Asana Announces Record Fourth Quarter and Fiscal Year 2022 Revenues|||

Fiscal year revenue growth accelerated, up 67% year over yr
Customers spending $50,000 or more on an annualized ground ended the financial year at 894 customers

SAN FRANCISCO–(BUSINESS WIRE)–Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a leading work management platform for teams, today reported fiscal results for its fourth quarter and financial twelvemonth ended January 31, 2022.


Our financial year revenue growth accelerated versus the previous year, led by strength in the enterprise and strong demand beyond the customer base of operations,” said Dustin Moskovitz, co-founder and chief executive officer of Asana. “
Many of the near recognized companies in the world are choosing Asana every bit their platform for cross team work. Our production strategy is resonating and the addressable market place is large, representing over 1.25 billion cognition workers. We are cementing our leadership position by increasing investments further to come across this large and growing enterprise demand.”

Quaternary Quarter Fiscal 2022 Financial Highlights

  • Revenues: Revenues were $111.ix meg, an increase of 64% twelvemonth over year.
  • Operating Loss: GAAP operating loss was $87.i meg, or 78% of revenues, compared to GAAP operating loss of $51.0 meg, or 75% of revenues, in the quaternary quarter of financial 2021. Non-GAAP operating loss was $43.9 1000000, or 39% of revenues, compared to non-GAAP operating loss of $34.eight million, or 51% of revenues, in the fourth quarter of fiscal 2021.
  • Net Loss: GAAP net loss was $xc.0 million, compared to GAAP internet loss of $61.5 meg in the fourth quarter of financial 2021. GAAP internet loss per share was $0.48, compared to GAAP internet loss per share of $0.39 in the fourth quarter of fiscal 2021. Non-GAAP net loss was $46.ix million, compared to non-GAAP net loss of $35.0 million in the fourth quarter of fiscal 2021. Non-GAAP net loss per share was $0.25, compared to non-GAAP net loss per share of $0.22 in the fourth quarter of fiscal 2021.
  • Cash Flow: Cash flows from operating activities were negative $39.3 million, compared to negative $18.ii million in the fourth quarter of fiscal 2021. Gratuitous cash flow was negative $41.2 million, compared to negative $17.5 meg in the quaternary quarter of fiscal 2021.

Fiscal Year 2022 Financial Highlights

  • Revenues: Revenues were $378.4 million, an increase of 67% year over yr.
  • Operating Loss: GAAP operating loss was $265.two million, or 70% of revenues, compared to GAAP operating loss of $175.6 million, or 77% of revenues, in financial 2021. Non-GAAP operating loss was $157.1 million, or 42% of revenues, compared to not-GAAP operating loss of $123.2 million, or 54% of revenues, in fiscal 2021.
  • Net Loss: GAAP net loss was $288.3 million, compared to GAAP net loss of $211.7 million in fiscal 2021. GAAP net loss per share was $one.63, compared to GAAP internet loss per share of $1.99 in fiscal 2021. Not-GAAP internet loss was $162.ix 1000000, compared to not-GAAP net loss of $123.3 million in fiscal 2021. Not-GAAP net loss per share was $0.92, compared to not-GAAP net loss per share of $ane.sixteen in financial 2021.
  • Cash Flow: Cash flows from operating activities were negative $83.8 meg, compared to negative $92.nine one thousand thousand in fiscal 2021. Free greenbacks menstruum was negative $87.vi million, compared to negative $76.0 one thousand thousand in fiscal 2021.

Business Highlights

  • Ended the fiscal year with over 119,000 paying customers.
  • The number of customers spending $v,000 or more on an annualized basis in Q4 grew to xv,437, an increase of 52% twelvemonth over year. Revenues from these customers in Q4 grew 82% year over year.
  • The number of customers spending $50,000 or more on an annualized basis in Q4 grew to 894, an increment of 125% year over year.
  • Overall dollar-based net retention charge per unit in Q4 was over 120%.
  • Dollar-based cyberspace retention rate for customers with $5,000 or more in annualized spend in Q4 was over 130%.
  • Dollar-based net memory charge per unit for customers with $50,000 or more in annualized spend in Q4 was over 145%.
  • Named the Leader in G2’s Enterprise Grid® and topped the Project Direction Filigree® for x consecutive quarters in the ranking’s Leader quadrant.
  • Launched
    Asana Flow
    in Feb 2022 – a suite of offerings and capabilities to assist teams build start-to-end workflows with Workflow Builder, individuals prioritize work with an intelligent Home interface, and leaders improve processes to accomplish goals faster with Workflow Reporting.
  • Added over 200 product features in fiscal yr 2022.
  • Ranked Best Workplaces for Parents™ by Cracking Place to Piece of work® in 2021, in addition to the record setting 16 workplace awards throughout fiscal twelvemonth 2022.

