Asana Announces Record Third Quarter Fiscal 2023 Revenues

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Third quarter revenue growth up 41% year over year

Revenues from customers spending $5,000 or more on an annualized basis grew 52% year over year

Customers spending $100,000 or more on an annualized basis grew 78% year over year

SAN FRANCISCOAsana, Inc. (NYSE: ASAN) (LTSE: ASAN), a leading work management platform for organizations, today reported financial results for its third quarter fiscal 2023 ended October 31, 2022.

“We reported a strong quarter with revenues up 41 percent year over year. The number of customers spending $100,000 or more grew 78 percent, year over year, and our largest deployment is now over 150,000 seats. Our success with large enterprises continues to drive growth,” said Dustin Moskovitz, co-founder and chief executive officer of Asana. “While macroeconomic cross currents continue to impact the business in the near term, our leading technology and strong brand position us well in the enormous and untapped Work Management market over the long term. We will continue to actively manage the business to improve efficiencies while maintaining our leadership in product innovation.”

Third Quarter Fiscal 2023 Financial Highlights

  • Revenues: Revenues were $141.4 million, an increase of 41% year over year.
  • Operating Loss: GAAP operating loss was $101.1 million, or 71% of revenues, compared to GAAP operating loss of $68.1 million, or 68% of revenues, in the third quarter of fiscal 2022. Non-GAAP operating loss was $52.6 million, or 37% of revenues, compared to non-GAAP operating loss of $41.3 million, or 41% of revenues, in the third quarter of fiscal 2022.
  • Net Loss: GAAP net loss was $100.9 million, compared to GAAP net loss of $69.3 million in the third quarter of fiscal 2022. GAAP net loss per share was $0.49, compared to GAAP net loss per share of $0.37 in the third quarter of fiscal 2022. Non-GAAP net loss was $52.4 million, compared to non-GAAP net loss of $42.5 million in the third quarter of fiscal 2022. Non-GAAP net loss per share was $0.26, compared to non-GAAP net loss per share of $0.23 in the third quarter of fiscal 2022.
  • Cash Flow: Cash flows from operating activities were negative $46.2 million, compared to negative $28.5 million in the third quarter of fiscal 2022. Free cash flow was negative $48.5 million, compared to negative $29.5 million in the third quarter of fiscal 2022.

Business Highlights

  • The number of customers spending $5,000 or more on an annualized basis in Q3 grew to 18,700, an increase of 32% year over year. Revenues from these customers in Q3 grew 52% year over year.
  • The number of customers spending $100,000 or more on an annualized basis in Q3 grew to 493, an increase of 78% year over year.
  • Overall dollar-based net retention rate in Q3 was over 120%.
  • Dollar-based net retention rate for customers with $5,000 or more in annualized spend in Q3 was over 128%.
  • Dollar-based net retention rate for customers with $100,000 or more in annualized spend in Q3 was over 140%.
  • Launched Enterprise-Grade Goals, a new suite of features to give enterprise leaders a holistic view of progress against strategic initiatives, and provided new enterprise-focused insights in the latest Anatomy of Work Special Report.
  • Established The Work Innovation Lab, a think tank by Asana that develops human-centered, cutting-edge research to help businesses evolve today to meet the growing changes and challenges of the future of work.
  • Named a Customers’ Choice in the 2022 Gartner Peer Insights ‘Voice of the Customer’ for the ‘Enterprise Agile Planning Tools’ market.
  • Recognized for our influential enterprise offerings in Fast Company's Brands That Matter list and for Asana Flow in Fast Company’s Innovation by Design.

Financial Outlook

For the fourth quarter of fiscal 2023, Asana expects:

  • Revenues of $144.0 million to $146.0 million, representing year over year growth of 30% at the midpoint.
  • Non-GAAP operating loss of $60.0 million to $57.0 million.
  • Non-GAAP net loss per share of $0.28 to $0.27, assuming basic and diluted weighted average shares outstanding of approximately 215 million.

