Asana Announces Fourth Quarter and Fiscal Year 2023 Revenues

March 8, 2023

Fiscal year revenue growth up 45% year over year

Annualized revenues from customers spending $100,000 or more grew 80% year over year

Fiscal 2024 guidance reflects improvement towards profitability year over year

Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a leading work management platform for organizations, today reported financial results for its fourth quarter and fiscal year 2023 ended January 31, 2023.

“Revenues for the fiscal year were up 45 percent year over year and we reported significant improvement in operating margins,” said Dustin Moskovitz, co-founder and chief executive officer of Asana. “We are grateful to work alongside some of the largest, most innovative enterprises in the world. This offers us unique insights into their complex business needs which helps to inform our product strategies and investments in areas that can shape the future of work management.”

Fourth Quarter Fiscal 2023 Financial Highlights

  • Revenues: Revenues were $150.2 million, an increase of 34% year over year.
  • Operating Loss: GAAP operating loss was $99.2 million, or 66% of revenues, compared to GAAP operating loss of $87.1 million, or 78% of revenues, in the fourth quarter of fiscal 2022. Non-GAAP operating loss was $37.4 million, or 25% of revenues, compared to non-GAAP operating loss of $43.9 million, or 39% of revenues, in the fourth quarter of fiscal 2022.
  • Net Loss: GAAP net loss was $95.0 million, compared to GAAP net loss of $90.0 million in the fourth quarter of fiscal 2022. GAAP net loss per share was $0.44, compared to GAAP net loss per share of $0.48 in the fourth quarter of fiscal 2022. Non-GAAP net loss was $33.2 million, compared to non-GAAP net loss of $46.9 million in the fourth quarter of fiscal 2022. Non-GAAP net loss per share was $0.15, compared to non-GAAP net loss per share of $0.25 in the fourth quarter of fiscal 2022.
  • Cash Flow: Cash flows from operating activities were negative $31.1 million, compared to negative $39.3 million in the fourth quarter of fiscal 2022. Free cash flow was negative $26.5 million, compared to negative $41.2 million in the fourth quarter of fiscal 2022.

Fiscal 2023 Financial Highlights

  • Revenues: Revenues were $547.2 million, an increase of 45% year over year.
  • Operating Loss: GAAP operating loss was $407.8 million, or 75% of revenues, compared to GAAP operating loss of $265.2 million, or 70% of revenues, in fiscal 2022. Non-GAAP operating loss was $207.3 million, or 38% of revenues, compared to non-GAAP operating loss of $157.1 million, or 42% of revenues, in fiscal 2022.
  • Net Loss: GAAP net loss was $407.8 million, compared to GAAP net loss of $288.3 million in fiscal 2022. GAAP net loss per share was $2.04, compared to GAAP net loss per share of $1.63 in fiscal 2022. Non-GAAP net loss was $207.2 million, compared to non-GAAP net loss of $162.9 million in fiscal 2022. Non-GAAP net loss per share was $1.04, compared to non-GAAP net loss per share of $0.92 in fiscal 2022.
  • Cash Flow: Cash flows from operating activities were negative $160.1 million, compared to negative $83.8 million in fiscal 2022. Free cash flow was negative $159.6 million, compared to negative $87.6 million in fiscal 2022.

Business Highlights

  • The number of customers spending $5,000 or more on an annualized basis in Q4 grew to 19,432, an increase of 26% year over year. Revenues from these customers in Q4 grew 42% year over year.
  • The number of customers spending $100,000 or more on an annualized basis in Q4 grew to 506, an increase of 49% year over year.
  • Overall dollar-based net retention rate in Q4 was over 115%.
  • Dollar-based net retention rate for customers with $5,000 or more in annualized spend in Q4 was over 120%.
  • Dollar-based net retention rate for customers with $100,000 or more in annualized spend in Q4 was over 135%.
  • Hired Shannon Sullivan Duffy as Chief Marketing Officer, and Neeracha Taychakhoonavudh as Head of Customer Experience, along with Sanj Bhayro as General Manager EMEA, to continue to drive enterprise growth.
  • Named as a Leader in The Forrester Wave™: Collaborative Work Management Tools, Q4 2022 report. Recognized for differentiators including: Objectives & Key Results (“OKR”) and performance management, Work Graph Model®, and our outstanding support for product, strategy, and implementation, ready for complex enterprise deployment, to name a few.
  • Recognized as a top 100 employer in Glassdoor's Best Places to Work Award for the fourth time.
  • Awarded one of America's Greatest Workplaces for Diversity 2023 by Newsweek in cooperation with Plant-A Insights Group.This award honors the collaboration of people with different worldviews who are fostering a more creative and innovative workforce in support of better decision-making.

