form XX-Q information such

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

like I'd And with Dustin. over call to turn that, to the

Dustin Moskovitz

Thank on you you, Catherine, all today. and us the call thank for joining

point at good quarter. year-over-year. faster operating a and XX%, year-over-year, XX improvement grew QX first $XXX,XXX non-GAAP percentage had had customers Asana revenues grew over XX% margins a

to companies continues growth by of in strategic Our fueled most some world. largest the be the and

services, healthcare, financial across some our deals professional such closed industries as services. we expanded media, and In of and QX, logistics, largest

partnership how beginning and is We're had impact is really much possible deployment now the paid across largest at their excited about what's still seats. this and here. Our organization of this we've XXX,XXX

the of is deployment As work any from this largest collaborative provider. management we know, far as

Despite the Asana like. particularly next These rates as we what at partnerships to to strategic enterprises, partnering work about move critical in management, our I'll more budget work Our define which management be a scrutiny will are win talk with more moment. generation strong. customers of scale looks remain in

to We year-over-year. commitments an increase multiyear continue see in

QX, improving our on margins. In great made non-GAAP we progress operating

to expect year leadership. efficiency in productivity operating significant will to growth and year talk which continue as non-GAAP on this margin bringing and our momentum focus improving improvement this drive we sales we build start and been good It's playbook, enterprise on about We the to on operational enterprise focus on Tim a and more.

let topic. that is know opportunities, so I've I with start implications complex mind about short the everyone, intelligence as been that artificial personally as society. for me passionate to long-term top of the well and

top studying the the was Furthermore, that for advanced some through by risks of I, are and and Asana customers around my companies the fact, and partners. foundation we've years. wife In started AI been opportunities AI

as So broad. can both interest you involvement my and deep imagine level is and

core strengths. world's At teams recent Asana AI foundation enabling now with play developments ability to into building The our achieve AI together and effortlessly. features we've powering accelerate XX can of rapid in by past mission Asana's learning. thrive machine our the of recently and years, blocks for helping been to more some AI the humanity our our work significantly laying

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formally officially Starting your Asana announce today, With and AI Intelligence, efficiently. more to organization effectively joined Asana Intelligence. help work together I am has to pleased you

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support further list join. a to you for Asana To recommended projects team now surfaces efficiency, personalized of

actions. also We disable on enable or save from the shipped these console Asana where ability suggest in the on smart time repeat Admins and based have preferences. rules admin suggestions, Asana to rule to organizational capabilities automate

new we features In already also addition we've what in large closed-beta, model to powered language have shipped, by OpenAI.

Work language can each other, supercharging Graph now large move and even deeper an of faster offer we functionality. With models level even and the

Asana this built was for moment.

help outcomes, give drive make management. as Asana more and business that risks, for right Intelligence such automatic Our faster resource identify goals-based the vision to them people decisions and often, is recommendations

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together. Next, and we're productivity focusing improve helping on teams achieve more

will structure trying function Our on based you're assistant tailored achieve, to we build more give vision goal Today, items workflows, offer in beta Asana you and and tasks, all compose automated Multi-home that is to an where you action transcribe summarize plus to the that are threads. self-optimize to writing plan relevant industry. from common compelling responses. simplified and instant the meetings, help and clear summaries valuable suggestions

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to choice of on So and AI service faster our the than an its are rather important their goals side. effectively in context nearly the delivering and recommendations more customers include by how serve when We'll and with benefits them over missions continue your used. have on deliver achieve and helping goals to use assistant is control their real AI

purpose-driven Technology enable at from quote, capabilities business. New part Operations about York of Intelligence the The excited X, Benevity. the event vision to us and work of Day and said, incredibly We'll our months, our in fall Asana share unlock possibilities than in Asana's on at coming our in VP customer mission will ever, AI I'm our as including City. These I more us Investor allowing products efficiently Beta for to teams better powering participation Benevity that the of more about the will and fulfill October

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Anne. will Now turn it I to over