For fiscal year 2023, Asana expects:

  • Revenues of $541.0 million to $543.0 million, representing year over year growth of 43%.
  • Non-GAAP operating loss of $230.0 million to $227.0 million.
  • Non-GAAP net loss per share of $1.15 to $1.14, assuming basic and diluted weighted average shares outstanding of approximately 200 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 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 762183.

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, the ability of our technology and brand to withstand macroeconomic pressures, our estimates regarding the size of the addressable market for our solutions, Asana’s outlook for the fourth fiscal quarter and the full fiscal year ending January 31, 2023, 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. 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 July 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 our consolidated financial statements, which are prepared and presented in accordance with GAAP, Asana uses certain non-GAAP financial measures to understand and evaluate 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. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found in the accompanying financial statements included with this press release.

Asana 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, and allow for greater transparency with respect to important metrics used by Asana’s management for financial and operational decision-making. Asana is presenting these non-GAAP financial metrics to assist investors in seeing its financial performance through the eyes of management, and because Asana believes that these measures provide an additional tool for investors to use in comparing its core financial performance over multiple periods with other companies in Asana’s industry.

Asana believes excluding the following items from the GAAP Condensed Consolidated Statements of Operations 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 our core business and to facilitate comparison of our 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 and 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 our operating results and comparison of operating results across reporting periods.

There are a number of limitations related to the use of non-GAAP measures as compared to GAAP measures of gross profit, gross margin, operating expenses, operating expenses as a percentage of revenue, operating loss, operating margin, net loss, and net loss per share, including that the non-GAAP 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.

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 in San Francisco. 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 or $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 135,000 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 October 31,

 

Nine Months Ended October 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues

$

141,439

 

 

$

100,337

 

 

$

396,981

 

 

$

266,488

 

Cost of revenues(1)

 

15,160

 

 

 

9,581

 

 

 

41,354

 

 

 

27,364

 

Gross profit

 

126,279

 

 

 

90,756

 

 

 

355,627

 

 

 

239,124

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

 

75,509

 

 

 

53,788

 

 

 

215,947

 

 

 

142,209

 

Sales and marketing(1)

 

113,713

 

 

 

73,295

 

 

 

320,228

 

 

 

194,009

 

General and administrative(1)

 

38,165

 

 

 

31,761

 

 

 

128,064

 

 

 

81,027

 

Total operating expenses

 

227,387

 

 

 

158,844

 

 

 

664,239

 

 

 

417,245

 

Loss from operations

 

(101,108

)

 

 

(68,088

)

 

 

(308,612

)

 

 

(178,121

)

Interest income and other income (expense), net

 

1,291

 

 

 

(446

)

 

 

(219

)

 

 

(766

)

Interest expense

 

(457

)

 

 

(353

)

 

 

(1,125

)

 

 

(18,078

)

Loss before provision for income taxes

 

(100,274

)

 

 

(68,887

)

 

 

(309,956

)

 

 

(196,965

)

Provision for income taxes

 

631

 

 

 

393

 

 

 

2,786

 

 

 

1,328

 

Net loss

$

(100,905

)

 

$

(69,280

)

 

$

(312,742

)

 

$

(198,293

)

Net loss per share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.49

)

 

$

(0.37

)

 

$

(1.60

)

 

$

(1.15

)

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

 

 

 

 

 

 

 

Basic and diluted

 

204,657

 

 

 

185,022

 

 

 

195,261

 

 

 

172,684

 

_______________

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

 

Three Months Ended October 31,

 

 

Nine Months Ended October 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

Cost of revenues

$

461

 

$

192

 

$

1,200

 

$

462

Research and development

 

25,030

 

 

14,351

 

 

70,606

 

 

34,741

Sales and marketing

 

15,018

 

 

7,138

 

 

43,028

 

 

16,641

General and administrative

 

7,482

 

 

4,172

 

 

21,000

 

 

10,421

Total stock-based compensation expense

$

47,991

 

$

25,853

 

$

135,834

 

$

62,265

 

ASANA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

 

 

October 31, 2022

 

January 31, 2022

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

509,091

 

 

$

240,403

 

Marketable securities

 

36,322

 

 

 

71,628

 

Accounts receivable, net

 

59,345

 

 

 

59,085

 

