Business Wire | Dec 2, 2021 04:05PM EST

Asana Announces Record Third Quarter Fiscal 2022 Revenues; Surpasses $100 Million Quarterly Revenues

Dec. 02, 2021

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 02, 2021--Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a leading work management platform for teams, today reported financial results for its third quarter fiscal 2022 ended October 31, 2021.

"Q3 was another strong quarter, led by record user adoption and large enterprise wins," said Dustin Moskovitz, co-founder and chief executive officer of Asana. "We are excited to be announcing that we exceeded two million paid seats and we are landing bigger with larger customers and expanding significantly across our customer base. With some of the most valuable companies in the world deploying Asana to manage initiatives across entire divisions, Asana exemplifies what cross-functional work management at scale looks like."

Third Quarter Fiscal 2022 Financial Highlights

* Revenues: Revenues were $100.3 million, an increase of 70% year over year. * Operating Loss: GAAP operating loss was $68.1 million, or 68% of revenues, compared to GAAP operating loss of $61.9 million, or 105% of revenues, in the third quarter of fiscal 2021. Non-GAAP operating loss was $41.3 million, or 41% of revenues, compared to non-GAAP operating loss of $37.3 million, or 63% of revenues, in the third quarter of fiscal 2021. * Net Loss: GAAP net loss was $69.3 million, compared to GAAP net loss of $73.3 million in the third quarter of fiscal 2021. GAAP net loss per share was $0.37, compared to GAAP net loss per share of $0.65 in the third quarter of fiscal 2021. Non-GAAP net loss was $42.5 million, compared to non-GAAP net loss of $38.3 million in the third quarter of fiscal 2021. Non-GAAP net loss per share was $0.23, compared to non-GAAP net loss per share of $0.34 in the third quarter of fiscal 2021. * Cash Flow: Cash flows from operating activities were negative $28.5 million, compared to negative $34.4 million in the third quarter of fiscal 2021. Free cash flow was negative $29.5 million, compared to negative $19.5 million in the third quarter of fiscal 2021.

Business Highlights

* Total number of paying customers grew by 7,000, ending the third quarter with a total of over 114,000. * The number of customers spending $5,000 or more on an annualized basis grew to 14,143, an increase of 58% year over year. Revenues from these customers grew 96% year over year. * The number of customers spending $50,000 or more on an annualized basis grew to 739, an increase of 132% year over year. * Overall dollar-based net retention rate was over 120%. * Dollar-based net retention rate for customers with $5,000 or more in annualized spend was 130%. * Dollar-based net retention rate for customers with $50,000 or more in annualized spend was over 145%. * Unveiled the Enterprise Work Graph at the Asana Scale event, a suite of capabilities to align global enterprise teams and streamline cross-functional work from anywhere, including a new Goals API, Workflow Builder and Library, Universal Reporting on data trends and workflows over time, and additional data security and scalability features. * Expanded Asana Partners Enterprise IT ecosystem including new integrations with Splunk and Netskope. * Named a leader in IDC MarketScape: Worldwide Collaboration and Community Applications 2021 vendor assessment. * Recognized in Fast Company's first annual list of Brands That Matter. * Named to Inc. Magazine's inaugural list of Best-Led Companies in 2021.

Financial Outlook

For the fourth quarter of fiscal 2022, Asana expects:

* Revenues of $104.5 million to $105.5 million, representing year over year growth of 53% to 54%. * Non-GAAP operating loss of $53.0 million to $51.0 million. * Non-GAAP net loss per share of $0.28 to $0.27, assuming basic and diluted weighted average shares outstanding of approximately 187 million.