Anne Raimondi

make knowledge them. a us are Thanks, Dustin. AI our AI for and reality is impacting turning to to first customers help work

is AI more ever achieve their and roadmap efficiently becoming objective AI before. request capabilities and Asana quickly and is leverage meetings, Our executive our than to our top and goals to for for briefings faster intent a customer customers

efficiency tool. using already increase both Asana, to and complementary also We're own within our at our AI using own by product

this we've campaigns, timelines ad script process and accelerated a days. paid to and in significantly. generate have change weeks, This would creative production budget library multiple go-to-market using this few our AI markets voiceovers. our international taken Historically, takes voices been into languages and For has our reduced voices scaled one of it

used automated support now in to replies to our global We're hours more serve XX meaning now that about languages, instant. what also in AI be can customers supported send to quickly. using take addressed an can Customer customers

translation ahead to was is our even make of initiatives what and help have a teams and AI now and more assist cost our customers faster Our better effective. fraction it more we

headwinds our macro and Turning cycles business, to continue longer QX. to expansions in created impact the sales our

year of to stabilized. the news pockets fiscal similarities market see We that throughout expect good The XXXX. have is

we our demand and making remains example, and steady strengthen to progress enterprise build to continue remained We're high good in to on the For more quarter. Engagement first with and focus top-of-funnel bounding free-to-paid out our work product with do. our conversion capabilities. rate

of platform an or are at just across but systems system viewing for and Collaborative marketing Difficulty] need record chain. of decisions CEOs inflection moved entire the cross-functional cases, for HR all is telling they connecting are use work their have and work us or up management Customers their and CIOs point. organization. the of ops Asana work purchasing for not a [Technical

the point ability seat scale deployment that. of XXX,XXX to a for and Asana is top great a procurement strategic proof our makes committee Our for mind

continues differentiated this the and take is committee to can of product within buying the the Goals addition reaching of new Our levels traction next be functionality level. AI to and strategically

deals over many sectors. XX Our and define in deals Customers conversations. and are as our top XX% segment, we which and of employees, customers, organizations be are consolidation this involved anchoring to continue with is were our X,XXX non-tech multiyear on we in customer diversifying. further QX investments segment fastest-growing long-term enterprise

We're digital also some industries further opportunities in transformation, seeing AI. be now their seven-figure with as efforts accelerate accelerated may various which emerge

marketing, is with video, and their people across million over each XXX branding all legacy technology Media operations reaches Global HR that the company platforms Asana. worldwide social Forbes, teams of and across its digitizing month

In the that and editorial forbes.com operating workflows for Asana, with content their cross-team will We've trusting from appears easier transformation. than their towards to leader, Asana Maersk, automation their XXX and global help logistics scale. manual digital partnership operations away makes a more Asana to quarter, moving expanded print. enterprise in the team also newsroom, lead has last to this responsible now our manage quarter, in the end-to-end solution to all where on expanded upgraded that it countries,

their They've customers process, Maersk standardized kept warehouse and world around distribution set handle their onboarded in products. to up warehouses which and implementation the

cross-functional across Asana is used critical seven robust and data key to as project work into more coordinate and status, provides reporting timelines, teams and points, delivery manage such pathing. than

rate, As tech launch onboarding and service a across result, timelines and expansions reduce while expand diverse to are our on-time targeting we reducing the increase seeing to broadly the is continue in several industries industry. their Maersk as beyond we leadership costs

New New Asana platform as goods tech Balance, the best-in-class of marketing build to was their effort company customer strategic an team, at manufacturing to this leading their their the part quarter. a digital modernize technology is use consolidate as stack transformation operations used to sporting new by In selected Balance. they'll a global

over XXX collaboration team to day. a eliminate Managing needed tool gap. per centralized assets The

help team and the operating scale create team. their increase that processes adoption customization standard and global flexibility Asana's across

and Lastly, didn't signed OKRs into have new XXX-seat Navan, net everyone Asana. visibility status card will the give management they the strategic Asana deal something and app, recently of expense all-in-one with initiatives, travel before. super corporate a more

engineering, better customer product, work They rolling technology HR consolidate cross-functional as they management and their teams, their to out scale adoption investments, silos and will the and partnerships. marketing, Asana be across to service, facilitate of look eliminate operations,

services continued biotech success well. Asana is and only choose verticals for clear it's the enterprises. that financial and We're tech as to the healthcare industry in over continue seeing choice Asana As organizations competitors, the

talent the consolidating growth organized ARR A place. from extensive expanded and within hospital reducing million use with previously and now of their step to The $X have customer Asana acquisition Asana will are is which manage They another value digital and and using and company This customer. event for inaccuracies a healthcare and onboard now industry. information central a crucial scaling, transformation Asana's started in seeing expand employees community X,XXX and in to Asana healthcare physician their QX automating manual providers by new more usage we seen processes more by is at management.

