Q3 Revenues grew 55% year over year
Over 89,000 total paying customers
Revenues from customers who spend $5,000 or
more on an annualized basis grew over 80% year over year
Fiscal year outlook raised
Asana, Inc. (NYSE: ASAN), a leading work management platform for
teams, today reported financial results for its third quarter ended
October 31, 2020.
“We reported a very strong quarter, with total revenue growth of
55 percent year over year and growth of revenue from customers who
spend $5,000 or more on an annualized basis of over 80 percent year
over year,” said Dustin Moskovitz, co-founder and chief executive
officer of Asana. “With the acceleration of digital transformation,
organizations are reimagining every aspect of business operations
to ensure that people can stay engaged, aligned and effective, no
matter where they are. Asana’s Work Graph provides the power,
flexibility and control that organizations need to orchestrate work
at scale.”
Third Quarter Fiscal 2021 Financial Highlights
- Revenues: Revenues were $58.9 million, an increase of 55% year
over year.
- Operating Loss: GAAP operating loss was $61.9 million, or
105.1% of revenues, compared to GAAP operating loss of $63.1
million, or 165.7% of revenues, in the third quarter of fiscal
2020. Non-GAAP operating loss was $37.3 million, or 63.3% of
revenues, compared to non-GAAP operating loss of $21.5 million, or
56.3% of revenues, in the third quarter of fiscal 2020.
- Net Loss: GAAP net loss was $73.3 million, compared to GAAP net
loss of $62.8 million in the third quarter of fiscal 2020. GAAP net
loss per share was $0.65, compared to GAAP net loss per share of
$0.89 in the third quarter of fiscal 2020. Non-GAAP net loss was
$38.3 million, compared to non-GAAP net loss of $21.2 million in
the third quarter of fiscal 2020. Non-GAAP net loss per share was
$0.34, compared to non-GAAP net loss per share of $0.30 in the
third quarter of fiscal 2020.
- Cash Flow: Cash flows from operating activities were negative
$34.4 million, compared to cash flows from operating activities of
negative $10.9 million in the third quarter of fiscal 2020. Free
cash flow was negative $19.5 million, compared to negative $11.6
million in the third quarter of fiscal 2020.
Business Highlights
- Expanded Asana’s App ecosystem with a powerful set of
best-in-class integrations with Zoom, Jira, Microsoft Teams and
Slack.
- Continued enterprise-ready product momentum announcing enhanced
Rules functionality, and expanded administrative controls to help
organizations stay connected at scale.
- Ended the quarter with over 89,000 paying customers.
- The number of customers spending $5,000 or more on an
annualized basis grew to 8,938, an increase of 58% year over
year.
- The number of customers spending $50,000 or more on an
annualized basis grew to 318, an increase of 104% year over
year.
- Overall dollar-based net retention rate was over 115%.
- Dollar-based net retention rate for customers with $5,000 or
more in annualized spend was over 125%.
- Dollar-based net retention rate for customers with $50,000 or
more in annualized spend was over 140%.
Financial Outlook
For the fourth quarter of fiscal 2021, Asana currently
expects:
- Revenues of $62 million to $63 million, representing
year-over-year growth of 43% to 45%
- Non-GAAP operating loss of $42.5 million to $39.5 million
- Non-GAAP net loss per share of $0.27 to $0.25, assuming basic
and diluted weighted average shares outstanding of approximately
158 million
For the full fiscal year 2021, Asana currently expects:
- Revenues of $220.6 million to $221.6 million, representing
year-over-year growth of 55%
- Non-GAAP operating loss of $130.8 million to $127.8
million
- Non-GAAP net loss per share of $1.24 to $1.21, assuming basic
and diluted weighted average shares outstanding of approximately
106 million
These statements are forward-looking and actual results may
materially differ. Refer to the “Forward-Looking Statements”
section below for information on the factors that could cause
Asana’s actual results to materially differ from these
forward-looking statements.
A reconciliation of non-GAAP guidance measures to corresponding
GAAP measures is not available on a forward-looking basis without
unreasonable effort due to the uncertainty regarding, and the
potential variability of, many of these costs and expenses that may
be incurred in the future. Asana has provided a reconciliation of
GAAP to non-GAAP financial measures in the financial statement
tables for its third quarter of fiscal 2021 non-GAAP results
included in this press release.
Conference Call Information
Asana will host a conference call and live webcast for analysts
and investors at 1:30 p.m. Pacific Time on December 9, 2020. A live
webcast and accompanying presentation can be accessed on the
Investor Relations section of Asana’s website at:
https://investors.asana.com. The conference call can also be
accessed by dialing (833) 529-0220, or +1 236-389-2147 (outside of
the US). The conference ID is 672-9445. A replay of the call via
webcast will be available at https://investors.asana.com.