For fiscal year 2022, Asana expects:

* Revenues of $371.0 million to $372.0 million, representing year over year growth of 63% to 64%. * Non-GAAP operating loss of $166.0 million to $164.0 million. * Non-GAAP net loss per share of $0.96 to $0.95, assuming basic and diluted weighted average shares outstanding of approximately 176 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 2022 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 and replay webcast will be available on the Asana Investor Relations website 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 fourth 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 quarter ended July 31, 2021. 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. Asana believes the exclusion of the non-cash and non-recurring items provides useful supplemental information to investors and facilitates the analysis of our operation 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, operating expenses, 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

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 plan that had $5,000 or more or $50,000 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 teams orchestrate their work, from small projects to strategic initiatives. Headquartered in San Francisco, CA, Asana has more than 114,000 paying customers and millions of free organizations across 190 countries. Global customers such as Amazon, Japan Airlines, Sky, and Affirm 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 Nine Months Ended October 31, 31,

2021 2020 2021 2020

Revenues $ 100,337 $ 58,905 $ 266,488 $ 158,635

Cost of revenues 9,581 7,321 27,364 20,548 ^(1)

Gross profit 90,756 51,584 239,124 138,087

Operating expenses:

Research and 53,788 32,996 142,209 81,338 development^(1)

Sales and 73,295 48,039 194,009 122,952 marketing^(1)

General andadministrative^ 31,761 32,483 81,027 58,400 (1)

Total operating 158,844 113,518 417,245 262,690 expenses

Loss from (68,088 ) (61,934 ) (178,121 ) (124,603 ) operations

Interest incomeand other income (446 ) (389 ) (766 ) 1,010 (expense), net

Interest expense (353 ) (10,351 ) (18,078 ) (25,706 )

Loss beforeprovision for (68,887 ) (72,674 ) (196,965 ) (149,299 ) income taxes

Provision for 393 615 1,328 901 income taxes

Net loss $ (69,280 ) $ (73,289 ) $ (198,293 ) $ (150,200 )

Net loss per share:

Basic and $ (0.37 ) $ (0.65 ) $ (1.15 ) $ (1.70 ) diluted

Weighted-averageshares used in calculating netloss per share:

Basic and 185,022 113,264 172,684 88,539 diluted

_______________

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

Three Months Ended October Nine Months Ended October 31, 31,

2021 2020 2021 2020

Cost of revenues $ 192 $ 75 $ 462 $ 175

Research and 14,351 4,783 34,741 9,520 development

Sales and 7,138 2,463 16,641 5,084 marketing

General and 4,172 1,620 10,421 3,520 administrative

Totalstock-based $ 25,853 $ 8,941 $ 62,265 $ 18,299 compensationexpense

ASANA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

October 31, 2021

January 31, 2021

Assets

Current assets

Cash and cash equivalents

$

271,818

$

259,878

Marketable securities

71,578

126,396

Accounts receivable, net

47,067

32,194

Prepaid expenses and other current assets

28,093

27,295

Total current assets

418,556

445,763

Property and equipment, net

100,523

74,436

Operating lease right-of-use assets

175,508

182,924

Investments, noncurrent

10,182

19,125

Other assets

15,012

8,871

Total assets

$

719,781

$

731,119

Liabilities and Stockholders' Equity (Deficit)

Current liabilities

Accounts payable

$

13,487

$

9,599

Accrued expenses and other current liabilities

48,649

41,616

Deferred revenue, current (1)

150,572

103,875

Operating lease liabilities, current

10,957

8,386

Total current liabilities

223,665

163,476

Term loan, net

35,608

29,508

Convertible notes, net-related party

-

351,161

Operating lease liabilities, noncurrent

208,525

196,802

Other liabilities(1)

4,522

2,961

Total liabilities

472,320

743,908

Stockholders' equity (deficit)

Common stock

2

2

Additional paid-in capital

987,398

528,616

Accumulated other comprehensive income (loss)

(200

)

39

Accumulated deficit

(739,739

)

(541,446

)

Total stockholders' equity (deficit)

247,461

(12,789

)

Total liabilities and stockholders' equity (deficit)

$

719,781

$

731,119

_______________

(1) Total deferred revenue was $154.7 million and $105.9 million as of October 31, 2021 and January 31, 2021, respectively, of which $4.1 million and $2.0 million, respectively, is presented within other liabilities, as a noncurrent liability, in the consolidated balance sheets.