to helped largest for preparing we've and for As intelligence platform see believe to leading you can in transformation digital we Asana customers. digitally pale transformation We new be of as this opportunity will dozens our comparison an change technology. transform revelation in are the to of already

multiyear seeing for serve and more In customers. more and continuing and our decisions, focus across better are our are more the enterprise deals, partnerships winning summary, them. enterprise vendor is to we strategic long-term that for to on success continued can industries. My looking year and These customers diversify with grow scale consolidation

our growth these of accounts. You from the see can efforts

Our grew strategic cohort accounts over a as year-over-year. XX%

pricing our partnering product and with roadmap on are them packaging. We and

with will are select customers Asana packaged accelerate that organizations. across usage We beta-testing and their strategic help some updates pricing

many generation from to accounts. Cisco, enterprise in We're enterprise growth. continue and improving We'll with creating leaders have new to playbook and accounts enablement customers. to upmarket place XXX,XXX serve more our to great scale repeatable plus our on we're success our initiatives capabilities lead strategy scalably customers accelerate targeted added sales who we've Enterprise quarter, become to a at initiatives and the experience Salesforce, Over DocuSign, improve customer

hand to with And Tim. I'll it that, over

Tim Wan

XX% year-over-year, Revenue the an QX of spending the grew annualized up or year-over-year. came XX% year-over-year, grew quarter. revenue. from in represented our of XX% ago revenue US our year more from cohort year-over-year. This XX% International $XXX.X in for Anne. customers revenue. XX% QX, XX% accounting total from you, basis at our on revenues $X,XXX million, XX% up for in Thank of grew Revenue accounting XX%

or more We an have $X,XXX customers basis. on spending XX,XXX annualized

Our fastest-growing cohort. our largest customers remain

XX% customers more XXX have We on this year-over-year. basis spending an $XXX,XXX at cohort and or annualized grew customer

customers we based a annualized cohort reminder, in these a GAAP given As on define revenues quarter.

retention but across lower net remained by dollar-based driven healthy expansion were and cohort. lower Our rates every downgrades

spending or rate or net was customers Our dollar-based among our net spending $XXX,XXX overall dollar-based over and over dollar-based customers retention was more, was retention XXX%, $X,XXX XXX%. our net rate retention rate Among XXX%. over more,

four retention a reminder, quarter average a net dollar-based our trailing As rate is calculation.

the we end see low we mindful the accounts, to dollar-based demonstrating stable in customers. our retention deliver for the remain rates to continue particularly overall our of the We near-term Companies of trend rates logo and net our value market. economic enterprise and overall expect churn lower largest lower, churn in challenges

million discussing was in of XX% at year revenue, related point in XX.X%. would remarks. to restructuring. non-GAAP or revenue, results million XX% and that my margins of turn in from the out and balance XX% I development $XX.X XX% improvement and profitability, items As expense of mind, Keep Research improvement I to stock-based million like a results and to ago. was $XX.X be a came from of Sales ago. or $XX.X was I'll non-GAAP compensation year G&A exclude one-time costs XX% an revenue. an or marketing Gross

margin ago. drive The improvement efficient Operating to in percentage point more loss operating operating million manage increased margin ability representing with XX%, margin and expenses a discipline. loss versus improvement our XX $XX.X a our operating demonstrates was growth was our and year

was loss net and Net million $XX.X loss was share our $X.XX. per

balance cash the flow, cash of marketable approximately million. onto the and and were securities Moving at end $XXX.X QX sheet

of remaining year or will next XX ago That RPO from Our was quarter. from the current recognized performance portion quarter. RPO XX% be the of months. million, XX% ago obligations up $XXX.X year the over RPO XX% grew

