Asana(ASAN) - 2024 Q1 - Quarterly Report

Customer Metrics - As of April 30, 2023, Asana had 19,864 customers spending over $5,000, contributing approximately 73$152,411,000, an increase from $120,646,000 for the same period in 2022, representing a year-over-year growth of approximately 26.4$137,564,000, compared to $108,208,000 for the same period in 2022, indicating a significant increase[149]. - The net loss for the three months ended April 30, 2023, was$61,468,000, compared to a net loss of $98,868,000 for the same period in 2022[149]. - Non-GAAP net loss for the three months ended April 30, 2023, was$18.5 million, compared to a non-GAAP net loss of $57.4 million for the same period in 2022[172]. - Free cash flow for the three months ended April 30, 2023, was$(16.6) million, compared to $(42.2) million for the same period in 2022[173]. Operating Expenses - Total operating expenses for the three months ended April 30, 2023, were$202,809,000, slightly down from $204,440,000 in the same period of 2022[149]. - Research and development expenses increased to$76,316,000 for the three months ended April 30, 2023, from $65,205,000 in the same period of 2022[149]. - Sales and marketing expenses decreased by$2.9 million, or 3%, to $93.2 million for the three months ended April 30, 2023, mainly due to reduced fees to marketing vendors[159]. - General and administrative expenses decreased by$9.9 million, or 23%, to $33.3 million for the three months ended April 30, 2023, primarily due to a reduction in other operating expenses[160]. Cash and Liquidity - As of April 30, 2023, the company had cash, cash equivalents, and marketable securities totaling$523.5 million[175]. - The company had cash and cash equivalents of $382.2 million and marketable securities of$141.3 million as of April 30, 2023[198]. - The company reported a net cash used in operating activities of $14.6 million for the three months ended April 30, 2023, reflecting a net loss of$61.5 million[186]. - Net cash used in investing activities was $140.4 million for the three months ended April 30, 2023, primarily due to$139.3 million in purchases of marketable securities[188]. - The company reported net cash provided by financing activities of $9.7 million for the three months ended April 30, 2023, mainly from employee stock purchase plans and stock options[191]. Future Outlook - The company expects to continue investing in research and development to enhance its software architecture and add new features[141]. - Current macroeconomic conditions, including elevated inflation and interest rate hikes, are expected to impact global IT spending and customer buying patterns[133]. - The company may seek to raise additional funds through equity or debt in the future to support its operations and growth strategies[182]. - The company plans to continue making additional borrowings under the November 2022 Senior Secured Credit Facility, which is now held by First Citizens BancShares, Inc.[178]. Deferred Revenue - As of April 30, 2023, the company had$263.9 million in deferred revenue, with $257.7 million recorded as a current liability, indicating strong future revenue recognition potential[179]. - For the same period, the company generated a$30.4 million increase in deferred revenue due to increased billings for subscriptions[186]. Currency Exposure - As of April 30, 2023, 22% of the company's sales were denominated in currencies other than U.S. dollars, exposing it to foreign currency exchange rate fluctuations[201]. Workforce Reduction - Asana announced a reduction of its global workforce by approximately 9% on November 15, 2022, to improve operational efficiencies[134].