ASANA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

October 31, January 31, 2021 2021

Assets

Current assets

Cash and cash equivalents $ 271,818 $ 259,878

Marketable securities 71,578 126,396

Accounts receivable, net 47,067 32,194

Prepaid expenses and other current assets 28,093 27,295

Total current assets 418,556 445,763

Property and equipment, net 100,523 74,436

Operating lease right-of-use assets 175,508 182,924

Investments, noncurrent 10,182 19,125

Other assets 15,012 8,871

Total assets $ 719,781 $ 731,119

Liabilities and Stockholders' Equity (Deficit)

Current liabilities

Accounts payable $ 13,487 $ 9,599

Accrued expenses and other current liabilities 48,649 41,616

Deferred revenue, current ^(1) 150,572 103,875

Operating lease liabilities, current 10,957 8,386

Total current liabilities 223,665 163,476

Term loan, net 35,608 29,508

Convertible notes, net-related party - 351,161

Operating lease liabilities, noncurrent 208,525 196,802

Other liabilities^(1) 4,522 2,961

Total liabilities 472,320 743,908

Stockholders' equity (deficit)

Common stock 2 2

Additional paid-in capital 987,398 528,616

Accumulated other comprehensive income (loss) (200 ) 39

Accumulated deficit (739,739 ) (541,446 )

Total stockholders' equity (deficit) 247,461 (12,789 )

Total liabilities and stockholders' equity $ 719,781 $ 731,119 (deficit)

_______________

(1) Total deferred revenue was $154.7 million and $105.9 million as of October31, 2021 and January 31, 2021, respectively, of which $4.1 million and $2.0million, respectively, is presented within other liabilities, as a noncurrentliability, in the consolidated balance sheets.

ASANA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Cash flows from operating activities

Net loss

$

(69,280

)

$

(73,289

)

$

(198,293

)

$

(150,200

)

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

Allowance for doubtful accounts

472

84

1,238

1,204

Depreciation and amortization

3,129

992

5,501

2,508

Loss (gain) on sale of property and equipment

(1

)

(12

)

37

(12

)

Amortization of deferred contract acquisition costs

2,317

1,099

5,939

2,684

Stock-based compensation expense

25,848

8,941

62,260

18,299

Net accretion of discount of marketable securities

115

135

701

82

Non-cash lease expense

4,462

5,250

13,242

11,835

Amortization of discount on convertible notes and term loan issuance costs

4

6,350

10,640

15,964

Non-cash interest expense

-

3,970

6,670

9,709

Changes in operating assets and liabilities:

Accounts receivable

(12,979

)

(7,079

)

(13,979

)

(11,831

)

Prepaid expenses and other current assets

(3,417

)

(8,874

)

(8,988

)

(13,251

)

Other assets

(2,842

)

(1,175

)

(6,353

)

(2,537

)

Accounts payable

7,371

299

9,063

1,840

Accrued expenses and other current liabilities

(2,779

)

10,046

10,571

13,544

Deferred revenue

15,157

15,102

48,827

26,041

Operating lease liabilities

3,923

3,726

8,464

(584

)

Net cash used in operating activities

(28,500

)

(34,435

)

(44,460

)

(74,705

)

Cash flows from investing activities

Purchases of marketable securities

(13,453

)

(126,613

)

(61,923

)

(126,613

)

Sales of marketable securities

-

-

351

-

Maturities of marketable securities

43,549

6,399

124,588

45,341

Purchases of property and equipment

(10,746

)

(22,752

)

(40,303

)

(35,153

)

Sales of property and equipment

2

12

22

12

Capitalized internal-use software

(191

)

(40

)

(487

)

(858

)

Net cash provided by (used in) investing activities

19,161

(142,994

)

22,248

(117,271

)

Cash flows from financing activities

Proceeds from term loan, net of issuance costs

-

10,000

9,000

12,915

Repayment of term loan

(500

)

-

(1,167

)

