ASAN · Asana, Inc.

Asana delivered a strong Q1 FY2027 earnings beat, with revenue of $205.1 million exceeding the high end of guidance and growing 9.5% year-over-year. The company achieved a record non-GAAP operating margin of 11.5%, a 720 basis point improvement from 4.3% in the prior year, driven by disciplined expense management and operating leverage. GAAP operating loss narrowed significantly to $15.2 million from $43.9 million, reflecting a 1,600 bps improvement in GAAP operating margin. Non-GAAP net income rose to $24.4 million from $12.0 million, with diluted EPS of $0.10 versus $0.05. Cash flow generation also improved markedly, with operating cash flow of $40.2 million (up from $6.8 million) and adjusted free cash flow of $34.4 million (up from $9.9 million). Customer metrics showed continued momentum: Core customers (spending $5,000+ annually) grew 7% to 26,103, and customers spending $100,000+ grew 12% to 817. Dollar-based net retention rate improved for the fourth consecutive quarter to 96% overall, with Core customers at 97%. The acquisition of StackAI, announced concurrently, is expected to contribute approximately 50 basis points to revenue growth in Q2 and full fiscal 2027. Management commentary highlighted AI product adoption as a key driver, with CEO Dan Rogers noting customers are "increasingly using AI Studio and AI Teammates to coordinate work faster." CFO Aziz Megji emphasized "improving fundamentals, supported by momentum in AI product adoption, customer expansion, and operating efficiency." Guidance for Q2 FY2027 calls for revenue of $213-$215 million (8.2%-9.2% YoY growth), non-GAAP operating income of $18-$20 million, and non-GAAP EPS of $0.08-$0.09. Full-year fiscal 2027 guidance projects revenue of $855.5-$863.5 million, non-GAAP operating margin of at least 9.75%, and non-GAAP EPS of $0.37. The guidance implies continued margin expansion and profitability improvement, supported by the StackAI acquisition and AI-driven customer engagement.