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asan-20241205
0001477720FALSE00014777202024-12-052024-12-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________
FORM 8-K
__________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 5, 2024
__________________________
Asana, Inc.
(Exact name of Registrant as Specified in Its Charter)
__________________________
Delaware001-3949526-3912448
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
633 Folsom Street, Suite 100
San Francisco,CA94107
(Address of Principal Executive Offices)(Zip Code)
(415) 525-3888
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
__________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, $0.00001 par
value		ASANNew York Stock Exchange
Long-Term Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company   ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02    Results of Operations and Financial Condition.
On December 5, 2024, Asana, Inc. issued a press release announcing its financial results for the fiscal quarter ended October 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
The information furnished under this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01    Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ASANA, INC.
Dated: December 5, 2024By:/s/ Eleanor Lacey
Eleanor Lacey
General Counsel and Corporate Secretary
Document
Exhibit 99.1
Asana Announces Third Quarter Fiscal 2025 Results

Q3 top and bottom line above high end of guidance; Fiscal 2025 outlook increased
On track to deliver positive Free Cash Flow for Q4
Enters new era as multi-product company with the launch of AI Studio

December 5, 2024 – San Francisco, CA – Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a leading enterprise work management platform, today reported financial results for its third quarter fiscal 2025 ended October 31, 2024.

“The launch of AI Studio is the birth of a new category, unlocking a massive Total Addressable Market (TAM) and growth opportunity for the company,” said Dustin Moskovitz, co-founder and chief executive officer of Asana. “While still early, we have seen significant demand, with customers experiencing meaningful productivity gains across their workflows. The productivity benefits and early traction not only validate the market demand for AI-powered work management solutions but also underscore Asana's leadership position in this space.”

"We delivered a solid quarter with stabilizing revenue growth, improving in-quarter net retention, and expansion with large customers," said Sonalee Parekh, chief financial officer of Asana. "As we execute our plan, we're demonstrating that growth and profitability improvements can progress in parallel. With AI Studio expanding our TAM and our commitment to driving productivity benefits and efficiencies, we see significant potential for both re-acceleration of growth and operating margin expansion."

Third Quarter Fiscal 2025 Financial Highlights

•Revenues: Revenues were $183.9 million, an increase of 10% year over year.
•Operating Loss: GAAP operating loss was $60.2 million, or 33% of revenues, compared to GAAP operating loss of $63.4 million, or 38% of revenues, in the third quarter of fiscal 2024. Non-GAAP operating loss was $7.6 million, or 4% of revenues, compared to non-GAAP operating loss of $9.8 million, or 6% of revenues, in the third quarter of fiscal 2024.
•Net Loss: GAAP net loss was $57.3 million, compared to GAAP net loss of $61.8 million in the third quarter of fiscal 2024. GAAP net loss per share was $0.25, compared to GAAP net loss per share of $0.28 in the third quarter of fiscal 2024. Non-GAAP net loss was $4.8 million, compared to non-GAAP net loss of $8.2 million in the third quarter of fiscal 2024. Non-GAAP net loss per share was $0.02, compared to non-GAAP net loss per share of $0.04 in the third quarter of fiscal 2024.
•Cash Flow: Cash flows from operating activities were negative $14.9 million, compared to negative $8.2 million in the third quarter of fiscal 2024. Free cash flow was negative $18.2 million, compared to negative $11.5 million in the third quarter of fiscal 2024.

Business Highlights

•The number of Core customers, or customers spending $5,000 or more on an annualized basis, grew to 23,609 in Q3, an increase of 11% year over year. Revenues from Core customers in Q3 grew 11% year over year.
•The number of customers spending $100,000 or more on an annualized basis in Q3 grew to 683, an increase of 18% year over year.
•Overall dollar-based net retention rate in Q3 was 96%.
•Dollar-based net retention rate for Core customers in Q3 was 98%.





1
Exhibit 99.1
•Dollar-based net retention rate for customers spending $100,000 or more on an annualized basis in Q3 was 99%.
•Launched Asana AI Studio, a no-code builder that lets any team design any workflow, embed AI agents without code, and deploy the workflow directly where teams are already working in Asana.
•Appointed new Chief Financial Officer, Sonalee Parekh, along with Josh Abdulla as Head of Customer Experience.
•Announced Asana’s commitment to pursuing FedRAMP (Federal Risk and Authorization Management Program) authorization to serve the complex needs of enterprises in regulated industries.
•Published our 2024 State of Work Innovation report, which uncovers what’s holding organizations back – unpacking four hidden "taxes" and how innovative companies can minimize them.
•Hosted Asana’s largest-ever Work Innovation Summit event in New York City – diving into how Asana is shaping the new era of work with partners, customers, thought leaders, and more.
•Celebrated first-ever Asana Work Innovation Award winners, comprised of five customers who each combine creativity with technology to craft solutions as imaginative as they are effective. Winners included NCAA, Disney Theatrical Group, World Resources Institute, Beauty Pie, and Children’s Health.
•Launched a partnership with Mastercard, offering Mastercard Business cardholders a 20% rebate on an annual subscription to first-time Asana customers.