Financial Outlook

For the first quarter of fiscal 2024, Asana expects:

  • Revenues of $150.0 million to $151.0 million, representing year over year growth of 24% to 25%.
  • Non-GAAP operating loss of $40.0 million to $38.0 million.
  • Non-GAAP net loss per share of $0.19 to $0.18, assuming basic and diluted weighted average shares outstanding of approximately 215 million.

For fiscal year 2024, Asana expects:

  • Revenues of $638.0 million to $648.0 million, representing year over year growth of 17% to 18%.
  • Non-GAAP operating loss of $130.0 million to $120.0 million.
  • Non-GAAP net loss per share of $0.59 to $0.55, assuming basic and diluted weighted average shares outstanding of approximately 219 million.

These statements are forward-looking and actual results may materially differ. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause Asana’s actual results to materially differ from these forward-looking statements.

A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that may be incurred in the future. Asana has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its fourth quarter and fiscal year 2023 non-GAAP results included in this press release.

Earnings Conference Call Information

Asana will hold a conference call and live webcast today to discuss these results at 1:30 p.m. Pacific Time. A live webcast and replay will be available on the Asana Investor Relations website at: https://investors.asana.com. The conference call can also be accessed by dialing (844) 200-6205, or +1 929-526-1599 (outside of the US). The conference access code is 310454.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, statements about our ability to execute on our current strategies, our technology and brand position, Asana’s outlook for the first fiscal quarter and the full fiscal year ending January 31, 2024, expected benefits of our offerings, Asana’s market position, and potential market opportunities. Forward-looking statements generally relate to future events or Asana’s future financial or operating performance. Forward-looking statements include all statements that are not historical facts and in some cases can be identified by terms such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “continue,” “could,” “potential,” “may,” “will,” “goal,” or similar expressions and the negatives of those terms. However, not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including factors beyond Asana’s control, that may cause Asana’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: Asana’s ability to achieve future growth and sustain its growth rate, Asana’s ability to attract and retain customers and increase sales to its customers, Asana’s ability to develop and release new products and services and to scale its platform, Asana’s ability to increase adoption of its platform through Asana’s self-service model, Asana’s ability to maintain and grow its relationships with strategic partners, the highly competitive and rapidly evolving market in which Asana participates, Asana’s international expansion strategies, and the impact of the COVID-19 pandemic and broader macroeconomic conditions. Further information on risks that could cause actual results to differ materially from forecasted results are included in Asana’s filings with the SEC, including Asana’s Quarterly Report on Form 10-Q for the quarter ended October 31, 2022 and subsequent filings with the SEC. Any forward-looking statements contained in this press release are based on assumptions that Asana believes to be reasonable as of this date. Except as required by law, Asana assumes no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Use of Non-GAAP Financial Measures

To supplement Asana’s consolidated financial statements, which are prepared and presented in accordance with GAAP, Asana utilizes certain non-GAAP financial measures to assist in understanding and evaluating its core operating performance. In this release, Asana’s non-GAAP gross profit, gross margin, operating expenses, operating expenses as a percentage of revenue, operating loss, operating margin, net loss, net loss per share, free cash flow are not presented in accordance with GAAP and are not intended to be used in lieu of GAAP presentations of results of operations. These non-GAAP financial measures, which may be different from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of Asana’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures which can be found in the accompanying financial statements included with this press release.

Asana is presenting these non-GAAP financial measures because it believes that these non-GAAP financial measures provide useful information about its financial performance, enhance the overall understanding of Asana’s past performance and future prospects, facilitate period-to-period comparisons of operations against other companies in Asana’s industry, and allow for greater transparency with respect to important metrics used by Asana’s management for financial and operational decision-making.