-

Proceeds from issuance of convertible notes-related party

-

-

-

150,000

Taxes paid related to net share settlement of equity awards

-

(192

)

-

(378

)

Repurchases of common stock

-

-

(36

)

-

Proceeds from exercise of stock options

3,859

14,443

12,827

16,194

Proceeds from employee stock purchase plan

7,223

-

13,350

-

Net cash provided by financing activities

10,582

24,251

33,974

178,731

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

260

(71

)

178

(7

)

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

1,503

(153,249

)

11,940

(13,252

)

Cash, cash equivalents, and restricted cash

Beginning of period

270,315

450,674

259,878

310,677

End of period

$

271,818

$

297,425

$

271,818

$

297,425

ASANA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

Three Months Ended October Nine Months Ended October 31, 31,

2021 2020 2021 2020

Cash flowsfrom operating activities

Net loss $ (69,280 ) $ (73,289 ) $ (198,293 ) $ (150,200 )

Adjustmentsto reconcilenet loss to net cash used in operatingactivities:

Allowance fordoubtful 472 84 1,238 1,204 accounts

Depreciationand 3,129 992 5,501 2,508 amortization

Loss (gain)on sale of (1 ) (12 ) 37 (12 ) property and equipment

Amortizationof deferredcontract 2,317 1,099 5,939 2,684 acquisitioncosts

Stock-basedcompensation 25,848 8,941 62,260 18,299 expense

Net accretionof discount 115 135 701 82 of marketable securities

Non-cash 4,462 5,250 13,242 11,835 lease expense

Amortizationof discountonconvertible 4 6,350 10,640 15,964 notes and term loanissuancecosts

Non-cashinterest - 3,970 6,670 9,709 expense

Changes inoperating assets and liabilities:

Accounts (12,979 ) (7,079 ) (13,979 ) (11,831 ) receivable

Prepaidexpenses and (3,417 ) (8,874 ) (8,988 ) (13,251 ) other current assets

Other assets (2,842 ) (1,175 ) (6,353 ) (2,537 )

Accounts 7,371 299 9,063 1,840 payable

Accruedexpenses and (2,779 ) 10,046 10,571 13,544 other current liabilities

Deferred 15,157 15,102 48,827 26,041 revenue

Operatinglease 3,923 3,726 8,464 (584 ) liabilities

Net cash usedin operating (28,500 ) (34,435 ) (44,460 ) (74,705 ) activities

Cash flowsfrom investing activities

Purchases ofmarketable (13,453 ) (126,613 ) (61,923 ) (126,613 ) securities

Sales ofmarketable - - 351 - securities

Maturities ofmarketable 43,549 6,399 124,588 45,341 securities

Purchases ofproperty and (10,746 ) (22,752 ) (40,303 ) (35,153 ) equipment

Sales ofproperty and 2 12 22 12 equipment

Capitalizedinternal-use (191 ) (40 ) (487 ) (858 ) software

Net cashprovided by(used in) 19,161 (142,994 ) 22,248 (117,271 ) investingactivities

Cash flowsfrom financing activities

Proceeds fromterm loan,net of - 10,000 9,000 12,915 issuancecosts

Repayment of (500 ) - (1,167 ) - term loan

Proceeds fromissuance ofconvertible - - - 150,000 notes-relatedparty

Taxes paidrelated tonet share - (192 ) - (378 ) settlement ofequity awards

Repurchasesof common - - (36 ) - stock

Proceeds fromexercise of 3,859 14,443 12,827 16,194 stock options

Proceeds fromemployee 7,223 - 13,350 - stock purchase plan

Net cashprovided by 10,582 24,251 33,974 178,731 financing activities

Effect offoreignexchangerates on cashand cash 260 (71 ) 178 (7 ) equivalentsandrestrictedcash

Net increase(decrease) incash, cashequivalents, 1,503 (153,249 ) 11,940 (13,252 ) andrestrictedcash

Cash, cashequivalents,and restrictedcash

Beginning of 270,315 450,674 259,878 310,677 period

End of period $ 271,818 $ 297,425 $ 271,818 $ 297,425

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Reconciliation of gross profit and gross margin