Financial Outlook

For the fourth quarter of fiscal 2025, Asana expects:

•Revenues of $187.5 million to $188.5 million, representing year over year growth of 10%.
•Non-GAAP operating loss of $6.5 million to $5.5 million, with 3% operating loss margin.
•Non-GAAP net loss per share of $0.02 to $0.01, assuming basic and diluted weighted average shares outstanding of approximately 229 million.

For fiscal 2025, Asana expects:

•Revenues of $723.0 million to $724.0 million, representing year over year growth of 11%.
•Non-GAAP operating loss of $46.0 million to $45.0 million, with 6% operating loss margin.
•Non-GAAP net loss per share of $0.15 to $0.14, assuming basic and diluted weighted average shares outstanding of approximately 229 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 third quarter fiscal year 2025 non-GAAP results included in this press release.






2
Exhibit 99.1
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 webpage at: https://investors.asana.com.

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 market opportunity, the potential and impact of AI, the expected benefits of AI Studio, including our expectations regarding revenue to be generated by AI Studio, our ability to execute on our current strategies, our technology and brand position, expectations regarding product launches, Asana’s outlook for the fiscal quarter and the full fiscal year ending January 31, 2025, Asana’s outlook for free cash flow, expected benefits of our offerings, and our market position. 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, including the successful integration of AI, 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 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 Annual Report on Form 10-K for the year ended January 31, 2024 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, and 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





3
Exhibit 99.1
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:

•Stock-based compensation expenses. Although stock-based compensation is an important aspect of the compensation of our employees and executives, management believes it is useful to exclude stock-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 charges for impairment of long-lived assets. Non-recurring expenses include costs related to restructuring. Asana believes the exclusion of certain 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 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 excludes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.

Definitions of Business Metrics

Customers spending $5,000 or more on an annualized basis, or Core customers

We define customers spending $5,000 or more, which we also refer to as Core customers, as those organizations on a paid subscription plan that had $5,000 or more in annualized GAAP revenues in a given quarter, inclusive of discounts.





4
Exhibit 99.1

Customers spending $100,000 or more on an annualized basis

We define customers spending $100,000 or more as those organizations on a paid subscription plan that had $100,000 or more in annualized GAAP revenues in a given quarter, 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, its ability to retain its customers, and the macroeconomic environment.

About Asana
Asana, a leading enterprise work management platform, is where work connects to goals. Over 150,000 customers like Amazon, Accenture, and Suzuki rely on Asana to manage and automate everything from goal setting and tracking to capacity planning to product launches. To learn more, 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 X (formerly Twitter) account (@asana), its blog (blog.asana.com), its LinkedIn page (www.linkedin.com/company/asana), its Instagram account (@asana), its Facebook page (www.facebook.com/asana/), Threads profiles (@asana and @moskov) and TikTok account (@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.

Catherine Buan
Asana Investor Relations
ir@asana.com

Frances Ward
Asana Communications
press@asana.com








5
Exhibit 99.1
ASANA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Revenues$183,882 $166,503 $535,542 $481,369 
Cost of revenues(1)
19,798 16,053 57,589 47,132 
Gross profit164,084 150,450 477,953 434,237 
Operating expenses: 
Research and development(1)
83,286 81,028 257,228 241,715 
Sales and marketing(1)
104,708 98,349 317,689 288,034 
General and administrative(1)
36,270 34,494 106,182 106,537 
Total operating expenses224,264 213,871 681,099 636,286 
Loss from operations(60,180)(63,421)(203,146)(202,049)
Interest income and other income (expense), net4,949 3,479 16,069 13,310 
Interest expense(934)(1,012)(2,831)(2,947)
Loss before provision for income taxes(56,165)(60,954)(189,908)(191,686)
Provision for income taxes1,161 796 3,329 2,946 
Net loss$(57,326)$(61,750)$(193,237)$(194,632)
Net loss per share:
Basic and diluted$(0.25)$(0.28)$(0.84)$(0.89)
Weighted-average shares used in calculating net loss per share:
Basic and diluted229,624 221,776 228,830 219,094 
_______________
(1) Amounts include stock-based compensation expense as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Cost of revenues$354 $413 $1,030 $1,177 
Research and development28,087 29,384 88,872 83,928 
Sales and marketing15,837 15,584 48,334 43,438 
General and administrative7,677 7,485 22,466 22,026 
Total stock-based compensation expense$51,955 $52,866 $160,702 $150,569 