Asana believes excluding the following items from its non-GAAP financial measures is useful to investors and others in assessing Asana’s operating performance due to the following factors:

  • Share-based compensation expenses. Although share-based compensation is an important aspect of the compensation of our employees and executives, management believes it is useful to exclude share-based compensation expenses to better understand the long-term performance of Asana’s core business and to facilitate comparison of its results to those of peer companies.
  • Employer payroll tax associated with RSUs. The amount of employer payroll tax-related items on employee stock transactions is dependent on Asana’s stock price and other factors that are beyond its control and that do not correlate to the operation of the business.
  • Non-cash and non-recurring expenses. Non-cash expenses include the amortization of debt discount, non-cash interest related to the senior mandatory convertible promissory notes, and non-recurring expenses include direct listing fees and costs related to restructuring. Asana believes the exclusion of the non-cash and non-recurring items provides useful supplemental information to investors and facilitates the analysis of its operating results and comparison of operating results across reporting periods.

There are a number of limitations related to the use of non-GAAP financial measures as compared to GAAP financial measures, including that the non-GAAP financial measures exclude stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in Asana’s business and an important part of its compensation strategy.

In addition to the non-GAAP financial measures outlined above, Asana also uses the non-GAAP financial measure of free cash flow, which is defined as net cash from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs, plus non-recurring expenditures such as capital expenditures from the purchases of property and equipment associated with the build-out of Asana’s corporate headquarters and costs related to restructuring. Asana believes free cash flow is an important liquidity measure of the cash that is available, after capital expenditures and operational expenses, for investment in its business and to make acquisitions. Asana believes that free cash flow is useful to investors as a liquidity measure because it measures Asana’s ability to generate or use cash. There are a number of limitations related to the use of free cash flow as compared to net cash from operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.

Definitions of Business Metrics

Customers spending over $5,000, $50,000, and $100,000 on an annualized basis

We define customers spending over $5,000, $50,000, and $100,000 as those organizations on a paid subscription plan that had $5,000 or more, $50,000 or more or $100,000 or more in annualized GAAP revenues in a given quarter, respectively, inclusive of discounts.

Dollar-based net retention rate

Asana’s reported dollar-based net retention rate equals the simple arithmetic average of its quarterly dollar-based net retention rate for the four quarters ending with the most recent fiscal quarter. Asana calculates its dollar-based net retention rate by comparing its revenues from the same set of customers in a given quarter, relative to the comparable prior-year period. To calculate Asana’s dollar-based net retention rate for a given quarter, Asana starts with the revenues in that quarter from customers that generated revenues in the same quarter of the prior year. Asana then divides that amount by the revenues attributable to that same group of customers in the prior-year quarter. Current period revenues include any upsells and are net of contraction or attrition over the trailing 12 months, but exclude revenues from new customers in the current period. Asana expects its dollar-based net retention rate to fluctuate in future periods due to a number of factors, including the expected growth of its revenue base, the level of penetration within its customer base, and its ability to retain its customers.

About Asana

Asana helps organizations orchestrate their work, from small projects to strategic initiatives. Headquartered in San Francisco, CA, Asana has more than 139,000 paying customers and millions of free organizations in over 200 countries and territories. Global customers such as Amazon, Affirm, Japan Airlines, and Sky rely on Asana to manage everything from company objectives to digital transformation to product launches and marketing campaigns. For more information, visit www.asana.com.

Disclosure of Material Information

Asana announces material information to its investors using SEC filings, press releases, public conference calls, and on its investor relations page of Asana’s website at https://investors.asana.com. Asana uses these channels, as well as social media, including its Twitter account (@asana), its blog (blog.asana.com), its LinkedIn page (www.linkedin.com/company/asana), its Instagram account (@asana), and its Facebook page (www.facebook.com/asana/), to communicate with investors and the public about Asana, its products and services and other matters. Therefore, Asana encourages investors, the media and others interested in Asana to review the information it makes public in these locations, as such information could be deemed to be material information.

