Asana, Inc.

Good day, and thank you for standing by. Welcome to the Asana Second Quarter Fiscal Year 2022 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 on your telephone. If you require further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Catherine Blonde. Please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss the financial result for Asana's second quarter fiscal 2022. With me on today's call are Dustin Moskowitz, Asana's co-founder and CEO, Tim Wan, the company's chief financial officer, Chris Farinacci, the company's outgoing chief operating officer and head of business, and the company's incoming chief operating officer and head of business, Anne Raimondi. 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 quarterly report on Form 10-Q, filed by the company for the quarter ended April 30, 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 GAAP. Reconciliation between GAAP and non-GAAP financial measures and a discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalent 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.

Thank you, Catherine, and thank you, everyone, for joining our earnings call today. We had another great quarter in Q2. We accelerated revenues, accelerated enterprise customer growth, and increased dollar-based net retention rates across the board. Revenues of $89.5 million grew 72% year-over-year, accelerating 11 percentage points versus Q1. This is a very significant acceleration and the third quarter in a row of acceleration. We're now at a $358 million gap revenue run rate. For customers spending over $5,000 or more on an annualized basis, our revenues grew 97% year-over-year. We added over 7,000 net new paying customers, continuing the strong pace from last quarter, putting our total number of customers over 107,000. The number of customers spending over $50,000 on an annualized basis grew 111% year-over-year, which reflected an acceleration in our largest enterprise customers. And dollar-based net retention rate increased across all of our customer cohorts. it increased over 125% for customers spending $5,000 or more on an annualized basis. For customers spending $50,000 or more on an annualized basis, it increased over 145%. And our overall dollar-based net retention rate increased over 118%. Based on our outlook for the rest of the year, we're raising full-year guidance by 6% to a range of $357 million to $359 million, representing 57% to 58% growth for the year. Q3 guidance represents 58% to 60% growth. There are several drivers for the business. First, customers are adopting Asana everywhere. We're seeing record top-of-the-funnel volume, demand around the globe, and rapid expansions within our customer base. Second, we're seeing continued momentum in the enterprise. We're closing larger deals and expanding seats across departments and geographies quickly in large organizations. Our largest customers are recognizing the increasing value and scalability of our unique WorkGraph data model. This is reflected in our over $50,000 customer cohort growth and the expansions in the base. Investments in our product strategy and the WorkGraph are paying off, and this is just the beginning. Third, customer adoption and retention is as good or better than it has ever been. Our focus is to build great customer experiences with human-centered design principles and help customers experience the best version of Asana right away, which drives our adoption and revenue. As a result, our NPS scores are the highest we've seen to date. Our adoption metrics are strong, and our retention rates are at record levels. As everyone is probably well aware, we're currently experiencing one of the biggest workplace transformations in history. Even after a year of surprising changes, the situation remains fluid. It can be difficult to achieve organizational-wide clarity under normal circumstances, and for the past 18 months, this challenge has hit an entirely new level. The reality of the moment is that increased workloads and too many emails, messages, meetings, and video calls are barriers to productivity. According to our annual survey called the Anatomy of Work, limited employee bandwidth has meant that over a quarter of deadlines are missed. A key driver is a lack of clarity caused by unclear processes. Large enterprises in particular, delays and the inability to successfully pivot as needed can add up to a significant drain on resources, revenue, and profitability. While the symptoms around these types of pains have evolved, their root causes have been with us for a long time. Through it all, Asana's mission to help humanity thrive by enabling the world's teams to work together effortlessly has remained constant. Our product roadmap continues to be strong, and with our Asana work graph, we are uniquely equipped to help companies find the best path to reach their goals and to shift as needed along the way. We build products that give clarity to individuals, teams, and executives. In the first half of the year, we announced Asana Partners, which featured over 200 technology partners, the channel partner network, and seven new languages. Asana is now available in 13 languages spoken by 4.2 billion people across the globe. We also launched universal reporting, giving real-time, actionable insights into Teams' progress across the entire organization, enabled by the Word Graph. In June, we added a suite of new features designed to help individuals achieve greater focus and flow. These include video messaging in partnership with Vimeo, supercharged My Tasks, the Asana desktop app, and our Clockwise Smart Calendar Assistant integration. I'm also excited about our deep integration with Zoom. you can create a new Zoom meeting and join it right from inside Asana Task. While in Zoom, teams can quickly create Asana Tasks so detail and action items don't get lost. Once the meeting is over, the recording and transcript can be added to Asana and action items assigned to owners. So everyone has a record of what was discussed and what needs to be actioned. Asana for Zoom leads to better meetings with clear agendas and actionable next steps. On October 20th, at our enterprise event called SCALE, we'll be unveiling a suite of new features to help large organizations orchestrate work across departments and geographies to achieve their goals. And finally, we remain on track to launch our entirely new take on workflows at the end of our fiscal year. Before I hand it over to Chris, I also want to highlight that last week Asana was officially listed on the long-term stock exchange. In conjunction with that, we launched our first consolidated step towards ESG reporting by providing our first ESG fact sheet on the investor relations website. Enabling the world's teams to work together effortlessly is an expansive mission and requires commitment to our long-term strategies. We're continuing to build structures to execute on these long-term strategies and align with partners such as the LTSE with common values. With our ESG reporting, we endeavor to provide the same clarity and transparency that our product offers. We are committed to expanding our reporting in the coming year. You can find more information about this on the Investor Relations website. Lastly, I'm proud to highlight that we've been recognized by Fortune and Great Places to Work as one of the best small and medium workplaces for 2021, marking the fifth year for Asana in the list's top 10 rankings. And now I'll hand it off to Chris.