Q3 2026 Asana Inc Earnings Call

December 2, 2025

Speaker #1: Thank you for standing by, and welcome to Asana's third-quarter fiscal year 2026 earnings conference call. At this time, all participants are in a listen-only mode.

Operator: Thank you for standing by, and welcome to Asana's third quarter, fiscal year 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. I would now like to hand the call over to Eva Leung, Head of Investor Relations. Please go ahead.

Speaker #1: After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.

Speaker #1: To remove yourself from the queue, you may press *11 again. I would now like to hand the call over to Eva Leung, Head of Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Asana's third quarter fiscal year 2026. With me on today's call are Dan Rogers, our CEO, Anne Raimondi, our chief operating officer, and head of business, and Sonalee Parekh, our chief financial officer.

Eva Leung: Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Asana's third quarter, fiscal year 2026. With me on today's call are Dan Rogers, our CEO, Anne Raimondi, our Chief Operating Officer and Head of Business, and Sonalee Parekh, our Chief Financial Officer. Today's call will include forward-looking statements, including statements regarding the expected release and benefits of our product offerings and our expectation for revenue to be generated by those offerings, our retention and expansion opportunities, our expectation for our financial outlook, including our revised full-year guidance, strategic plans, our market position, and growth opportunities, and our capital allocation strategy, including our stock repurchase program, among other items. Forward-looking statements include risks, uncertainties, and assumptions that may cause our actual results to be materially different from those expressed or implied by the forward-looking statements.

Speaker #2: Today's call will include forward-looking statements, including statements regarding the expected release and benefits of our product offerings and our expectations for revenue to be generated by those offerings.

Speaker #2: Our retention and expansion opportunities, our expectations for our financial outlook, including our revised full-year guidance, strategic plans, our market position, and growth opportunities, and our capital allocation strategy, including our stock repurchase program, among other items.

Speaker #2: Forward-looking statements include risks, uncertainties, and assumptions that may cause our actual results to be materially different from those expressed or implied by the forward-looking statements.

Speaker #2: Please refer to our filings with the SEC, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q, for additional information on risk uncertainties and assumptions that may cause actual results to differ materially from those set forth in such statements.

Eva Leung: Please refer to our filings with the SEC, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q, for additional information on risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Reconciliation between GAAP and non-GAAP financial measures and a discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalents are available in our earnings release, which is posted on our Investor Relations webpage at investors.asana.com. With that, I'd like to turn the call over to Dan.

Please refer to our filings with the SEC, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q, for additional information on risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Reconciliation between GAAP and non-GAAP financial measures and a discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalents are available in our earnings release, which is posted on our Investor Relations webpage at investors.asana.com. With that, I'd like to turn the call over to Dan.

Speaker #2: In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP.

Speaker #2: Reconciliation between GAAP and non-GAAP financial measures and a discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalents are available in our earnings release, which is posted on our investor relations webpage at investor.asana.com.

Speaker #2: And with that, I'd like to turn the call over to Dan.

Speaker #1: Thank you for joining us today. This was a solid quarter. We believe the future of work is one where humans and AI collaborate with the right context, controls, and checkpoints.

Dan Rogers: Thank you for joining us today. This was a solid quarter. We believe the future of work is one where humans and AI collaborate with the right context, controls, and checkpoints. That's the foundation of AI Studio and our newly announced AI Teammates. Customers use these capabilities in production and are already delivering real productivity gains. I'm excited to share more about our AI platform in a moment. But first, let's turn to the financial highlights from the quarter. Q3 revenues were $201 million, growing 9% year over year, exceeding the high end of our guidance. We generated Non-GAAP operating income of $16.3 million, or an 8% operating margin, also exceeding the high end of our guidance. Our margin improvement reflects disciplined cost management and a thoughtful reallocation of spending towards high-leverage areas, while still preserving capacity to invest in our AI platform.

Speaker #1: That's the foundation of AI Studio and our newly announced AI teammates. Customers use these capabilities in production and are already delivering real productivity gains.

Speaker #1: I'm excited to share more about our AI platform in a moment. But first, let's turn to the financial highlights from the quarter. Q3 revenues were $201 million.

Speaker #1: Growing 9% year over year, exceeding the high end of our guidance. We generated non-GAAP operating income of $16.3 million. Growing 8% operating margin, also exceeding the high end of our guidance.

Speaker #1: Our margin improvement reflects disciplined cost management and a thoughtful reallocation of spending towards high-leverage areas, while still preserving capacity to invest in our AI platform.

Speaker #1: Pre-cash flow was also strong, at $13.4 million in the quarter, or 7% on a margin basis. Overall, NRR was 96%, a slight improvement across all cohorts from last quarter.

Dan Rogers: cash flow was also strong, at $13.4 million in the quarter, or 7% on a margin basis. Overall, NRR was 96%, a slight improvement across all cohorts from last quarter, even with a heavier volume of large, predominantly tech, renewals this quarter. Retention within our monthly customer base is at a 12-month high, reflecting the work we've done to strengthen customer satisfaction and end product experience, which Anne will share more about in a moment. We expanded with some key customers this quarter, including one of the largest multinational entertainment companies in the world, two of the largest Fortune 100 healthcare service providers, and several large tech sector customers, including a Fortune 500 PeopleCloud platform, as well as a leading AI data platform. AI Studio delivered another good quarter, with solid growth in sequential bookings, including early traction with self-serve users.

cash flow was also strong, at $13.4 million in the quarter, or 7% on a margin basis. Overall, NRR was 96%, a slight improvement across all cohorts from last quarter, even with a heavier volume of large, predominantly tech, renewals this quarter. Retention within our monthly customer base is at a 12-month high, reflecting the work we've done to strengthen customer satisfaction and end product experience, which Anne will share more about in a moment. We expanded with some key customers this quarter, including one of the largest multinational entertainment companies in the world, two of the largest Fortune 100 healthcare service providers, and several large tech sector customers, including a Fortune 500 PeopleCloud platform, as well as a leading AI data platform. AI Studio delivered another good quarter, with solid growth in sequential bookings, including early traction with self-serve users.