QX total deferred up ending XX% Our million, year-over-year. $XXX.X revenue was

from as margin million flow flow basis, software non-recurrent from negative an and activities less net capitalized XX% free costs items defined cash on the or year QX property ago costs, negative restructuring. excluding negative improvement XX% cash related $XX.X as free in and from a quarter. used was Our such cash is cash to operating equipment

XXXX, to year-over-year. guidance to million we XX% representing $XXX.X for Moving million, growth revenues QX fiscal expect of of $XXX.X rate

We approximately same million. margin $X.XX per improvement a $XX at from million an expect operating outstanding the million, non-GAAP from the And measurable shares loss expect diluted loss and $XXX negative weighted to share $X.XX basic representing guidance, of of we assuming operations average period. of of net $XX of midpoint to year-ago XX%

fiscal million, of million expect to growth full the of representing a XX% the XX% we year-over-year. For rate be range $XXX $XXX to in XXXX, to revenues

$XXX from We weighted the outstanding an approximately million average operating of from per of operations negative we $X.XX negative margin loss $X.XX guidance, XX% and million. midpoint $XXX XX% representing of expect non-GAAP in XXXX, loss and to fiscal diluted basic million, $XXX down net of at share of year shares assuming expect to

that create assumes continues guidance Our macroeconomic headwinds year fiscal to in XXXX.

We maintaining balanced and and disciplined costs improving to and optimizing committed profitability. are approach to efficiency a

like invest flow to AI, year. committed reaching and We XXXX in will growth continue positive our we the in ability long-term calendar drive drive future in to to of which before value. coming cash opportunities improvements end remain We meaningful free have confidence will expect increased the

With to remarks. final that, I'll Dustin hand back the call for some

Dustin Moskovitz

about excited effectively them. the are adopt digital development second Asana for will very of eager this to more the and transformation Customers and work and Intelligence time have adopt best-of-AI to the efficiently them flight. AI help a I'm we is it's product in wave tsunami. transformation capabilities

The given architecture. to I enormous work market, underlying management believe is well-positioned market but lead, underpenetrated connected especially our an we're

We runway need what adequate to investment do do. and have to we of plenty

and the users, create Asana product introduce AI address more can our for value power more our customers. of use with more for cases,

to And back that, operator for with it questions. the I'll turn

Operator

you. Thank

the The line of session. will begin DeGasperi question now first the Instructions] Berenberg. from [Operator will Andrew We question-and-answer with be

now is open. Your line

Andrew DeGasperi

you of terms first, in impacting taking wondering concerned that Warcraft know terms certain that a a Dustin, just with end working the perspective? they change for while, been AI again you've count but AI my in could the I in occur from customer be on question. markets potential of (ph) impacted it guess for I'm in tools, I Thanks as of in behavior Asana way seat could -- are more any adopt long-term that terms

Dustin Moskovitz

is this Hey, Andrew, Dustin.

like job of are here? replacements or like what you Just because to understand, getting out mean you

Andrew DeGasperi

on, let's in some like disruption their say, things More some and like employment Hi-Tech that. that things like see Yeah. markets could or trends

Dustin Moskovitz

in to happening a lot's out. exactly there with change AI to fewer few predict being think years, a not think is hard things of each is they is Asana workers I in of tech leveraged, side more would of next inside I in to Intelligence place Asana like that I change using how more Certainly on think is that play going going part flip and fact, companies, the a that bet are them lot argument leverage. become It's I inevitable. become knowledge the how

it's even more organizations. those So inside working be people actually to to valuable going have

then Longer customers be of that model value pricing different from shrinks. to feel to really change about could further providing I'm that delivering value that we're same means have mean able that pricing meet the and pricing for change, that seats to our things the more number more workforces need but helping maybe concerned means it. their not we scale run, per that them monetize the and very should is that we're of but I to business people, actually we our get consumption-based is it if to delivering more we're have could confident our will that will adjust Maybe because pricing, value so or customers,

Andrew DeGasperi

guess, them headwinds, terms you expect market your do know guess the of stabilizing. forward? you guidance of for mentioned, think are pockets continue, then things going in you've the I status mentioned to worse? assuming that's quo helpful. some you impact of maybe terms framework Tim, in That's I you get macro And mentioned I the

Tim Wan

as lot philosophy but I kind -- guided any mean, guidance, we year. I as We downside I think last upside don't early in point. Yeah. to bake quarter of it's the a at too well I of the how see it's still to in just similar think this

committed the about But situation little delivering bit good I free good go about about timeline to. we and good flow We on feel cash said, we that and we'll it's line. the we monitor think feel a like We go. I getting of -- touch as the feel bottom guidance. the

Operator

will Thill you. [Operator from next Brent Instructions] Jefferies. be Thank The question with

You may proceed.

