Asana, Inc.

Previous wording

As of April 30, 2025, we had 24,297 Core customers contributing approximately 75% of revenues for the three months then ended. As of April 30, 2024, we had 22,162 Core customers who contributed approximately 74% of revenues for the three months then ended.

Current wording

As of July 31, 2025, we had 25,006 Core customers contributing approximately 76% and 75% of revenues for the three and six months then ended, respectively. As of July 31, 2024, we had 22,948 Core customers who contributed approximately 75% and 75% of revenues for the three and six months then ended, respectively.

Previous wording

As of April 30, 2025 and 2024, we had 728 and 607 customers spending over $100,000, on an annualized basis, respectively.

Current wording

As of July 31, 2025 and 2024, we had 770 and 649 customers spending over $100,000, on an annualized basis, respectively.

Previous wording

Subsequent to the fiscal quarter ended April 30, 2025, in May 2025 we entered into the largest subscription agreement in our history with a global technology leader. This agreement is for $100.0 million over a three-year term, billed annually.

Current wording

During the fiscal quarter ended July 31, 2025, we entered into the largest subscription agreement in our history with a global technology leader. This agreement is for $100.0 million over a three-year term, billed annually.

Previous wording

As of April 30, 2025 and 2024, our dollar-based net retention rate was 95% and 100%, respectively.

Current wording

As of July 31, 2025 and 2024, our dollar-based net retention rate was 96% and 98%, respectively.

Previous wording

As of April 30, 2025 and 2024, our dollar-based net retention rate for our Core customers was 96% and 102%, respectively. Our dollar-based net retention rate for customers spending over $100,000 on an annualized basis for the same periods was 95% and 108%, respectively.

Current wording

As of July 31, 2025 and 2024, our dollar-based net retention rate for our Core customers was 96% and 99%, respectively. Our dollar-based net retention rate for customers spending over $100,000 on an annualized basis for the same periods was 95% and 103%, respectively.

Previous wording

Cost of revenues consists primarily of the cost of providing our platform to free users and paying customers and is comprised of third-party hosting fees, personnel-related expenses for our operations and support personnel including allocated overhead costs for facilities and shared IT-related expenses, third-party implementation services partner fees, credit card processing fees, and amortization of our capitalized internal-use software costs.

Current wording

Cost of revenues consists primarily of the cost of providing our platform to free users and paying customers and is comprised of third-party hosting fees, personnel-related expenses for our operations and support personnel including allocated overhead costs for facilities and shared IT-related expenses, third-party implementation services partner fees, credit card processing fees, infrastructure and application performance monitoring costs, and amortization of our capitalized internal-use software costs.

Previous wording

Research and development expenses consist primarily of personnel-related expenses. These expenses also include product design costs, third-party services and consulting expenses, software subscriptions and computer equipment used in research and development activities, and allocated overhead costs. A substantial portion of our research and development efforts are focused on enhancing our software architecture and adding new features and functionality to our platform. We anticipate continuing to invest in innovation and technology development, including the integration of AI in our products, and as a result, we expect research and development expenses to continue to increase in dollar amount, but to decrease as a percentage of revenues over time.

Current wording

Research and development expenses consist primarily of personnel-related expenses. These expenses also include product design costs, software subscriptions and computer equipment used in research and development activities, and allocated overhead costs. A substantial portion of our research and development efforts are focused on enhancing our software architecture and adding new features and functionality to our platform. We anticipate continuing to invest in innovation and technology development, including the integration of AI in our products, and as a result, we expect research and development expenses to continue to increase in dollar amount, but to decrease as a percentage of revenues over time.

Previous wording

Sales and marketing expenses consist primarily of personnel-related expenses and expenses for performance marketing, brand marketing, pipeline generation, and sponsorship activities. These expenses also include allocated overhead costs and travel-related expenses. Sales commissions earned by our sales force that are considered incremental and recoverable costs of obtaining a subscription with a customer are deferred and amortized on a straight-line basis over the expected period of benefit of three years.

Current wording

Sales and marketing expenses consist primarily of personnel-related expenses and expenses for performance marketing, brand marketing, pipeline generation, and sponsorship activities. These expenses also include allocated overhead costs, travel-related expenses, and professional fees. Sales commissions earned by our sales force that are considered incremental and recoverable costs of obtaining a subscription with a customer are deferred and amortized on a straight-line basis over the expected period of benefit of three years.

