Asana Reports 9% Revenue Growth to $187.3 Million, Net Loss Improves

Asana, Inc. reported its financial results for the three months ending April 30, 2025, revealing a revenue increase of 9% to $187.3 million, up from $172.4 million in the same period last year. The company’s gross profit also rose to $168.0 million, maintaining a consistent gross margin of 90%. Despite the revenue growth, Asana recorded a net loss of $40.0 million, an improvement from the $63.7 million loss reported in the prior year. The loss per share decreased to $0.17 from $0.28, reflecting a reduction in operational losses.

In terms of operational metrics, Asana's customer base showed significant growth, with 24,297 Core customers as of April 30, 2025, compared to 22,162 a year earlier. These Core customers, defined as those spending over $5,000 annually, contributed approximately 75% of total revenues. Additionally, the number of customers spending over $100,000 annually increased to 728 from 607. The company’s dollar-based net retention rate, however, declined to 95% from 100% year-over-year, indicating challenges in retaining revenue from existing customers amid changing market conditions.

Asana has made strategic moves to enhance its product offerings and operational efficiency. The company launched Asana AI Studio, a no-code builder for integrating AI into workflows, and implemented a restructuring plan that reduced its workforce by approximately 5% to align with business priorities. This restructuring resulted in $6.7 million in charges, with $2.2 million recorded in the latest quarter. The company also repurchased $15.6 million worth of its Class A common stock during the quarter, as part of a broader $150 million stock repurchase program initiated in June 2024.

Financially, Asana's total assets decreased to $877.1 million from $891.4 million at the end of January 2025, primarily due to a reduction in accounts receivable and deferred revenue. The company reported cash and cash equivalents of $193.8 million, alongside marketable securities totaling $277.0 million. Asana's liquidity position remains strong, with sufficient resources to meet its operational needs for at least the next 12 months, despite ongoing macroeconomic challenges that could impact IT spending and customer behavior.

Looking ahead, Asana anticipates continued revenue growth driven by new customer acquisitions and expansion within existing accounts. However, the company acknowledges potential headwinds from macroeconomic factors, including inflation and fluctuating interest rates, which may affect customer spending patterns and sales cycles. Asana remains focused on enhancing its platform and expanding its market presence, particularly through the integration of AI capabilities and strategic investments in sales and marketing.