GAAP gross profit

$

90,756

$

51,584

$

239,124

$

138,087

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

205

75

493

175

Non-GAAP gross profit

$

90,961

$

51,659

$

239,617

$

138,262

GAAP gross margin

90.5

%

87.6

%

89.7

%

87.0

%

Non-GAAP adjustments

0.2

%

0.1

%

0.2

%

0.2

%

Non-GAAP gross margin

90.7

%

87.7

%

89.9

%

87.2

%

Reconciliation of operating expenses

GAAP research and development

$

53,788

$

32,996

$

142,209

$

81,338

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

(14,671

)

(4,783

)

(36,004

)

(9,520

)

Non-GAAP research and development

$

39,117

$

28,213

$

106,205

$

71,818

GAAP research and development as percentage of revenue

53.6

%

56.0

%

53.4

%

51.3

%

Non-GAAP research and development as percentage of revenue

39.0

%

47.9

%

39.9

%

45.3

%

GAAP sales and marketing

$

73,295

$

48,039

$

194,009

$

122,952

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

(7,518

)

(2,463

)

(17,452

)

(5,084

)

Non-GAAP sales and marketing

$

65,777

$

45,576

$

176,557

$

117,868

GAAP sales and marketing as percentage of revenue

73.0

%

81.6

%

72.8

%

77.5

%

Non-GAAP sales and marketing as percentage of revenue

65.6

%

77.4

%

66.3

%

74.3

%

GAAP general and administrative

$

31,761

$

32,483

$

81,027

$

58,400

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

(4,416

)

(1,620

)

(11,009

)

(3,520

)

Less: direct listing expenses

-

(15,718

)

-

(17,955

)

Non-GAAP general and administrative

$

27,345

$

15,145

$

70,018

$

36,925

GAAP general and administrative as percentage of revenue

31.7

%

55.1

%

30.4

%

36.8

%

Non-GAAP general and administrative as percentage of revenue

27.3

%

25.7

%

26.3

%

23.3

%

Reconciliation of operating loss and operating margin

GAAP loss from operations

$

(68,088

)

$

(61,934

)

$

(178,121

)

$

(124,603

)

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

26,810

8,941

64,958

18,299

Plus: direct listing expenses

-

15,718

-

17,955

Non-GAAP loss from operations

$

(41,278

)

$

(37,275

)

$

(113,163

)

$

(88,349

)

GAAP operating margin

(67.9

)

%

(105.1

)

%

(66.8

)

%

(78.5

)

%

Non-GAAP adjustments

26.8

%

41.8

%

24.4

%

22.8

%

Non-GAAP operating margin

(41.1

)

%

(63.3

)

%

(42.4

)

%

(55.7

)

%

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(In thousands, except percentages)

(unaudited)

Three Months Ended October Nine Months Ended October 31, 31,

2021 2020 2021 2020

Reconciliationof gross profit andgross margin

GAAP gross $ 90,756 $ 51,584 $ 239,124 $ 138,087 profit

Plus:stock-basedcompensationand related 205 75 493 175 employerpayroll taxassociatedwith RSUs

Non-GAAP gross $ 90,961 $ 51,659 $ 239,617 $ 138,262 profit

GAAP gross 90.5 % 87.6 % 89.7 % 87.0 %margin

Non-GAAP 0.2 % 0.1 % 0.2 % 0.2 %adjustments

Non-GAAP gross 90.7 % 87.7 % 89.9 % 87.2 %margin

Reconciliationof operating expenses

GAAP researchand $ 53,788 $ 32,996 $ 142,209 $ 81,338 development

Less:stock-basedcompensationand related (14,671 ) (4,783 ) (36,004 ) (9,520 ) employerpayroll taxassociatedwith RSUs

Non-GAAPresearch and $ 39,117 $ 28,213 $ 106,205 $ 71,818 development

GAAP researchanddevelopment as 53.6 % 56.0 % 53.4 % 51.3 %percentage ofrevenue

Non-GAAPresearch anddevelopment as 39.0 % 47.9 % 39.9 % 45.3 %percentage ofrevenue