Previous wording

Revenues increased $14.8 million, or 9%, during the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The increase in revenues was primarily due to the addition of new paying customers and a continued shift in our sales mix toward our higher priced subscription plans, such as Enterprise and Enterprise+ plans.

Current wording

Revenues increased $17.7 million, or 10%, during the three months ended July 31, 2025 compared to the three months ended July 31, 2024. The increase in revenues was primarily due to the addition of new paying customers and a continued shift in our sales mix toward our higher priced subscription plans, such as Enterprise and Enterprise+ plans.

Previous wording

Sales and marketing expenses decreased $4.5 million, or 4%, during the three months ended April 30, 2025 compared to the three months ended April 30, 2024. Thedecrease was primarily due to a decrease of $2.7 million in fees to marketing vendors, a decrease of $1.0 million in professional fees, and a decrease of $1.0 million in allocated overhead costs, partially offset by an increase of $0.3 million in subscription and software related expenses.

Current wording

Sales and marketing expenses decreased $2.0 million, or 2%, during the three months ended July 31, 2025 compared to the three months ended July 31, 2024. Thedecrease was primarily due to a decrease of $1.2 million in personnel-related costs, a decrease of $0.6 million in fees to marketing vendors, a decrease of $0.4 million in travel and entertainment costs, and a decrease of $0.2 million in professional fees, partially offset by an increase of $0.5 million in allocated overhead costs.

Previous wording

General and administrative expenses increased $3.3 million, or 10%, during thethree months ended April 30, 2025 compared to thethree months ended April 30, 2024. Theincreasewas primarily due to an increase of $1.8 million in personnel-related costs driven by an increase in stock-based compensation expense, an increase of $0.9 million in tax contingencies, an increase of $0.8 million in provision for credit losses, and an increase of $0.2 million in subscription and software related expenses, partially offset by a decrease of $0.4 million in allocated overhead costs.

Current wording

General and administrative expenses increased $3.9 million, or 11%, during thethree months ended July 31, 2025 compared to thethree months ended July 31, 2024. Theincreasewas primarily due to an increase of $3.5 million in personnel-related costs driven by an increase in stock-based compensation expense, an increase of $0.6 million in professional fees, and an increase of $0.5 million in allocated overhead costs, partially offset by a decrease of $0.4 million in subscription and software related expenses, a decrease of $0.2 million in insurance expenses, and a decrease of $0.1 million in cloud computing and related costs.

Previous wording

Interest income and other income (expense), net increased by $1.5 million during the three months ended April 30, 2025 compared to thethree months ended April 30, 2024, primarily due to an increase of $2.6 million for the impact of foreign currency transaction gains and losses, partially offset by a decrease of $1.1 million in interest income on marketable securities. Interest expense decreased during thethree months ended April 30, 2025 compared to thethree months ended April 30, 2024, primarily due to a decrease in interest rates.

Current wording

Interest income and other income (expense), net decreased by $3.5 million, or 51%, during the three months ended July 31, 2025 compared to thethree months ended July 31, 2024, primarily due to a decrease of $2.2 million for the impact of foreign currency transaction gains and losses and a decrease of $1.3 million in interest income on marketable securities. Interest expense decreased by $0.2 million, or 17%, during thethree months ended July 31, 2025 compared to thethree months ended July 31, 2024, primarily due to a decrease in interest rates.

Previous wording

Cost of revenues increased $1.4 million, or 8%, during the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The increase was primarily due toan increase of $0.5 million in amortization of capitalized software development costs, an increase of $0.5 million in professional services related fees, an increase of $0.4 millionin infrastructure and application performance monitoring costs, an increase of $0.2 million in personnel-related costs, and an increase of $0.1 millionin third-party hosting costs, partially offset by a decrease of $0.2 million credit card processing fees and a decrease of $0.1 million in equipment and related costs.

Current wording

Cost of revenues increased $1.7 million, or 4%, during the six months ended July 31, 2025 compared to the six months ended July 31, 2024. The increase was primarily due toan increase of $1.2 million in amortization of capitalized software development costs, an increase of $1.0 million in professional services, and an increase of $0.6 million in personnel-related costs, partially offset by a decrease of $0.5 million in third-party hosting costs, a decrease of $0.4 million in credit card processing fees, and a decrease of $0.2 million in subscription and software related expenses.

