Business Wire | Mar 10, 2021 04:05PM EST

Asana Announces Record Fourth Quarter and Fiscal Year 2021 Revenues

Mar. 10, 2021

SAN FRANCISCO--(BUSINESS WIRE)--Mar. 10, 2021--Asana, Inc. (NYSE: ASAN), a leading work management platform for teams, today reported financial results for its fourth quarter and fiscal year ended January 31, 2021.

"We are very pleased with our strong results for the fiscal year, driving record revenue of $227 million, up 59 percent year over year," said Dustin Moskovitz, co-founder and chief executive officer of Asana. "In the fourth quarter, growth was driven by a year over year acceleration of new customer growth, strong expansion within our existing base and momentum with some of our largest enterprise customers. We now have over 93,000 paying customers and over 1.5 million paid users who trust Asana to provide the real-time clarity their teams need to do their best work."

Fourth Quarter Fiscal 2021 Financial Highlights

* Revenues: Revenues were $68.4 million, an increase of 57% year over year. * Operating Loss: GAAP operating loss was $51.0 million, or 74.5% of revenues, compared to GAAP operating loss of $25.3 million, or 58.2% of revenues, in the fourth quarter of fiscal 2020. Non-GAAP operating loss was $34.8 million, or 51.0% of revenues, compared to non-GAAP operating loss of $20.1 million, or 46.1% of revenues, in the fourth quarter of fiscal 2020. * Net Loss: GAAP net loss was $61.5 million, compared to GAAP net loss of $25.2 million in the fourth quarter of fiscal 2020. GAAP net loss per share was $0.39, compared to GAAP net loss per share of $0.34 in the fourth quarter of fiscal 2020. Non-GAAP net loss was $35.0 million, compared to non-GAAP net loss of $19.9 million in the fourth quarter of fiscal 2020. Non-GAAP net loss per share was $0.22, compared to non-GAAP net loss per share of $0.27 in the fourth quarter of fiscal 2020. * Cash Flow: Cash flows from operating activities were negative $18.2 million, compared to cash flows from operating activities of negative $16.1 million in the fourth quarter of fiscal 2020. Free cash flow was negative $17.5 million, compared to negative $19.2 million in the fourth quarter of fiscal 2020.

Fiscal Year 2021 Financial Highlights

* Revenues: Revenues were $227.0 million, an increase of 59% year over year. * Operating Loss: GAAP operating loss was $175.6 million, or 77.3% of revenues, compared to GAAP operating loss of $119.6 million, or 83.9% of revenues, in fiscal 2020. Non-GAAP operating loss was $123.2 million, or 54.3% of revenues, compared to non-GAAP operating loss of $69.3 million, or 48.6% of revenues, in fiscal 2020. * Net Loss: GAAP net loss was $211.7 million, compared to GAAP net loss of $118.6 million in fiscal 2020. GAAP net loss per share was $1.99, compared to GAAP net loss per share of $1.69 in fiscal 2020. Non-GAAP net loss was $123.3 million, compared to non-GAAP net loss of $68.2 million in fiscal 2020. Non-GAAP net loss per share was $1.16, compared to non-GAAP net loss per share of $0.97 in fiscal 2020. * Cash Flow: Cash flows from operating activities were negative $92.9 million, compared to cash flows from operating activities of negative $40.1 million in fiscal 2020. Free cash flow was negative $76.0 million, compared to negative $44.6 million in fiscal 2020.

Business Highlights

* Named #1 in the Workplace category in Fast Company's prestigious annual list of the World's Most Innovative Companies for 2021. * Launched new product features, including Asana Goals; Project Overview and Brief; Asana for Operations, Sales and Account Management; and new integrations with Microsoft Teams, Zoom, Jira, Salesforce, Tableau and PowerBI. * Expanded the Asana Together community program to more than 2,000 members across 94 countries. * Topped the G2 Enterprise Grid(r) Leader quadrant for the third year in a row and earned the #1 spot in the 2021 Grid(r) Report for Project Management. * Ranked a Best Workplace by Fortune, Inc., Glassdoor and Built In NY - including the #1 Best Workplace in the Bay Area for the fourth consecutive year. * Ended the year with over 93,000 paying customers and 1.5 million paid users. * Customers spending $5,000 or more on an annualized basis in Q4 grew to 10,174, an increase of 55% year over year. * Customers spending $50,000 or more on an annualized basis in Q4 grew to 397, an increase of 92% year over year. * Overall dollar-based net retention rate in Q4 was over 115%. * Dollar-based net retention rate for customers with $5,000 or more in annualized spend was 125%. * Dollar-based net retention rate for customers with $50,000 or more in annualized spend was over 140%.

