Asana, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Asana Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 in your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Ms. Catherine Wong, Head of Investor Relations. Thank you. Please go ahead.

Catherine Wong Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Asana's third quarter fiscal year 2021. With me on today's call are Dustin Moskowitz, Asana's co-founder and CEO, Tim Wong, the company's chief financial officer, and Chris Farinacci, the company's chief operating officer and head of business. Today's call will include forward-looking statements pursuant to the same partner provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding our financial outlook, market position, and growth opportunities. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. Forward-looking statements represent our management's beliefs and assumptions only as of the date made. Information on factors that could affect the company's financial results is included in its filings with the SEC from time to time, including the section titled Risk Factors in the Prospectus filed by the company in connection with its direct listing. In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Reconciliation between GAAP and non-GAAP financial measures and a discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalents is available in our earnings release, which is posted on our investor relations webpage at investors.asana.com. And with that, I'd like to turn the call over to Dustin.

Thanks, Catherine. Welcome, everybody, and good afternoon. We had an excellent first quarter as a publicly traded company, and as you can see from the results, our business was fundamentally strong. In Q3, we added approximately 7,000 met new customers and reported revenue of $58.9 million, up 55% year over year. In addition, the number of customers spending $5,000 or more on an annualized basis was up 58% year over year, and revenue growth from those customers was up 80% year over year. Last quarter, we mentioned that we saw short-term headwinds from COVID and long-term tailwinds. Now we feel like the short-term headwinds have diminished. Return rates have reverted to pre-COVID levels and markedly improved from their peak in April. Beyond COVID, we're seeing promising signs of continued durable growth in at least three trends. One, acceleration of new customer additions. Two, faster deployments and some of our existing customers. And three, some of our largest enterprise expansions to date. Success we've experienced in Q3 marks a moment in time. It has grown from years of investment in our culture, our product, our strategy. We're a mission-critical platform that enables the world's teams to work together effortlessly. In a world where there is a firehose of information, proliferation of collaboration tools, and an increasingly distributed work environment, it's critical to have clarity about what's most important and what each team member should focus their attention on. The pandemic and work from home has accelerated this need. And in fact, the collaboration market is expected to be a $32 billion market by 2023, according to IDC. We believe the world's 1.25 billion global information workers would benefit from a platform like Asana, and we've penetrated less than 3% of the employees at our own customer base. Since this is a relatively new software category, let me explain how we view the landscape and where Asana fits in. Effective team collaboration requires the three Cs, content, which includes cloud storage and file sharing, Communication, which includes chat and video conferencing, and coordination, which is where Asana is focused. Teams have invested heavily in technology for the first two, but in most cases, they haven't invested in the Asana layer, the coordination layer. That's that third C. Coordination is about clearly answering the question, who is doing what by when? Historically, teams have had to resort to sticky notes, email, spreadsheets, and status meetings to coordinate work. And with Asana, they have a better solution. Companies work best when everyone in the organization has clarity on the company's mission, its objectives, the projects and workflows needed to achieve those objectives, and who's responsible for each individual task. This enables every team member to achieve focus and flow and have clarity about how their work contributes to the organization's mission. When there's clarity, teams spend less time coordinating work, more time actually doing work, and quite simply are more productive. Sana solves the problem of team coordination and gives teams clarity. The Asana Work Graph is the data model that makes this team coordination possible. It enables a complete, fully connected, accurate, and up-to-date map to work in your organization. The Asana Work Graph represents all of the units of work, like tasks, ideas, goals, agenda items, information about that work, like relevant conversations, files, and status information, and how it all fits together, but importantly, who's responsible for each piece. It's a living system of clarity for work that emerges in real time and expresses a team's past state, present status, future plan. This is one of our biggest competitive differentiators, so I'm going to spend a few minutes on this call and on the next couple of earnings calls talking about different aspects of the Asana WorkGraph and the customer benefits it enables. Today, let's double-click on multi-homing, which is a feature of the Asana WorkGraph that enables teams to manage complex work in a simple and intuitive way. Multihelming gives people the ability to host a single task in multiple projects at the same time. This feature is unique to Asana and is what allows Asana to serve as a single source of truth for customers working across projects, processes, and functions. For example, we used multihelming to prepare for this earnings call. We created an Asana task to finalize approvals for the earnings call script, and that task had all the pertinent details for the call and served as our single source of truth. The task goes simultaneously in several different projects, including investor relations, communications, legal review, and in my personal, my tasks. This flexibility allows each of those constituents to manage the work within their normal context and workflows without needing to make their own individual copy of the task. And each time a team member multi-homes a task, a cycle of chaos is averted. Without multi-homing, one of two things happens. So either you miss a unit of work in one of its relevant contexts and work falls through the cracks, Or teams waste time in email threads and meetings just to communicate status and reconcile changes. Multihoming gives customers confidence that what they're seeing is the single source of truth across all teams. And you might think this is too subtle and abstract for customers to pick up on, but this is one of the aha moments that customers rave about. For example, Vox Media says, before Asana, it was like the Wild West in Vox Media. Information didn't flow smoothly between teams with key details and deadlines that lost in email and chat. Now with Asana, we can add a task, like a legal review for a client campaign, to multiple projects with just a click. This way, the legal team, for example, doesn't have to sift through all the other campaign work. They have a board that consolidates all of their review tasks in one place. And when they complete the review, the update is automatically synced across all of the projects. Multihoming is so powerful that it's used by 97% of our customers that spend $5,000 or more on an annualized basis. And the volume is remarkable. Customers have multi-homed hundreds of millions of Asana tasks. And this is just one of the unique capabilities enabled by the Asana WorkGraph. From an R&D perspective, we're investing aggressively in the Asana WorkGraph and features it enables. This year, we released more than 130 new features, including approvals, status, goals, dashboards, and platform integration with Zoom, Jira, Slack, Microsoft Teams, Tableau, Power BI, and more. We're also moving quickly towards our product vision of becoming the navigation system for organizations, which we described at our Future of Asana event last quarter. Some of those product investment areas include these areas. First, the Asana work graph, visualizations, and reporting. This will give teams real-time data and insights across their organization. Second, the workflow store and builder. This will democratize workflow creation and automation and enable best practice sharing across teams and organizations. And next, goals. We're extending our Goals product to allow organizations to manage all their org, team, and individual goals for every employee and company. This enables customers to map their work graph top to bottom, aligning work from the atomic level of detailed tasks all the way up to the highest level objectives of the organization. In addition, two weeks ago, we previewed some of the themes around our enterprise platform. We're building out even more enterprise platform capabilities, including enhanced admin controls, permissions, licensing, security, and integration to serve the world's largest companies. Stay tuned for new product announcements in these areas and more over the next several quarters. Now I'm going to turn it over to Chris to talk about Q3 from an operational perspective and share more details on how our customers are using Asana.