Previous wording

Since inception, we have financed operations primarily through the net proceeds we have received from the sales of our preferred stock and common stock, the issuance of senior mandatory convertible promissory notes in January and June 2020 to a trust affiliated with our CEO, cash generated from the sale of subscriptions to our platform, and financing activities including the private placement transaction with our CEO. We have generated losses from our operations as reflected in our accumulated deficit of $1,884.1 million as of April 30, 2025, positive cash flows from operating activities for the three months ended April 30, 2025, and negative cash flows from operating activities for the three months ended April 30, 2024.

Current wording

Since inception, we have financed operations primarily through the net proceeds we have received from the sales of our preferred stock and common stock, the issuance of senior mandatory convertible promissory notes in January and June 2020 to a trust affiliated with our co-founder, Chair, and former CEO, Dustin Moskovitz, cash generated from the sale of subscriptions to our platform, and financing activities including the private placement transaction with Mr. Moskovitz. We have generated losses from our operations as reflected in our accumulated deficit of $1,960.3 million as of July 31, 2025 and positive cash flows from operating activities for the six months ended July 31, 2025 and 2024.

Previous wording

As of April 30, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $470.8 million.

Current wording

As of July 31, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $475.2 million.

Previous wording

As of April 30, 2025, under the November 2022 Senior Secured Credit Facility there was$50.0 million drawn and$44.4 million was outstanding under the term loan, no amounts outstanding under the revolving credit facility and an aggregate$21.7 million in letters of credit issued under the credit sub-facility. Our total available borrowing capacity under the revolving credit facility was $78.3 million as of April 30, 2025.

Current wording

As of July 31, 2025, under the November 2022 Senior Secured Credit Facility there was$50.0 million drawn and$41.9 million was outstanding under the term loan, no amounts outstanding under the revolving credit facility and an aggregate$21.7 million in letters of credit issued under the credit sub-facility. Our total available borrowing capacity under the revolving credit facility was $78.3 million as of July 31, 2025.

Previous wording

In June 2024, our board of directors authorized a stock repurchase program of up to $150.0 million of our outstanding Class A common stock (the “Repurchase Program”). Repurchases are made on the open market, including via pre-set trading plans, in accordance with applicable securities laws. The Repurchase Program is funded using our working capital and was initially authorized through June 2025. The Repurchase Program does not obligate us to acquire any particular amount of Class A common stock, and the Repurchase Program may be suspended or discontinued at any time at our discretion. During the three months ended April 30, 2025, we repurchased 1.0 million shares of our outstanding Class A common stock for an aggregate purchase price of$15.6 million. All shares of Class A common stock repurchased were retired. On May 30, 2025, our board of directors amended the Repurchase Program to remove the expiration date of the Repurchase Program and authorized the repurchase of an additional $100.0 million of the Company’s outstanding Class A common stock pursuant to the Repurchase Program. As of April 30, 2025,$56.0 million remained available for future stock repurchases under the Repurchase Program, and the Company now has a total of $156.0 million available for future repurchases under the Repurchase Program. The Repurchase Program, as amended, has no specified expiration date and will continue until the funds committed to the Repurchase Program are exhausted or such authorization is revoked by our board of directors. See Note 10. Stockholders’ Equity to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding stock repurchases.

Current wording

In June 2024, our board of directors authorized a stock repurchase program of up to $150.0 million of our outstanding Class A common stock (the “Repurchase Program”). Repurchases are made on the open market, including via pre-set trading plans, in accordance with applicable securities laws. The Repurchase Program is funded using our working capital and was initially authorized through June 2025. The Repurchase Program does not obligate us to acquire any particular amount of Class A common stock, and the Repurchase Program may be suspended or discontinued at any time at our discretion. During the three and six months ended July 31, 2025, we repurchased 2.0 million and 3.0 million shares of our outstanding Class A common stock for an aggregate purchase price of$27.8 million and $43.4 million, respectively. During the three and six months ended July 31, 2024, we repurchased 1.4 million shares of our outstanding Class A common stock for an aggregate purchase price of$19.7 million. All shares of Class A common stock repurchased were retired. The Repurchase Program was later amended on May 30, 2025 to remove the original expiration date and authorize the repurchase of an additional $100.0 million of Class A common stock. As of July 31, 2025,$128.2 million remained available for future stock repurchases under the Repurchase Program. The Repurchase Program, as amended, has no specified expiration date and will continue until the funds committed to the Repurchase Program are exhausted or such authorization is revoked by our board of directors. See Note 10. Stockholders’ Equity to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding stock repurchases.