ASANA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)

       

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2023

 

2022

 

2023

 

2022

Revenues

$

150,231

 

 

$

111,949

 

 

$

547,212

 

 

$

378,437

 

Cost of revenues(1)

 

15,205

 

 

 

11,533

 

 

 

56,559

 

 

 

38,897

 

Gross profit

 

135,026

 

 

 

100,416

 

 

 

490,653

 

 

 

339,540

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

 

81,262

 

 

 

60,915

 

 

 

297,209

 

 

 

203,124

 

Sales and marketing(1)

 

114,733

 

 

 

88,888

 

 

 

434,961

 

 

 

282,897

 

General and administrative(1)

 

38,245

 

 

 

37,676

 

 

 

166,309

 

 

 

118,703

 

Total operating expenses

 

234,240

 

 

 

187,479

 

 

 

898,479

 

 

 

604,724

 

Loss from operations

 

(99,214

)

 

 

(87,063

)

 

 

(407,826

)

 

 

(265,184

)

Interest income and other income (expense), net

 

7,152

 

 

 

(770

)

 

 

6,933

 

 

 

(1,536

)

Interest expense

 

(875

)

 

 

(307

)

 

 

(2,000

)

 

 

(18,385

)

Loss before provision for income taxes

 

(92,937

)

 

 

(88,140

)

 

 

(402,893

)

 

 

(285,105

)

Provision for income taxes

 

2,089

 

 

 

1,909

 

 

 

4,875

 

 

 

3,237

 

Net loss

$

(95,026

)

 

$

(90,049

)

 

$

(407,768

)

 

$

(288,342

)

Net loss per share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.44

)

 

$

(0.48

)

 

$

(2.04

)

 

$

(1.63

)

Weighted-average shares used in calculating net loss per share:

 

 

 

 

 

 

 

Basic and diluted

 

214,195

 

 

 

187,435

 

 

 

200,034

 

 

 

176,401

 

       

__________________

(1) Amounts include stock-based compensation expense as follows:

       

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2023

 

2022

 

2023

 

2022

Cost of revenues

$

458

 

 

$

344

 

 

$

1,658

 

 

$

806

 

Research and development

 

29,477

 

 

 

22,739

 

 

 

100,083

 

 

 

57,480

 

Sales and marketing

 

15,476

 

 

 

12,990

 

 

 

58,504

 

 

 

29,631

 

General and administrative

 

7,717

 

 

 

6,223

 

 

 

28,717

 

 

 

16,644

 

Total stock-based compensation expense (1)

$

53,128

 

 

$

42,296

 

 

$

188,962

 

 

$

104,561

 

                               

__________________

(1) The table above includes $0.9 million of stock-based compensation expense for the three and twelve months ended January 31, 2023 that was incurred as a result of the restructuring.

ASANA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

       

 

January 31, 2023

 

January 31, 2022

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

526,563

 

 

$

240,403

 

Marketable securities

 

2,739

 

 

 

71,628

 

Accounts receivable, net

 

82,363

 

 

 

59,085

 

Prepaid expenses and other current assets

 

48,726

 

 

 

40,278

 

Total current assets

 

660,391

 

 

 

411,394

 

Property and equipment, net

 

94,984

 

 

 

99,632

 

Operating lease right-of-use assets

 

176,189

 

 

 

174,083

 

Investments, noncurrent

 

 

 

 

2,760

 

Other assets

 

23,399

 

 

 

19,166

 

Total assets

$

954,963

 

 

$

707,035

 

Liabilities and Stockholders’ Equity

Current liabilities

 

 

 

Accounts payable

$

7,554

 

 

$

11,557

 

Accrued expenses and other current liabilities

 

83,488

 

 

 

60,915

 

Deferred revenue, current

 

226,443

 

 

 

170,143

 

Operating lease liabilities, current

 

14,831

 

 

 

12,573

 

Total current liabilities

 

332,316

 

 

 

255,188

 

Term loan, net

 

46,696

 

 

 

34,612

 

Deferred revenue, noncurrent

 

7,156

 

 

 

4,082

 

Operating lease liabilities, noncurrent

 

210,012

 

 

 

208,422

 

Other liabilities

 

2,209

 

 

 

891

 

Total liabilities

 

598,389

 

 

 

503,195

 

Stockholders’ equity

 

 

 

Common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

1,595,001

 

