Asana, Inc.

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Asana third quarter and fiscal year 2022 earnings call. At this time, all lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question and answer session. If you would like to ask a question at that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. At this time, I would like to turn the call over to Catherine Buon, Head of Investor Relations. Please go ahead.

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 2022. With me on today's call are Dustin Moskovitz, Asana's co-founder and CEO, Tim Wan, our chief financial officer, and Anne Raimondi, our chief operating officer and head of business. Today's call will include forward-looking statements, including statements regarding our financial outlook, market position, and growth opportunities. Forward-looking statements involve risks, uncertainties, and assumptions that may cause our actual results to be materially different from those expressed or implied by the forward-looking statements. Please refer to our filings with the SEC, including our most recent quarterly report on Form 10-Q, for additional information on risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. 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 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. We're very pleased to be reporting another quarter of strong top line growth, large customer wins, and record-breaking adoption. As you can see from our results, the momentum at Asana continued into Q3. We're now at an annualized quarterly revenue run rate of over $400 million. Quarterly revenue surpassed $100 million for the first time and grew 70% year-over-year, driven by new heights in paid customers to over 114,000. Our larger customers grew even faster. with 96% year-over-year revenue growth from customers spending $5,000 or more and considerable momentum in enterprises, with the number of customers spending $50,000 or more accelerating for the third consecutive quarter. Our dollar-based net retention rates increased across all cohorts, illustrating the larger expansions across the customer base. And finally, we're seeing continued record adoption, paying users topping $2 million this quarter, a new milestone. Put simply, as our enterprise momentum continues, we're landing bigger and expanding faster. We've seen our investments in product-led growth and the enterprise succeed in the past, and we continue to see that they're paying off now. The Asana work graph is uniquely architected to give organizations cross-functional capabilities that deliver measurable business value, and according to IDC, an estimated 225% ROI in the first year. Today's reality is that we're more distributed than ever and are frequently collaborating both cross-functionally and with people we've never met in person. This complexity compounds the larger and more dispersed a company is. Yet most enterprises still organize workers based on their location and function. The enterprise work graph solves this problem by coordinating the right people around the right work at a global scale. It's why Asana is so powerful for large companies and why we're seeing such amazing growth. Rather than micromanaging, leaders are free to macromanage their teams by aligning them around key objectives and the work needed to achieve them, no matter where they are in the world. In the third quarter, we continue to invest in enterprise-grade infrastructure that supports our customers' needs. At our launch event scale, we hosted thousands of attendees from all over the globe and generated significant pipeline. We showcased how two incredible companies, Okta and Xero, are better orchestrating work and achieving their growth goals with Asana. We also announced a new suite of enterprise-specific functionality in three key areas. First, we released greater security and scalability features for IT. such as Enterprise Key Management, or EKM, SCIM functionality, which automates setup and syncs profile updates with Okta and Microsoft Azure AD, and better admin capabilities to deploy Asana with Audit Log API and admin announcements. Second, we've made cross-functional and cross-team coordination even easier with Workflow Builder. Now it's possible for anyone to build comprehensive and repeatable processes that connect teams, regardless of location or function, and move work forward. And third, we've improved alignment and visibility for execs, including a new goals API for linking our natively built goals product to data and insights for mission-critical tools, and the ability to report on data trends and workflows over time in universal reporting. Universal reporting is more and more valuable as customer deployments scale, and we see our largest customers adopting faster than the overall customer rate. Our company values guide how we develop our products, how we serve our customers and their missions, and how we show up and work together. During the third quarter, we were honored to be recognized for our investments in product innovation and customer experience across several more platforms. Asana was named as a leader in IDC Marketscape Worldwide Collaboration and Community Applications 2021 Vendor Assessment. We were recognized in Fast Company's first annual list of brands that matter. And also, we were on Inc. Magazine's inaugural list of best-led companies in 2021. These recognitions are outcomes of our culture and diligent pursuits of our mission. Before I pass it on to Anne, I want to call out the addition of Amit Singh to Asana's board of directors. Amit, who serves as the chief business officer for Palo Alto Networks, has impressive go-to-market leadership experience, including founding and building Google's cloud business, and leading business and operations for Google's AR and DR efforts. Prior to Google, Amit spent 20 years at Oracle in various product, engineering, sales, and strategy roles. He will be a tremendous resource for Asana as we continue expanding our enterprise footprint. And now I'll hand it off to Anne.