Previous wording

A substantial source of our cash provided by operating activities is our customer billings for subscription to our platform. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is included on our condensed consolidated balance sheets as a liability and is recorded as revenues over the term of the subscription agreement. As of April 30, 2025, we had $290.3 million of deferred revenue, of which $289.0 million was recorded as a current liability. This deferred revenue will be recognized as revenues when all of the revenue recognition criteria are met.

Current wording

A substantial source of our cash provided by operating activities is our customer billings for subscription to our platform. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is included on our condensed consolidated balance sheets as a liability and is recorded as revenues over the term of the subscription agreement. As of July 31, 2025, we had $313.6 million of deferred revenue, of which $312.5 million was recorded as a current liability. This deferred revenue will be recognized as revenues when all of the revenue recognition criteria are met.

Previous wording

Net cash provided by operating activities of $6.8 million for the three months ended April 30, 2025 reflects our net loss of $40.0 million, adjusted by non-cash items such as stock-based compensation expense of $48.2 million, amortization of deferred contract acquisition costs of $6.7 million, depreciation and amortization of $5.0 million, non-cash lease expense of $4.5 million, and provision for expected credit losses of $1.0 million, partially offset by net accretion of discount on marketable securities of $0.7 million, and net cash outflows of $17.9 million from changes in our operating assets and liabilities. The net cash outflows from changes in operating assets and liabilities primarily consisted of a $12.5 million decrease in deferred revenue resulting from decreased billings for subscriptions, a $8.8 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, a $7.4 million decrease in accrued expenses and other liabilities primarily from accrued payroll liabilities, a $5.4 million decrease in operating lease liabilities, a $1.7 million decrease in accounts payable, and a $0.7 million increase in other assets. These amounts were partially offset by a $18.7 million decrease in accounts receivable.

Current wording

Net cash provided by operating activities of $46.6 million for the six months ended July 31, 2025 reflects our net loss of $88.4 million, adjusted by non-cash items such as stock-based compensation expense of $110.3 million, amortization of deferred contract acquisition costs of $13.8 million, depreciation and amortization of $10.1 million, non-cash lease expense of $9.1 million, and provision for expected credit losses of $1.2 million, partially offset by net accretion of discount on marketable securities of $1.3 million, and net cash outflows of $8.3 million from changes in our operating assets and liabilities. The net cash outflows from changes in operating assets and liabilities primarily consisted of a $20.2 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, a $12.2 million decrease in accrued expenses and other liabilities primarily from accrued advertising expenses and accrued payroll liability, and a $11.1 million decrease in operating lease liabilities. These amounts were partially offset by a $17.8 million decrease in accounts receivable, a $10.8 million increase in deferred revenue resulting from increased billings for subscriptions, a $6.3 million increase in accounts payable, and a $0.3 million decrease in other assets.

Previous wording

Net cash used in operating activities of $1.9 million for thethree months ended April 30, 2024 reflects ournet loss of $63.7 million, adjusted by non-cash items such asstock-based compensation expense of $48.6 million, amortization of deferred contract acquisition costs of $6.1 million, non-cash lease expense of $4.5 million, depreciation and amortization of $4.0 million, provision for expected credit losses of $0.2 million, partially offset by net accretion of discount on marketable securities of $1.8 million, andnet cash inflows of $0.2 million from changes in our operating assets and liabilities. The net cash inflows from changes in operating assets and liabilities primarily consisted of a $25.9 million increase indeferred revenue resulting from increased billings for subscriptions and a $6.4 million increase in accounts payable. These amounts were partially offset bya $11.7 million increase in accounts receivable, a$10.2 million decrease inaccrued expenses and other liabilities primarily from accrued payroll liabilities, a $4.9 million decrease inoperating lease liabilities, a $4.4 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, and a $0.9 million increase inother assets.