Financial Outlook

For the first quarter of fiscal 2022, Asana expects:

* Revenues of $69.5 million to $70.5 million, representing year over year growth of 46% to 48%. * Non-GAAP operating loss of $44.0 million to $42.0 million. * Non-GAAP net loss per share of $0.27 to $0.26, assuming basic and diluted weighted average shares outstanding of approximately 161 million.

For fiscal year 2022, Asana expects revenues of $309.0 million to $314.0 million, representing year over year growth of 36% to 38%.

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 fourth quarter and full year fiscal 2021 non-GAAP results included in this press release.

Conference Call Information

Asana will host a conference call and live webcast for analysts and investors at 1:30 p.m. Pacific Time on March 10, 2021. A live webcast and accompanying presentation can be accessed on the Investor Relations section of Asana's website at: https://investors.asana.com. The conference call can also be accessed by dialing (833) 529-0220, or +1 236-389-2147 (outside of the US). The conference ID is 859-8159. A replay of the call via webcast will be available 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 Asana's outlook for the first fiscal quarter and the full fiscal year ending January 31, 2022, 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," "remain," "may," "might," "will," "would" 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 fiscal quarter ended October 31, 2020. 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 its consolidated financial statements, which are prepared and presented in accordance with GAAP, Asana uses certain non-GAAP financial measures, as described below, to understand and evaluate its core operating performance. 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 defines non-GAAP operating loss as GAAP loss from operations plus stock-based compensation expense and related employer payroll taxes and non-recurring costs such as direct listing expenses. Asana defines non-GAAP net loss as GAAP net loss plus stock-based compensation expense and related employer payroll taxes, amortization of discount and non-cash contractual interest expense related to its senior mandatory convertible promissory note, and non-recurring costs such as direct listing expenses. 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. Asana does not consider these items when evaluating the performance of its business and making operating plans. Asana believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results to those of peer companies and over multiple periods. There are a number of limitations related to the use of these non-GAAP measures as compared to GAAP operating loss and net loss, 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 used in 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 and direct listing expenses. 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. 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

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 teams orchestrate their work, from small projects to strategic initiatives. Headquartered in San Francisco, CA, Asana has more than 93,000 paying organizations and millions of free organizations across 190 countries. Global customers such as Accenture, Estee Lauder, Japan Airlines, Sky and Viessmann 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 Twelve Months Ended January January 31, 31,

2021 2020 2021 2020

Revenues $ 68,369 $ 43,470 $ 227,004 $ 142,606

Cost of revenues^(1) 8,193 5,802 28,741 19,881

Gross profit 60,176 37,668 198,263 122,725

Operating expenses:

Research and 39,801 20,087 121,139 89,675 development^(1)

Sales and marketing^ 53,527 30,909 176,479 105,836 (1)

General and 17,812 11,974 76,212 46,845 administrative^(1)

Total operating 111,140 62,970 373,830 242,356 expenses

Loss from operations (50,964 ) (25,302 ) (175,567 ) (119,631 )

Interest income and 558 197 1,568 1,365 other income, net

Interest expense (10,472 ) (78 ) (36,178 ) (78 )

Loss before provision (60,878 ) (25,183 ) (210,177 ) (118,344 )for income taxes

Provision for income 632 62 1,533 245 taxes

Net loss $ (61,510 ) $ (25,245 ) $ (211,710 ) $ (118,589 )

Net loss per share:

Basic and diluted $ (0.39 ) $ (0.34 ) $ (1.99 ) $ (1.69 )

Weighted-averageshares used in calculating net lossper share:

Basic and diluted 159,270 74,139 106,344 70,335

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

Three Months Ended Twelve Months Ended January January 31, 31,

2021 2020 2021 2020

Cost of revenues $ 130 $ 13 $ 305 $ 103

Research and 9,086 1,919 18,606 24,869 development

Sales and marketing 4,303 775 9,387 10,177

General and 2,407 623 5,927 13,237 administrative

Total stock-based $ 15,926 $ 3,330 $ 34,225 $ 48,386 compensation expense

ASANA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

January 31, 2021

January 31, 2020

Assets

Current assets

Cash and cash equivalents

$

259,878

$

306,020

Marketable securities

126,396

45,288

Accounts receivable, net

32,194

12,659

Prepaid expenses and other current assets

27,295

16,667

Total current assets

445,763

380,634

Property and equipment, net

74,436

10,100

Restricted cash, noncurrent

-

4,657

Operating lease right-of-use assets

182,924

20,818

Investments, noncurrent

19,125

-

Other assets

8,871

5,483

Total assets

$

731,119

$

421,692

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' (Deficit) Equity

Current liabilities

Accounts payable

$

9,599

$

7,549

Accrued expenses and other current liabilities

41,616

18,241

Deferred revenue, current (1)

103,875

62,725

Operating lease liabilities, current

8,386

11,613

Total current liabilities

163,476

100,128

Term loan, net

29,508

-

Convertible notes, net-related party

351,161

203,097

Operating lease liabilities, noncurrent

196,802

10,472

Other liabilities(1)

2,961

2,729

Total liabilities

743,908

316,426

Commitments and contingencies

Redeemable convertible preferred stock

-

250,581

Stockholders' (deficit) equity

Common stock

2

1

Additional paid-in capital

528,616

184,522

Accumulated other comprehensive loss

39

(102

)

Accumulated deficit

(541,446

)

(329,736

)

Total stockholders' (deficit) equity

(12,789

)

(145,315

)

Total liabilities, redeemable convertible preferred stock, and stockholders' (deficit) equity

$

731,119

$

421,692

ASANA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

January 31, January 31, 2021 2020

Assets

Current assets

Cash and cash equivalents $ 259,878 $ 306,020

Marketable securities 126,396 45,288

Accounts receivable, net 32,194 12,659

Prepaid expenses and other current assets 27,295 16,667

Total current assets 445,763 380,634

Property and equipment, net 74,436 10,100

Restricted cash, noncurrent - 4,657

Operating lease right-of-use assets 182,924 20,818

Investments, noncurrent 19,125 -

Other assets 8,871 5,483

Total assets $ 731,119 $ 421,692

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders'(Deficit) Equity

Current liabilities

Accounts payable $ 9,599 $ 7,549

Accrued expenses and other current liabilities 41,616 18,241

Deferred revenue, current ^(1) 103,875 62,725

Operating lease liabilities, current 8,386 11,613

Total current liabilities 163,476 100,128

Term loan, net 29,508 -

Convertible notes, net-related party 351,161 203,097

Operating lease liabilities, noncurrent 196,802 10,472

Other liabilities^(1) 2,961 2,729

Total liabilities 743,908 316,426

Commitments and contingencies

Redeemable convertible preferred stock - 250,581

Stockholders' (deficit) equity

Common stock 2 1

Additional paid-in capital 528,616 184,522

Accumulated other comprehensive loss 39 (102 )

Accumulated deficit (541,446 ) (329,736 )

Total stockholders' (deficit) equity (12,789 ) (145,315 )

Total liabilities, redeemable convertiblepreferred stock, and stockholders' (deficit) $ 731,119 $ 421,692 equity

_______________(1)

Total deferred revenue was $105.9 million as of January 31, 2021, of which $2.0 million, is presented within other liabilities, as a noncurrent liability, in the consolidated balance sheets.

_______________ Total deferred revenue was $105.9 million as of January 31, 2021, of which(1) $2.0 million, is presented within other liabilities, as a noncurrent liability, in the consolidated balance sheets.

ASANA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

Three Months Ended January 31,

Twelve Months Ended January 31,

2021

2020

2021

2020

Cash flows from operating activities

Net loss

$

(61,510

)

$

(25,245

)

$

(211,710

)

$

(118,589

)

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

Allowance for doubtful accounts

(280

)

355

924

653

Depreciation and amortization

978

542

3,486

2,233

Gain on sale of property and equipment-

-

(12

)

-

Amortization of deferred contract acquisition costs

1,395

596

4,079

1,607

Stock-based compensation expense

15,926

3,330

34,225

48,386

Net accretion of discount of marketable securities

324

(134

)

406

(1,016

)

Change in fair value of redeemable convertible preferred stock warrant liability

-

8

-

117

Non-cash lease expense

4,554

2,497

16,389

8,228

Amortization of discount on convertible notes and term loan issuance costs

6,405

49

22,369

49

Non-cash interest expense

3,972

29

13,681

29

Changes in operating assets and liabilities:

Accounts receivable

(8,627

)

(2,480

)

(20,458

)

(7,718

)

Prepaid expenses and other current assets

(3,933

)

(3,330

)

(17,184

)

(8,688

)

Other assets

(853

)

(395

)

(3,390

)

(1,791

)

Accounts payable

(4,717

)

861

(2,877

)

3,472

Accrued expenses and other current liabilities

4,344

3,411

17,888

8,321

Deferred revenue

15,738

6,403

41,779

32,189

Operating lease liabilities

7,884

(2,594

)

7,300

(7,618

)

Other liabilities

235

-

235

-

Net cash used in operating activities

(18,165

)

(16,097

)

(92,870

)

(40,136

)

Cash flows from investing activities

Purchases of marketable securities

(64,963

)

(1,790

)

(191,576

)

(77,759

)

Sales of marketable securities

37,091

1,605

37,091

4,282

Maturities of marketable securities

8,501

9,094

53,842

93,394

Purchases of property and equipment

(22,191

)

(5,023

)

(57,344

)

(6,878

)

Sales of property and equipment

-

-

12

-

Capitalized internal-use software

(104

)

(82

)

(962

)

(384

)

Net cash provided by (used in) investing activities

(41,666

)

3,804

(158,937

)

12,655

Cash flows from financing activities

Proceeds from term loan, net of issuance costs

18,000

-

30,915

-

Proceeds from issuance of convertible notes-related party

-

300,000

150,000

300,000

Taxes paid related to net share settlement of equity awards

-

-

(378

)

-

Repurchases of common stock

(33

)

(7

)

(33

)

(77

)

Proceeds from exercise of stock options

4,307

3,826

20,501

11,674

Net cash provided by financing activities

22,274

303,819

201,005

311,597

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

10

(60

)

3

(19

)

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

(37,547

)

291,466

(50,799

)

284,097

Cash, cash equivalents, and restricted cash

Beginning of period

297,425

19,211

310,677

26,580

End of period

$

259,878

$

310,677

$

259,878

$

310,677

ASANA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

Three Months Ended Twelve Months Ended January January 31, 31,

2021 2020 2021 2020

Cash flows from operating activities

Net loss $ (61,510 ) $ (25,245 ) $ (211,710 ) $ (118,589 )

Adjustments toreconcile net loss to net cash used inoperating activities:

Allowance for doubtful (280 ) 355 924 653 accounts

Depreciation and 978 542 3,486 2,233 amortization

Gain on sale of - - (12 ) - property and equipmentAmortization ofdeferred contract 1,395 596 4,079 1,607 acquisition costs

Stock-based 15,926 3,330 34,225 48,386 compensation expense

Net accretion ofdiscount of marketable 324 (134 ) 406 (1,016 )securities

Change in fair valueof redeemableconvertible preferred - 8 - 117 stock warrantliability

Non-cash lease expense 4,554 2,497 16,389 8,228

Amortization ofdiscount onconvertible notes and 6,405 49 22,369 49 term loan issuancecosts

Non-cash interest 3,972 29 13,681 29 expense

Changes in operatingassets and liabilities:

Accounts receivable (8,627 ) (2,480 ) (20,458 ) (7,718 )

Prepaid expenses and (3,933 ) (3,330 ) (17,184 ) (8,688 )other current assets

Other assets (853 ) (395 ) (3,390 ) (1,791 )

Accounts payable (4,717 ) 861 (2,877 ) 3,472

Accrued expenses andother current 4,344 3,411 17,888 8,321 liabilities

Deferred revenue 15,738 6,403 41,779 32,189

Operating lease 7,884 (2,594 ) 7,300 (7,618 )liabilities

Other liabilities 235 - 235 -

Net cash used in (18,165 ) (16,097 ) (92,870 ) (40,136 )operating activities

Cash flows from investing activities

Purchases of (64,963 ) (1,790 ) (191,576 ) (77,759 )marketable securities

Sales of marketable 37,091 1,605 37,091 4,282 securities

Maturities of 8,501 9,094 53,842 93,394 marketable securities

Purchases of property (22,191 ) (5,023 ) (57,344 ) (6,878 )and equipment

Sales of property and - - 12 - equipment

Capitalized (104 ) (82 ) (962 ) (384 )internal-use software

Net cash provided by(used in) investing (41,666 ) 3,804 (158,937 ) 12,655 activities