Prepaid expenses and other current assets

 

50,955

 

 

 

40,278

 

Total current assets

 

655,713

 

 

 

411,394

 

Property and equipment, net

 

94,632

 

 

 

99,632

 

Restricted cash, noncurrent

 

1,499

 

 

 

 

Operating lease right-of-use assets

 

179,639

 

 

 

174,083

 

Investments, noncurrent

 

 

 

 

2,760

 

Other assets

 

21,525

 

 

 

19,166

 

Total assets

$

953,008

 

 

$

707,035

 

Liabilities and Stockholders’ Equity

Current liabilities

 

 

 

Accounts payable

$

8,119

 

 

$

11,557

 

Accrued expenses and other current liabilities

 

75,432

 

 

 

60,915

 

Deferred revenue, current

 

212,194

 

 

 

170,143

 

Operating lease liabilities, current

 

14,627

 

 

 

12,573

 

Total current liabilities

 

310,372

 

 

 

255,188

 

Term loan, net

 

30,458

 

 

 

34,612

 

Deferred revenue, noncurrent

 

2,644

 

 

 

4,082

 

Operating lease liabilities, noncurrent

 

212,935

 

 

 

208,422

 

Other liabilities

 

1,630

 

 

 

891

 

Total liabilities

 

558,039

 

 

 

503,195

 

Stockholders’ equity

 

 

 

Common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

1,540,200

 

 

 

1,034,252

 

Accumulated other comprehensive loss

 

(2,703

)

 

 

(626

)

Accumulated deficit

 

(1,142,530

)

 

 

(829,788

)

Total stockholders’ equity

 

394,969

 

 

 

203,840

 

Total liabilities and stockholders’ equity

$

953,008

 

 

$

707,035

 

 

ASANA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2022

 

2021

 

2022

 

2021

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(100,905

)

 

$

(69,280

)

 

$

(312,742

)

 

$

(198,293

)

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

 

 

 

 

 

 

 

Allowance for expected credit losses

 

(315

)

 

 

472

 

 

 

1,045

 

 

 

1,238

 

Depreciation and amortization

 

3,204

 

 

 

3,129

 

 

 

9,507

 

 

 

5,501

 

Amortization of deferred contract acquisition costs

 

3,937

 

 

 

2,317

 

 

 

10,509

 

 

 

5,939

 

Stock-based compensation expense

 

47,991

 

 

 

25,848

 

 

 

135,834

 

 

 

62,260

 

Net amortization (accretion) of premium (discount) on marketable securities

 

(7

)

 

 

115

 

 

 

50

 

 

 

701

 

Non-cash lease expense

 

4,058

 

 

 

4,462

 

 

 

11,426

 

 

 

13,242

 

Amortization of discount on convertible notes and term loan issuance costs

 

5

 

 

 

4

 

 

 

13

 

 

 

10,640

 

Non-cash interest expense

 

 

 

 

 

 

 

 

 

 

6,670

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(6,580

)

 

 

(12,979

)

 

 

(1,377

)

 

 

(13,979

)

Prepaid expenses and other current assets

 

5,547

 

 

 

(3,417

)

 

 

(22,155

)

 

 

(8,988

)

Other assets

 

(1,178

)

 

 

(2,843

)

 

 

(3,201

)

 

 

(6,316

)

Accounts payable

 

(1,864

)

 

 

7,371

 

 

 

(3,333

)

 

 

9,063

 

Accrued expenses and other liabilities

 

(1,258

)

 

 

(2,779

)

 

 

15,225

 

 

 

10,571

 

Deferred revenue

 

4,665

 

 

 

15,157

 

 

 

40,614

 

 

 

48,827

 

Operating lease liabilities

 

(3,478

)

 

 

3,923

 

 

 

(10,374

)

 

 

8,464

 

Net cash used in operating activities

 

(46,178

)

 

 

(28,500

)

 

 

(128,959

)

 

 

(44,460

)

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of marketable securities

 

2

 

 

 

(13,453

)

 

 

(72,216

)

 

 

(61,923

)

Sales of marketable securities

 

 

 

 

2

 

 

 

 

 