Forward-Looking Statements
This press release contains “forward-looking” statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are based on management’s beliefs and assumptions and on
information currently available to management. Forward-looking
statements include, but are not limited to, statements about
Asana’s outlook for the fourth fiscal quarter and the full fiscal
year ending January 31, 2021, Asana’s market position, and
potential market opportunities. Forward-looking statements
generally relate to future events or Asana’s future financial or
operating performance. Forward-looking statements include all
statements that are not historical facts and in some cases can be
identified by terms such as “anticipate,” “expect,” “intend,”
“plan,” “believe,” “continue,” “could,” “potential,” “remain,”
“may,” “might,” “will,” “would” or similar expressions and the
negatives of those terms. However, not all forward-looking
statements contain these identifying words. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors, including factors beyond Asana’s control, that may cause
Asana’s actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. These risks include, but are not limited to, risks and
uncertainties related to: Asana’s ability to achieve future growth
and sustain its growth rate, Asana’s ability to attract and retain
customers and increase sales to its customers, Asana’s ability to
develop and release new products and services and to scale its
platform, Asana’s ability to increase adoption of its platform
through Asana’s self-service model, Asana’s ability to maintain and
grow its relationships with strategic partners, the highly
competitive and rapidly evolving market in which Asana
participates, Asana’s international expansion strategies, and the
impact of the COVID-19 pandemic. Further information on risks that
could cause actual results to differ materially from forecasted
results are included in Asana’s filings with the SEC, including
Asana’s final prospectus filed on September 30, 2020 with the SEC.
Any forward-looking statements contained in this press release are
based on assumptions that Asana believes to be reasonable as of
this date. Except as required by law, Asana assumes no obligation
to update these forward-looking statements, or to update the
reasons if actual results differ materially from those anticipated
in the forward-looking statements.
Use of Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are
prepared and presented in accordance with GAAP, Asana uses certain
non-GAAP financial measures, as described below, to understand and
evaluate its core operating performance. These non-GAAP financial
measures, which may be different from similarly titled measures
used by other companies, are presented to enhance investors’
overall understanding of Asana’s financial performance and should
not be considered a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
Investors are encouraged to review the reconciliation of these
non-GAAP measures to their most directly comparable GAAP financial
measures. A reconciliation of the non-GAAP financial measures to
such GAAP measures can be found in the accompanying financial
statements included with this press release.
Asana believes that these non-GAAP financial measures provide
useful information about its financial performance, enhance the
overall understanding of Asana’s past performance and future
prospects, facilitate period-to-period comparisons of operations,
and allow for greater transparency with respect to important
metrics used by Asana’s management for financial and operational
decision-making. Asana is presenting these non-GAAP financial
metrics to assist investors in seeing its financial performance
through the eyes of management, and because Asana believes that
these measures provide an additional tool for investors to use in
comparing its core financial performance over multiple periods with
other companies in Asana’s industry.
Asana defines non-GAAP operating loss as GAAP loss from
operations plus stock-based compensation expense and non-recurring
costs such as direct listing expenses. Asana defines non-GAAP net
loss as GAAP net loss plus stock-based compensation expense,
amortization of discount and non-cash contractual interest expense
related to its senior mandatory convertible promissory note, and
non-recurring costs such as direct listing expenses. There are a
number of limitations related to the use of these non-GAAP measures
as compared to GAAP operating loss and net loss, including that the
non-GAAP measures exclude stock-based compensation expense, which
has been, and will continue to be for the foreseeable future, a
significant recurring expense in Asana’s business and an important
part of its compensation strategy.
Asana also uses the non-GAAP financial measure of free cash
flow, which is defined as net cash used in operating activities
less cash used for purchases of property and equipment and
capitalized internal-use software costs, plus non-recurring
expenditures such as capital expenditures from the purchases of
property and equipment associated with the build-out of Asana’s
corporate headquarters in San Francisco and direct listing
expenses. Asana believes free cash flow is an important liquidity
measure of the cash that is available, after capital expenditures
and operational expenses, for investment in its business and to
make acquisitions. Free cash flow is useful to investors as a
liquidity measure because it measures Asana’s ability to generate
or use cash. There are a number of limitations related to the use
of free cash flow as compared to net cash from operating
activities, including that free cash flow includes capital
expenditures, the benefits of which are realized in periods
subsequent to those when expenditures are made.
