Summary
Revenue growth stayed in the low teens while the bottom line remained deeply negative. Asana reported first quarter fiscal 2025 revenue of $172.4 million, up 13% from $152.4 million a year earlier. Gross profit rose to $154.6 million from $137.6 million, but gross margin slipped to 89.7% from 90.3%. Cost of revenues grew faster than revenue, and that accounts for the margin pressure. The GAAP operating loss widened to $66.2 million from $65.2 million, and the net loss widened to $63.7 million from $61.5 million. Diluted net loss per share was flat at $0.28. Operating margin did improve, moving to -38.4% from -42.8%, a 4.4 percentage point gain.
The non-GAAP view was brighter. Non-GAAP operating loss was $15.8 million, or 9% of revenues, compared with $22.3 million, or 15% of revenues, in the first quarter of fiscal 2024. Non-GAAP net loss was $13.3 million against $18.5 million, and non-GAAP net loss per share was $0.06 against $0.09. Stock-based compensation is the main difference between the GAAP and non-GAAP results. Cash use also tightened. Operating cash flow was negative $1.9 million, up 87% from negative $14.6 million a year earlier. Free cash flow was negative $4.3 million, compared with negative $16.6 million. Capital expenditures fell to $1.0 million from $1.9 million. Management expects Asana to be free cash flow positive for the full fiscal year.
The customer base keeps shifting toward larger accounts. Core customers, the ones spending $5,000 or more on an annualized basis, grew 12% year over year to 22,162, and they generated roughly 74% of revenues in the quarter. A year earlier, 19,864 Core customers generated roughly 73% of revenues. Revenues from Core customers rose 15%. Customers spending $100,000 or more reached 607, up 19%. Retention is the soft spot. Overall dollar-based net retention rate was 100%, versus over 110% as of April 30, 2023. Core retention was 102% against over 115%, and retention for the $100,000-plus group was 108% against over 130%.
Asana kept pushing AI features during the quarter, launching a suite of AI tools aimed at the CIO, and its State of IT research found that 77% of IT leaders feel responsible for leading AI transformation inside their organizations. Guidance for the second quarter of fiscal 2025 points to revenue growth of 9% to 10% and a non-GAAP operating loss of $23.0 million to $21.0 million, a 12% operating loss margin at the midpoint. Non-GAAP net loss per share is guided to $0.09 to $0.08 on roughly 230 million shares. For the full fiscal year 2025, revenue growth is guided to 10% to 11%, with a non-GAAP operating loss of $59.0 million to $55.0 million, an 8% operating loss margin at the midpoint, and non-GAAP net loss per share of $0.21 to $0.19 on about 231 million shares.
Backlog and billings provide some ballast. Current deferred revenue was $292.2 million, up 13.4% from $257.7 million, and remaining performance obligations stood at $380.0 million. The company warned that macroeconomic headwinds have affected customer renewal decisions and said the trend should continue in the first half of fiscal 2025. Its risk list includes competition in a rapidly evolving market, the ability to attract and retain customers, the integration of artificial intelligence into the platform, international expansion, and the pace of global IT spending. Asana has funded itself through equity raises and carries an accumulated deficit from years of losses. Whether the improving cash profile holds depends on cost discipline and on lifting a net retention rate that has drifted toward 100%.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $172.4M | $171.1M | +0.8% | $152.4M | +13.1% |
| Gross profit | $154.6M | $153.7M | +0.6% | $137.6M | +12.4% |
| Gross margin | 89.7% | 89.8% | -0.2 pp | 90.3% | -0.6 pp |
| Research & development | $82.8M | $83.0M | -0.2% | $76.3M | +8.5% |
| Sales & marketing | $104.3M | $103.9M | +0.4% | $93.2M | +11.9% |
| General & administrative | $33.7M | $34.8M | -3.2% | $33.3M | +1.3% |
| Total operating expenses | $220.8M | $221.7M | -0.4% | $202.8M | +8.9% |
| Operating income (loss) | -$66.2M | -$67.9M | +2.6% | -$65.2M | -1.4% |
| Operating margin | -38.4% | -39.7% | +1.3 pp | -42.8% | +4.4 pp |
| Net income (loss) | -$63.7M | -$62.4M | -2.1% | -$61.5M | -3.7% |
| Net margin | -37.0% | -36.5% | -0.5 pp | -40.3% | +3.4 pp |
| Diluted EPS | -$0.28 | -$0.28 | ±$0.00 | -$0.28 | ±$0.00 |
| Customers | 510 | — | — | 19,864 | -97.4% |
| Net retention rate | 100.0% | 100.0% | ±0.0 pp | 110.0% | -10.0 pp |
Risks
MD&A states macroeconomic headwinds have impacted customers' renewal decisions and are expected to continue in the first half of fiscal 2025. Dollar-based net retention rate was 100% as of April 30, 2024 and over 110% as of April 30, 2023, and the company cites longer sales cycles, reduced renewal rates, reduced customer spend, and delayed payments.