Current wording

Net cash provided by operating activities of $14.0 million for thesix months ended July 31, 2024 reflects ournet loss of $135.9 million, adjusted by non-cash items such asstock-based compensation expense of $108.7 million, amortization of deferred contract acquisition costs of $12.5 million, non-cash lease expense of $8.9 million, depreciation and amortization of $8.3 million, provision for expected credit losses of $0.4 million, partially offset by net accretion of discount on marketable securities of $3.6 million, andnet cash inflows of $14.6 million from changes in our operating assets and liabilities. The net cash inflows from changes in operating assets and liabilities primarily consisted of a $22.9 million decrease inaccounts receivable, a $18.0 million increase in deferred revenue resulting from increased billings for subscriptions, and a$6.4 million increase in accounts payable. These amounts were partially offset bya $13.6 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, a$9.6 million decrease inoperating lease liabilities, a $6.4 million decrease inaccrued expenses and other liabilities primarily from accrued advertising expenses and accrued payroll liability, and a $3.1 million increase in other assets.

Previous wording

Net cash provided by investing activities of $4.2 million for the three months ended April 30, 2025 consisted of $41.0 million in maturities of marketable securities, partially offset by $34.1 million in purchases of marketable securities, $2.1 million in capitalized internal-use software costs, and $0.6 million in purchases of property and equipment.

Current wording

Net cash used in investing activities of $14.7 million for the six months ended July 31, 2025 consisted of $104.1 million in purchases of marketable securities,$5.3 million incapitalized internal-use software costs, and$1.9 million inpurchases of property and equipment. This was partially offset by $96.6 million in maturities of marketable securities.

Previous wording

Net cash used in investing activities of $21.4 million for thethree months ended April 30, 2024 consisted of $70.5 million inpurchases of marketable securities, $1.4 million incapitalized internal-use software costs, and $1.0 million inpurchases of property and equipment. This was partially offset by $51.5 million inmaturities of marketable securities.

Current wording

Net cash used in investing activities of $21.3 million for thesix months ended July 31, 2024 consisted of $107.1 million inpurchases of marketable securities, $2.8 million incapitalized internal-use software costs, and $2.7 million inpurchases of property and equipment. This was partially offset by $91.3 million inmaturities of marketable securities.

Previous wording

Net cash used in financing activities of $5.5 million for thethree months ended April 30, 2025 consisted of $14.5 million inrepurchases of Class A common stock. This was partially offset by $7.7 million inproceeds from our employee stock purchase plan and$1.3 million inproceeds from the exercise of stock options.

Current wording

Net cash used in financing activities of $36.1 million for thesix months ended July 31, 2025 consisted of $43.4 million inrepurchases of Class A common stock and$2.5 million inrepayment of term loan. This was partially offset by $7.7 million inproceeds from our employee stock purchase plan and$2.1 million inproceeds from the exercise of stock options.

Previous wording

Net cash provided by financing activities of $9.9 million for thethree months ended April 30, 2024 consisted of $8.9 million inproceeds from our employee stock purchase plan and $1.1 million inproceeds from the exercise of stock options.

Current wording

Net cash used in financing activities of $9.3 million for thesix months ended July 31, 2024 consisted of $19.0 million inrepurchases of Class A common stock and $1.3 million inrepayment of term loan. This was partially offset by $8.9 million inproceeds from our employee stock purchase plan and$2.1 million inproceeds from the exercise of stock options.

Previous wording

During the three months ended April 30, 2025, there were no material changes in our contractual obligations and other commitments as disclosed in our Annual Report on Form 10-K filed with the SEC on March 18, 2025.

Current wording

During the six months ended July 31, 2025, there were no material changes in our contractual obligations and other commitments as disclosed in our Annual Report on Form 10-K filed with the SEC on March 18, 2025.

Previous wording

There have been no changes to our critical accounting policies and estimates during the three months ended April 30, 2025 as compared to those disclosed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in our Annual Report on Form 10-K filed with the SEC on March 18, 2025.

Current wording

Except as noted below, there have been no changes to our critical accounting policies and estimates during the six months ended July 31, 2025 as compared to those disclosed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in our Annual Report on Form 10-K filed with the SEC on March 18, 2025.