Asana, Inc.

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 the limitations of using non-GAAP measures versus their closest GAAP equivalents are available in our earnings release, which is posted on our investor relation webpage at investors.asana.com. And with that, I'd like to turn the call over to Dan.

Thank you for joining us today. This was a solid quarter. We believe the future of work is one where humans and AI collaborate with the right context, controls, and checkpoints. That's the foundation of AI Studio and our newly announced AI teammates. And customers use these capabilities in production and are already delivering real productivity gains. I'm excited to share more about our AI platform in a moment. But first, let's turn to the financial highlights from the quarter. QC revenues were $201 million. growing 9% year-over-year, exceeding the high end of our guidance. We generated non-GAAP operating income of $16.3 million, or an 8% operating margin, also exceeding the high end of our guidance. Our margin improvement reflects disciplined cost management and a thoughtful reallocation of spending towards high leverage areas, while still preserving capacity to invest in our AI platform. Precash flow was also strong, at $13.4 million in the quarter, or 7% on a margin basis. Overall, NRR was 96%, a slight improvement across all cohorts from last quarter, even with a heavier volume of large, predominantly tech, renewals this quarter. Retention within our monthly customer base is at a 12-month high, reflecting the work we've done to strengthen customer satisfaction and in-product experience, which Anne will share more about in a moment. We expanded with some key customers this quarter, including one of the largest multinational entertainment companies in the world, two of the largest Fortune 100 healthcare service providers, and several large tech sector customers, including a Fortune 500 people cloud platform, as well as a leading AI data platform. AI Studio delivered another good quarter with solid growth in sequential bookings, including early traction with self-serve users. I want to highlight two AI Studio wins that demonstrate how customers across industries are already using our platform to modernize mission-critical workflows. A global premium glassware manufacturer serving hospitality and luxury brands worldwide is using AI Studio to modernize core marketing workflows from campaign management to rapid content generation. One of Europe's largest and most influential trade show operators, is now leveraging AI Studio to digitize their planning processes, streamline cross-department collaboration, and accelerate decision-making on major strategic programs, including the OKR rollout. Asana has pioneered three ways of work transformation, collaborative work management, workflow automation, and now AI transformation. These form the basis of our strategy to help companies on the journey to the agentic enterprise. unlocking productivity for teams as they deliver against their goals smarter and faster so let's take a closer look at each of these waves the first wave was all about solving the most fundamental challenge in modern work creating clarity and accountability for a company's work for many of our customers work was once scattered across emails spreadsheets and disconnected tools asana created the structure and visibility teams need to stay aligned and accountable with our collaborative work management platform. Powered by the work graph, teams now have a shared understanding who is doing what, by when, how, and why. The second wave centered on workflow automation. Once teams had this clarity, they also wanted to increase their velocity. Asana's no-code workflow builder makes it simple to standardize and automate repeatable processes, from marketing intake to engineering sprint planning. And to make it easy, we created a workflow gallery to let you launch any workflow instantly. So teams get to value in a secure, fast context aware way. Now we're entering a new wave with AI transformation. Every customer I speak with sees the immense potential, but the reality is many AI projects today are just not delivering. In fact, a recent MIT report said as many as 95% of AI pilots are failing to deliver on their productivity promise. Why is that? Our point of view is that a lot of the AI solutions and applications today lack three fundamental things. Number one, they lack context. If you think about the foundational models, they understand very little of the work that's actually getting done within your organization. They don't have the memory of how things have been solved in the past. They aren't properly informed, so they can't be accurate or effective. They also lack checkpoints. AI can't be trusted to just run an end-to-end process without having humans in the loop. But these checkpoints today are nonexistent in many of the tools. And finally, they lack controls. What we see and what I hear from executives is that AI agents often have more access to data than the employees themselves. Employees