Financial Outlook

For the first quarter of fiscal 2023, Asana expects:

  • Revenues of $114.5 million to $115.v one thousand thousand, representing twelvemonth over year growth of 49% to 51%.
  • Non-GAAP operating loss of $68.0 one thousand thousand to $66.0 million.
  • Not-GAAP net loss per share of $0.36 to $0.35, bold basic and diluted weighted average shares outstanding of approximately 189.0 one thousand thousand.

For fiscal year 2023, Asana expects revenues of $527.0 million to $531.0 one thousand thousand, representing year over twelvemonth growth of 39% to forty%.

These statements are forward-looking and actual results may materially differ. Refer to the “Forwards-Looking Statements” department beneath 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 forwards-looking footing without unreasonable attempt due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that may exist incurred in the futurity. Asana has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its quaternary quarter and full fiscal twelvemonth 2022 non-GAAP results included in this press release.

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Earnings Conference Phone call Information

Asana will hold a conference call and live webcast today to discuss these results at i:30 p.m. Pacific Fourth dimension. A live webcast and replay will exist available on the Asana Investor Relations website at: https://investors.asana.com. The conference call can besides exist accessed by dialing (844) 200-6205, or +1 929-526-1599 (outside of the US). The conference access code is 505266.

Forward-Looking Statements

This printing release contains “forward-looking” statements within the meaning of the Individual Securities Litigation Reform Human action of 1995 that are based on management’s beliefs and assumptions and on data currently available to management. Forward-looking statements include, but are not limited to, statements well-nigh Asana’s outlook for the first fiscal quarter and the full fiscal yr catastrophe January 31, 2023, expected benefits of our offerings, Asana’s market position, and potential market opportunities. Forward-looking statements generally relate to futurity events or Asana’s future financial or operating performance. Forward-looking statements include all statements that are non historical facts and in some cases can exist identified by terms such every bit “anticipate,” “look,” “intend,” “plan,” “believe,” “continue,” “could,” “potential,” “remain,” “may,” “might,” “will,” “would,” or like expressions and the negatives of those terms. However, not all forward-looking statements incorporate these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including factors beyond Asana’south command, that may cause Asana’s actual results, performance or achievements to be materially different from any futurity results, performance or achievements expressed or implied past the frontward-looking statements. These risks include, simply are not limited to, risks and uncertainties related to: Asana’s power to achieve future growth and sustain its growth charge per unit, Asana’southward ability to concenter and retain customers and increment sales to its customers, Asana’due south ability to develop and release new products and services and to scale its platform, Asana’due south power to increment adoption of its platform through Asana’s self-service model, Asana’s power to maintain and abound its relationships with strategic partners, the highly competitive and rapidly evolving market in which Asana participates, Asana’south international expansion strategies, and the impact of the COVID-nineteen pandemic. Further information on risks that could cause bodily results to differ materially from forecasted results are included in Asana’southward filings with the SEC, including Asana’south Quarterly Report on Grade 10-Q for the quarter ended October 31, 2021. Any frontward-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 police, 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.

Utilise of Non-GAAP Financial Measures

To supplement our consolidated fiscal statements, which are prepared and presented in accordance with GAAP, Asana uses certain non-GAAP financial measures to sympathise and evaluate its core operating operation. In this release, Asana’due south non-GAAP gross profit, gross margin, operating expenses, operating expenses as a per centum of acquirement, operating loss, operating margin, net loss, net loss per share, gratis cash flow are non presented in accord with GAAP and are not intended to exist used in lieu of GAAP presentations of results of operations. These non-GAAP financial measures, which may be unlike from similarly titled measures used past other companies, are presented to heighten investors’ overall understanding of Asana’s financial operation and should not exist 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 about directly comparable GAAP financial measures. A reconciliation of the non-GAAP fiscal measures to such GAAP measures can be establish in the accompanying financial statements included with this press release.

