Asana Q4 Earnings Call Highlights

Key Points

• Asana reported Q4 revenue of $205.6 million (+9% YoY) with non-GAAP operating income of $18.2 million (9% margin), adjusted free cash flow of $25.7 million, ended Q4 with ~$434 million in cash, and repurchased $58 million of stock while adding ~$160 million to its buyback authorization.
• AI momentum is accelerating: AI Studio exited fiscal 2026 with over $6 million ARR and >50% QoQ growth (eight customers spending >$100k on AI Studio), while AI teammates has 200+ beta customers and is expected to be generally available for sales-led customers by end of Q1; management expects AI to represent nearly 15% of new ARR in FY27 and is allocating ~$10M of incremental AI R&D.
• For fiscal 2027 Asana guided revenue of $850–$858 million (7.5–8.5% growth) and at least a 9.5% non-GAAP operating margin, but warned that product-led growth headwinds (LLM-driven search/paid media changes) will likely pressure ARR by about 2 percentage points; the company also announced a CFO transition to Aziz Megji.

Asana NYSE: ASAN reported fourth-quarter and full-year fiscal 2026 results that management described as a year of progress, highlighting the company’s transition to what it called a “multi-product platform” and continued investment in artificial intelligence capabilities. The company also announced a CFO transition, with CFO Sonalee Parekh set to depart and Aziz Megji named as her successor.

Quarterly results show margin and cash flow expansion

For the fourth quarter, Asana posted revenue of $205.6 million, up 9% year-over-year. The company reported non-GAAP operating income of $18.2 million, representing a 9% non-GAAP operating margin. Adjusted free cash flow in the quarter was $25.7 million, or 13% on a margin basis.

Parekh said non-GAAP gross margin was 88%, noting it was “modestly impacted” by launch-related timing of expenditures tied to new products, including Asana Gov and AI teammates. She added that the company expects gross margin to remain in the “high 80s” in fiscal 2027 while expanding operating margin as it scales.

Operating expense ratios improved year-over-year in the quarter, according to the company’s non-GAAP measures:

• R&D: $47.7 million, or 23% of revenue (down from 29% a year ago)
• Sales and marketing: $88.1 million, or 43% of revenue (down from 45%)
• G&A: $27.1 million, or 13% of revenue (down from 17%)

Asana reported net income of $19.9 million, or $0.08 per diluted share.

Customer metrics and retention trends

Asana said it ended the quarter with 25,928 core customers (defined as customers spending $5,000 or more on an annualized basis). Revenue from core customers grew 10% year-over-year and represented 76% of Q4 revenue.

The company reported 817 customers spending $100,000 or more annually, up 13% year-over-year. Overall dollar-based net retention rate (NRR) was 96%, with core customer NRR at 97% and NRR for customers spending $100,000 or more at 96%.

CEO Dan Rogers and Parekh both emphasized improving retention dynamics, noting that reported NRR is a trailing four-quarter average and therefore lags recent changes. Parekh said in-quarter NRR improved for the third consecutive quarter, driven mostly by better gross retention and expansion tied to the company’s multi-product strategy and seat expansion. Management also pointed to “top 10 renewals” in the quarter that delivered NRR above 100%.

AI product updates: AI Studio growth and AI teammates rollout

Management focused much of the call on AI Studio and AI teammates. Rogers said the company launched AI Studio and introduced AI teammates as part of a strategy aimed at what he called the “agentic enterprise,” where humans and AI agents coordinate together.

Asana said it exited fiscal 2026 with over $6 million in AI Studio ARR, and that AI Studio ARR grew over 50% quarter-over-quarter in Q4. Rogers said customers are using AI Studio in “business-critical workflows” such as campaign launches, product intake, and service ticketing. He also noted that Asana now has eight customers across regions spending over $100,000 annually on AI Studio alone, in addition to their core subscriptions.

