Summary
Asana reported revenue of $179.2 million for the second quarter of fiscal 2025, up 10.3% year over year. Year-to-date revenue was $351.7 million, up 11.7%. Gross profit rose 8.9% to $159.2 million. Gross margin slipped to 88.8%, down 1.2 percentage points, as higher third-party hosting costs and infrastructure and application performance monitoring costs pushed up the cost of revenues. Management credited the top line to new paying customers and a continued mix shift toward the higher priced Advanced, Enterprise and Enterprise+ plans. The quarter also brought a record number of multi-year deals, which the company tied to its enterprise transition. Chief executive Dustin Moskovitz called it a pivotal moment for AI in work management and said the company is well positioned for enterprise consolidation.
Profitability is still the sore spot. GAAP operating loss was $76.8 million, and the loss widened from a year earlier. Operating margin was negative 42.9%, up 2.3 percentage points. Net loss widened to $72.2 million. Diluted loss per share was $0.31, narrower than the prior-year quarter. Stock-based compensation remains the main bridge between GAAP and non-GAAP results. Non-GAAP operating loss was $15.7 million, or 9% of revenue, compared with $10.4 million, or 6% of revenue, a year earlier. Non-GAAP net loss was $11.1 million, and non-GAAP net loss per share was $0.05. Research and development expenses rose 8% and sales and marketing expenses rose 13%, while general and administrative expenses fell 7%.
Cash generation softened in the quarter. Operating cash flow was $15.9 million, down 21.6% year over year. Through the first six months, operating cash flow was $14.0 million, up 147.6%. Capital expenditures fell 58.8% to $1.7 million. Free cash flow, a non-GAAP measure, was $12.8 million, compared with $14.6 million a year earlier. Deferred revenue, current portion, rose 12.0% to $285.5 million. Remaining performance obligations were $394.5 million, up 18.3%. Management said its cash, marketable securities, and credit facility capacity should cover working capital needs for at least the next 12 months.
Customer metrics show the enterprise push working at the top end. Core customers, those spending $5,000 or more on an annualized basis, grew 10% to 22,948 and generated roughly 75% of revenue. Customers spending $100,000 or more grew 17% to 649. Dollar-based net retention was 98% overall, 99% for Core customers, and 103% for the largest accounts, against over 105%, over 110%, and over 125% a year earlier. Those retention rates sit below the prior-year levels, so expansion inside existing accounts has cooled even as large new deals land. On the product side, Asana launched AI teammates and moved other AI tools to general availability in July. The company also published its 2024 State of AI at Work report and hosted Work Innovation Summits in San Francisco and Paris.
Guidance points to a slower top line. For the third quarter of fiscal 2025, Asana expects year over year revenue growth of 8% to 9%, a non-GAAP operating loss of $19.0 million to $18.0 million, and non-GAAP net loss per share of $0.07. For the full fiscal year 2025, the company guides to revenue growth of 10%, a non-GAAP operating loss of $58.0 million to $55.0 million, and non-GAAP net loss per share of $0.20 to $0.19. The company repurchased 1.4 million shares for $19.7 million under a $150 million program authorized in June 2024, leaving $130.3 million available. Risks include macroeconomic pressure on IT spending, inflation, elevated interest rates, longer sales cycles, intense competition, execution on AI integration, and the decline in dollar-based net retention.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $179.2M | $172.4M | +3.9% | $162.5M | +10.3% |
| Gross profit | $159.2M | $154.6M | +3.0% | $146.2M | +8.9% |
| Gross margin | 88.8% | 89.7% | -0.8 pp | 90.0% | -1.2 pp |
| Research & development | $91.2M | $82.8M | +10.1% | $84.4M | +8.0% |
| Sales & marketing | $108.6M | $104.3M | +4.1% | $96.4M | +12.7% |
| General & administrative | $36.2M | $33.7M | +7.5% | $38.8M | -6.6% |
| Total operating expenses | $236.0M | $220.8M | +6.9% | $219.6M | +7.5% |
| Operating income (loss) | -$76.8M | -$66.2M | -16.1% | -$73.4M | -4.7% |
| Operating margin | -42.9% | -38.4% | -4.5 pp | -45.2% | +2.3 pp |
| Net income (loss) | -$72.2M | -$63.7M | -13.3% | -$71.4M | -1.1% |
| Net margin | -40.3% | -37.0% | -3.3 pp | -44.0% | +3.7 pp |
| Diluted EPS | -$0.31 | -$0.28 | -$0.03 | -$0.33 | +$0.02 |
| Customers | 553 | 510 | +8.4% | 20,782 | -97.3% |
| Net retention rate | 98.0% | 100.0% | -2.0 pp | 105.0% | -7.0 pp |
Risks
MD&A states global macroeconomic events including inflation, elevated interest rates, bank failures, supply chain disruptions, currency fluctuations, and geopolitical unrest have led to economic uncertainty and are likely to continue to adversely affect global IT spending, customer buying patterns, and the length of sales cycles. Risk Factors say the company has experienced and may continue to experience longer sales cycles, reduced renewal rates, reduced customer spend, and delayed payments under these conditions.
As of July 31, 2024, dollar-based net retention rate was 98% compared with over 105% as of July 31, 2023; Core customer rate was 99% compared with over 110%, and the rate for customers spending over $100,000 on an annualized basis was 103% compared with over 125%. This increases the risk that existing customers renew at lower levels or do not renew.
Risk Factors state that competition requires rapid developments in technology, including successful deployment of AI in the product, and that competitors may incorporate AI or machine learning to more significantly improve their offerings. Failure to offer or deploy new AI or machine learning technologies as quickly or effectively as competitors could adversely affect the business.
Gross margin was 88.8% in FY2025 Q2 versus 90.0% in FY2024 Q2, down 1.2 percentage points, and was 89.3% year to date versus 90.1%, down 0.9 percentage points. MD&A attributes the decrease primarily to higher third-party hosting costs and infrastructure and application performance monitoring costs.
Risk Factors note that as the company focuses on larger organizations, it will be required to deploy sophisticated and costly sales efforts, which may result in longer sales cycles, greater competition, and less predictability in completing sales. Larger enterprise customers may also demand more customization, integration, and support services, increasing costs.
Risk Factors highlight dependence on co-founder, President, CEO, and Chair Dustin Moskovitz and other key personnel, and state that competition for executive officers, software engineers, sales personnel, and other key personnel is intense in the San Francisco Bay Area and other locations. Past and future restructuring efforts may adversely affect the ability to attract and retain employees.
Dustin Moskovitz, co-founder, President, CEO, Chair, and largest stockholder, beneficially owned a majority of the voting power of capital stock as of July 31, 2024, and the dual class structure gives Class B common stock 10 votes per share. This concentrates voting control and limits other stockholders' ability to influence corporate matters.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Net Revenue Retention
Non-GAAP gross margin
Customers Spending $100,000+ (annualized)
Summary, forecast, risks and KPIs are extracted from Asana, Inc.'s SEC filings for Q2 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 2, 2026.