Asana, Inc.

Good afternoon, and thank you for joining the ASANA first quarter fiscal year 24 earnings call. My name is Kate, and I will be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the call over to our host, Katherine Vaughn. You may proceed.

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 2024. With me on today's call are Dustin Moskovitz, Asana's co-founder and CEO, Anne Raimondi, our chief operating officer and head of business, and Tim Wan, our chief financial officer. Today's call will include forward-looking statements, including statements regarding our expectations for free cash flow, our financial outlook, strategic plans, our 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 Annual Report Form 10-K and 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 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, and thank you all for joining us on the call today. Asana had a good first quarter. Q1 revenues grew 26% year over year. Customers over $100,000 grew faster at 31%, and non-GAAP operating margins had a 30 percentage point improvement year over year. Our growth continues to be fueled by some of the largest and most strategic companies in the world. In Q1, we closed and expanded some of our largest deals across industries such as media, professional services, healthcare, logistics, and financial services. Our largest deployment is now at 200,000 paid seats. We're really excited about this partnership and how much impact we've had across their organization. And this is still the beginning of what's possible here. As far as we know, this is the largest deployment of collaborative work management from any provider. Our strategic customers are partnering with Asana to define what work management at scale looks like. These partnerships will be particularly critical as we move to the next generation of work management, which I'll talk about more in a moment. Despite more budget scrutiny in enterprises, our win rates remain strong. We continue to see an increase in multi-year commitments year over year. In Q1, we made great progress on improving our non-GAAP operating margins. We expect to build on this momentum and drive significant improvement in non-GAAP operating margin this year as we focus on operational efficiency and growth, which Tim will talk about more. It's been a good start to the year, and we continue to focus on our enterprise playbook, improving sales productivity and bringing on enterprise leadership. I know that artificial intelligence is top of mind for everyone, so let me start with that topic. I've been personally passionate about the short and long-term opportunities, as well as the complex implications to society. In fact, through the foundation that was started by my wife and I, we've been studying the risks and opportunities around advanced AI for years. Furthermore, some of the top AI companies are Asana customers and partners. So as you can imagine, my interest level and involvement is both deep and broad. At Asana, we've been laying our AI foundation and building blocks for the past 15 years, recently powering some of our features with machine learning. The more recent and rapid developments in AI play into Asana's core strengths. AI can now significantly accelerate our ability to achieve our mission of helping humanity thrive by enabling the world's teams to work together effortlessly. The large language models fit even better into our vision than I imagined. and the evolving dynamics around AI highlight the benefits of the Asana work graph. We're moving quickly to realize the possibilities. With the Asana work graph, we already have the most complete picture of work in organizations, giving us the ability to help our customers drive business outcomes. The work graph is also the underlying technology that makes it easy for us to facilitate human to AI collaboration. This means AI can join our customers' teams with confidence that Asana will keep data secure and available. Quality of data is essential. Our data model provides a single source of truth and connects all the units of work to higher level portfolios and goals. These connections are especially important to ensure the accuracy and usefulness of Asana AI recommendations. It helps AI understand organizations so that recommendations are clear, actionable, and continuous, while the structured nature of the work graph enables teams to ensure the reliability, accuracy, and traceability of generative output. Customers are eager to use AI to make better decisions and maximize impact. Asana is adopting the best of AI capabilities for them so that it's easy to start making use of these exciting new technologies with the security, data, and privacy they expect. In other words, we, Asana, can become our customers' AI strategy. Starting today, I'm pleased to formally announce Asana Intelligence. With Asana Intelligence, AI has officially joined your organization to help you work together more effectively and efficiently. In fact, many of our AI capabilities are already in the hands of our customers. These include machine learning power productivity enhancers, such as Priority Inbox and Priority Tasks, designed to help you discover and focus your attention on the most relevant work, including what's high priority or blocking. To further support team efficiency, Asana now surfaces a personalized list of recommended projects for you to join. We also shipped smart rule suggestions, where Asana suggests rules to automate and save time on repeat actions. Admins have the ability to enable or disable these capabilities from the admin console in Asana, based on organizational preferences. In addition to what we've already shipped, we also have new large language model features in closed beta, powered by OpenAI. With the work graph and large language models now supercharging each other, we can move even faster and offer an even deeper level of functionality. Asana was built for this moment. Our vision is for Asana Intelligence to give people automatic recommendations that help them identify risks. make the right decisions faster and more often, and drive business outcomes such as goals-based resource management. The first step, health check, is currently in beta and makes it much faster to assemble a project status update. With the click of a button, Asana AI automatically writes your first draft, highlighting progress, risks, and ways for you to improve toward hitting your goals, and even surfacing information that you might have otherwise missed. Again, the key input is the work graph and how it connects units of work, information about that work, and the people responsible. Next, we're focusing on helping teams improve productivity and achieve more together. Our vision is to build self-optimized workflows, where Asana will give you an automated plan based on the goal you're trying to achieve, all tailored to your relevant function and industry. Today, we offer in beta instant summaries that transcribe and summarize action items from meetings, tasks, and common threads. multi-home suggestions that add valuable structure, plus a writing assistant to help you compose more compelling, simplified, and clear responses. Many of you are already familiar with how ChatGPT answers questions and assists with tasks. Similarly, one of Asana's intelligence solutions, powered by OpenAI, helps us create Ask Asana Anything, also in beta, which lets you ask questions like, where are the blockers in this project, and get instant answers. Work Organizer, also in beta, lets you start work faster by auto-generating custom fields so you can easily bring structure to unstructured projects and report on the status of work. Again, it's the structure of the work graph that allows us to seamlessly integrate AI into customer workflows. So its recommendations are in service of your goals, include important context, and have real benefits, rather than merely delivering an assistant on the side. We'll continue to use AI to serve our customers more effectively by helping them achieve their goals and deliver on their missions faster. with the choice and control over how and when AI is used. The VP of Technology Operations from Benevity said, and I quote, I'm incredibly excited about our participation in the Asana Intelligence Beta and the possibilities it will unlock for our teams at Benevity. These capabilities will enable us to work more efficiently than ever, allowing us to better fulfill our mission, empowering purpose-driven business. We'll share more about Asana's AI products and vision in the coming months, including at the Investor Day on October 3rd, as part of our fall customer event in New York City. In the short and long run, we're committed to AI safety and transparency, both in practice and within our product, and to giving our customers choice and control over how and when AI is used in Asana. At Asana, we don't just see a future powered by AI. We see a future where AI and human ingenuity combine to radically improve the lives of individuals and how teams work together, unleashing the full potential to every business and organization. That's the future we're building together. One feature, one team, and one step at a time. Now I'll turn it over to Anne.