Speaker #1: Even with a heavier volume of large, predominantly tech renewals this quarter. Retention within our monthly customer base is at a 12-month high, reflecting the work we've done to strengthen customer satisfaction and in-product experience, which Anne will share more about in a moment.

Speaker #1: We expanded with some key customers this quarter, including one of the largest multinational entertainment companies in the world, two of the largest Fortune 100 healthcare service providers, and several large tech sector customers, including a Fortune 500 PeopleCloud platform, as well as a leading AI data platform.

Speaker #1: AI Studio delivered another good quarter, with solid growth in sequential bookings, including early traction with self-serve users. I want to highlight two AI Studio wins that demonstrate how customers across industries are already using our platform to modernize mission-critical workflows.

Dan Rogers: I want to highlight two AI Studio wins that demonstrate how customers across industries are already using our platform to modernize mission-critical workflows. A global premium glassware manufacturer serving hospitality and luxury brands worldwide is using AI Studio to modernize core marketing workflows, from campaign management to rapid content generation. One of Europe's largest and most influential trade show operators is now leveraging AI Studio to digitize their planning processes, streamline cross-department collaboration, and accelerate decision-making on major strategic programs, including their OKR rollout. Asana has pioneered three waves of work transformation: collaborative work management, workflow automation, and now AI transformation. These form the basis of our strategy to help companies on their journey to the agentic enterprise, unlocking productivity for teams as they deliver against their goals smarter and faster. So let's take a closer look at each of these waves.

I want to highlight two AI Studio wins that demonstrate how customers across industries are already using our platform to modernize mission-critical workflows. A global premium glassware manufacturer serving hospitality and luxury brands worldwide is using AI Studio to modernize core marketing workflows, from campaign management to rapid content generation. One of Europe's largest and most influential trade show operators is now leveraging AI Studio to digitize their planning processes, streamline cross-department collaboration, and accelerate decision-making on major strategic programs, including their OKR rollout. Asana has pioneered three waves of work transformation: collaborative work management, workflow automation, and now AI transformation. These form the basis of our strategy to help companies on their journey to the agentic enterprise, unlocking productivity for teams as they deliver against their goals smarter and faster. So let's take a closer look at each of these waves.

Speaker #1: manufacturer serving hospitality A global premium glassware and luxury brands worldwide, is using AI Studio to modernize core marketing workflows, from campaign management to rapid content generation.

Speaker #1: One of Europe's largest and most influential trade show operators is now leveraging AI Studio to digitize their planning processes, streamline cross-department collaboration, and accelerate decision-making on major strategic programs, including their OKR rollout.

Speaker #1: Asana has pioneered three waves of work transformation: collaborative work management, workflow automation, and now AI transformation. These form the basis of our strategy to help companies on their journey to the agentic enterprise.

Speaker #1: Unlocking productivity for teams as they deliver against their goals smarter and faster. So let's take a closer look at each of these waves. The first wave was all about solving the most fundamental challenge in modern work: creating clarity and accountability for a company's work.

Dan Rogers: The first wave was all about solving the most fundamental challenge in modern work: creating clarity and accountability for a company's work. For many of our customers, work was once scattered across emails, spreadsheets, and disconnected tools. Asana created the structure and visibility teams need to stay aligned and accountable with our collaborative work management platform. Powered by the work graph, teams now have a shared understanding of who is doing what, by when, how, and why. The second wave centered on workflow automation. Once teams had this clarity, they also wanted to increase their velocity. Asana's no-code workflow builder makes it simple to standardize and automate repeatable processes, from marketing intake to engineering sprint planning. And to make it easy, we created a workflow gallery that lets you launch any workflow instantly, so teams get to value in a secure, fast, context-aware way.

The first wave was all about solving the most fundamental challenge in modern work: creating clarity and accountability for a company's work. For many of our customers, work was once scattered across emails, spreadsheets, and disconnected tools. Asana created the structure and visibility teams need to stay aligned and accountable with our collaborative work management platform. Powered by the work graph, teams now have a shared understanding of who is doing what, by when, how, and why. The second wave centered on workflow automation. Once teams had this clarity, they also wanted to increase their velocity. Asana's no-code workflow builder makes it simple to standardize and automate repeatable processes, from marketing intake to engineering sprint planning. And to make it easy, we created a workflow gallery that lets you launch any workflow instantly, so teams get to value in a secure, fast, context-aware way.

Speaker #1: For many of our customers, work was once scattered across emails, spreadsheets, and disconnected tools. Asana created the structure and visibility teams need to stay aligned and accountable with our collaborative work management platform.

Speaker #1: Powered by the work graph, teams now have a shared understanding of who is doing what by when, how, and why. The second wave centered on workflow automation.