are carefully given things like role-based access control. This somehow doesn't translate to the agents that they have in their organization, which of course is a risk. This is exactly what Asana's AI platform was built to solve. As a platform for human-AI collaboration, Asana delivers the context, checkpoints, and controls that enterprises require. The context is really the who, the what, the when, the why, and the how. Context is king. If you want AI to be useful, it needs to understand how this was solved in the past, who was involved, who needs to be involved next, what approval process do we need to have. Thanks to the work graph data model, Asana can give AI this rich and relevant context. And you also need these checkpoints. It's our strong point of view that humans need to be in the loop on most of these AI processes to approve things and course correct if needed. In Asana, you can check the quality of AI's work and iterate with it so that it will continue to improve. And finally, unique controls. We have a strong belief that AI agents should not have more access to data than your regular teammates. They should follow the same governance process, the security controls, the access to proprietary customer data that you've already established. These are the three Cs, as we call them, context, checkpoints, and controls, and are the foundation of our AI platform. Built on that foundation of context, checkpoints, and controls, the first AI add-on product we introduced was AI Studio. Think of AI Studio as supercharging your workflows. I like to think of it as inserting nodes in a given workflow to consult those foundational models, but doing so in the context of that workflow and the context of that work. It allows you to insert AI nodes directly into the process to handle specific tasks. For example, an intake node can check an incoming request, see if it's missing a due date, and assign it back to the requester automatically. A triage node can analyze that request against your company's goals and flag it as high priority. A quality node can check a deliverable against a predefined knowledge base to ensure it meets specifications. A risk monitoring node can proactively flag when tasks are falling behind schedule well before they cascade. And a translation node can automatically convert content for global markets and route it to the right local teams. This is our first step towards enabling the agentic enterprise, ensuring smarter, faster delivery of your goals. Which brings us to the next strategic step in building the agentic enterprise, enabling AI not just to coordinate work, but to do the work alongside your teams as a true collaborative teammate. At our Work Innovation Summit events in London and New York, we announced Asana AI Teammates, and we're already receiving strong positive feedback from our initial set of 30 beta customers. We expect AI teammates will be generally available early next year. Asana AI teammates are collaborative agents that help you deliver real business outcomes. They remember, take action, and adapt with full context on projects, goals, and how your teams operate. They show their work and have built-in checkpoints so you can course correct. And with our AI teammates, you are always in control. Now, we've already built out 12 out-of-the-box teammates across engineering, IT, marketing, operations, and PMO. These aren't prototypes or demos. They're prebuilt, tested, and ready to deploy. Each teammate operates with full context from the work graph, clear checkpoints for human guidance, and enterprise-grade controls. Marketing teammates that manage campaigns and create content. PMO teammates that track projects and flag risks. IT teammates that triage tickets and optimize resources. Customers can also build their own AI teammates in minutes by defining the role, connecting it to the right data sources, and refining behavior through checkpoints. This makes agentic AI accessible to every team, not just technical teams. So what makes our agents different? Well, first, they have context. Powered by the Asana WorkGraph, they understand from the moment they are assigned how your work gets done, how you solved problems before, and exactly who to involve. That context allows them to be truly collaborative because they understand the work. They can actively drive execution alongside people in the team. And crucially, they are multiplayer by design. Our teammates publish their plans openly. This creates a shared transparent starting point where everyone can provide feedback, ensuring the AI learns from your team's collective input. The early response from customers has been positive and reinforces the opportunity ahead. Morningstar an early adopter of Asana AI, is leveraging AI teammates to tackle complex strategic work that requires deep analysis and human-like reasoning. By creating a specialized AI teammate, the product management team was able to complete tasks that normally take up to two weeks in just 10 to 12 hours. Level Agency has built AI teammates for