Definitions of Business Metrics
Dollar-based net retention rate
Asana’s reported dollar-based net retention rate equals the
simple arithmetic average of its quarterly dollar-based net
retention rate for the four quarters ending with the most recent
fiscal quarter. Asana calculates its dollar-based net retention
rate by comparing its revenues from the same set of customers in a
given quarter, relative to the comparable prior-year period. To
calculate Asana’s dollar-based net retention rate for a given
quarter, Asana starts with the revenues in that quarter from
customers that generated revenues in the same quarter of the prior
year. Asana then divides that amount by the revenues attributable
to that same group of customers in the prior-year quarter. Current
period revenues include any upsells and are net of contraction or
attrition over the trailing 12 months, but exclude revenues from
new customers in the current period. Asana expects its dollar-based
net retention rate to fluctuate in future periods due to a number
of factors, including the expected growth of its revenue base, the
level of penetration within its customer base, and its ability to
retain its customers.
About Asana
Asana helps teams orchestrate their work, from small projects to
strategic initiatives. Headquartered in San Francisco, CA, Asana
has more than 89,000 paying customers and millions of free
organizations across 190 countries. Global customers such as
Allbirds, Sephora, Sky, Spotify, Viessmann and Woolworths rely on
Asana to manage everything from company objectives to digital
transformation to product launches and marketing campaigns.
Disclosure of Material Information
Asana announces material information to its investors using SEC
filings, press releases, public conference calls, and on its
investor relations page of Asana’s website at
https://investors.asana.com. Asana uses these channels, as well as
social media, including its Twitter account (@asana), its blog
(blog.asana.com), its LinkedIn page
(www.linkedin.com/company/asana), its Instagram account (@asana),
and its Facebook page (www.facebook.com/asana/), to communicate
with investors and the public about Asana, its products and
services and other matters. Therefore, Asana encourages investors,
the media and others interested in Asana to review the information
it makes public in these locations, as such information could be
deemed to be material information.
ASANA, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2020
2019
2020
2019
Revenues
$
58,905
$
38,079
$
158,635
$
99,136
Cost of revenues(1)
7,321
5,328
20,548
14,079
Gross profit
51,584
32,751
138,087
85,057
Operating expenses:
Research and development(1)
32,996
39,712
81,338
69,588
Sales and marketing(1)
48,039
35,902
122,952
74,927
General and administrative(1)
32,483
20,222
58,400
34,871
Total operating expenses
113,518
95,836
262,690
179,386
Loss from operations
(61,934
)
(63,085
)
(124,603
)
(94,329
)
Interest income and other income
(expense), net
(389
)
343
1,010
1,168
Interest expense
(10,351
)
—
(25,706
)
—
Loss before provision for income taxes
(72,674
)
(62,742
)
(149,299
)
(93,161
)
Provision for income taxes
615
61
901
183
Net loss
$
(73,289
)
$
(62,803
)
$
(150,200
)
$
(93,344
)
Net loss per share:
Basic and diluted
$
(0.65
)
$
(0.89
)
$
(1.70
)
$
(1.35
)
Weighted-average shares used in
calculating net loss per share:
Basic and diluted
113,264
70,736
88,539
69,053
_______________
(1) Amounts include stock-based
compensation expense as follows:
Three Months Ended October
31,
Nine Months Ended October
31,
2020
2019
2020
2019
Cost of revenues
$
75
$
77
$
175
$
90
Research and development
4,783
21,068
9,520
22,950
Sales and marketing
2,463
8,441
5,084
9,402
General and administrative
1,620
12,042
3,520
12,614
Total stock-based compensation expense
$
8,941
$
41,628
$
18,299
$
45,056
ASANA, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(unaudited)
October 31, 2020
January 31, 2020
Assets
Current assets
Cash and cash equivalents
$
297,425
$
306,020
Marketable securities
126,439
45,288
Accounts receivable, net
23,287
12,659
Prepaid expenses and other current
assets
25,277
16,667
Total current assets
472,428
380,634
Property and equipment, net
54,787
10,100
Restricted cash, noncurrent
—
4,657
Operating lease right-of-use assets
138,752
20,818
Other assets
8,018
5,483
Total assets
$
673,985
$
421,692
Liabilities, Redeemable Convertible
Preferred Stock, and Stockholders’ (Deficit) Equity
Current liabilities
Accounts payable
$
16,291
$
7,549
Accrued expenses and other current
liabilities
36,331
18,241
Deferred revenue, current (1)
88,871
62,725
Operating lease liabilities, current
10,960
11,613
Total current liabilities
152,453
100,128
Term loan, net
12,491
—
Convertible notes, net—related party
340,788
203,097
Operating lease liabilities,
noncurrent
138,141
10,472
Other liabilities(1)
2,416
2,729
Total liabilities
646,289
316,426
Commitments and contingencies
Redeemable convertible preferred stock
—
250,581
Stockholders’ (deficit) equity
Common stock
2
1
Additional paid-in capital
507,737
184,522
Accumulated other comprehensive loss
(107)
(102)
Accumulated deficit
(479,936)
(329,736)
Total stockholders’ (deficit) equity
27,696
(145,315)
Total liabilities, redeemable convertible
preferred stock, and stockholders’ (deficit) equity
$
673,985
$
421,692
_______________
(1) Total deferred revenue was $90.1
million as of October 31, 2020 (unaudited), of which $1.3 million,
is presented within other liabilities, as a noncurrent liability,
in the consolidated balance sheets.
