Summary
Asana closed FY2023 Q2 with revenue of $134.9 million, up 50.8% year over year. Gross profit was $121.14 million, up 52.2%, and gross margin was 89.8%, up 0.8 percentage points. The company ended the quarter with over 131,000 paying customers and over 2.5 million paid seats.
Large customer growth stayed the main engine. Customers spending $100,000 or more on an annualized basis reached 462, up 105% year over year. Customers spending $50,000 or more reached 1,141, up 91%. Customers spending $5,000 or more reached 18,040, up 41%. Those customers spending $5,000 or more contributed about 72% of revenue in the quarter and 71% for the six months then ended. Overall dollar-based net retention was over 120%. It was over 130% for customers spending $5,000 or more and over 145% for customers spending $50,000 or more. Management credited large enterprise deals and momentum in the US. The company also pointed to its largest customer deployment at over 100,000 paid seats.
Profitability moved the other way. GAAP operating loss was $111.27 million, and the loss widened 85.3% from the prior-year quarter. Operating margin was -82.5%, down 15.4 percentage points. GAAP net loss was $112.97 million, and the net loss widened 65.3%. Diluted EPS was -$0.59, and the per-share loss widened 47.5%. On a non-GAAP basis, operating loss was $62.6 million, or 46% of revenue, compared with $38.6 million, or 43% of revenue, in the prior-year quarter. Non-GAAP net loss was $64.3 million, compared with $39.8 million. Non-GAAP net loss per share was $0.34, compared with $0.23. Year to date, revenue was $255.54 million, up 53.8%. Year-to-date net loss was $211.84 million, and it widened 64.2%.
Cash generation stayed negative. Operating cash flow was -$41.65 million for the quarter, down 389.1% from the prior-year quarter. Capital expenditures were $0.64 million, down 95.0%. Free cash flow was -$42.3 million, compared with -$9.3 million in the prior-year quarter. Current deferred revenue rose to $207.15 million, up 52.3% from the prior-year quarter. Management said the $350 million private placement announced with the results leaves the company fully funded to execute on its current strategies and to reach free cash flow positive before the end of calendar 2024.
Guidance points to slower growth. For the third quarter of fiscal 2023, Asana guided revenue to $138.5 million to $139.5 million, or 38% to 39% year over year growth. It guided non-GAAP operating loss to $66 million to $63 million. Non-GAAP net loss per share was guided to $0.33 to $0.32, assuming about 203.0 million basic and diluted weighted average shares. For the full fiscal year 2023, revenue guidance is $544.0 million to $547.0 million, or 44% to 45% growth.
Operational highlights included a new data center in Australia, the company's second international data center, and an Employee Impact Suite. Asana published its first ESG report aligned with Sustainability Accounting Standards Board metrics. Risks remain. The filings cite a highly competitive and rapidly evolving market, plus risks around sustaining growth, attracting and retaining customers, developing new products, scaling the platform, partner relationships, international expansion, and COVID-19. Large enterprise demand looks strong. GAAP losses are widening as Asana invests to capture it.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2023 | Q1 FY2023 | QoQ | Q2 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $134.9M | $120.6M | +11.8% | $89.5M | +50.8% |
| Gross profit | $121.1M | $108.2M | +12.0% | $79.6M | +52.2% |
| Gross margin | 89.8% | 89.7% | +0.1 pp | 89.0% | +0.8 pp |
| Research & development | $75.2M | $65.2M | +15.4% | $48.5M | +55.3% |
| Sales & marketing | $110.4M | $96.1M | +14.8% | $63.9M | +72.7% |
| General & administrative | $46.8M | $43.1M | +8.5% | $27.3M | +71.5% |
| Total operating expenses | $232.4M | $204.4M | +13.7% | $139.7M | +66.4% |
| Operating income (loss) | -$111.3M | -$96.2M | -15.6% | -$60.1M | -85.3% |
| Operating margin | -82.5% | -79.8% | -2.7 pp | -67.1% | -15.4 pp |
| Net income (loss) | -$113.0M | -$98.9M | -14.3% | -$68.4M | -65.3% |
| Net margin | -83.8% | -82.0% | -1.8 pp | -76.4% | -7.4 pp |
| Diluted EPS | -$0.59 | -$0.52 | -$0.07 | -$0.40 | -$0.19 |
| Net retention rate | 120.0% | 120.0% | ±0.0 pp | 118.0% | +2.0 pp |
Risks
Net loss widened to $112.97 million in FY2023 Q2 from $68.36 million in FY2022 Q2, and operating loss widened to $111.27 million from $60.05 million, with an accumulated deficit of $1,041.6 million as of July 31, 2022. Management says it does not expect to be profitable in the near future.
Total operating expenses rose to $436.9 million for the six months ended July 31, 2022 from $258.4 million for the six months ended July 31, 2021, driven by higher headcount and stock-based compensation, while net loss widened to $211.8 million from $129.0 million over the same periods.
Revenue grew 50.8% in FY2023 Q2 and 53.8% year to date, but the filing states the company expects its revenue growth rate to decline and that recent rapid growth rates may not be indicative of future growth.
Inflation, rising interest rates, COVID-19, and geopolitical instability including Russia's invasion of Ukraine are cited as risks that could reduce software spending, increase costs, and cause customers to seek lower prices or more favorable contract terms.
The company's focus on larger enterprise customers typically involves greater sales costs, longer sales cycles, more customization, and less predictability, and COVID-19 has caused longer sales cycles and customer requests for lower prices.
The work management market is highly competitive and fragmented with relatively low barriers to entry, and competitors may have greater financial, technical, and marketing resources or offer lower prices and price concessions.
Competition for executive, engineering, and sales personnel is intense, particularly in the San Francisco Bay Area, and inflation can increase labor and employee benefit costs; personnel-related expenses increased significantly in the quarter and six months.
Substantially all revenues are derived from a single work management solution, making the company disproportionately dependent on continued market acceptance and adoption of that platform.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Non-GAAP gross margin
Paying Customers
Non-GAAP Operating Loss
Summary, forecast, risks and KPIs are extracted from Asana, Inc.'s SEC filings for Q2 FY2023 (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.