AI teammates, meanwhile, has onboarded more than 200 customers into a beta program. Rogers said Asana expects AI teammates to become generally available to sales-led customers by the end of Q1, with self-serve customers in the second half of the year.

Enterprise strength, tech vertical stabilization, and PLG headwinds

Rogers said U.S. revenue accelerated in Q4 and that Asana’s technology vertical returned to flat year-over-year performance after nearly two years of declines, which he attributed to strong renewals in large tech accounts and improved execution. In Q&A, management said tech ARR was “flat for the first time in seven quarters” and that tech exposure had declined to “less than 25%” of revenue.

International revenue grew 11% year-over-year, and Rogers said non-tech sectors again grew in the teens, citing manufacturing, energy and utilities, retail and consumer goods, and healthcare as areas performing well. He also said government represents an early opportunity to expand total addressable market, referencing early deployments including a public health agency and a defense innovation accelerator.

At the same time, management said product-led growth (PLG) remains a headwind due to “LLM-driven changes in search and paid media.” Parekh said the company is seeing modest quarter-over-quarter traffic recovery and improvements in web conversion and retention, but said progress “is not yet sufficient” to offset top-of-funnel dynamics. As a result, Asana expects PLG headwinds to persist throughout fiscal 2027 and said its guidance assumes roughly a two-point drag on ARR growth from PLG, without assuming a recovery during the year.

Rogers said the company is aligning its PLG motion to the new discovery environment, including “answer engine optimization,” high-authority use-case content, product experience changes such as “prompt-to-project onboarding,” and AI-powered activation using pre-configured use cases.

Outlook, capital allocation, and CFO transition

For the first quarter of fiscal 2027, Asana guided for revenue of $202.5 million to $204.5 million (8.1% to 9.2% year-over-year growth) and non-GAAP operating income of $15 million to $17 million (7.4% to 8.3% operating margin). The company guided for non-GAAP EPS of $0.07 to $0.08, based on approximately 241 million diluted shares.

For the full fiscal year 2027, Asana guided for revenue of $850 million to $858 million (7.5% to 8.5% growth) and a non-GAAP operating margin of at least 9.5%. Non-GAAP EPS was guided to $0.36 to $0.37, based on approximately 243 million diluted shares. Management said its outlook assumes only “modest improvement” in net retention rates, minimal AI teammates contribution in the first half of fiscal 2027, and a more meaningful ramp in Q4. The company expects AI offerings to represent nearly 15% of new ARR in fiscal 2027 and plans to allocate approximately $10 million of incremental AI R&D investment.

Asana ended Q4 with approximately $434 million in cash, cash equivalents, and marketable securities. Remaining performance obligation (RPO) was $524.8 million, up 22% year-over-year, while current RPO grew 17%. Deferred revenue was $333.9 million, up 10%.

On capital allocation, Parekh said Asana repurchased $58 million of Class A common stock during the quarter, or 4.5 million shares at an average price of $12.75. The board increased the share repurchase authorization by $160 million; including remaining capacity under the prior authorization, Asana had “almost $200 million” available for future repurchases as of Jan. 31.

Separately, Rogers announced that Parekh will pursue another opportunity and that Aziz Megji, who has led FP&A and investor relations, will become CFO. Megji told analysts there would be “no philosophical shift” in guidance or financial strategy, describing the approach as disciplined and based on what the company has “high confidence in” at the time of guidance.

About Asana NYSE: ASAN

Asana, Inc NYSE: ASAN is a leading provider of work management and collaboration software designed to help teams organize, track and manage their work. Founded in 2008 by Dustin Moskovitz and Justin Rosenstein, Asana's platform enables users to create projects, assign tasks, set deadlines and visualize progress across diverse workflows. The company's cloud-based solution includes customizable project templates, timeline views, boards and automated rules that streamline routine processes and reduce manual effort.

Built for both small teams and large enterprises, Asana supports integrations with a wide array of third-party applications, including communication tools, file-sharing services and DevOps platforms.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.