Cash flows from financing activities

Proceeds from termloan, net of issuance 18,000 - 30,915 - costs

Proceeds from issuanceof convertible - 300,000 150,000 300,000 notes-related party

Taxes paid related tonet share settlement - - (378 ) - of equity awards

Repurchases of common (33 ) (7 ) (33 ) (77 )stock

Proceeds from exercise 4,307 3,826 20,501 11,674 of stock options

Net cash provided by 22,274 303,819 201,005 311,597 financing activities

Effect of foreignexchange rates on cash 10 (60 ) 3 (19 )and cash equivalentsand restricted cash

Net increase(decrease) in cash, (37,547 ) 291,466 (50,799 ) 284,097 cash equivalents, andrestricted cash

Cash, cashequivalents, and restricted cash

Beginning of period 297,425 19,211 310,677 26,580

End of period $ 259,878 $ 310,677 $ 259,878 $ 310,677

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages)

(unaudited)

Three Months Ended January 31,

Twelve Months Ended January 31,

2021

2020

2021

2020

Reconciliation of gross profit and gross margin

GAAP gross profit

$

60,176

$

37,668

$

198,263

$

122,725

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

135

13

310

103

Non-GAAP gross profit

$

60,311

$

37,681

$

198,573

$

122,828

GAAP gross margin

88.0%

86.7%

87.3%

86.1%

Non-GAAP adjustments

0.2%

-%

0.2%

-%

Non-GAAP gross margin

88.2%

86.7%

87.5%

86.1%

Reconciliation of operating expenses

GAAP research and development

$

39,801

$

20,087

$

121,139

$

89,675

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

(9,172)

(1,919)

(18,692)

(24,869)

Non-GAAP research and development

$

30,629

$

18,168

$

102,447

$

64,806

GAAP research and development as percentage of revenue

58.2%

46.2%

53.4%

62.9%

Non-GAAP research and development as percentage of revenue

44.8%

41.8%

45.1%

45.4%

GAAP sales and marketing

$

53,527

$

30,909

$

176,479

$

105,836

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

(4,377)

(775)

(9,461)

(10,177)

Non-GAAP sales and marketing

$

49,150

$

30,134

$

167,018

$

95,659

GAAP sales and marketing as percentage of revenue

78.3%

71.1%

77.7%

74.2%

Non-GAAP sales and marketing as percentage of revenue

71.9%

69.3%

73.6%

67.1%

GAAP general and administrative

$

17,812

$

11,974

$

76,212

$

46,845

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

(2,448)

(623)

(5,968)

(13,237)

Less: direct listing expenses

3

(1,912)

(17,952)

(1,912)

Non-GAAP general and administrative

$

15,367

$

9,439

$

52,292

$

31,696

GAAP general and administrative as percentage of revenue

26.1%

27.5%

33.6%

32.8%

Non-GAAP general and administrative as percentage of

revenue

22.5%

21.7%

23.0%

22.2%

Reconciliation of operating loss and operating margin

GAAP loss from operations

$

(50,964)

$

(25,302)

$

(175,567)

$

(119,631)

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

16,132

3,330

34,431

48,386

Plus: direct listing expenses

(3)

1,912

17,952

1,912

Non-GAAP loss from operations

$

(34,835)

$

(20,060)

$

(123,184)

$

(69,333)

GAAP operating margin

(74.5)%

(58.2)%

(77.3)%

(83.9)%

Non-GAAP adjustments

23.5%

12.1%

23.0%

35.3%

Non-GAAP operating margin

(51.0)%

(46.1)%

(54.3)%

(48.6)%

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages)

(unaudited)

Three Months Ended Twelve Months Ended January 31, January 31,

2021 2020 2021 2020

Reconciliation of gross profit and gross margin

GAAP gross profit $ 60,176 $ 37,668 $ 198,263 $ 122,725

Plus: stock-basedcompensation and related 135 13 310 103employer payroll taxassociated with RSUs

Non-GAAP gross profit $ 60,311 $ 37,681 $ 198,573 $ 122,828

GAAP gross margin 88.0% 86.7% 87.3% 86.1%

Non-GAAP adjustments 0.2% -% 0.2% -%

Non-GAAP gross margin 88.2% 86.7% 87.5% 86.1%

Reconciliation of operating expenses

GAAP research and $ 39,801 $ 20,087 $ 121,139 $ 89,675development

Less: stock-basedcompensation and related (9,172) (1,919) (18,692) (24,869)employer payroll taxassociated with RSUs