ASANA, INC.
SUMMARY OF CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2020
2019
2020
2019
Cash flows from operating
activities
Net loss
$
(73,289
)
$
(62,803
)
$
(150,200
)
$
(93,344
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Allowance for doubtful accounts
84
122
1,204
298
Depreciation and amortization
992
528
2,508
1,691
Gain on sale of assets
(12
)
—
(12
)
—
Amortization of deferred contract
acquisition costs
1,099
448
2,684
1,011
Stock-based compensation expense
8,941
41,628
18,299
45,056
Net accretion of discount of marketable
securities
135
(184
)
82
(882
)
Change in fair value of redeemable
convertible preferred stock warrant liability
—
55
—
109
Non-cash lease expense
5,250
2,025
11,835
5,731
Amortization of discount on convertible
notes and term loan issuance costs
6,350
—
15,964
—
Non-cash interest expense
3,970
—
9,709
—
Changes in operating assets and
liabilities:
Accounts receivable
(7,079
)
(3,138
)
(11,831
)
(5,238
)
Prepaid expenses and other current
assets
(8,874
)
(3,007
)
(13,251
)
(5,358
)
Other assets
(1,175
)
(559
)
(2,537
)
(1,396
)
Accounts payable
299
828
1,840
2,611
Accrued expenses and other current
liabilities
10,046
3,767
13,544
4,910
Deferred revenue
15,102
11,202
26,041
25,786
Operating lease liabilities
3,726
(1,851
)
(584
)
(5,024
)
Net cash used in operating activities
(34,435
)
(10,939
)
(74,705
)
(24,039
)
Cash flows from investing
activities
Purchases of marketable securities
(126,613
)
(22,963
)
(126,613
)
(75,969
)
Sales of marketable securities
—
(3
)
—
2,677
Maturities of marketable securities
6,399
34,700
45,341
84,300
Purchases of property and equipment
(22,752
)
(1,006
)
(35,153
)
(1,855
)
Sales of property and equipment
12
—
12
—
Capitalized internal-use software
(40
)
—
(858
)
(302
)
Net cash provided by (used in) investing
activities
(142,994
)
10,728
(117,271
)
8,851
Cash flows from financing
activities
Proceeds from term loan, net of issuance
costs
10,000
—
12,915
—
Proceeds from issuance of convertible
notes—related party
—
—
150,000
—
Taxes paid related to net share settlement
of equity awards
(192
)
—
(378
)
—
Repurchases of common stock
—
(59
)
—
(70
)
Proceeds from exercise of stock
options
14,443
4,914
16,194
7,848
Net cash provided by financing
activities
24,251
4,855
178,731
7,778
Effect of foreign exchange rates on cash
and cash equivalents and restricted cash
(71
)
39
(7
)
41
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(153,249
)
4,683
(13,252
)
(7,369
)
Cash, cash equivalents, and restricted
cash
Beginning of period
450,674
14,528
310,677
26,580
End of period
$
297,425
$
19,211
$
297,425
$
19,211
ASANA, INC.