 

373

 

Maturities of marketable securities

 

54,314

 

 

 

43,549

 

 

 

110,204

 

 

 

124,588

 

Purchases of property and equipment

 

(1,457

)

 

 

(10,746

)

 

 

(3,140

)

 

 

(40,303

)

Capitalized internal-use software costs

 

(882

)

 

 

(191

)

 

 

(952

)

 

 

(487

)

Net cash provided by investing activities

 

51,977

 

 

 

19,161

 

 

 

33,896

 

 

 

22,248

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from term loan, net of issuance costs

 

 

 

 

 

 

 

 

 

 

9,000

 

Repayment of term loan

 

(1,000

)

 

 

(500

)

 

 

(2,667

)

 

 

(1,167

)

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

 

347,384

 

 

 

 

 

 

347,384

 

 

 

 

Repurchases of common stock

 

 

 

 

 

 

 

(2

)

 

 

(36

)

Proceeds from exercise of stock options

 

980

 

 

 

3,859

 

 

 

4,627

 

 

 

12,827

 

Proceeds from employee stock purchase plan

 

7,959

 

 

 

7,223

 

 

 

17,115

 

 

 

13,350

 

Net cash provided by financing activities

 

355,323

 

 

 

10,582

 

 

 

366,457

 

 

 

33,974

 

Effect of foreign exchange rates on cash, cash equivalents, and restricted cash

 

(489

)

 

 

260

 

 

 

(1,207

)

 

 

178

 

Net increase in cash, cash equivalents, and restricted cash

 

360,633

 

 

 

1,503

 

 

 

270,187

 

 

 

11,940

 

Cash, cash equivalents, and restricted cash

 

 

 

 

 

 

 

Beginning of period

 

149,957

 

 

 

270,315

 

 

 

240,403

 

 

 

259,878

 

End of period

$

510,590

 

 

$

271,818

 

 

$

510,590

 

 

$

271,818

 

 

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages)

(unaudited)

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2022

 

2021

 

2022

 

2021

Reconciliation of gross profit and gross margin

 

 

 

 

 

 

 

GAAP gross profit

$

126,279

 

 

$

90,756

 

 

$

355,627

 

 

$

239,124

 

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

 

470

 

 

 

205

 

 

 

1,226

 

 

 

493

 

Non-GAAP gross profit

$

126,749

 

 

$

90,961

 

 

$

356,853

 

 

$

239,617

 

GAAP gross margin

 

89.3

%

 

 

90.5

%

 

 

89.6

%

 

 

89.7

%

Non-GAAP adjustments

 

0.3

%

 

 

0.2

%

 

 

0.3

%

 

 

0.2

%

Non-GAAP gross margin

 

89.6

%

 

 

90.7

%

 

 

89.9

%

 

 

89.9

%

Reconciliation of operating expenses

 

 

 

 

 

 

 

GAAP research and development

$

75,509

 

 

$

53,788

 

 

$

215,947

 

 

$

142,209

 

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

 

(25,293

)

 

 

(14,671

)

 

 

(72,216

)

 

 

(36,004

)

Non-GAAP research and development

$

50,216

 

 

$

39,117

 

 

$

143,731

 

 

$

106,205

 

GAAP research and development as percentage of revenue

 

53.4

%

 

 

53.6

%

 

 

54.4

%

 

 

53.4

%

Non-GAAP research and development as percentage of revenue

 

35.5

%

 

 

39.0

%

 

 

36.2

%

 

 

39.9

%

 

 

 

 

 

 

 

 

GAAP sales and marketing

$

113,713

 

 

$

73,295

 

 

$

320,228

 

 

$

194,009

 

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

 

(15,185

)

 

 

(7,518

)

 

 

(43,744

)

 

 

(17,452

)

Non-GAAP sales and marketing

$

98,528

 

 

$

65,777

 

 

$

276,484

 

 

$

176,557

 

GAAP sales and marketing as percentage of revenue

 

80.4

%

 

 

73.0

%

 

 

80.7

%

 

 

72.8

%

Non-GAAP sales and marketing as percentage of revenue

 

69.7

%

 