Speaker #1: Once teams had this clarity, they also wanted to increase their velocity. Asana's no-code workflow builder makes it simple to standardize and automate repeatable processes.

Speaker #1: From marketing intake to engineering sprint planning. To make it easy, we created a workflow gallery that lets you launch any workflow instantly. So teams get to value in a secure, fast, context-aware way.

Speaker #1: Now we're entering a new wave with AI transformation. Every customer I speak with sees the immense potential, but the reality is many AI projects today are just not delivering.

Dan Rogers: Now we're entering a new wave with AI transformation. Every customer I speak with sees the immense potential, but the reality is many AI projects today are just not delivering. In fact, a recent MIT report said as many as 95% of AI pilots are failing to deliver on their productivity promise. Why is that? Our point of view is that a lot of the AI solutions and applications today lack three fundamental things. Number one, they lack context. If you think about the foundational models, they understand very little of the work that's actually getting done within your organization. They don't have the memory of how things have been solved in the past. They aren't properly informed, so they can't be accurate or effective. They also lack checkpoints. AI can't be trusted to just run an end-to-end process without having humans in the loop.

Now we're entering a new wave with AI transformation. Every customer I speak with sees the immense potential, but the reality is many AI projects today are just not delivering. In fact, a recent MIT report said as many as 95% of AI pilots are failing to deliver on their productivity promise. Why is that? Our point of view is that a lot of the AI solutions and applications today lack three fundamental things. Number one, they lack context. If you think about the foundational models, they understand very little of the work that's actually getting done within your organization. They don't have the memory of how things have been solved in the past. They aren't properly informed, so they can't be accurate or effective. They also lack checkpoints. AI can't be trusted to just run an end-to-end process without having humans in the loop.

Speaker #1: In fact, a recent MIT report said as many as 95% of AI pilots are failing to deliver on their productivity promise. Why is that?

Speaker #1: Our point of view is that a lot of the AI solutions and applications today, lack three fundamental things. Number one, they lack context. If you think about the foundational models, they understand very little of the work that's actually getting done within your organization.

Speaker #1: They don't have the memory of how things have been solved in the past. They aren't properly informed, so they can't be accurate or effective.

Speaker #1: They also lack checkpoints. AI can't be trusted to just run an end-to-end process without having humans in the loop. But these checkpoints today are nonexistent in many of the tools.

Dan Rogers: These checkpoints today are nonexistent in many of the tools. Finally, they lack controls. What we see and what I hear from executives is that AI agents often have more access to data than the employees themselves. Employees are carefully given things like role-based access control. This somehow doesn't translate to the agents that they have in their organization, which, of course, is a risk. This is exactly what Asana's AI platform is built to solve. As a platform for human-AI collaboration, Asana delivers the context, checkpoints, and controls that enterprises require. The context is really the who, the what, the when, the why, and the how. Context is king. If you want AI to be useful, it needs to understand how this was solved in the past, who was involved, who needs to be involved next, what approval process do we need to have.

These checkpoints today are nonexistent in many of the tools. Finally, they lack controls. What we see and what I hear from executives is that AI agents often have more access to data than the employees themselves. Employees are carefully given things like role-based access control. This somehow doesn't translate to the agents that they have in their organization, which, of course, is a risk. This is exactly what Asana's AI platform is built to solve. As a platform for human-AI collaboration, Asana delivers the context, checkpoints, and controls that enterprises require. The context is really the who, the what, the when, the why, and the how. Context is king. If you want AI to be useful, it needs to understand how this was solved in the past, who was involved, who needs to be involved next, what approval process do we need to have.

Speaker #1: And finally, they lack controls. What we see and what I hear from executives is that AI agents often have more access to data than the employees themselves.

Speaker #1: Employees are carefully given things like role-based access control. This somehow doesn't translate to the agents that they have in their organization, which, of course, is a risk.

Speaker #1: This is exactly what Asana's AI platform was built to solve. As the platform for human AI collaboration, Asana delivers the context, checkpoints, and controls that enterprises require.

Speaker #1: The context is really the who, the what, the when, the why, and the how. Context is king. If you want AI to be useful, it needs to understand how this was solved in the past, who was involved, who needs to be involved next, and what approval process we need to have.

Speaker #1: Thanks to the work graph data model, Asana can give AI this rich and relevant context. And you also need these checkpoints. It's our strong point of view that humans need to be in the loop on most of these AI processes to approve things and course-correct if needed.

Dan Rogers: Thanks to the Work Graph data model, Asana can give AI this rich and relevant context. You also need these checkpoints. It's our strong point of view that humans need to be in the loop on most of these AI processes to approve things and course-correct if needed. In Asana, you can check the quality of AI's work and iterate with it so that it will continue to improve. Finally, unique controls. We have a strong belief that AI agents should not have more access to data than your regular teammates. They should follow the same governance process, the security controls, the access to proprietary customer data that you've already established. These are the three Cs, as we call them: context, checkpoints, and controls, and are the foundation of our AI platform.

Thanks to the Work Graph data model, Asana can give AI this rich and relevant context. You also need these checkpoints. It's our strong point of view that humans need to be in the loop on most of these AI processes to approve things and course-correct if needed. In Asana, you can check the quality of AI's work and iterate with it so that it will continue to improve. Finally, unique controls. We have a strong belief that AI agents should not have more access to data than your regular teammates. They should follow the same governance process, the security controls, the access to proprietary customer data that you've already established. These are the three Cs, as we call them: context, checkpoints, and controls, and are the foundation of our AI platform.

