Asana, Inc.

Good day and thank you for standing by. Welcome to ASANA first quarter fiscal year 2022 earnings 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 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Catherine Bowan. Please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Asana's first quarter fiscal year 2022. With me on today's call are Dustin Moskowitz, Asana's co-founder and CEO, Tim Wan, 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 safe harbor 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 the 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 Annual Report on Form 10-K, filed by the company for the year ended January 31, 2021. 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 the 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 are 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, and thank you to everyone for joining us today for our Q1 fiscal year 2022 earnings call. We had a remarkable first quarter and continue to see the business accelerate across revenues, paying customers, and customer expansions. Revenues grew 61% year-over-year, with growth accelerating for the second quarter in a row. We added over 7,000 net new paying customers in Q1, up from 4,000 added in the previous quarter. And growth in the number of paying customers accelerated for the third quarter in a row to 30% year-over-year. Also, dollar-based net retention rates continued to be strong. For customers overall, it was over 115%. For customers spending $5,000 and over, it was 123%. And for customers spending $50,000 or more, it was over 140%. Based on our outlook for the rest of the year, we're raising full-year guidance by over 8% to $336 to $340 million, representing a 48% to 50% year-over-year growth rate. This is based on several things. First and foremost, we continue to see momentum in enterprises. As the flywheel effect of Asana's work graph data model gains traction, we're closing larger deals and expanding in organizations. The number of customers spending $50,000 and over grew 92% year over year. We're clearly seeing more momentum in the market, and our investments in our product strategy are paying off. Second, we're seeing a record volume of interest at the top of the funnel, and the increasing demand is geographically broad-based, indicating that we're solving a universal problem. And third, both conversion rates and customer adoption metrics are going up. We're seeing customer satisfaction rates, NPS scores, and retention rates at or better than pre-pandemic levels. This is translating into continued strong net new paying customer growth and strong seed expansion, affirmation that Asana is delivering the features and capabilities that users and organizations want. While the pandemic may have heightened the awareness of how difficult it is to achieve clarity at work, the problems themselves are not new. Even before the pandemic, 1.25 billion global knowledge workers largely relied on outdated tools, email, spreadsheets, and status meetings to get clarity on who is doing what by when. According to our annual survey called the Anatomy of Work, 60% of knowledge workers' time is spent on work about work rather than the work itself. Over the last year, people have expanded more effort to have the same or even less impact. The average person is working later each day, 26% are still missing deadlines, and seven out of 10 people experienced burnout last year. Asana provides a more productive and sustainable way to work. Going forward, there will be a spectrum of types of environments, from fully remote to fully back to office, and in many cases, a hybrid of both. Whether teams are working from home or in offices coordinating work across departments and geographies, clarity on who is doing what by when is essential. This persistent need for clarity will be a durable, secular driver for our business. For those of you who may be new to Asana, we're accelerating our growth and expansion with the Asana Work Graph, our key differentiator. Like the Social Graph my co-founder JR and I worked on, the Asana Work Graph is a flexible data model powering Asana. The Work Graph is a fully connected, up-to-date map of the work in an organization. It enables Asana to provide clarity at every level of an organization, regardless of size, structure, and complexity. Customers like Japan Airlines, Sky, Under Armour, and thousands of others use Asana today to get products to market faster, budget resources better, and have a bird's eye view of the business. We are the solution that can provide clarity for the individuals, teams, and executives based on a shared source of truth enabled by our proprietary data model, the Asana WorkGraph. First, for executives, we provide org-wide visibility and alignment with goals and portfolios. Just this week, we announced Universal Reporting, which gives leaders real-time visibility into work across their organizations. This real-time graphical dashboarding capability is built directly on top of our Asana WorkGraph. Unlike other reporting tools, the WorkGraph data model enables company and team leaders to create reports by selecting particular projects, teams, or portfolios across their entire organization and view their progress together in a single chart, not just across individual projects. Executives used to have to wait for their teams to manually prepare quarterly reviews for this level of insight. Universal reporting makes that level of insight available instantly, dynamically, and automatically. For example, an executive can create single charts that track product roadmaps within or across product lines, track budgets within teams or across departments, or track efficiency and attainment within their area of responsibility or across an entire company objective. They can then add them to a shareable dashboard in a few clicks. making progress reporting easy, and ensuring that important decisions are made with up-to-date data. Second, we provide a single source of truth to power work across teams. Universal reporting gives teams the progress and resourcing reports they need to move quickly. We also continue to enhance our workflow automation capabilities. And we're aiming to launch a new workflow gallery by the end of the year, our version of an app store. Lastly, we help individuals maximize their productivity. Next week, on Wednesday, June 9th, we'll be hosting our Asana Focus and Flow Summit. We will be joined by some of the leading researchers on high performance, including Adam Grant, organizational psychologist and bestselling author, Dr. Sahar Youssef, cognitive neuroscientist at UC Berkeley, and Dr. Michael Chervais, a renowned psychologist on optimal performance for world-class athletes and Fortune 100 CEOs. We are unveiling a new suite of personal productivity features that help individuals prioritize their work, reduce distractions, and improve focus. Some of the new features include video messaging to reduce meetings, an upgraded My Task experience to enable more ways to prioritize and automate your work, a smart calendar assistant to create more time for focus, and an Asana desktop app, one of the top requests from our community. We will be featuring demos of capabilities that are based on the unique benefits of the Asana WorkGraph. So please join us for this event on June 9th from 10 a.m. to 11 a.m. Pacific time. Our product roadmap this year is stronger than ever. We're investing aggressively in our product strategy and making great progress towards our vision. We continue to ship capabilities at a rapid pace this year, including the Asana partners introduced in Q1, which featured over 200 technology partners, including ServiceNow, Zendesk, and Adobe Integrations. We launched Asana's channel partner network and expanded four new languages. In Q2, we launched universal reporting. And we have a new suite of personal productivity features coming to market next Wednesday. We also have additional enterprise platform news in Q3, and we're on track to launch our entirely new take on workflows by the end of Q4. Before I hand it over to Chris, I want to conclude by highlighting that we continue to scale our company while evolving and developing our culture. We're expanding into seven new languages this year for a total of 13 by the end of the year. We opened offices in Singapore and Paris, bringing us to 11 offices on four continents. And lastly, Asana has been named to Inc. Magazine's annual list of the best workplaces for 2021 for the fourth year in a row. So as our company continues to scale rapidly, we also continue to focus on intentionally evolving a great culture built around ensuring everyone has real-time clarity about what's expected of them how their work fits into our higher-level goals. As the company grows on top of this strong foundation, we get ever better and faster at delivering value for our customers. And now I'll hand it off to Chris.