Asana, Inc. Files Q2 FY25 10-Q Report

Ticker: ASAN · Form: 10-Q · Filed: 2024-09-03T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, quarterly-report, financials

TL;DR

Asana's Q2 FY25 10-Q is in. Check financials.

AI Summary

Asana, Inc. filed its 10-Q for the period ending July 31, 2024. The filing details financial performance and operational updates for the second quarter of fiscal year 2025. Key financial data and disclosures relevant to investors are presented.

Why It Matters

This filing provides crucial insights into Asana's financial health and operational progress, helping investors assess the company's performance and future prospects.

Risk Assessment

Risk Level: medium — Asana operates in the competitive SaaS market, facing risks related to market saturation, technological advancements, and customer retention.

Key Numbers

Key Players & Entities

FAQ

What is the primary purpose of this 10-Q filing?

This 10-Q filing provides Asana, Inc.'s quarterly financial statements and management's discussion and analysis for the period ending July 31, 2024.

When was this 10-Q filed with the SEC?

This 10-Q filing was filed on September 3, 2024.

What is Asana, Inc.'s fiscal year end?

Asana, Inc.'s fiscal year ends on January 31st.

What is the company's business address?

Asana, Inc.'s business address is 633 Folsom Street, Suite 100, San Francisco, CA 94107.

What is the SIC code for Asana, Inc.?

The Standard Industrial Classification (SIC) code for Asana, Inc. is 7372, which falls under SERVICES-PREPACKAGED SOFTWARE.

Filing Stats: 4,539 words · 18 min read · ~15 pages · Grade level 19.4 · Accepted 2024-09-03 16:16:49

Key Financial Figures

Filing Documents

- Financial Information

Part I - Financial Information 1

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Comprehensive Loss 3 Condensed Consolidated Statements Stockholders' Equity 4 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures

Item 4. Controls and Procedures 38

- Other Information

Part II - Other Information 40

Legal Proceedings

Item 1. Legal Proceedings 40

Risk Factors

Item 1A. Risk Factors 40

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 71

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 71

Other Information

Item 5. Other Information 71

Exhibits

Item 6. Exhibits 71

Signatures

Signatures 73 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which statements involve substantial risk and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition; business strategy and plans; and objectives of management for future operations are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: our ability to grow or maintain our dollar-based net retention rate, expand usage of our platform within organizations, and sell subscriptions to our platform; our ability to convert individuals, teams, and organizations on our free and trial versions into paying customers; the timing and success of new features, integrations, capabilities, and enhancements by us, or by our competitors to their products, including the successful deployment of artificial intelligence ("AI"), or any other changes in the competitive landscape of our market; our ability to achieve widespread acceptance and use of our platform; growth in the work management market; the amount and timing of operating expenses and capital expenditures, as well as entry into operating leases, that we may incur to maintain and expand our business and operations an

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) ASANA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) July 31, 2024 January 31, 2024 Assets Current assets Cash and cash equivalents $ 219,400 $ 236,663 Marketable securities 302,224 282,801 Restricted cash 455 — Accounts receivable, net 65,066 88,327 Prepaid expenses and other current assets 53,194 51,925 Total current assets 640,339 659,716 Property and equipment, net 95,742 96,543 Operating lease right-of-use assets 182,261 181,731 Other assets 27,034 23,970 Total assets $ 945,376 $ 961,960 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 13,834 $ 6,907 Accrued expenses and other current liabilities 72,598 75,821 Deferred revenue, current 285,508 265,306 Operating lease liabilities, current 21,200 19,179 Total current liabilities 393,140 367,213 Term loan, net 41,142 43,618 Deferred revenue, noncurrent 3,684 5,916 Operating lease liabilities, noncurrent 212,855 215,084 Other liabilities 2,638 3,733 Total liabilities 653,459 635,564 Commitments and contingencies (Note 7) Stockholders' equity Common stock 2 2 Additional paid-in capital 1,942,911 1,821,216 Accumulated other comprehensive loss ( 778 ) ( 236 ) Accumulated deficit ( 1,650,218 ) ( 1,494,586 ) Total stockholders' equity 291,917 326,396 Total liabilities and stockholders' equity $ 945,376 $ 961,960 See accompanying Notes to Condensed Consolidated Financial Statements. 1 ASANA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended July 31, Six Months Ended July 31, 2024 2023 2024 2023 Revenues $ 179,212 $ 162,455 $ 351,660 $ 314,866 Cost of revenues 19,987 16,232 37,791 31,079 Gross profit 159,225 146,223 313,869 283,787 Operating expenses: Research and development 91,151 84,371 173,942 160,687 Sales and marketing 108,649 96,448 212,981 189,685 General and administrative 36,222 38,787 69,9

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