6

ASANA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 October 31, 2024January 31, 2024
Assets
Current assets
Cash and cash equivalents$196,772 $236,663 
Marketable securities258,541 282,801 
Restricted cash316 — 
Accounts receivable, net66,892 88,327 
Prepaid expenses and other current assets48,837 51,925 
Total current assets571,358 659,716 
Property and equipment, net96,627 96,543 
Operating lease right-of-use assets177,626 181,731 
Other assets28,545 23,970 
Total assets$874,156 $961,960 
Liabilities and Stockholders’ Equity
Current liabilities  
Accounts payable$12,606 $6,907 
Accrued expenses and other current liabilities69,307 75,821 
Deferred revenue, current279,560 265,306 
Operating lease liabilities, current21,556 19,179 
Total current liabilities383,029 367,213 
Term loan, net39,904 43,618 
Deferred revenue, noncurrent2,581 5,916 
Operating lease liabilities, noncurrent207,527 215,084 
Other liabilities1,845 3,733 
Total liabilities634,886 635,564 
Stockholders' equity  
Common stock2 2 
Additional paid-in capital2,002,764 1,821,216 
Accumulated other comprehensive loss(983)(236)
Accumulated deficit(1,762,513)(1,494,586)
Total stockholders’ equity239,270 326,396 
Total liabilities and stockholders’ equity$874,156 $961,960 
                                                                                                        






7

ASANA, INC.
SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Cash flows from operating activities  
Net loss$(57,326)$(61,750)$(193,237)$(194,632)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for expected credit losses653 683 1,025 2,072 
Depreciation and amortization4,437 3,531 12,730 10,407 
Amortization of deferred contract acquisition costs6,696 5,668 19,189 15,971 
Stock-based compensation expense51,955 52,866 160,702 150,569 
Net accretion of discount on marketable securities(1,090)(636)(4,646)(1,568)
Non-cash lease expense4,640 3,954 13,528 13,998 
Impairment of long-lived assets— — — 5,009 
Amortization of discount on revolving credit facility and term loan issuance costs30 31 91 91 
Changes in operating assets and liabilities:
Accounts receivable(2,304)(2,407)20,610 12,251 
Prepaid expenses and other current assets(2,254)(4,707)(15,852)(13,764)
Other assets(1,513)(606)(4,594)742 
Accounts payable(1,759)6,857 4,610 3,612 
Accrued expenses and other liabilities(5,035)(2,668)(11,408)(16,885)
Deferred revenue(7,050)(5,693)10,920 21,843 
Operating lease liabilities(4,970)(3,356)(14,598)(12,310)
Net cash used in operating activities(14,890)(8,233)(930)(2,594)
Cash flows from investing activities  
Purchases of marketable securities(59,502)(145,018)(166,628)(284,312)
Sales of marketable securities— 12 — 12 
Maturities of marketable securities104,309 7,500 195,605 25,641 
Purchases of property and equipment(1,372)(1,255)(4,064)(7,221)
Capitalized internal-use software costs(1,919)(1,977)(4,702)(4,325)
Net cash provided by (used in) investing activities41,516 (140,738)20,211 (270,205)
Cash flows from financing activities  
Repayment of term loan(625)(625)(1,875)(2,500)
Repurchases of common stock(54,847)— (73,869)— 
Proceeds from exercise of stock options1,755 783 3,884 3,856 
Proceeds from employee stock purchase plan4,799 6,511 13,665 15,069 
Taxes paid related to net share settlement of equity awards(1)— (5)(7)
Net cash provided by (used in) financing activities(48,919)6,669 (58,200)16,418 
Effect of foreign exchange rates on cash, cash equivalents, and restricted cash(474)(3,081)(656)(1,868)
Net decrease in cash, cash equivalents, and restricted cash(22,767)(145,383)(39,575)(258,249)
Cash, cash equivalents, and restricted cash  
Beginning of period219,855 413,697 236,663 526,563 
End of period$197,088 $268,314 $197,088 $268,314 
8