 

65.6

%

 

 

69.6

%

 

 

66.3

%

 

 

 

 

 

 

 

 

GAAP general and administrative

$

38,165

 

 

$

31,761

 

 

$

128,064

 

 

$

81,027

 

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

 

(7,587

)

 

 

(4,416

)

 

 

(21,510

)

 

 

(11,009

)

Non-GAAP general and administrative

$

30,578

 

 

$

27,345

 

 

$

106,554

 

 

$

70,018

 

GAAP general and administrative as percentage of revenue

 

27.0

%

 

 

31.7

%

 

 

32.3

%

 

 

30.4

%

Non-GAAP general and administrative as percentage of revenue

 

21.6

%

 

 

27.3

%

 

 

26.8

%

 

 

26.3

%

Reconciliation of operating loss and operating margin

 

 

 

 

 

 

 

GAAP loss from operations

$

(101,108

)

 

$

(68,088

)

 

$

(308,612

)

 

$

(178,121

)

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

 

48,535

 

 

 

26,810

 

 

 

138,696

 

 

 

64,958

 

Non-GAAP loss from operations

$

(52,573

)

 

$

(41,278

)

 

$

(169,916

)

 

$

(113,163

)

GAAP operating margin

 

(71.5

)%

 

 

(67.9

)%

 

 

(77.7

)%

 

 

(66.8

)%

Non-GAAP adjustments

 

34.3

%

 

 

26.8

%

 

 

34.9

%

 

 

24.4

%

Non-GAAP operating margin

 

(37.2

)%

 

 

(41.1

)%

 

 

(42.8

)%

 

 

(42.4

)%

 

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,

 

2022

 

2021

 

2022

 

2021

Reconciliation of net loss

 

 

 

 

 

 

 

GAAP net loss

$

(100,905

)

 

$

(69,280

)

 

$

(312,742

)

 

$

(198,293

)

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

 

48,535

 

 

 

26,810

 

 

 

138,696

 

 

 

64,958

 

Plus: amortization of debt discount

 

 

 

 

 

 

 

 

 

 

10,628

 

Plus: non-cash interest

 

 

 

 

 

 

 

 

 

 

6,670

 

Non-GAAP net loss

$

(52,370

)

 

$

(42,470

)

 

$

(174,046

)

 

$

(116,037

)

Reconciliation of net loss per share

 

 

 

 

 

 

 

GAAP net loss per share, basic

$

(0.49

)

 

$

(0.37

)

 

$

(1.60

)

 

$

(1.15

)

Non-GAAP adjustments to net loss

 

0.23

 

 

 

0.14

 

 

 

0.71

 

 

 

0.48

 

Non-GAAP net loss per share, basic

$

(0.26

)

 

$

(0.23

)

 

$

(0.89

)

 

$

(0.67

)

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

 

204,657

 

 

 

185,022

 

 

 

195,261

 

 

 

172,684

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2022

 

2021

 

2022

 

2021

Computation of free cash flow

 

 

 

 

 

 

 

Net cash provided by investing activities

$

51,977

 

 

$

19,161

 

 

$

33,896

 

 

$

22,248

 

Net cash provided by financing activities

$

355,323

 

 

$

10,582

 

 

$

366,457

 

 

$

33,974

 

Net cash used in operating activities

$

(46,178

)

 

$

(28,500

)

 

$

(128,959

)

 

$

(44,460

)

Less: purchases of property and equipment

 

(1,457

)

 

 

(10,746

)

 

 

(3,140

)

 

 

(40,303

)

Less: capitalized internal-use software costs

 

(882

)

 

 

(191

)

 

 

(952

)

 

 

(487

)

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

 

 

 

 

9,939

 

 

 

2

 

 

 

38,551

 

Plus: direct listing expenses

 

 

 

 

 

 

 

 

 

 

270

 

Free cash flow

$

(48,517

)

 

$

(29,498

)

 

$

(133,049

)

 

$

(46,429

)

 

Catherine Buan
Asana Investor Relations
ir@asana.com

Stephanie Hess
Asana Corporate Communications
press@asana.com

Source: Asana, Inc.