 

 

1,034,252

 

Accumulated other comprehensive loss

 

(873

)

 

 

(626

)

Accumulated deficit

 

(1,237,556

)

 

 

(829,788

)

Total stockholders’ equity

 

356,574

 

 

 

203,840

 

Total liabilities and stockholders’ equity

$

954,963

 

 

$

707,035

 

ASANA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

       

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2023

 

2022

 

2023

 

2022

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(95,026

)

 

$

(90,049

)

 

$

(407,768

)

 

$

(288,342

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

Allowance for expected credit losses

 

873

 

 

 

1,019

 

 

 

1,918

 

 

 

2,257

 

Depreciation and amortization

 

3,162

 

 

 

2,963

 

 

 

12,669

 

 

 

8,464

 

Amortization of deferred contract acquisition costs

 

4,589

 

 

 

2,708

 

 

 

15,098

 

 

 

8,647

 

Stock-based compensation expense

 

53,128

 

 

 

42,267

 

 

 

188,962

 

 

 

104,527

 

Net amortization of premium on marketable securities

 

12

 

 

 

83

 

 

 

62

 

 

 

784

 

Non-cash lease expense

 

4,169

 

 

 

3,347

 

 

 

15,595

 

 

 

16,589

 

Amortization of discount on convertible notes and term loan issuance costs

 

28

 

 

 

5

 

 

 

41

 

 

 

10,645

 

Non-cash interest expense

 

 

 

 

 

 

 

 

 

 

6,670

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(23,802

)

 

 

(13,014

)

 

 

(25,179

)

 

 

(26,993

)

Prepaid expenses and other current assets

 

(1,887

)

 

 

(14,664

)

 

 

(24,042

)

 

 

(23,652

)

Other assets

 

(907

)

 

 

(4,408

)

 

 

(4,108

)

 

 

(10,724

)

Accounts payable

 

(1,058

)

 

 

(1,804

)

 

 

(4,391

)

 

 

7,259

 

Accrued expenses and other liabilities

 

10,314

 

 

 

13,111

 

 

 

25,539

 

 

 

23,682

 

Deferred revenue

 

18,761

 

 

 

19,512

 

 

 

59,375

 

 

 

68,339

 

Operating lease liabilities

 

(3,455

)

 

 

(401

)

 

 

(13,829

)

 

 

8,063

 

Net cash used in operating activities

 

(31,099

)

 

 

(39,325

)

 

 

(160,058

)

 

 

(83,785

)

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of marketable securities

 

 

 

 

(471

)

 

 

(72,216

)

 

 

(62,394

)

Sales of marketable securities

 

 

 

 

 

 

 

 

 

 

373

 

Maturities of marketable securities

 

33,661

 

 

 

7,713

 

 

 

143,865

 

 

 

132,301

 

Purchases of property and equipment

 

(2,211

)

 

 

(1,284

)

 

 

(5,351

)

 

 

(41,587

)

Capitalized internal-use software costs

 

(854

)

 

 

(645

)

 

 

(1,806

)

 

 

(1,132

)

Net cash provided by investing activities

 

30,596

 

 

 

5,313

 

 

 

64,492

 

 

 

27,561

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from term loan, net of issuance costs

 

49,555

 

 

 

 

 

 

49,555

 

 

 

9,000

 

Repayment of term loan

 

(35,666

)

 

 

(500

)

 

 

(38,333

)

 

 

(1,667

)

Proceeds from private placement—related party, net of offering costs

 

(95

)

 

 

 

 

 

347,289

 

 

 

 

Repurchases of common stock

 

(7

)

 

 

(4

)

 

 

(9

)

 

 

(40

)

Proceeds from exercise of stock options

 

1,146

 

 

 

3,740

 

 

 

5,773

 

 

 

16,567

 

Proceeds from employee stock purchase plan

 

1

 

 

 

 

 

 

17,116

 

 

 

13,350

 

Net cash provided by financing activities

 

14,934

 

 

 

3,236

 

 

 

381,391

 

 

 

37,210

 

Effect of foreign exchange rates on cash and cash equivalents

 

1,542

 

 

 

(639

)

 

 

335

 

 

 

(461

)