Asana's focus on larger enterprise organizations may result in longer sales cycles, greater competition, and less predictability in completing sales, requiring greater customer education and costly sales efforts. Sales and marketing expenses increased 12% in the three months ended April 30, 2024 compared with the prior-year period.
Risk Factors state that Asana's ability to compete depends on rapid technology developments, including successful deployment of AI in its product, and that failure to offer or deploy new AI or machine learning technologies as quickly or effectively as competitors could adversely affect its business. MD&A also notes continued investment in AI integration.
The work management market is described as increasingly competitive, fragmented, and subject to rapidly changing technology, with low barriers to entry and competitors that may have greater resources, more extensive R&D, and more aggressive pricing. Competitors may incorporate AI or machine learning to improve their offerings.
The loss of co-founder, President, CEO, and Chair Dustin Moskovitz or other key personnel would disrupt operations and harm growth. Asana does not have key person insurance on any employees.
Asana derives, and expects to continue to derive, substantially all revenues from a single solution, making it dependent on continued market demand and acceptance of its work management platform. Changes in customer preferences may have a disproportionately greater impact than if it offered multiple products.
Asana must attract and retain highly qualified personnel in competitive markets, and it states equity awards or other compensation may not be as effective as in the past. Past and future restructuring efforts may adversely affect its ability to attract and retain employees.
Asana's use of generative AI and machine learning in its product gives rise to legal, regulatory, social, and ethical risks, including potential reputational harm and liability. It notes uncertainty around new AI technologies may require costly additional investment in proprietary datasets, models, and testing for accuracy and bias.
Risk Factors describe evolving threats including ransomware, supply chain attacks, attacks enhanced or facilitated by AI, and potential leakage of sensitive information through employee or vendor use of generative AI platforms. A security incident could lead to regulatory investigations, litigation, fines, and loss of customers.
The November 2022 Senior Secured Credit Facility contains financial covenants, including a consolidated adjusted quick ratio of 1.25 to 1.00 and minimum cash adjusted EBITDA tested quarterly. Non-compliance or an event of default could make the balance immediately due and payable and restrict operations.
For the three months ended April 30, 2024, 39% of revenues were generated from customers outside the United States, exposing Asana to regulatory, economic, and political risks, including privacy and data protection laws, foreign currency declines, and geopolitical conflicts.
Dustin Moskovitz beneficially owns a majority of voting power as of April 30, 2024, and the dual class structure concentrates voting control with founders, directors, executive officers, and affiliates, limiting other stockholders' ability to influence corporate matters.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Net Revenue Retention
Non-GAAP Operating Loss
Total Customers
Customers Spending $100,000+ on an annualized basis
Summary, forecast, risks and KPIs are extracted from Asana, Inc.'s SEC filings for Q1 FY2025 (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 1, 2026.