Unidentified Participant

is Hi. [indiscernible] Brent This for Thanks. Thill. on

any more where Just if the on -- stabilized, that one just mentioned little you in question there I were more macro. you bit a could there and dig wondering maybe could things touch monetization areas color second mean on you. you impact? to then Thank when and vertical. AI, by make you timing maybe a And geo on or of start if revenue could

Dustin Moskovitz

part. I'll take the first

just So what in is, the from terms really standpoint, on segment. I would of seen like stabilization it say depends we've what a

those names of Anne and script, mentioned great the I and are names we many of are tech. mentioned those think the not some in that on

working customer that in continue But is the I think that's the itself in kind still tech, tech the pressure other I about we're given think we and pockets out we'll see we traction of good there. really the lands, some saw, feel that kind segment to of expansion seeing related. non-tech

Tim Wan

about so thing, Workflow the ways because bunch a to we're different leaving show I'll about potential like So question is the is into the -- really think one up way the of is really this our in pricing take I AI I it in really think not Work of what's the think revenue we're that I Graph. architecture and very and one question product uplift? going

us that adoption, get to and long-term drive are growth and lot a so probably So adoption really growth. growth, balancing in of both seat ASP. The there be the that so away incremental it's to customers really revenue support because opportunity, stuff seat revenue and give ASP well it opportunities helping more will as as value helps providing

then and And of be existing things our are are part higher-price other going functionality there tiers. that

where that's becomes at part For think add-on. And example, Goals' part have things an do enhance will then, enterprise business of be tiers I that some point that and goals lives. we'll the functionality the of because naturally functionality

see that, well up it provide. potentially actively through Again, practice, plan ends per being we're a on in expensive lot a of will it to pricing, where consumption-based value customers as for as prior answer with the what thinking but depend

of thing incentivizing additional of your terms the will get will order to think timing be in move to tiers like into that I kind first customers to up happen functionality. the question, more in So that

lot Second, more growth for adoption features. AI-powered going I'm a well the is seat with hoping because

with then to response to far things the pleased just directly the to and massive on order how we've the so our the to add-on here beta adding is SKU the the we're we've I into really so AI there's for third the to and package upside enterprise much expectations guidance. we from any value which been know a of sort in play top don't And really lot that will graph. that an think that will have potential out. baked But eagerness or that's I from one be of We business here, stuff, model. of adding been think thing customers, able there especially our to the is But provide work specific drive it's certain,

Unidentified Participant

you. Thank

Operator

Thank with Oppenheimer. is Iwanyc of the The question line next George from you.

open. now is line Your

George Iwanyc

productivity the year Anne, stand about taking for were the target? of how you my a can and you give the by in in right you now earlier sales sense of that where us question. targeting Thank end increase you XX% you feel year,

Anne Raimondi

is in that accounts. team larger repeatedly strong and Thanks have on quarter, with focused training and leadership consistently we've added I'm We've and scaling the our sales expand something focused field land needed our this really predictably and and delivering pleased operations selling to our been for been George. data question. building infrastructure, to Yeah. much enablement Hey, the is enterprise really to so so on that tools very and

leaders and addition The enterprise our rigor. DACH, also in strong top of in priority strengthening UK Japan markets, sales our is operational

sure to right we're QX that focus on but in prioritizing and about year. the pay right things the the leadership then will off making investing that, was throughout So really continuing we're

George Iwanyc

Thank you.

Operator

next the The of you. with Thank Citi. question line is Enders from Steve

Your now open. line is

Steve Enders

Great. Thanks to it guess particularly quarter here, the the have question the strong on mean I profitability here. just I I was ask drivers in for taking here. Okay. want

I to shifting biggest guess looks forward led that in that any I of the should think we were there how what here? upside So of the into that guess, about expenses and and is year that areas maybe if rest moved like the what going

Tim Wan

Yeah.