Speaker #1: In Asana, you can check the quality of AI's work and iterate with it so that it will continue to improve. And finally, you need controls.

Speaker #1: We have a strong belief that AI agents should not have more access to data than your regular teammates. They should follow the same governance process, the security controls, and the access to proprietary customer data that you've already established.

Speaker #1: These are the three C's, as we call them: Context, Checkpoints, and Controls. They are the foundation of our AI platform. Built on that foundation of Context, Checkpoints, and Controls, the first AI add-on product we introduced was AI Studio.

Dan Rogers: Built on that foundation of context, checkpoints, and controls, the first AI add-on product we introduced was AI Studio. Think of AI Studio as supercharging your workflows. I like to think of it as inserting nodes in a given workflow to consult those foundational models, but doing so in the context of that workflow and the context of that work. It allows you to insert AI nodes directly into the process to handle specific tasks. For example, an intake node can check an incoming request, see if it's missing a due date, and assign it back to the requester automatically. A triage node can analyze that request against your company's goals and flag it as high priority. A quality node can check a deliverable against a predefined knowledge base to ensure it meets specifications.

Built on that foundation of context, checkpoints, and controls, the first AI add-on product we introduced was AI Studio. Think of AI Studio as supercharging your workflows. I like to think of it as inserting nodes in a given workflow to consult those foundational models, but doing so in the context of that workflow and the context of that work. It allows you to insert AI nodes directly into the process to handle specific tasks. For example, an intake node can check an incoming request, see if it's missing a due date, and assign it back to the requester automatically. A triage node can analyze that request against your company's goals and flag it as high priority. A quality node can check a deliverable against a predefined knowledge base to ensure it meets specifications.

Speaker #1: Think of AI Studio as supercharging your workflows. I like to think of it as inserting nodes in a given workflow that consult those foundational models.

Speaker #1: But doing so in the context of that workflow and the context of that work allows you to insert AI nodes directly into the process to handle specific tasks.

Speaker #1: For example, an intake node can check an incoming request, see if it's missing a due date, and assign it back to the requester automatically.

Speaker #1: A triage node can analyze that request against your company's goals and flag it as high priority. A quality node can check a deliverable against a predefined knowledge base to ensure it meets specifications.

Speaker #1: A risk monitoring node can proactively flag when tasks are falling behind schedule, well before they cascade. And a translation node can automatically convert content from global markets and route it to the right local teams.

Dan Rogers: A risk monitoring node can proactively flag when tasks are falling behind schedule well before they cascade. A translation node can automatically convert content for global markets and route it to the right local teams. This is our first step towards enabling the Agentic Enterprise, ensuring smarter, faster delivery of your goals. Which brings us to the next strategic step in building the Agentic Enterprise: enabling AI not just to coordinate work, but to do the work alongside your teams as a true collaborative teammate. At our Work Innovation Summit events in London and New York, we announced Asana AI Teammates, and we're already receiving strong positive feedback from our initial set of 30 beta customers. We expect AI Teammates will be generally available early next year. Asana AI Teammates are collaborative agents that help you deliver real business outcomes.

A risk monitoring node can proactively flag when tasks are falling behind schedule well before they cascade. A translation node can automatically convert content for global markets and route it to the right local teams. This is our first step towards enabling the Agentic Enterprise, ensuring smarter, faster delivery of your goals. Which brings us to the next strategic step in building the Agentic Enterprise: enabling AI not just to coordinate work, but to do the work alongside your teams as a true collaborative teammate. At our Work Innovation Summit events in London and New York, we announced Asana AI Teammates, and we're already receiving strong positive feedback from our initial set of 30 beta customers. We expect AI Teammates will be generally available early next year. Asana AI Teammates are collaborative agents that help you deliver real business outcomes.

Speaker #1: This is our first step toward enabling the agentic enterprise, ensuring smarter, faster delivery of your goals. Which brings us to the next strategic step in building the agentic enterprise.

Speaker #1: Enabling AI not just to coordinate work, but to do the work alongside your teams as a true collaborative teammate. Our Work Innovation Summit events in London and New York.

Speaker #1: We announced Asana AI Teammates, and we're already receiving strong positive feedback from our initial set of 30 beta customers. We expect AI Teammates will be generally available early next year.

Speaker #1: Asana AI Teammates are collaborative agents that help you deliver real business outcomes. They remember, take action, and adapt with full context on projects, goals, and how your teams operate.

Dan Rogers: They remember, take action, and adapt with full context on projects, goals, and how your teams operate. They show their work and have built-in checkpoints so you can course-correct. With our AI Teammates, you are always in control. Now we've already built out 12 out-of-the-box teammates across engineering, IT, marketing, operations, and PMO. These aren't prototypes or demos. They're prebuilt, tested, and ready to deploy. Each teammate operates with full context from the Work Graph, clear checkpoints for human guidance, and enterprise-grade controls. Marketing teammates that manage campaigns and create content. PMO teammates that track projects and flag risks. IT teammates that triage tickets and optimize resources. Customers can also build their own AI Teammates in minutes by defining the role, connecting it to the right data sources, and refining behavior through checkpoints. This makes agentic AI accessible to every team, not just technical teams.

