Press release·04/07/2025 16:00:48

Overview of Asana’s Financial Performance

Asana, a leading work management platform, has reported its financial results for the fiscal years ended January 31, 2025 and 2024. The company has seen steady growth in revenues, driven by an increase in the number of paying customers and a shift towards higher-priced subscription plans. However, the company has continued to generate losses as it invests in research and development, sales and marketing, and general and administrative expenses.

Revenue and Profit Trends

Asana’s revenues increased by 11% in fiscal 2025 compared to fiscal 2024, reaching $723.9 million. This growth was primarily due to the addition of new paying customers and a continued shift towards the company’s higher-priced subscription plans, such as Advanced, Enterprise, and Enterprise+.

Despite the revenue growth, Asana continued to generate losses. The company’s net loss for fiscal 2025 was $255.5 million, compared to a net loss of $257.0 million in fiscal 2024. The company’s losses are primarily driven by its ongoing investments in research and development, sales and marketing, and general and administrative expenses.

Asana’s Key Metrics

Asana tracks several key metrics to measure the health and growth of its business:

Core Customers: As of January 31, 2025, Asana had 24,062 Core customers, who contributed approximately 72% of the company’s revenues for the fiscal year. This represents an increase from 21,646 Core customers in the prior fiscal year.

Customers Spending Over $100,000: As of January 31, 2025, Asana had 726 customers spending over $100,000 on an annualized basis, up from 607 in the prior fiscal year. These high-value customers are an important indicator of Asana’s ability to expand within its existing customer base and attract larger organizations.

Dollar-based Net Retention Rate: Asana’s dollar-based net retention rate, which measures the company’s ability to retain and expand within its existing customer base, was 96% as of January 31, 2025, down from over 100% in the prior fiscal year. The company’s dollar-based net retention rate for its Core customers was 97%, and for customers spending over $100,000 was 96%.

Strengths and Weaknesses

Strengths:

• Steady revenue growth driven by new customer acquisition and expansion within the existing customer base
• Increasing number of high-value customers spending over $100,000 annually
• Strong dollar-based net retention rate, indicating the company’s ability to retain and expand within its customer base

Weaknesses:

• Continued operating losses as the company invests in growth
• Declining dollar-based net retention rate, which could indicate challenges in retaining and expanding within the customer base

Outlook and Future Prospects

Asana’s future prospects will depend on its ability to continue growing its customer base, expanding within existing customers, and managing its operating expenses effectively.

The company’s investments in research and development, particularly in the integration of AI into its products, are expected to drive innovation and maintain the platform’s competitiveness. However, these investments, along with continued sales and marketing expenses, are likely to keep the company’s operating expenses high in the near term.

Asana’s ability to maintain its dollar-based net retention rate will be crucial, as it indicates the company’s success in retaining and expanding within its existing customer base. The company’s performance may be affected by macroeconomic conditions, such as the impact of inflation, interest rate fluctuations, and global economic uncertainty.

Overall, Asana’s financial performance reflects the company’s focus on growth and market expansion, balanced with the need to manage its operating expenses and maintain profitability in the long run. The company’s success will depend on its ability to continue innovating, attracting new customers, and deepening its relationships with existing ones.