I well our will potential that kind the is highlighting and the sometimes the certain our work on, of marketing drivers ROI that Dustin the in doubling it and can any mentioned in QX scale it's have expense, and both but as as have October and shifts, have around of think I hope will you profitability just really a in an of make slight things the things terms time. that things in down the highest that on being important kind not investor all event customer we most really just of the we and bump company team and things mindful will and just are over resources that much that more the doing things that's sometimes really think this,

congratulate on the not it's of -- any deliver want on of that because that person call, some really maybe hard to not savings. are can them just work, their the So it's that type employees one

Dustin Moskovitz

rest can intentional more some diligent just like about about planning disciplined praise much just add save for to to the I'd incremental investment. really Likewise, and they've opportunities wherever that and we team, think I of and for been the company just looking every being Tim

all that added I is to think up outcome good here. a

Operator

Thank you. with Jackson is the line The Ader of from next question SVB.

is Your open. now line

Jackson Ader

how to the the model value either your potential questions. you to the to we it? say currently be we're driving is create measure of able credibly that even of you and the just revenue Thanks change on taking kind around Great. do data curious, that for or discussion ROI customers now good enough do and take value needed, have the this your for percentage our Dustin, you and a if certain

Dustin Moskovitz

in looking do of we're complex eliminate data but meetings faster, Yeah. third in be of question that's work product, that It's that because we what or time the including like kind about something that parties IDC make the run helping imagine kind of relevant reports like a not that of that have future. I much type been this, at automated have whenever save proof say the our work what gets by the is how kind we're we saving, really would would

have I we'll want now if out future model, something in think moving I do and I the not not we're that year and revenue just into years. So a really to different to to that next something we're by clear play is right that's that likely playing think few like that's be

Operator

you. Thank of is Wolfe with the line from Alex The question Zukin next Research.

is line Your open. now

Ethan Bruck

about the month question. and guidance environment of XQ what -- Thanks Ethan now, about is This and shape then, demand second I like Alex. And think the how as versus into thinking can you of seeing my Thank the I just and year Dustin are on we Hey. as throughout about look Tim, trends assumptions you the behavior, of last what have about begin think stabilized, the you. rest for quarter? quarter you what like or quarter months kind in customer conversations you are buying first that seen, April terms there? the month guess you this the of kind of worse little we're for gone taking better in bit a of two about like a both the four the talk

Anne Raimondi

seeing our answer can I good pipeline in We're of what seeing all Anne. build the customer steady buying actually and behavior Its we're really Ethan. conversations. in question Hi, regions. about

standardized enables organization quickly deal practices of customer the really example a I this and agreements, our things promising them anything products more conversations, signed are many things to around us more that consolidation of -- to leading more to and see biotech across world. as a market think move the if is for we good do bring stabilized work some to consistently a company three-year have with multiyear customers, our

durability. are do conversations also as where once tech, have seeing cycles greater because does longevity those we close accounts, their those very our probably industries I longer the bought they investments, like deal so, most more we means but they're of strategic think And making to outside how as lead deals, in in and decision-making well you and measured positive that

So of promising really the seeing in. really is focused and attack been diversification we've an results area on outside

look industries what really our to companies innovative in and given great that's other they the Ultimately, we us part think in investment where wins think category work we will purchase on where important are those management so are they a because for companies we development. are in

Operator

KeyBanc. is of the The with Jason from question Celino line next

line Your now open. is

Jason Celino

for emerge, deals, your opportunities encouraging, of deploy single great. Thanks. seven-figure without existing my sounds mentioned, a curious customers? start to opportunities or those the vendor are it Anne seeing some script, to enterprises pretty expansions question. of platforms management looking Hey, those Thanks just those work mostly taking In those

Anne Raimondi

actually We're Yes. both. seeing

they making ones seeing it's vendor existing picking where really, We the is there aren't a or there -- solutions is pick fragmented decision if offices are CIO it are RFP-based really one one where is and no to partner.

are expansion we and we where the of as then level engaged are now had to we've more departmental strong in those, ones that So deals, as on well are buyer with expand. deployments partnering a centralized