They remember, take action, and adapt with full context on projects, goals, and how your teams operate. They show their work and have built-in checkpoints so you can course-correct. With our AI Teammates, you are always in control. Now we've already built out 12 out-of-the-box teammates across engineering, IT, marketing, operations, and PMO. These aren't prototypes or demos. They're prebuilt, tested, and ready to deploy. Each teammate operates with full context from the Work Graph, clear checkpoints for human guidance, and enterprise-grade controls. Marketing teammates that manage campaigns and create content. PMO teammates that track projects and flag risks. IT teammates that triage tickets and optimize resources. Customers can also build their own AI Teammates in minutes by defining the role, connecting it to the right data sources, and refining behavior through checkpoints. This makes agentic AI accessible to every team, not just technical teams.

Speaker #1: They show their work and have built-in checkpoints, so you can course-correct. And with our AI Teammates, you are always in control. We've already built out 12 out-of-the-box Teammates across engineering, IT, marketing, operations, and PMO.

Speaker #1: These aren't prototypes or demos; they're prebuilt, tested, and ready to deploy. Each teammate operates with full context from the work graph, clear checkpoints for human guidance, and enterprise-grade controls.

Speaker #1: Marketing teammates that manage campaigns and create content. PMO teammates that track projects and flag risks. IT teammates that triage tickets and optimize resources. Customer skills to build their own AI teammates in minutes by defining the role, connecting it to the right data sources, and refining behavior through checkpoints.

Speaker #1: This makes agentic AI accessible to every team, not just technical teams. So, what makes our agents different? Well, first, they have context. Powered by the Asana work graph, they understand from the moment they are assigned how your work gets done.

Dan Rogers: So what makes our agents different? Well, first, they have context. Powered by the Asana Work Graph, they understand from the moment they are assigned how your work gets done, how you solve problems before, and exactly who to involve. That context allows them to be truly collaborative because they understand the work. They can actively drive execution alongside people in the team. And crucially, they are multiplayer by design. Our teammates publish their plans openly. This creates a shared, transparent starting point where everyone can provide feedback, ensuring the AI learns from your team's collective input. The early response from customers has been positive and reinforces the opportunity ahead. Morningstar, an early adopter of Asana AI, is leveraging AI Teammates to tackle complex, strategic work that requires deep analysis and human-like reasoning.

So what makes our agents different? Well, first, they have context. Powered by the Asana Work Graph, they understand from the moment they are assigned how your work gets done, how you solve problems before, and exactly who to involve. That context allows them to be truly collaborative because they understand the work. They can actively drive execution alongside people in the team. And crucially, they are multiplayer by design. Our teammates publish their plans openly. This creates a shared, transparent starting point where everyone can provide feedback, ensuring the AI learns from your team's collective input. The early response from customers has been positive and reinforces the opportunity ahead. Morningstar, an early adopter of Asana AI, is leveraging AI Teammates to tackle complex, strategic work that requires deep analysis and human-like reasoning.

Speaker #1: How you solve problems before, and exactly who to involve—that context allows them to be truly collaborative. Because they understand the work, they can actively drive execution alongside people in the team.

Speaker #1: And crucially, they are multiplayer by design. Our teammates publish their plans openly. This creates a shared, transparent starting point where everyone can provide feedback, ensuring that AI learns from your team's collective input.

Speaker #1: The early response from customers has been positive and reinforces the opportunity ahead. Morningstar, an early adopter of Asana AI, is leveraging AI Teammates to tackle complex, strategic work that requires deep analysis and human-like reasoning.

Speaker #1: By creating a specialized AI teammate, the product management team was able to complete tasks that normally take up to two weeks in just 10 to 12 hours.

Dan Rogers: By creating a specialized AI Teammate, the product management team was able to complete tasks that normally take up to two weeks in just 10 to 12 hours. Level Agency has built AI Teammates for marketing to act as a workflow accelerator, saving three to five hours per content project, as well as for IT to help triage support tickets, and company-wide to intelligently review and operationalize new process ideas. We're also using AI Teammates internally at Asana. Our product design and engineering teams use a Figma and Cursor Teammate to convert prototypes into production-ready UI code in roughly 15 minutes, with more than 90% accuracy. Our Brief Buddy Teammate supports every marketing kickoff and removes about an hour from the start of a project.

By creating a specialized AI Teammate, the product management team was able to complete tasks that normally take up to two weeks in just 10 to 12 hours. Level Agency has built AI Teammates for marketing to act as a workflow accelerator, saving three to five hours per content project, as well as for IT to help triage support tickets, and company-wide to intelligently review and operationalize new process ideas. We're also using AI Teammates internally at Asana. Our product design and engineering teams use a Figma and Cursor Teammate to convert prototypes into production-ready UI code in roughly 15 minutes, with more than 90% accuracy. Our Brief Buddy Teammate supports every marketing kickoff and removes about an hour from the start of a project.

Speaker #1: Level Agency, has built AI Teammates for marketing to act as a workflow accelerator, saving three to five hours per content project, as well as for IT to help triage support tickets and company-wide to intelligently review an operationalized new process ideas.

Speaker #1: We're also using AI teammates internally at Asana. Our product design and engineering teams use a Figma and Cursor teammate to convert prototypes into production-ready UI code in roughly 15 minutes.

Speaker #1: With more than 90% accuracy, our Brief Buddy teammate supports every marketing kickoff and removes about an hour from the start of a project. Our marketing team’s localization teammates achieve roughly 90% language priority at about half the cost.

