Summary
Asana closed fiscal 2023 with a stronger top line but still deep losses. Fourth-quarter revenue was $150.2 million, up 34% from the prior-year quarter. Full-year revenue reached $547.2 million, up 45% year over year. The company also reported a fourth-quarter GAAP operating loss of $99.2 million and a GAAP net loss of $95.0 million. Both losses widened from the prior-year quarter. For the full fiscal year, GAAP operating loss was $407.8 million and GAAP net loss was $407.8 million, both widened from the prior year. GAAP net loss per share for fiscal 2023 was $2.04.
Margins improved in the quarter even as the loss widened. Fourth-quarter gross profit was $135.0 million. Gross margin was 89.9%, up 0.2 percentage points from the prior-year quarter. Operating margin was negative 66.0%, up 11.7 percentage points from the prior-year quarter. On a non-GAAP basis, operating loss was $37.4 million, or 25% of revenue, compared with a non-GAAP operating loss of $43.9 million, or 39% of revenue, in the prior-year quarter. Non-GAAP net loss was $33.2 million, compared with a non-GAAP net loss of $46.9 million.
Cash generation remains negative, but the quarter showed some relief. Fourth-quarter operating cash flow was negative $31.1 million, an improvement from the prior-year quarter. Free cash flow was negative $26.5 million, compared with negative $41.2 million in the prior-year quarter. For the full year, operating cash flow was negative $160.1 million. Deferred revenue ended the quarter at $226.4 million, up 33% from a year earlier. Remaining performance obligations were $299.2 million, up 37% from a year earlier. Capital expenditures were $2.21 million in the quarter, up 72.2% from the prior-year quarter.
Operational metrics point to continued enterprise traction. Asana had 19,432 customers spending $5,000 or more on an annualized basis in the fourth quarter, up 26% year over year, and revenue from those customers grew 42%. Customers spending $100,000 or more reached 506, up 49%. Annualized revenues from customers spending $100,000 or more grew 80% year over year. The overall dollar-based net retention rate was over 115%. The rate was over 120% for customers spending at least $5,000 and over 135% for customers spending at least $100,000. Asana ended the year with more than 139,000 paying customers, compared with more than 119,000 a year earlier. It had over 2.5 million paid users. Headcount stood at 1,782 employees, up 7% since January 31, 2022.
Guidance points to slower growth and narrower losses. For the first quarter of fiscal 2024, Asana expects revenue growth of 24% to 25% year over year, with a non-GAAP operating loss of $40.0 million to $38.0 million. For the full fiscal year 2024, guidance calls for revenue growth of 17% to 18% and a non-GAAP operating loss of $130.0 million to $120.0 million. The company frames the full-year outlook as an improvement toward profitability compared with the year just closed.
Risks remain prominent. Management cited a challenging macroenvironment, elevated inflation, higher interest rates, bank failures, supply chain disruptions, currency swings, and the Russian invasion of Ukraine as pressures on global IT spending and customer buying patterns. The company also faces competition and execution risk as it tries to sustain growth while cutting costs. In November 2022, Asana reduced its global workforce by about 9% and incurred $9.3 million in severance and related charges, with no significant additional restructuring expenses expected. The failure of SVB and the transfer of its credit agreement to SVBBNA are also noted; Asana said it does not believe the line of credit availability is affected, but it continues to monitor the situation.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2023 | Q3 FY2023 | QoQ | Q4 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $150.2M | $141.4M | +6.2% | $111.9M | +34.2% |
| Gross profit | $135.0M | $126.3M | +6.9% | $100.4M | +34.5% |
| Gross margin | 89.9% | 89.3% | +0.6 pp | 89.7% | +0.2 pp |
| Research & development | $81.3M | $75.5M | +7.6% | $60.9M | +33.4% |
| Sales & marketing | $114.7M | $113.7M | +0.9% | $88.9M | +29.1% |
| General & administrative | $38.2M | $38.2M | +0.2% | $37.7M | +1.5% |
| Total operating expenses | $234.2M | $227.4M | +3.0% | $187.5M | +24.9% |
| Operating income (loss) | -$99.2M | -$101.1M | +1.9% | -$87.1M | -14.0% |
| Operating margin | -66.0% | -71.5% | +5.4 pp | -77.8% | +11.7 pp |
| Net income (loss) | -$95.0M | -$100.9M | +5.8% | -$90.0M | -5.5% |
| Net margin | -63.3% | -71.3% | +8.1 pp | -80.4% | +17.2 pp |
| Diluted EPS | -$0.48 | -$0.49 | +$0.01 | -$0.51 | +$0.03 |
| Net retention rate | 115.0% | 120.0% | -5.0 pp | 120.0% | -5.0 pp |
Risks
MD&A highlights elevated inflation, Federal Reserve rate increases, bank failures, supply chain disruptions, currency volatility, and the Russian invasion of Ukraine as creating economic uncertainty, and it discusses the March 2023 SVB closure. The risk factor states these conditions may reduce renewal rates, customer spend, and lead to delayed payments, while additional bank insolvencies could threaten access to cash, cash equivalents, and investments.
The risk factor states the company expects its revenue growth rate to decline in future periods. Current YTD revenue rose 44.6% to $547.21 million from $378.44 million in the prior-year YTD, and MD&A notes fiscal 2022 growth was 67%.
Dollar-based net retention rate declined to over 115% as of January 31, 2023 from over 120% as of January 31, 2022, and for customers spending over $5,000 it declined to over 120% from over 130%. The filing links revenue growth to growing or maintaining this rate.
On November 15, 2022, the company authorized a plan to reduce global headcount by approximately 9% and incurred $9.3 million of related expenses in fiscal 2023. The risk factor says the restructuring may not produce anticipated savings and could cause attrition beyond planned reductions, reduced morale, and difficulty attracting or retaining critical personnel.
The risk factor states that as the company focuses on larger organizations, sales efforts become more costly, sales cycles lengthen, competition increases, and predictability declines. Larger enterprise customers may demand more customization, integration, and support.
The market for work management solutions is described as increasingly competitive, fragmented, and subject to low barriers to entry. Competitors may have longer operating histories, greater resources, and may offer lower prices or price concessions.
The risk factor says competition for executive officers, software engineers, and sales personnel in the San Francisco Bay Area and other locations is intense, and that the fourth quarter fiscal 2023 reduction in force may adversely affect the ability to attract and retain employees.
The company derives, and expects to continue deriving, substantially all revenues from a single solution, so reduced demand for the work management platform would disproportionately harm results.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Non-GAAP gross margin
Paying Customers
Paid Users
Dollar-Based Net Retention Rate (Customers Spending $100,000+, Q4)
Summary, forecast, risks and KPIs are extracted from Asana, Inc.'s SEC filings for Q4 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.