Net increase (decrease) in cash and cash equivalents

 

15,973

 

 

 

(31,415

)

 

 

286,160

 

 

 

(19,475

)

Cash and cash equivalents

 

 

 

 

 

 

 

Beginning of period

 

510,590

 

 

 

271,818

 

 

 

240,403

 

 

 

259,878

 

End of period

$

526,563

 

 

$

240,403

 

 

$

526,563

 

 

$

240,403

 

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages)

(unaudited)

       

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2023

 

2022

 

2023

 

2022

Reconciliation of gross profit and gross margin

 

 

 

 

 

 

 

GAAP gross profit

$

135,026

 

 

$

100,416

 

 

$

490,653

 

 

$

339,540

 

Plus: stock-based compensation and related employer payroll tax associated with RSUs

 

425

 

 

 

350

 

 

 

1,651

 

 

 

843

 

Plus: restructuring costs

 

550

 

 

 

 

 

 

550

 

 

 

 

Non-GAAP gross profit

$

136,001

 

 

$

100,766

 

 

$

492,854

 

 

$

340,383

 

GAAP gross margin

 

89.9

%

 

 

89.7

%

 

 

89.7

%

 

 

89.7

%

Non-GAAP adjustments

 

0.6

%

 

 

0.3

%

 

 

0.4

%

 

 

0.2

%

Non-GAAP gross margin

 

90.5

%

 

 

90.0

%

 

 

90.1

%

 

 

89.9

%

Reconciliation of operating expenses

 

 

 

 

 

 

 

GAAP research and development

$

81,262

 

 

$

60,915

 

 

$

297,209

 

 

$

203,124

 

Less: stock-based compensation and related employer payroll tax associated with RSUs

 

(29,676

)

 

 

(23,202

)

 

 

(101,892

)

 

 

(59,206

)

Less: restructuring costs

 

(35

)

 

 

 

 

 

(35

)

 

 

 

Non-GAAP research and development

$

51,551

 

 

$

37,713

 

 

$

195,282

 

 

$

143,918

 

GAAP research and development as percentage of revenue

 

54.1

%

 

 

54.4

%

 

 

54.3

%

 

 

53.7

%

Non-GAAP research and development as percentage of revenue

 

34.3

%

 

 

33.7

%

 

 

35.7

%

 

 

38.0

%

 

 

 

 

 

 

 

 

GAAP sales and marketing

$

114,733

 

 

$

88,888

 

 

$

434,961

 

 

$

282,897

 

Less: stock-based compensation and related employer payroll tax associated with RSUs

 

(14,904

)

 

 

(13,243

)

 

 

(58,648

)

 

 

(30,695

)

Less: restructuring costs

 

(6,582

)

 

 

 

 

 

(6,582

)

 

 

 

Non-GAAP sales and marketing

$

93,247

 

 

$

75,645

 

 

$

369,731

 

 

$

252,202

 

GAAP sales and marketing as percentage of revenue

 

76.4

%

 

 

79.4

%

 

 

79.5

%

 

 

74.8

%

Non-GAAP sales and marketing as percentage of revenue

 

62.1

%

 

 

67.6

%

 

 

67.6

%

 

 

66.6

%

 

 

 

 

 

 

 

 

GAAP general and administrative

$

38,245

 

 

$

37,676

 

 

$

166,309

 

 

$

118,703

 

Less: stock-based compensation and related employer payroll tax associated with RSUs

 

(7,585

)

 

 

(6,376

)

 

 

(29,095

)

 

 

(17,385

)

Less: restructuring costs

 

(2,093

)

 

 

 

 

 

(2,093

)

 

 

 

Non-GAAP general and administrative

$

28,567

 

 

$

31,300

 

 

$

135,121

 

 

$

101,318

 

GAAP general and administrative as percentage of revenue

 

25.5

%

 

 

33.7

%

 

 

30.4

%

 

 

31.4

%

Non-GAAP general and administrative as percentage of

revenue

 

19.0

%

 

 

28.0

%

 

 

24.7

%

 

 

26.8

%

Reconciliation of operating loss and operating margin

 

 

 

 

 

 

 

GAAP loss from operations

$

(99,214

)

 