Dan Rogers: Our marketing team's localization Teammates achieve roughly 90% language priority at about half the cost, allowing us to reinvest savings into SEO and global growth. These examples reinforce that agentic AI is not theoretical. It's already improving how we run our own business. Across all these deployments of our AI products, trust is central. Teammates only see the data they're explicitly granted access to. Admins control who can create or modify them, and customers have full visibility into the usage and cost, with the ability to set limits to ensure strong ROI. We built these capabilities into AI Studio and Teammates from day one because enterprise adoption depends on governance as much as capability. This focus on enterprise-grade AI is the foundation of our strategy. In addition, the operational priorities I laid out last quarter remain consistent, and our Q3 results show clear, measurable progress against them.

Our marketing team's localization Teammates achieve roughly 90% language priority at about half the cost, allowing us to reinvest savings into SEO and global growth. These examples reinforce that agentic AI is not theoretical. It's already improving how we run our own business. Across all these deployments of our AI products, trust is central. Teammates only see the data they're explicitly granted access to. Admins control who can create or modify them, and customers have full visibility into the usage and cost, with the ability to set limits to ensure strong ROI. We built these capabilities into AI Studio and Teammates from day one because enterprise adoption depends on governance as much as capability. This focus on enterprise-grade AI is the foundation of our strategy. In addition, the operational priorities I laid out last quarter remain consistent, and our Q3 results show clear, measurable progress against them.

Speaker #1: Allowing us to reinvest savings into SEO and global growth. These examples reinforce that agentic AI is not theoretical; it's already improving how we run our own business.

Speaker #1: Across all these deployments of our AI products, trust is central. Teammates only see the data they explicitly granted access to. Admins control who can create or modify them.

Speaker #1: And customers have full visibility into the usage and cost, with the ability to set limits to ensure strong ROI. We built these capabilities into AI Studio and Teammates from day one.

Speaker #1: Because enterprise adoption depends on governance as much as capability. This focus on enterprise-grade AI is the foundation of our strategy. But in addition, operational priorities I laid out last quarter remain consistent.

Speaker #1: And our Q3 results show clear measurable progress against them. First, as I shared last quarter, when we go deep in a vertical, speak the language of their persona, and align to the core workflows of that industry, we win.

Dan Rogers: First, as I shared last quarter, when we go deep in a vertical, speak their language of their persona, and align to the core workflows of that industry, we win. I want to highlight this playing out in a meaningful way. For example, in the healthcare vertical, where we closed several marquee expansions this quarter. One of the largest healthcare and insurance organizations in the US expanded to more than 3,000 seats and crossed the 1 million ARR threshold. They've standardized their clinical service intake across a 20,000-person business unit, and they're expanding into adjacent teams like analytics, pharmacy, and student health, all running mission-critical workflows in Asana. Another major diversified healthcare company, now well above 1 million ARR with us, embedded Asana deeply in their Medicaid organization to support the creation and expansion of Medicaid managed care plans across local markets.

First, as I shared last quarter, when we go deep in a vertical, speak their language of their persona, and align to the core workflows of that industry, we win. I want to highlight this playing out in a meaningful way. For example, in the healthcare vertical, where we closed several marquee expansions this quarter. One of the largest healthcare and insurance organizations in the US expanded to more than 3,000 seats and crossed the 1 million ARR threshold. They've standardized their clinical service intake across a 20,000-person business unit, and they're expanding into adjacent teams like analytics, pharmacy, and student health, all running mission-critical workflows in Asana. Another major diversified healthcare company, now well above 1 million ARR with us, embedded Asana deeply in their Medicaid organization to support the creation and expansion of Medicaid managed care plans across local markets.

Speaker #1: I want to highlight this playing out in a meaningful way. For example, in the healthcare vertical, where we closed several marquee expansions this quarter.

Speaker #1: One of the largest healthcare and insurance organizations in the U.S. expanded to more than 3,000 seats and crossed the $1 million ARR threshold. They've standardized their clinical service intake across a 20,000-person business unit.

Speaker #1: And they're expanding into adjacent teams like analytics, pharmacy, and student health, all running mission-critical workflows in Asana. Another major diversified healthcare company, now well above $1 million ARR with us, embedded Asana deeply in their Medicaid organization to support the creation and expansion of Medicaid-managed care plans across local markets.

Speaker #1: Asana is also being adopted across many new teams, and a global pharmaceutical leader selected Asana as a preferred PMO solution, including for mobile clinical trial workflows.

Dan Rogers: Asana is also being adopted across many new teams. A global pharmaceutical leader selected Asana as a preferred PMO solution, including for mobile clinical trial workflows, an innovation model designed to expand trial access to patients far beyond traditional sites. These healthcare wins are a testament to Asana's ability to adapt to industry-specific solutions with ease. Second, we're improving go-to-market execution and value realization across our sales and self-service motions. We believe our focus on customer health improvement initiatives is contributing directly to the continued improvement of NRR. We delivered our strongest retention in more than a year amongst monthly self-service customers, an encouraging signal that our self-service engine improvements across product experience and support are taking hold. Third, we're maintaining our focus on disciplined, profitable growth. Our significant improvement in non-GAAP operating margin and strong adjusted free cash flow are direct results of this discipline.