marketing to act as a workflow accelerator, saving three to five hours per content project as well as for IT to help triage support tickets and company-wide to intelligently review and operationalize new process ideas. We're also using our teammates internally at Asana. Our product design and engineering teams use a Figma and cursor teammate to convert prototypes into production ready UI code in roughly 15 minutes with more than 90% accuracy. Our brief buddy teammate supports every marketing kickoff and remove is about an hour from the start of a project. And our marketing team's localization teammates achieved roughly 90% language parity at about half the cost, allowing us to reinvest savings into SEO and global growth. These examples reinforce that agentic AI is not theoretical. It's already improving how we run our own business. Across all these deployments of our AI products, trust is central. Teammates only see the data they're explicitly granted access to. Admins control who can create or modify them. and customers have full visibility into the usage and cost with the ability to set limits to ensure strong ROI. We built these capabilities into AI Studio and TeamMates from day one because enterprise adoption depends on governance as much as capability. This focus on enterprise-grade AI is the foundation of our strategy, but in addition, operational priorities I laid out last quarter remain consistent, and our Q3 results show clear measurable progress against them. First, as I said last quarter, when we go deep in a vertical, speak their language of their persona, and align to the core workflows of that industry, we win. I want to highlight this playing out in a meaningful way. For example, in the healthcare vertical, where we closed several marquee expansions this quarter. One of the largest healthcare and insurance organizations in the U.S., expanded to more than 3,000 seats and crossed the 1 million ARR threshold. They've standardized their clinical service intake across a 20,000-person business unit and are expanding into adjacent teams like analytics, pharmacy, and student health, all running mission-critical workflows in Asana. Another major diversified healthcare company, now well above 1 million ARR with us, embedded Asana deeply in their Medicaid organization. to support the creation and expansion of Medicaid managed care plans across local markets. Asana is also being adopted across many new teams. And a global pharmaceutical leader selected Asana as a preferred PMO solution, including for mobile clinical trial workflows, an innovation model designed to expand trial access to patients far beyond traditional sites. These healthcare wins are a testament to Asana's ability to adapt to industry-specific solutions with ease. Second, we're improving go-to-market execution and value realization across our sales and self-service motions. We believe our focus on customer health improvement initiatives is contributing directly to the continued improvement of NRR. We delivered our strongest retention in more than a year amongst monthly self-service customers. and encouraging signal that our self-service engine improvements across product experience and support are taking hold. Third, we're maintaining our focus on disciplined, profitable growth. Our significant improvement in non-GAAP operating margin and strong adjusted free cash flow are direct results of this discipline. Our operating leverage and continued commitment to driving higher productivity from our cost base gives us the capacity to keep investing in high leverage areas, especially our AI platform. all while expanding our margins. Next quarter, I look forward to sharing additional proof points, customer stories, and outlining the FY27 priorities that I believe will support long-term growth acceleration and continued margin expansion. Before I hand over to Anne, I also want to take a moment to share that Anne will be leaving Asana after seven years. I'm so grateful for all that Anne has done. Anne has played a major role in our story, first as a highly engaged board member, and then as our COO and head of business, where she was instrumental in building our enterprise go-to-market motion and serving as one of our most trusted customer voices. I personally want to thank Anne for her leadership, partnership, and the foundation she's helped shape across our product, customer, and field teams. As we look ahead, given our size, scale, and the need to drive tied to alignment across product, product-led growth, sales-led growth, and marketing, Our go-to-market leaders, including the CRO and CMO, will now report directly to me, and we'll not be backfilling the COO role. This structure strengthens our ability to move with speed and focus, and it best positions us to accelerate growth over the long term and capitalize on the large and growing opportunity we see in leading the market for human-AI collaboration. I'm grateful for everything Anne has done to help us get to this point and wish her the very best. With that, I'll turn it over to Anne.