ASANA, INC.
Reconciliation of GAAP to Non-GAAP Data
(in thousands, except percentages)
(unaudited)
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Reconciliation of gross profit and gross margin
GAAP gross profit$164,084 $150,450 $477,953 $434,237 
Plus: stock-based compensation and related employer payroll tax associated with RSUs361 418 1,052 1,209 
Non-GAAP gross profit$164,445 $150,868 $479,005 $435,446 
GAAP gross margin89.2 %90.4 %89.2 %90.2 %
Non-GAAP adjustments0.2 %0.2 %0.2 %0.3 %
Non-GAAP gross margin89.4 %90.6 %89.4 %90.5 %
Reconciliation of operating expenses    
GAAP research and development$83,286 $81,028 $257,228 $241,715 
Less: stock-based compensation and related employer payroll tax associated with RSUs(28,419)(29,788)(90,897)(86,416)
Non-GAAP research and development$54,867 $51,240 $166,331 $155,299 
GAAP research and development as percentage of revenue45.3 %48.7 %48.0 %50.2 %
Non-GAAP research and development as percentage of revenue29.8 %30.8 %31.1 %32.3 %
GAAP sales and marketing$104,708 $98,349 $317,689 $288,034 
Less: stock-based compensation and related employer payroll tax associated with RSUs(16,001)(15,745)(49,234)(44,438)
Adjustment for: restructuring (costs) benefit— — — 173 
Non-GAAP sales and marketing$88,707 $82,604 $268,455 $243,769 
GAAP sales and marketing as percentage of revenue56.9 %59.1 %59.3 %59.8 %
Non-GAAP sales and marketing as percentage of revenue48.2 %49.6 %50.1 %50.6 %
GAAP general and administrative$36,270 $34,494 $106,182 $106,537 
Less: stock-based compensation and related employer payroll tax associated with RSUs(7,768)(7,621)(22,904)(22,636)
Less: impairment of long-lived assets— — — (5,009)
Adjustment for: restructuring (costs) benefit— — — (26)
Non-GAAP general and administrative$28,502 $26,873 $83,278 $78,866 
GAAP general and administrative as percentage of revenue19.7 %20.7 %19.8 %22.1 %
Non-GAAP general and administrative as percentage of
revenue
15.5 %16.1 %15.6 %16.4 %
Reconciliation of operating loss and operating margin
GAAP loss from operations$(60,180)$(63,421)$(203,146)$(202,049)
Plus: stock-based compensation and related employer payroll tax associated with RSUs52,549 53,572 164,087 154,699 
Plus: impairment of long-lived assets— — — 5,009 
Adjustment for: restructuring costs (benefit) — — — (147)
Non-GAAP loss from operations$(7,631)$(9,849)$(39,059)$(42,488)
GAAP operating margin(32.7)%(38.1)%(37.9)%(42.0)%
Non-GAAP adjustments28.6 %32.2 %30.6 %33.2 %
Non-GAAP operating margin(4.1)%(5.9)%(7.3)%(8.8)%
9

ASANA, INC.
Reconciliation of GAAP to Non-GAAP Data
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Reconciliation of net loss
GAAP net loss$(57,326)$(61,750)$(193,237)$(194,632)
Plus: stock-based compensation and related employer payroll tax associated with RSUs52,549 53,572 164,087 154,699 
Plus: impairment of long-lived assets— — — 5,009 
Adjustment for: restructuring costs (benefit) — — — (147)
Non-GAAP net loss$(4,777)$(8,178)$(29,150)$(35,071)
Reconciliation of net loss per share    
GAAP net loss per share, basic$(0.25)$(0.28)$(0.84)$(0.89)
Non-GAAP adjustments to net loss0.23 0.24 0.71 0.73 
Non-GAAP net loss per share, basic$(0.02)$(0.04)$(0.13)$(0.16)
Weighted-average shares used in GAAP and non-GAAP per share calculation, basic and diluted229,624 221,776 228,830 219,094 


Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Computation of free cash flow
Net cash provided by (used in) investing activities$41,516 $(140,738)$20,211 $(270,205)
Net cash provided by (used in) financing activities$(48,919)$6,669 $(58,200)$16,418 
Net cash used in operating activities$(14,890)$(8,233)$(930)$(2,594)
Less: purchases of property and equipment(1,372)(1,255)(4,064)(7,221)
Less: capitalized internal-use software costs(1,919)(1,977)(4,702)(4,325)
Plus: restructuring costs paid— — — 707 
Free cash flow$(18,181)$(11,465)$(9,696)$(13,433)
10