Navan the So wall. wall going example I that to mentioned is

again and displacing other widely eliminated part products were in portfolios products, and tool. any but the adopted as that chose consolidation were Our reason of they that existing particular our still that us

Operator

question of from Baer Stanley. the Josh next Your is with line Morgan

open. Your line is now

Joshua Baer

Great. Thanks question. the for

the time the and using which all opportunity, then become longer related are Microsoft's do Office strategy, you strategy why talked where Asana embedded scenario where AI AI sit workers other tool interesting core different apps customer's for workflows, of to see the there I versus some what and AI that knowledge as Asana or workers potential For within and a does XXX, reasons first customer you your things Office concept Thank Dustin, see you. AI would term, is all alongside a use a thinking core co-pilots? single is guess, you about really AI

Dustin Moskovitz

Yeah. Thanks one. for That's great a question. the

being we three like is overall lanes. back, see still swim collaboration software about stepping major just So,

the tools by tools progress, there's managing like So communication Office Zoom work answering is which work management, email, is about in and doing when. XXX, then like content and who all Slack, collaborative what and

become Asana through go done? the help I transformation? work to mean of part How think swallow this looking all how your is as are what the to do and of only going companies they effectively I tool to second get they of teams their to use a going are day-by-day into it their how wave are at is workflows integrate digital they one And AI three but those and that to don't sort strategy, position like of that going

if I sort do Asana existing especially an the they're an customer, easy think it's puzzle. just way that of part to of can box be that, of a like out big

of first of sort If digital ways do analog of and transformation doing instead of of relying wave the you're trying collaborate digitally to getting people to the whiteboards meetings on things. and

the a Asana into but these work trying there. or a are their it's they of like sort document be specialized the more future tools and Creative content AI sort you I'm you're large of produce when coordinating So, piece sure I that Adobe likely will that, hub and editor a tools yes have the so systems, across to within to of go think that creative will Cloud in of own

of traceability. why Graph for data the I Work In us, the by AI, accuracy, especially amplifies enterprises the terms creating of -- think that and power large really reliability,

inferior organization results back organizations, or control without so projects. inputs can't end, the So with it and connections data up version and sort notion on in means because real by the results. Work going inhibited of Graph no inferior a to intelligence ends AI relying of make That teams inferior is AI you siloed are be duplicate no always across tools, and end to traceability, up and still the therefore or there's and

easy way work connects really that makes all work the to that explain from the for how to ties and gather the of to all Goals, all AI Graph relevant and So decision information. it back and resourcing, execution Work

get that that to of work AI Asana you I've so for more cross-functional having Asana and is is duplication coordination high really And think really platform that's quality data. making said without enables and than returns important deploying also in increasing scale I before the complete cross-team, ever. that only true

in for work progress. the work. Work together for real date so partner you helps really the So it dataset connected Office see insights how created the be up the fits in to some as system the Asana of trust but even Graph it's all And kept then for you understanding XXX, time, the of it it richest like content using finally, and if vendor is AI much of can want suggestions, a was because relevant to

to so that really intelligence -- organization's it organization integrating And humans an goals. for becomes work together foundation machine AIs goals and to essential accomplish enables

we've a value us them also And of this also helped design been say, of revolution it us and journey a D'Angelo. think are architecture connected we mean product, I'll we and sort about of can models ability that now deliver jumpstart share so this their the just thinking deeply and personally building of with I including way in differentiated deploy blocks AI of combination the right the help a to customers language also quickly sort deliver have really to to in a and the we're the just sort lot labs that intelligence that time we for long leading I gives vision, Board these member,

foundation the opening a help also provide Altman be to at happens and actually for Asana. AI My key initial XXXX funding in Sam investor

part differentiated coming, been here source the that's Management Work think a I why future the that key time but going be Graph Graph about of a Work output future and the really a it's ensuring single for work Collaborative excited really the customers. across and really to quality and really is truth long within Work of of level we're create the So by of solution

Operator

Sandler. is Bracelin with question Brent the The of Piper line next from

is line Your now open.

