Asana (ASAN) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue grew 10% year-over-year to $179.2 million, driven by new paying customers, higher-priced subscription plans, and record multi-year deals, marking strong enterprise momentum.

• Core customers ($5,000+ annual spend) increased to 22,948, contributing 75% of revenue; customers spending $100,000+ annually rose 17% to 649.

• AI innovation advanced with the launch of Asana AI Workflows, AI teammates, and upcoming AI Studio, driving customer engagement and new use cases.

• Recognized for innovation and workplace culture, including multiple 2024 awards and finalist for Fast Company's Innovation by Design.

• Leadership transition announced: CFO Tim Wan to be succeeded by Sonali Parekh, former CFO of RingCentral.

Financial highlights

• Q2 revenue: $179.2 million, up 10% year-over-year; non-GAAP gross margin: 89%; non-GAAP operating loss: $15.7 million (9% margin); non-GAAP net loss: $11.1 million ($0.05/share).

• Free cash flow was $12.8 million (7% margin); operating cash flow was $15.9 million.

• Cash, cash equivalents, and marketable securities totaled $521.6 million as of July 31, 2024.

• Deferred revenue increased to $289.2 million, up 11% year-over-year.

• $19.7 million in share repurchases during Q2 as part of a $150 million program.

Outlook and guidance

• Q3 FY25 revenue guidance: $180–$181 million (8–9% growth); non-GAAP operating loss: $18–$19 million (–10% margin); net loss/share: $0.07.

• FY25 revenue guidance: $719–$721 million (10% growth); non-GAAP operating loss: $55–$58 million (–8% margin); net loss/share: $0.19–$0.20.

• Management expects continued investment in R&D and sales to drive long-term growth, with near-term profitability impacted.

• Macro headwinds and technology sector drag to persist, but moderate revenue re-acceleration expected in coming quarters.

• Liquidity is considered sufficient for at least the next 12 months.