Summary
Asana reported revenue of $152.4 million for its fiscal 2024 first quarter, up 26.3% from the prior-year quarter. Gross profit was $137.6 million and gross margin was 90.3%, up from 89.7% a year earlier. Management credited new paying customers, a mix shift toward higher priced Enterprise and Business plans, and expansion inside existing accounts. The largest customer deployment now stands at 200,000 paid seats, a useful reference point for how far the platform can scale inside a very large organization.
GAAP losses narrowed in a meaningful way. Operating loss was $65.2 million, improved from $96.2 million in the prior-year quarter, and operating margin was -42.8%, up from -79.8%. Net loss was $61.5 million, narrowed from $98.9 million, and net loss per share was $0.28, narrowed from $0.52. Stock-based compensation of $41.5 million is the main reason the GAAP and non-GAAP pictures still sit far apart. Non-GAAP operating loss was $22.3 million against $54.7 million a year ago, and non-GAAP net loss was $18.5 million against $57.4 million. Non-GAAP net loss per share was $0.09, compared with $0.30.
Customer metrics held up, with one caveat. The count of customers spending $5,000 or more on an annualized basis reached 19,864, up 19% year over year, and those customers supplied roughly 73% of revenue, compared with 70% a year earlier. Revenue from that group rose 32%. Customers spending $100,000 or more grew to 510, up 31%. Dollar-based net retention was over 110%, down from over 120% in the prior-year period. The $5,000-plus cohort retained over 115% versus over 130%, and the $100,000-plus cohort retained over 130% versus over 145%. Those figures point to slower expansion even as the number of large accounts keeps climbing. Asana also named general managers for Japan and DACH and rolled out Asana Intelligence, its generative AI push.
Cash generation improved. Net cash used in operating activities was $14.6 million, better than the $41.1 million used a year earlier. Free cash flow was negative $16.6 million, compared with negative $42.2 million. Capital expenditures were $1.9 million, up from $1.0 million. Deferred revenue, current, rose 29.6% to $257.7 million, and total deferred revenue was $263.9 million. Cash, cash equivalents and marketable securities totaled $523.5 million at quarter end. Guidance for the second quarter of fiscal 2024 points to year over year revenue growth of 17%, a non-GAAP operating loss of $26.0 million to $24.0 million, and non-GAAP net loss per share of $0.12 to $0.11 on roughly 218 million shares. For the full fiscal year 2024, guidance points to year over year revenue growth of 17% to 18%, a non-GAAP operating loss of $120.0 million to $110.0 million, and non-GAAP net loss per share of $0.55 to $0.50 on about 219 million shares. Management did not provide a reconciliation of the non-GAAP outlook to GAAP, citing variability in the excluded costs.
The macro backdrop remains the central risk. Management flagged elevated inflation, rising interest rates, bank failures, supply chain disruptions, currency swings, the war in Ukraine, and the lingering effects of the pandemic as pressures on IT spending and on the length of sales cycles. Competition in work management is intense and the market is evolving quickly. The company also carries execution risk in integrating generative AI, expanding internationally, and sustaining its self-service motion. In November 2022 it cut about 9% of its global workforce. The accumulated deficit stood at $1,299.0 million at April 30, 2023, and the term loan had $49.4 million outstanding, with $76.4 million of available capacity under the revolving credit facility.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $152.4M | $150.2M | +1.5% | $120.6M | +26.3% |
| Gross profit | $137.6M | $135.0M | +1.9% | $108.2M | +27.1% |
| Gross margin | 90.3% | 89.9% | +0.4 pp | 89.7% | +0.6 pp |
| Research & development | $76.3M | $81.3M | -6.1% | $65.2M | +17.0% |
| Sales & marketing | $93.2M | $114.7M | -18.7% | $96.1M | -3.0% |
| General & administrative | $33.3M | $38.2M | -13.0% | $43.1M | -22.9% |
| Total operating expenses | $202.8M | $234.2M | -13.4% | $204.4M | -0.8% |
| Operating income (loss) | -$65.2M | -$99.2M | +34.2% | -$96.2M | +32.2% |
| Operating margin | -42.8% | -66.0% | +23.2 pp | -79.8% | +37.0 pp |
| Net income (loss) | -$61.5M | -$95.0M | +35.3% | -$98.9M | +37.8% |
| Net margin | -40.3% | -63.3% | +22.9 pp | -82.0% | +41.6 pp |
| Diluted EPS | -$0.28 | -$0.48 | +$0.20 | -$0.52 | +$0.24 |
| Customers | 19,864 | — | — | — | — |
| Net retention rate | 110.0% | 115.0% | -5.0 pp | 120.0% | -10.0 pp |
Risks
Global macroeconomic conditions, including elevated inflation, rising interest rates, bank failures, supply chain disruptions, currency fluctuations, and the war in Ukraine, have and are likely to continue to have adverse effects on global IT spending, customer buying patterns, and sales cycle length. MD&A states these conditions may continue for the near term.
Asana's push into larger enterprise organizations requires greater sales costs, longer sales cycles, greater competition, and less predictability. Risk factors state that macroeconomic conditions have caused and may continue to cause longer sales cycles, reduced renewal rates, reduced customer spend, and delayed payments.
Dollar-based net retention rate was over 110% as of April 30, 2023 compared with over 120% as of April 30, 2022; for customers spending over $100,000 it was over 130% compared with over 145%. If customers do not renew or expand, revenues may decline or grow less quickly than anticipated.
Risk factors repeatedly emphasize artificial intelligence, including the need to deploy AI features in Asana's product and the risk that competitors or new entrants leverage AI more effectively. Asana may also have limited insight into the data privacy or security practices of third-party data suppliers for its AI algorithms.
Asana derives and expects to continue deriving substantially all revenues from a single work management solution. Demand depends on market adoption, and larger organizations may develop or acquire their own tools, which could disproportionately reduce demand for Asana's platform.
The November 2022 restructuring reduced global headcount by approximately 9%. Risk factors state the company may not realize anticipated savings, may incur costs greater than expected, and may face disruption, attrition beyond planned reductions, or need for additional workforce reductions.
Competition for executive, software engineering, sales, and other key personnel is intense, and increased inflation rates can raise labor and employee benefit costs. The November 2022 reduction in force may adversely affect Asana's ability to attract and retain employees.
For the three months ended April 30, 2023, 39% of revenues were generated from customers outside the United States. International operations expose Asana to data privacy laws, tax and regulatory complexity, currency declines, and geopolitical instability including sanctions related to Russia's invasion of Ukraine.
The November 2022 Senior Secured Credit Facility contains financial covenants requiring a consolidated adjusted quick ratio of 1.25 to 1.00 and minimum cash adjusted EBITDA, plus restrictions on liens, indebtedness, investments, and dividends. Non-compliance could accelerate repayment, and the facility is now held by SVB as a division of First Citizens.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Non-GAAP gross margin
Non-GAAP Operating Loss
Customers Spending $100,000+ on an annualized basis
Customers spending $5,000+ on an annualized basis
Summary, forecast, risks and KPIs are extracted from Asana, Inc.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.