Non-GAAP research and $ 30,629 $ 18,168 $ 102,447 $ 64,806development

GAAP research anddevelopment as percentage 58.2% 46.2% 53.4% 62.9%of revenue

Non-GAAP research anddevelopment as percentage 44.8% 41.8% 45.1% 45.4%of revenue

GAAP sales and marketing $ 53,527 $ 30,909 $ 176,479 $ 105,836

Less: stock-basedcompensation and related (4,377) (775) (9,461) (10,177)employer payroll taxassociated with RSUs

Non-GAAP sales and $ 49,150 $ 30,134 $ 167,018 $ 95,659marketing

GAAP sales and marketing 78.3% 71.1% 77.7% 74.2%as percentage of revenue

Non-GAAP sales andmarketing as percentage 71.9% 69.3% 73.6% 67.1%of revenue

GAAP general and $ 17,812 $ 11,974 $ 76,212 $ 46,845administrative

Less: stock-basedcompensation and related (2,448) (623) (5,968) (13,237)employer payroll taxassociated with RSUs

Less: direct listing 3 (1,912) (17,952) (1,912)expenses

Non-GAAP general and $ 15,367 $ 9,439 $ 52,292 $ 31,696administrative

GAAP general andadministrative as 26.1% 27.5% 33.6% 32.8%percentage of revenue

Non-GAAP general andadministrative aspercentage of 22.5% 21.7% 23.0% 22.2%

revenue

Reconciliation ofoperating loss and operating margin

GAAP loss from operations $ (50,964) $ (25,302) $ (175,567) $ (119,631)

Plus: stock-basedcompensation and related 16,132 3,330 34,431 48,386employer payroll taxassociated with RSUs

Plus: direct listing (3) 1,912 17,952 1,912expenses

Non-GAAP loss from $ (34,835) $ (20,060) $ (123,184) $ (69,333)operations

GAAP operating margin (74.5)% (58.2)% (77.3)% (83.9)%

Non-GAAP adjustments 23.5% 12.1% 23.0% 35.3%

Non-GAAP operating margin (51.0)% (46.1)% (54.3)% (48.6)%

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages and per share data)

(unaudited)

Three Months Ended January 31,

Twelve Months Ended January 31,

2021

2020

2021

2020

Reconciliation of net loss

GAAP net loss

$

(61,510

)

$

(25,245

)

$

(211,710

)

$

(118,589

)

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

16,132

3,330

34,431

48,386

Plus: amortization of debt discount

6,402

49

22,357

49

Plus: non-cash interest

3,972

29

13,681

29

Plus: direct listing expenses

(3

)

1,912

17,952

1,912

Non-GAAP net loss

$

(35,007

)

$

(19,925

)

$

(123,289

)

$

(68,213

)

Reconciliation of net loss per share

GAAP net loss per share, basic

$

(0.39

)

$

(0.34

)

$

(1.99

)

$

(1.69

)

Non-GAAP adjustments to net loss

0.17

0.07

0.83

0.72

Non-GAAP net loss per share, basic

$

(0.22

)

$

(0.27

)

$

(1.16

)

$

(0.97

)

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

159,270

74,139

106,344

70,335

Three Months Ended January 31,

Twelve Months Ended January 31,

2021

2020

2021

2020

Computation of free cash flow

Net cash provided by (used in) investing activities

$

(41,666

)

$

3,804

$

(158,937

)

$

12,655

Net cash provided by financing activities

$

22,274

$

303,819

$

201,005

$

311,597

Net cash used in operating activities

$

(18,165

)

$

(16,097

)

$

(92,870

)

$

(40,136

)

Less: purchases of property and equipment

(22,191

)

(5,023

)

(57,344

)

(6,878

)

Less: capitalized internal-use software

(104

)

(82

)

(962

)

(384

)

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

22,661

1,872

55,791

2,626

Plus: direct listing expenses

315

167

19,427

167

Free cash flow

$

(17,484

)

$

(19,163

)

$

(75,958

)

$

(44,605

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210310005903/en/

CONTACT: Catherine Buan Asana Investor Relations ir@asana.com

CONTACT: Stephanie Hess Asana Corporate Communications press@asana.com