Asana is also being adopted across many new teams. A global pharmaceutical leader selected Asana as a preferred PMO solution, including for mobile clinical trial workflows, an innovation model designed to expand trial access to patients far beyond traditional sites. These healthcare wins are a testament to Asana's ability to adapt to industry-specific solutions with ease. Second, we're improving go-to-market execution and value realization across our sales and self-service motions. We believe our focus on customer health improvement initiatives is contributing directly to the continued improvement of NRR. We delivered our strongest retention in more than a year amongst monthly self-service customers, an encouraging signal that our self-service engine improvements across product experience and support are taking hold. Third, we're maintaining our focus on disciplined, profitable growth. Our significant improvement in non-GAAP operating margin and strong adjusted free cash flow are direct results of this discipline.

Speaker #1: An innovation model designed to expand trial access to patients far beyond traditional sites. These healthcare wins are a testament to Asana's ability to adapt to industry-specific solutions with ease.

Speaker #1: Second, we're improving go-to-market execution and value realization across our sales and self-service motions. We believe our focus on customer health improvement initiatives is contributing directly to the continued improvement of NRR.

Speaker #1: We delivered our strongest retention in more than a year amongst monthly self-service customers. And encouraging signal that our self-service engine improvements across product experience and support are taking hold.

Speaker #1: Third, we're maintaining our focus on disciplined, profitable growth. Our significant improvement in non-GAAP operating margin and strong adjusted free cash flow are a direct result of this discipline.

Speaker #1: Our operating leverage and continued commitment to driving higher productivity from our cost base gives us the capacity to keep investing in high-leverage areas.

Dan Rogers: Our operating leverage and continued commitment to driving higher productivity from our cost base gives us the capacity to keep investing in high leverage areas, especially our AI platform, all while expanding our margins. Next quarter, I look forward to sharing additional proof points, customer stories, and outlining the FY27 priorities that I believe will support long-term growth acceleration and continued margin expansion. Before I hand over to Anne, I also want to take a moment to share that Anne will be leaving Asana after seven years. I'm so grateful for all that Anne has done. Anne has played a major role in our story, first as a highly engaged board member and then as our COO and head of business, where she was instrumental in building our enterprise go-to-market motion and serving as one of our most trusted customer voices.

Our operating leverage and continued commitment to driving higher productivity from our cost base gives us the capacity to keep investing in high leverage areas, especially our AI platform, all while expanding our margins. Next quarter, I look forward to sharing additional proof points, customer stories, and outlining the FY27 priorities that I believe will support long-term growth acceleration and continued margin expansion. Before I hand over to Anne, I also want to take a moment to share that Anne will be leaving Asana after seven years. I'm so grateful for all that Anne has done. Anne has played a major role in our story, first as a highly engaged board member and then as our COO and head of business, where she was instrumental in building our enterprise go-to-market motion and serving as one of our most trusted customer voices.

Speaker #1: Especially our AI platform, all while expanding our margins. Next quarter, I look forward to sharing additional proof points, customer stories, and outlining the FY27 priorities that I believe will support long-term growth acceleration and continued margin expansion.

Speaker #1: Before I hand over to Anne, I also want to take a moment to share that Anne will be leaving Asana after seven years. I'm so grateful for all that Anne has done.

Speaker #1: Anne has played a major role in our story. First, as a highly engaged board member, and then as our COO and head of business.

Speaker #1: Where she was instrumental in building an enterprise go-to-market motion and serving as one of our most trusted customer voices. I personally want to thank Anne for her leadership, partnership, and the foundation she's helped shape across our product, customer, and field teams.

Dan Rogers: I personally want to thank Anne for her leadership, partnership, and the foundation she's helped shape across our product, customer, and field teams. As we look ahead, given our size, scale, and the need to drive tight alignment across product, product-led growth, sales-led growth, and marketing, our go-to-market leaders, including the CRO and CMO, will now report directly to me and will not be backfilling the COO role. This structure strengthens our ability to move with speed and focus, and it best positions us to accelerate growth over the long term and capitalize on the large and growing opportunity we see in leading the market for human-AI collaboration. I'm grateful for everything Anne has done to help us get to this point and wish her the very best. With that, I'll turn it over to Anne. Thanks so much, Dan.

I personally want to thank Anne for her leadership, partnership, and the foundation she's helped shape across our product, customer, and field teams. As we look ahead, given our size, scale, and the need to drive tight alignment across product, product-led growth, sales-led growth, and marketing, our go-to-market leaders, including the CRO and CMO, will now report directly to me and will not be backfilling the COO role. This structure strengthens our ability to move with speed and focus, and it best positions us to accelerate growth over the long term and capitalize on the large and growing opportunity we see in leading the market for human-AI collaboration. I'm grateful for everything Anne has done to help us get to this point and wish her the very best. With that, I'll turn it over to Anne.

Speaker #1: As we look ahead, given our size, scale, and the need to drive tighter alignment across product, product-led growth, sales-led growth, and marketing, our go-to-market leaders, including the CRO and CMO, will now report directly to me.

Speaker #1: And we'll not be backfilling the COO role. This structure strengthens our ability to move with speed and focus, and it best positions us to accelerate growth over the long term and capitalize on the large and growing opportunity we see in leading the market for human-AI collaboration.

Speaker #1: I'm grateful for everything Anne has done to help us get to this point and wish her the very best. With that, I'll turn it over to...

Speaker #1: Anne. Thanks so much, Dan.

Anne Raimondi: Thanks so much, Dan.

Speaker #2: It's been a privilege to spend the past seven years helping build Asana. First in the boardroom and then alongside the team every day. I've loved this company from the start, and that hasn't changed.