Asana believes that these non-GAAP financial measures provide useful data nigh its financial performance, enhance the overall agreement of Asana’s past performance and hereafter prospects, facilitate period-to-period comparisons of operations, and let for greater transparency with respect to of import 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’southward operating operation due to the following factors:

  • Share-based compensation expenses. Although share-based compensation is an of import attribute of the bounty of our employees and executives, management believes it is useful to exclude share-based compensation expenses to improve understand the long-term functioning of our core business and to facilitate comparing 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 performance 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 list fees. Asana believes the exclusion of the not-cash and non-recurring items provides useful supplemental information to investors and facilitates the assay of our operation results and comparison of operating results across reporting periods.
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There are a number of limitations related to the utilize of not-GAAP measures equally 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 not-GAAP measures exclude stock-based compensation expense, which has been, and will proceed to be for the foreseeable future, a pregnant recurring expense in Asana’s concern and an important function of its compensation strategy.

Asana also uses the non-GAAP financial measure out of costless cash flow, which is defined every bit net cash used in operating activities less greenbacks used for purchases of property and equipment and capitalized internal-utilise software costs, plus not-recurring expenditures such every bit capital expenditures from the purchases of property and equipment associated with the build-out of Asana’s corporate headquarters in San Francisco. Asana believes complimentary cash flow is an important liquidity mensurate of the cash that is available, afterwards upper-case letter expenditures and operational expenses, for investment in its business and to make acquisitions. Gratis greenbacks flow is useful to investors every bit a liquidity measure because it measures Asana’southward ability to generate or use cash. There are a number of limitations related to the utilise of gratis greenbacks flow as compared to internet cash from operating activities, including that free cash menstruation includes majuscule expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.

Definitions of Concern Metrics

Customers spending over $5,000 and $50,000

We define customers spending over $5,000 and $50,000 as those organizations on a paid subscription programme that had $5,000 or more or $l,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 memory rate equals the elementary arithmetic average of its quarterly dollar-based net memory charge per unit for the four quarters ending with the nigh contempo fiscal quarter. Asana calculates its dollar-based net retentivity rate by comparing its revenues from the same set of customers in a given quarter, relative to the comparable prior-year period. To summate Asana’s dollar-based cyberspace memory 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 and then divides that amount past the revenues attributable to that aforementioned group of customers in the prior-year quarter. Current menses revenues include any upsells and are net of contraction or attrition over the abaft 12 months, but exclude revenues from new customers in the current period. Asana expects its dollar-based net retention rate to fluctuate in time to come periods due to a number of factors, including the expected growth of its revenue base, the level of penetration within its client base, and its ability to retain its customers.

Nearly Asana

Asana helps teams orchestrate their work, from small projects to strategic initiatives. Headquartered in San Francisco, CA, Asana has more than 119,000 paying customers and millions of free organizations across 190 countries. Global customers such as Amazon, Affirm, Japan Airlines, and Heaven rely on Asana to manage everything from company objectives to digital transformation to production launches and marketing campaigns. For more information, visit www.asana.com.

Disclosure of Fabric Data

Asana announces textile information to its investors using SEC filings, printing releases, public briefing calls, and on its investor relations page of Asana’south website at https://investors.asana.com. Asana uses these channels, likewise every bit social media, including its Twitter account (@asana), its blog (blog.asana.com), its LinkedIn page (www.linkedin.com/visitor/asana), its Instagram account (@asana), and its Facebook page (www.facebook.com/asana/), to communicate with investors and the public well-nigh Asana, its products and services and other matters. Therefore, Asana encourages investors, the media and others interested in Asana to review the data 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 Jan 31,

2022

2021

2022

2021

Revenues

$

111,949

$

68,369

$

378,437

$

227,004

Toll of revenues(1)

xi,533

viii,193

38,897

28,741

Gross turn a profit

100,416

60,176

339,540

198,263

Operating expenses:

Enquiry and evolution(1)

60,915

39,801

203,124

121,139

Sales and marketing(ane)

88,888

53,527

282,897

176,479

Full general and administrative(1)

37,676

17,812

118,703

76,212

Total operating expenses

187,479

111,140

604,724

373,830

Loss from operations

(87,063

)

(50,964

)

(265,184

)

(175,567

)

Interest income and other income (expense), internet

(770

)

558

(ane,536

)

one,568

Interest expense

(307

)

(x,472

)

(18,385

)

(36,178

)

Loss before provision for income taxes

(88,140

)

(sixty,878

)

(285,105

)

(210,177

)

