Asana Q2 Earnings Call Highlights

Asana NYSE: ASAN reported second-quarter fiscal 2027 revenue of $216.4 million, up 10% year over year and above the high end of its guidance, as the work-management software company cited improving retention, stronger enterprise performance and growing adoption of its artificial intelligence products. Chief Executive Officer Dan Rogers said the company’s underlying business health continued to improve, with growth accelerating and retention strengthening across reported customer cohorts. Overall dollar-based net retention rose to 97% from 96%, while net retention among core customers and customers spending at least $100,000 annually each reached 98%. “Growth is accelerating, retention is improving again, and we saw broad-based strength across industries and geographies,” Rogers said. Revenue from core customers, defined as those spending at least $5,000 annually, increased 11% year over year and accounted for 77% of second-quarter revenue. Asana had 26,778 core customers at quarter-end, including 890 customers spending $100,000 or more annually. The number of those larger customers increased 16% year over year. U.S. revenue rose 10% year over year, returning to double-digit growth for the first time in more than two years. Rogers attributed the improvement to better bookings and retention among technology customers, increased AI adoption and accelerating new-logo acquisition. Technology-sector revenue posted its second consecutive quarter of year-over-year growth, while non-technology industries continued to grow faster than the company overall. Asana’s AI Studio and AI Teammates products accounted for about 25% of net new annual recurring revenue during the quarter, up from 17% in the prior quarter. Excluding a large deal, the contribution was closer to 22%, according to Chief Financial Officer Aziz Megji. More than 25% of Asana’s customers spending at least $100,000 annually have purchased AI Studio or AI Teammates, Rogers said. The company said customers adopting those products are engaging more deeply, retaining better and expanding faster than its broader customer base. Rogers highlighted a three-year, multimillion-dollar expansion agreement with a Fortune 500 media company that included AI Studio and AI Teammates. AI products represented nearly half of the contract’s total value, he said, helping offset pressure from the customer’s smaller workforce. In one creative marketing workflow, the customer reduced content operations cycle time by 30%, according to Rogers. In mid-September, Asana plans to introduce what it calls Agentic Work Management, or AWM, across new customer accounts, self-service customers and sales-led renewals. The offering combines AI Teammates, AI Studio and Asana Dash, an AI assistant designed to help users manage goals, priorities and work-related tasks.