Reconciliation of GAAP to
Non-GAAP Data
(In thousands, except
percentages)
(unaudited)
Three Months Ended
October 31,
Nine Months Ended
October 31,
2020
2019
2020
2019
Reconciliation of gross profit and
gross margin
GAAP gross profit
$
51,584
$
32,751
$
138,087
$
85,057
Plus: stock-based compensation
75
77
175
90
Non-GAAP gross profit
$
51,659
$
32,828
$
138,262
$
85,147
GAAP gross margin
87.6%
86.0%
87.0%
85.8%
Non-GAAP adjustments
0.1%
0.2%
0.2%
0.1%
Non-GAAP gross margin
87.7%
86.2%
87.2%
85.9%
Reconciliation of operating
expenses
GAAP research and development
$
32,996
$
39,712
$
81,338
$
69,588
Less: stock-based compensation
(4,783)
(21,068)
(9,520)
(22,950)
Non-GAAP research and development
$
28,213
$
18,644
$
71,818
$
46,638
GAAP research and development as
percentage of revenue
56.0%
104.3%
51.3%
70.2%
Non-GAAP research and development as
percentage of revenue
47.9%
49.0%
45.3%
47.0%
GAAP sales and marketing
$
48,039
$
35,902
$
122,952
$
74,927
Less: stock-based compensation
(2,463)
(8,441)
(5,084)
(9,402)
Non-GAAP sales and marketing
$
45,576
$
27,461
$
117,868
$
65,525
GAAP sales and marketing as percentage of
revenue
81.6%
94.3%
77.5%
75.6%
Non-GAAP sales and marketing as percentage
of revenue
77.4%
72.1%
74.3%
66.1%
GAAP general and administrative
$
32,483
$
20,222
$
58,400
$
34,871
Less: stock-based compensation
(1,620)
(12,042)
(3,520)
(12,614)
Less: direct listing expenses
(15,718)
—
(17,955)
—
Non-GAAP general and administrative
$
15,145
$
8,180
$
36,925
$
22,257
GAAP general and administrative as
percentage of revenue
55.1%
53.1%
36.8%
35.2%
Non-GAAP general and administrative as
percentage of
revenue
25.7%
21.5%
23.3%
22.5%
Reconciliation of operating loss and
operating margin
GAAP loss from operations
$
(61,934)
$
(63,085)
$
(124,603)
$
(94,329)
Plus: stock-based compensation
8,941
41,628
18,299
45,056
Plus: direct listing expenses
15,718
—
17,955
—
Non-GAAP loss from operations
$
(37,275)
$
(21,457)
$
(88,349)
$
(49,273)
GAAP operating margin
(105.1)%
(165.7)%
(78.5)%
(95.2)%
Non-GAAP adjustments
41.8%
109.4%
22.8%
45.5%
Non-GAAP operating margin
(63.3)%
(56.3)%
(55.7)%
(49.7)%
ASANA, INC.
Reconciliation of GAAP to
Non-GAAP Data
(In thousands, except
percentages and per share data)
(unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2020
2019
2020
2019
Reconciliation of net loss
GAAP net loss
$
(73,289
)
$
(62,803
)
$
(150,200
)
$
(93,344
)
Plus: stock-based compensation
8,941
41,628
18,299
45,056
Plus: amortization of debt discount
6,346
—
15,955
—
Plus: non-cash interest
3,970
—
9,709
—
Plus: direct listing expenses
15,718
—
17,955
—
Non-GAAP net loss
$
(38,314
)
$
(21,175
)
$
(88,282
)
$
(48,288
)
Reconciliation of net loss per
share
GAAP net loss per share, basic
$
(0.65
)
$
(0.89
)
$
(1.70
)
$
(1.35
)
Non-GAAP adjustments to net loss
0.31
0.59
0.70
0.65
Non-GAAP net loss per share, basic
$
(0.34
)
$
(0.30
)
$
(1.00
)
$
(0.70
)
Weighted-average shares used in GAAP and
non-GAAP per share calculation, basic and diluted
113,264
70,736
88,539
69,053
Three Months Ended October
31,
Nine Months Ended October
31,
2020
2019
2020
2019
Computation of free cash flow
Net cash provided by (used in) investing
activities
$
(142,994
)
$
10,728
$
(117,271
)
$
8,851
Net cash provided by financing
activities
$
24,251
$
4,855
$
178,731
$
7,778
Net cash used in operating activities
$
(34,435
)
$
(10,939
)
$
(74,705
)
$
(24,039
)
Less: purchases of property and
equipment
(22,752
)
(1,006
)
(35,153
)
(1,855
)
Less: capitalized internal-use
software
(40
)
—
(858
)
(302
)
Plus: purchases of property and equipment
from build-out of corporate headquarters
21,822
343
33,130
754
Plus: direct listing expenses
15,903
—
19,112
—
Free cash flow
$
(19,502
)
$
(11,602
)
$
(58,474
)
$
(25,442
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201209005976/en/
Catherine Buan Asana Investor Relations ir@asana.com
Stephanie Hess Asana Corporate Communications
press@asana.com
Asana (NYSE:ASAN)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
Asana (NYSE:ASAN)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024