Provision for income taxes

one,909

632

3,237

1,533

Internet loss

$

(90,049

)

$

(61,510

)

$

(288,342

)

$

(211,710

)

Net loss per share:

Bones and diluted

$

(0.48

)

$

(0.39

)

$

(1.63

)

$

(1.99

)

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

Basic and diluted

187,435

159,270

176,401

106,344

_______________

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

Three Months Ended Jan 31,

Twelve Months Ended Jan 31,

2022

2021

2022

2021

Cost of revenues

$

344

$

130

$

806

$

305

Research and development

22,739

9,086

57,480

xviii,606

Sales and marketing

12,990

4,303

29,631

9,387

General and authoritative

half-dozen,223

2,407

16,644

5,927

Total stock-based compensation expense

$

42,296

$

xv,926

$

104,561

$

34,225

ASANA, INC.

CONDENSED CONSOLIDATED Remainder SHEETS

(In thousands)

(unaudited)

January 31, 2022

January 31, 2021

(unaudited)

Avails

Current assets

Cash and cash equivalents

$

240,403

$

259,878

Marketable securities

71,628

126,396

Accounts receivable, net

59,085

32,194

Prepaid expenses and other current assets

40,278

27,295

Full current avails

411,394

445,763

Property and equipment, net

99,632

74,436

Operating lease right-of-utilise assets

174,083

182,924

Investments, noncurrent

2,760

xix,125

Other assets

19,166

8,871

Total assets

$

707,035

$

731,119

Liabilities and Stockholders’ Equity (Deficit)

Current liabilities

Accounts payable

$

11,557

$

9,599

Accrued expenses and other electric current liabilities

60,915

41,616

Deferred revenue, current
(1)

170,143

103,875

Operating charter liabilities, current

12,573

8,386

Total current liabilities

255,188

163,476

Term loan, net

34,612

29,508

Convertible notes, net—related party

351,161

Operating lease liabilities, noncurrent

208,422

196,802

Other liabilities(one)

4,973

2,961

Total liabilities

503,195

743,908

Stockholders’ equity (deficit)

Common stock

two

two

Additional paid-in majuscule

1,034,252

528,616

Accumulated other comprehensive income (loss)

(626

)

39

Accumulated deficit

(829,788

)

(541,446

)

Total stockholders’ equity (arrears)

203,840

(12,789

)

Full liabilities and stockholders’ equity (deficit)

$

707,035

$

731,119

_______________

(1) Total deferred revenue was $174.2 million and $105.9 million as of January 31, 2022 and 2021, respectively, of which $4.ane one thousand thousand and $two.0 million, respectively, is presented within other liabilities, as a noncurrent liability, in the consolidated balance sheets.

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ASANA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF Greenbacks FLOWS

(In thousands)

(unaudited)

Iii Months Ended January 31,

Twelve Months Ended January 31,

2022

2021

2022

2021

Greenbacks flows from operating activities

Net loss

$

(90,049

)

$

(61,510

)

$

(288,342

)

$

(211,710

)

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

Allowance for doubtful accounts

1,019

(280

)

2,257

924

Depreciation and amortization

2,963

978

8,464

3,486

Amortization of deferred contract acquisition costs

two,708

1,395

viii,647

4,079

Stock-based compensation expense

42,267

15,926

104,527

34,225

Internet amortization of premium of marketable securities

83

324

784

406

Not-greenbacks lease expense

3,347

four,554

16,589

16,389

Amortization of discount on convertible notes and term loan issuance costs

5

6,405

x,645

22,369

Not-cash interest expense

3,972

six,670

13,681

Changes in operating assets and liabilities:

Accounts receivable

(13,014

)

(8,627

)

(26,993

)

(20,458

)

Prepaid expenses and other electric current assets

(14,664

)

(3,933

)

(23,652

)

(17,184

)

Other avails

(4,408

)

(853

)

(10,724

)

(iii,402

)

Accounts payable

(1,804

)

(4,717

)

7,259

(2,877

)

Accrued expenses and other liabilities

13,111

iv,579

23,682

18,123

Deferred revenue

19,512

xv,738

68,339

41,779

Operating lease liabilities

(401

)

7,884

eight,063

7,300

Net cash used in operating activities

(39,325

)

(eighteen,165

)

(83,785

)

(92,870

)

Cash flows from investing activities

Purchases of marketable securities

(471

)

(64,963

)

(62,394

)

(191,576

)