$

(87,063

)

 

$

(407,826

)

 

$

(265,184

)

Plus: stock-based compensation and related employer payroll tax associated with RSUs

 

52,590

 

 

 

43,171

 

 

 

191,286

 

 

 

108,129

 

Plus: restructuring costs (1)

 

9,260

 

 

 

 

 

 

9,260

 

 

 

 

Non-GAAP loss from operations

$

(37,364

)

 

$

(43,892

)

 

$

(207,280

)

 

$

(157,055

)

GAAP operating margin

 

(66.0

)%

 

 

(77.8

)%

 

 

(74.5

)%

 

 

(70.1

)%

Non-GAAP adjustments

 

41.1

%

 

 

38.7

%

 

 

36.6

%

 

 

28.6

%

Non-GAAP operating margin

 

(24.9

)%

 

 

(39.1

)%

 

 

(37.9

)%

 

 

(41.5

)%

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages and per share data)

(unaudited)

       

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2023

 

2022

 

2023

 

2022

Reconciliation of net loss

 

 

 

 

 

 

 

GAAP net loss

$

(95,026

)

 

$

(90,049

)

 

$

(407,768

)

 

$

(288,342

)

Plus: stock-based compensation and related employer payroll tax associated with RSUs

 

52,590

 

 

 

43,171

 

 

 

191,286

 

 

 

108,129

 

Plus: restructuring costs (1)

 

9,260

 

 

 

 

 

 

9,260

 

 

 

 

Plus: amortization of debt discount

 

 

 

 

 

 

 

 

 

 

10,628

 

Plus: non-cash interest

 

 

 

 

 

 

 

 

 

 

6,670

 

Non-GAAP net loss

$

(33,176

)

 

$

(46,878

)

 

$

(207,222

)

 

$

(162,915

)

Reconciliation of net loss per share

 

 

 

 

 

 

 

GAAP net loss per share, basic

$

(0.44

)

 

$

(0.48

)

 

$

(2.04

)

 

$

(1.63

)

Non-GAAP adjustments to net loss

 

0.29

 

 

 

0.23

 

 

 

1.00

 

 

 

0.71

 

Non-GAAP net loss per share, basic

$

(0.15

)

 

$

(0.25

)

 

$

(1.04

)

 

$

(0.92

)

Weighted-average shares used in GAAP and non-GAAP per share calculation, basic and diluted

 

214,195

 

 

 

187,435

 

 

 

200,034

 

 

 

176,401

 

       

_______________

(1) Restructuring costs for the three and twelve months ended January 31, 2023 were composed of severance and related charges of $8.4 million and stock-based compensation expense of $0.9 million. These charges are non-recurring and not reflective of underlying trends in our business.

       

 

Three Months Ended January 31,

 

Twelve Months Ended January 31,

 

2023

 

2022

 

2023

 

2022

Computation of free cash flow

 

 

 

 

 

 

 

Net cash provided by investing activities

$

30,596

 

 

$

5,313

 

 

$

64,492

 

 

$

27,561

 

Net cash provided by financing activities

$

14,934

 

 

$

3,236

 

 

$

381,391

 

 

$

37,210

 

Net cash used in operating activities

$

(31,099

)

 

$

(39,325

)

 

$

(160,058

)

 

$

(83,785

)

Less: purchases of property and equipment

 

(2,211

)

 

 

(1,284

)

 

 

(5,351

)

 

 

(41,587

)

Less: capitalized internal-use software costs

 

(854

)

 

 

(645

)

 

 

(1,806

)

 

 

(1,132

)

Plus: restructuring costs paid

$

7,663

 

 

$

 

 

$

7,663

 

 

$

 

Plus: purchases of property and equipment from build-out of corporate headquarters

 

 

 

 

59

 

 

 

2

 

 

 

38,610

 

Plus: direct listing expenses

$

 

 

$

 

 

$

 

 

$

270

 

Free cash flow

$

(26,501

)

 

$

(41,195

)

 

$

(159,550

)

 

$

(87,624

)

 

Catherine Buan
Asana Investor Relations
ir@asana.com

Stephanie Hess
Asana Corporate Communications
press@asana.com

Source: Asana, Inc.