Thanks so much, Dan. It's been a privilege to spend the past seven years helping build Asana, first in the boardroom and then alongside the team every day. I've loved this company from the start, and that hasn't changed. I'm proud of the progress we've made building a true enterprise-grade platform and deepening our relationships with the most innovative customers around the world. I want to sincerely thank the entire Asana team for their incredible passion and dedication. I'll continue to be a strong advocate for Asana and a dedicated Asana user. I genuinely believe that the foundations are in place for the company to lead the next wave of work centered around AI human collaboration and to define how teams work for years to come. That progress was evident again in our Q3 results. In Q3, our enterprise motion continued to scale. The number of customer net ads from the 100,000 plus cohorts grew 15% year-over-year, while core customers spending $5,000 or more grew 8% year-over-year. International markets remain a strength for our business, especially EMEA and Japan. Our international revenue grew 12% year-over-year, and the US market grew 7% year-over-year. Here's an example of that. We landed a new multi-year competitive deal with Guardian, the British-based global news organization, to consolidate their tech stack and improve cross-departmental collaboration. Asana was chosen over competitors for its flexibility, enabling teams like product, advertising, and group technology and data to streamline everything from agile roadmapping to resource capacity planning on a single platform. We continue to increase our presence in non-tech, with those sectors once again growing in the teens. Dan noted some of the momentum we saw in healthcare, And I want to call out two other important areas where we saw meaningful wins this quarter, financial services and the public sector, both key growth verticals for Asana. In the financial service vertical, we expanded with a large North American financial services company. Their goal was to cut marketing campaign execution time by 25 to 50%. Their existing intake process had 29 steps. and they needed a single system that could simplify workflows, automate handoffs, and improve reporting. After evaluating Asana against our peers, they chose Asana for its superior user experience, flexibility, and ease of adoption, requiring minimal training while still offering the customization needed to modernize their workflows. We also saw strong momentum in the public sector this quarter, including a meaningful new win with a major German government research agency that manages roughly 6,000 projects each year. This was a competitive win. They selected Asana for its ease of use, templates, workflows, work graph-driven OKR support, and enterprise-grade security. They're implementing Asana as an audit-compliant system to manage thousands of research and innovation funding projects across Germany and Europe. Asana gives them real-time visibility into project progress, budgets, team allocations, and much more. We're also seeing sustained momentum in our channel ecosystem with partner-attached growth for the third straight quarter and consistently higher NRR in accounts where partners are engaged. The global biopharmaceutical customer win that Dan mentioned was secured in partnership with a global SI partner. We also landed key new logos with partners at a leading automotive manufacturer in India, a major UK food delivery platform, and a global enterprise digital experience platform. While the tech sector continued to be a headwind to our growth this quarter, we successfully renewed with several large tech companies, as Dan noted. This was one of the key factors impacting NRR improvement quarter over quarter. Core customer NRR and 100,000-plus customer NRR both improved 100 basis points to 97% and 96%, respectively. In-quarter NRR improved across all cohorts. Enhancements in our support infrastructure, improvements in customer satisfaction metrics, and AI-driven onboarding for self-serve customers resulted in our lowest churn numbers from monthly customers in the past year. In our SMB business, we continue to be affected by the evolving top-of-funnel dynamics we mentioned last quarter, particularly in relation to LLM-driven changes in search and paid media investments. Our approach to mitigate these pressures focuses on three areas. First, we're building modern self-serve experiences that get users to value fast. Our new prompt to project flow takes someone from a prompt on our website to a working Asana project in seconds. And we're optimizing each stage of the buyer journey to turn that engagement into durable growth. Second, we're evolving our content strategy and technical foundation to maintain authority as AI-led discovery changes, strengthening our presence where LLMs train, and ensuring Asana shows up as the leading answer in our category. Third, we're implementing smarter behavior-based personalization for high propensity accounts to improve both acquisition and expansion. As we shared last quarter, we expect these headwinds to persist through Q4. We concluded the quarter with our marquee customer event, the Work Innovation Summit in London and New York, where we officially introduced AI teammates to the world. Across the two events, we had over 1,600 customers, partners, and analysts in attendance. Our sponsors included Google, AWS, KPMG, and Deloitte. The strategic impact of these events was immediately clear from the response from third-party experts. We held over 30 industry analyst briefings with one analyst noting, no one is doing agentic like Asana. That's what makes you best in class. This is echoed by another industry analyst who called our multiplayer human plus AI collaboration approach unique in the market. These global events are a critical component of our go-to-market motion. They are driving new business, strengthening executive relationships, and validating our strategy as a leader in agentic AI. Quitting from one of our financial services customers, the event was one of the most stimulating, engaging conferences I've been to in a while. Asana's application of AI is like no other company today. Another Fortune 100 multinational mass media and entertainment customer said, I love that this event was focused on helping me get more out of what we're already doing, which inspires me to want to buy more. We are energized by this feedback and the validation of our strategy. With that, I'll turn it over to Sonali to walk through the financial highlights for the quarter.