Sales of marketable securities

37,091

373

37,103

Maturities of marketable securities

vii,713

8,501

132,301

53,842

Purchases of belongings and equipment

(i,284

)

(22,191

)

(41,587

)

(57,344

)

Capitalized internal-apply software costs

(645

)

(104

)

(i,132

)

(962

)

Cyberspace greenbacks provided past (used in) investing activities

5,313

(41,666

)

27,561

(158,937

)

Greenbacks flows from financing activities

Proceeds from term loan, cyberspace of issuance costs

18,000

ix,000

30,915

Repayment of term loan

(500

)

(1,667

)

Proceeds from issuance of convertible notes—related political party

150,000

Taxes paid related to net share settlement of disinterestedness awards

(378

)

Repurchases of mutual stock

(four

)

(33

)

(40

)

(33

)

Proceeds from practice of stock options

3,740

4,307

16,567

20,501

Proceeds from employee stock purchase programme

13,350

Net cash provided past financing activities

3,236

22,274

37,210

201,005

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

(639

)

10

(461

)

3

Net increase (decrease) in cash, cash equivalents, and restricted cash

(31,415

)

(37,547

)

(19,475

)

(50,799

)

Greenbacks, cash equivalents, and restricted cash

Beginning of period

271,818

297,425

259,878

310,677

End of period

$

240,403

$

259,878

$

240,403

$

259,878

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Information

(In thousands, except percentages)

(unaudited)

Three Months Concluded Jan 31,

Twelve Months Ended January 31,

2022

2021

2022

2021

Reconciliation of gross turn a profit and gross margin

GAAP gross profit

$

100,416

$

60,176

$

339,540

$

198,263

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

350

135

843

310

Not-GAAP gross profit

$

100,766

$

sixty,311

$

340,383

$

198,573

GAAP gross margin

89.vii

%

88.0

%

89.7

%

87.3

%

Not-GAAP adjustments

0.iii

%

0.two

%

0.two

%

0.two

%

Not-GAAP gross margin

90.0

%

88.2

%

89.9

%

87.5

%

Reconciliation of operating expenses

GAAP research and evolution

$

sixty,915

$

39,801

$

203,124

$

121,139

Less: stock-based bounty and related employer payroll revenue enhancement associated with RSUs

(23,202

)

(9,172

)

(59,206

)

(xviii,692

)

Non-GAAP research and development

$

37,713

$

xxx,629

$

143,918

$

102,447

GAAP research and development every bit percentage of revenue

54.4

%

58.ii

%

53.vii

%

53.4

%

Non-GAAP enquiry and evolution equally percentage of revenue

33.7

%

44.8

%

38.0

%

45.1

%

GAAP sales and marketing

$

88,888

$

53,527

$

282,897

$

176,479

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

(13,243

)

(four,377

)

(30,695

)

(9,461

)

Non-GAAP sales and marketing

$

75,645

$

49,150

$

252,202

$

167,018

GAAP sales and marketing every bit per centum of acquirement

79.4

%

78.3

%

74.8

%

77.seven

%

Non-GAAP sales and marketing every bit percentage of acquirement

67.6

%

71.nine

%

66.6

%

73.half dozen

%

GAAP general and administrative

$

37,676

$

17,812

$

118,703

$

76,212

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

(vi,376

)

(ii,448

)

(17,385

)

(5,968

)

Less: direct list expenses

3

(17,952

)

Non-GAAP full general and administrative

$

31,300

$

fifteen,367

$

101,318

$

52,292

GAAP general and administrative as percentage of revenue

33.7

%

26.1

%

31.4

%

33.half dozen

%

Non-GAAP general and authoritative equally percentage of revenue

28.0

%

22.5

%

26.viii

%

23.0

%

Reconciliation of operating loss and operating margin

GAAP loss from operations

$

(87,063

)

$

(50,964

)

$

(265,184

)

$

(175,567

)

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

43,171

16,132

108,129

34,431

Plus: direct list expenses

(3

)

17,952

Not-GAAP loss from operations

$

(43,892

)

$

(34,835

)

$

(157,055

)

$

(123,184

)

GAAP operating margin

(77.viii

) %

(74.5

) %

(70.1

) %

(77.iii

) %

Non-GAAP adjustments

38.7

%

23.5

%

28.vi

%

23.0

%

Not-GAAP operating margin

(39.1

) %

(51.0

) %

(41.5

) %

(54.3

) %

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