GAAP sales and $ 73,295 $ 48,039 $ 194,009 $ 122,952 marketing

Less:stock-basedcompensationand related (7,518 ) (2,463 ) (17,452 ) (5,084 ) employerpayroll taxassociatedwith RSUs

Non-GAAP sales $ 65,777 $ 45,576 $ 176,557 $ 117,868 and marketing

GAAP sales andmarketing as 73.0 % 81.6 % 72.8 % 77.5 %percentage ofrevenue

Non-GAAP salesand marketing 65.6 % 77.4 % 66.3 % 74.3 %as percentageof revenue



GAAP generaland $ 31,761 $ 32,483 $ 81,027 $ 58,400 administrative

Less:stock-basedcompensationand related (4,416 ) (1,620 ) (11,009 ) (3,520 ) employerpayroll taxassociatedwith RSUs

Less: directlisting - (15,718 ) - (17,955 ) expenses

Non-GAAPgeneral and $ 27,345 $ 15,145 $ 70,018 $ 36,925 administrative

GAAP generalandadministrative 31.7 % 55.1 % 30.4 % 36.8 %as percentageof revenue

Non-GAAPgeneral andadministrative 27.3 % 25.7 % 26.3 % 23.3 %as percentageof revenue

Reconciliationof operatingloss and operatingmargin

GAAP loss from $ (68,088 ) $ (61,934 ) $ (178,121 ) $ (124,603 ) operations

Plus:stock-basedcompensationand related 26,810 8,941 64,958 18,299 employerpayroll taxassociatedwith RSUs

Plus: directlisting - 15,718 - 17,955 expenses

Non-GAAP lossfrom $ (41,278 ) $ (37,275 ) $ (113,163 ) $ (88,349 ) operations

GAAP operating (67.9 ) % (105.1 ) % (66.8 ) % (78.5 ) %margin

Non-GAAP 26.8 % 41.8 % 24.4 % 22.8 %adjustments

Non-GAAPoperating (41.1 ) % (63.3 ) % (42.4 ) % (55.7 ) %margin

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,

2021

2020

2021

2020

Reconciliation of net loss

GAAP net loss

$

(69,280

)

$

(73,289

)

$

(198,293

)

$

(150,200

)

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

26,810

8,941

64,958

18,299

Plus: amortization of debt discount

-

6,346

10,628

15,955

Plus: non-cash interest

-

3,970

6,670

9,709

Plus: direct listing expenses

-

15,718

-

17,955

Non-GAAP net loss

$

(42,470

)

$

(38,314

)

$

(116,037

)

$

(88,282

)

Reconciliation of net loss per share

GAAP net loss per share, basic

$

(0.37

)

$

(0.65

)

$

(1.15

)

$

(1.70

)

Non-GAAP adjustments to net loss

0.14

0.31

0.48

0.70

Non-GAAP net loss per share, basic

$

(0.23

)

$

(0.34

)

$

(0.67

)

$

(1.00

)

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

185,022

113,264

172,684

88,539

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Computation of free cash flow

Net cash provided by (used in) investing activities

$

19,161

$

(142,994

)

$

22,248

$

(117,271

)

Net cash provided by financing activities

$

10,582

$

24,251

$

33,974

$

178,731

Net cash used in operating activities

$

(28,500

)

$

(34,435

)

$

(44,460

)

$

(74,705

)

Less: purchases of property and equipment

(10,746

)

(22,752

)

(40,303

)

(35,153

)

Less: capitalized internal-use software

(191

)

(40

)

(487

)

(858

)

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

9,939

21,822

38,551

33,130

Plus: direct listing expenses

-

15,903

270

19,112

Free cash flow

$

(29,498

)

$

(19,502

)

$

(46,429

)

$

(58,474

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20211202005918/en/

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

CONTACT: Erin Cheng Asana Corporate Communications press@asana.com