Unidentified Participant

for our is on Mauro here. (ph) Brent. This everyone. questions Hi, Thanks taking for

of features large had just capabilities considering Thanks. just little platform, Asana with enterprise around your you're trust layer large I and beta. share us one bit how as a testing features integrity you in and maintaining in model Could customers? that these the thinking just into you compliance, you're about these about language governance, of So the the needs

Dustin Moskovitz

you within specific a have that? concern there Is

Unidentified Participant

just No, people around have you models. to general protect maintaining language the capabilities data for their training data, the just needs strategy the of of considering that for kind large -- these

wanted So -- customer Asana just color I how little data? the about maintaining of on actually can to bit actually go integrity more

Dustin Moskovitz

Yeah.

in think really So be first products. about where just the is up transparent of showing important all, to I intelligence it's

chance it So in them even with we're beta out a before these deploy we place. are employees first see the companies, before giving ever the into opt products these of the to advent their communicating --

And the and dataset customer part back labs in trained, the going the commercial then established it's major that models additionally, with wouldn't but be -- and then think is that future the data that model fine-tuning protections customer content would there's be of language and and using is data the include is that I vendor, the unless be to enterprise training we then back by case, by license model, against relationships to the once training be there's Asana the a go owned to that this of model, won't effectively the labs. part for

of preference they of going about they which in cloud the the a are to view up also what capabilities because models compliance underneath underlying point think security want of the future, or the a I to have the are about expressing provider underlying near customers use foundation end the provider.

Anthropic about be provider Anthropic, those underneath, choices. So customer providing cloud foundation there both model using stack and the might you're is for AWS if a it example, is but is here, care the of

transparent as being the choice used think them, just expect in I that lot end about we'll a contractually and going sure the is then up of data only well exactly for wants. and when making as So customers ways that Asana providing where it's

Operator

with question from line The of next the will Simmons Robert Davidson. be D.A.

is line Your open. now

Robert Simmons

the Hey. question. Thanks for taking

to far So, you'd company-wide I are then, you And on might with share? can you year, specifics this and any going, seeing want help that up scale I experimenting any sometime some could results know those us results? been update packaging you've and are pricing you give out good wonder changes. maybe so if how

Anne Raimondi

Robert. Yeah,

landing goals for and them So with the primary there. journey better got our our are grow second enterprise us customers. towards, pricing We've we're two is frictionless to more and packaging easier focused creating is updates on then really first from an working

more align easily So they we're to additional enable as and and add cases thoughtfully customers these value functions grow. working to to use very quickly

based in hard event customers. our most with investor but to final getting sharing at make forward see on October now on working more So We're we're our and early the value customer looking feedback we feedback. ultimately decisions to in where right testing selected based our on good for customers and beta really

Operator

Walravens line question will last JMP of Securities. with Patrick The from be the

line is now Your open.

Patrick Walravens

you. Great. couple Tim, questions you. a for Thank of related

So year-over-year growth the one like lowest had. the that revenues the ever thing, growth XX% sequential just is of look as for at is think you've we but I

note, think more way could do positive the think on then, metric. but about the reported you. is to little that revenue then enterprise, just if RPO on right the on growth, about the what's a Thank how that? we a So so higher the just is you right than comment bit that growth And

Tim Wan

No, you're on. spot

increase in terms XX%, in So the we of of almost multi-year saw an we actually the deals, of year-over-year multi-year -- XX% deals. number

encouraging company, as customers so So have Anne management the just work commit and they on to larger customers, within thinking are kind signs. mentioned enterprises I of multiple platform. starting really are call think a well, these this People, if their are about platforms consolidating to

the macro both well about of at but I the as we into Our line, so that's hopefully helpful. as that the really account bottom kind we guidance we're providing would top-line I feel takes like -- think good backdrop, guidance the said, I that say

Operator

That now question-and-answer some our I will for session the call back over to closing pass concludes today. for Dustin remarks.

Dustin Moskovitz

Thanks. Yeah.

York to both call again event to X. really for join the you our in we're thank on Just Investor customer wanted seeing and today Day New the forward the everyone making and looking City October to time at on

to hope everyone. So there. Thanks, see you

Operator

call. for your That Thank concludes today's you participation.

Asana (ASAN) 1 Jun 232024 Q1 Earnings call transcript