Dan Rogers: It's been a privilege to spend the past seven years helping build Asana, first in the boardroom and then alongside the team every day. I've loved this company from the start, and that hasn't changed. I'm proud of the progress we've made building a true enterprise-grade platform and deepening our relationships with the most innovative customers around the world. I want to sincerely thank the entire Asana team for their incredible passion and dedication. I'll continue to be a strong advocate for Asana and a dedicated Asana user. I genuinely believe that the foundations are in place for the company to lead the next wave of work centered around AI-human collaboration and to define how teams work for years to come. That progress was evident again in our Q3 results. In Q3, our enterprise motion continued to scale.

It's been a privilege to spend the past seven years helping build Asana, first in the boardroom and then alongside the team every day. I've loved this company from the start, and that hasn't changed. I'm proud of the progress we've made building a true enterprise-grade platform and deepening our relationships with the most innovative customers around the world. I want to sincerely thank the entire Asana team for their incredible passion and dedication. I'll continue to be a strong advocate for Asana and a dedicated Asana user. I genuinely believe that the foundations are in place for the company to lead the next wave of work centered around AI-human collaboration and to define how teams work for years to come. That progress was evident again in our Q3 results. In Q3, our enterprise motion continued to scale.

Speaker #2: I'm proud of the progress we've made building a true enterprise-grade platform and deepening our relationships with the most innovative customers around the world. I want to sincerely thank the entire Asana team for their incredible passion and dedication.

Speaker #2: I'll continue to be a strong advocate for Asana and a dedicated Asana user. I genuinely believe that the foundations are in place for the company to lead the next wave of work-centered human collaboration around AI.

Speaker #2: And to define how teams work for years to come. That progress was evident again in our Q3 results. In Q3, our enterprise motion continued to scale.

Speaker #2: The number of customer net ads from the 100,000-plus cohorts grew 15% year over year, while core customers spending $5,000 or more grew 8% year over year.

Dan Rogers: The number of customer net adds from the 100,000-plus cohorts grew 15% year over year, while core customers spending $5,000 or more grew 8% year over year. International markets remain a strength for our business, especially EMEA and Japan. Our international revenue grew 12% year over year, and the US market grew 7% year over year. Here's an example of that. We landed a new multi-year competitive deal with Guardian, the British-based global news organization, to consolidate their tech stack and improve cross-departmental collaboration. Asana was chosen over competitors for its flexibility, enabling teams like product, advertising, and group technology and data to streamline everything from agile roadmapping to resource capacity planning on a single platform. We continue to increase our presence in non-tech, with those sectors once again growing in the teens.

The number of customer net adds from the 100,000-plus cohorts grew 15% year over year, while core customers spending $5,000 or more grew 8% year over year. International markets remain a strength for our business, especially EMEA and Japan. Our international revenue grew 12% year over year, and the US market grew 7% year over year. Here's an example of that. We landed a new multi-year competitive deal with Guardian, the British-based global news organization, to consolidate their tech stack and improve cross-departmental collaboration. Asana was chosen over competitors for its flexibility, enabling teams like product, advertising, and group technology and data to streamline everything from agile roadmapping to resource capacity planning on a single platform. We continue to increase our presence in non-tech, with those sectors once again growing in the teens.

Speaker #2: International markets remain a strength for our business, especially EMEA and Japan. Our international revenue grew 12% year over year, and the U.S. market grew 7% year over year.

Speaker #2: Here's an example of that. We landed a new multi-year competitive deal with Guardian. The British-based global news organization. To consolidate their tech stack and improve cross-departmental collaboration.

Speaker #2: Asana was chosen over competitors for its flexibility, enabling teams like Product, Advertising, and Group Technology and Data to streamline everything from agile road mapping to resource capacity planning on a single platform.

Speaker #2: We continue to increase our presence in non-tech, with those sectors once again growing in the teens. Dan noted some of the momentum we saw in healthcare, and I want to call out two other important areas where we saw meaningful wins this quarter.

Dan Rogers: Dan noted some of the momentum we saw in healthcare, and I want to call out two other important areas where we saw meaningful wins this quarter: financial services and the public sector, both key growth verticals for Asana. In the financial services vertical, we expanded with a large North American financial services company. Their goal was to cut marketing campaign execution time by 25% to 50%. Their existing intake process had 29 steps, and they needed a single system that could simplify workflows, automate handoffs, and improve reporting. After evaluating Asana against our peers, they chose Asana for its superior user experience, flexibility, and ease of adoption, requiring minimal training while still offering the customization needed to modernize their workflows.

Dan noted some of the momentum we saw in healthcare, and I want to call out two other important areas where we saw meaningful wins this quarter: financial services and the public sector, both key growth verticals for Asana. In the financial services vertical, we expanded with a large North American financial services company. Their goal was to cut marketing campaign execution time by 25% to 50%. Their existing intake process had 29 steps, and they needed a single system that could simplify workflows, automate handoffs, and improve reporting. After evaluating Asana against our peers, they chose Asana for its superior user experience, flexibility, and ease of adoption, requiring minimal training while still offering the customization needed to modernize their workflows.

Speaker #2: Financial services and the public sector, both key growth verticals for Asana. In the financial service vertical, we expanded with a large North American financial services company.

Speaker #2: Their goal was to cut marketing campaign execution time by 25% to 50%. Their existing intake process had 29 steps, and they needed a single system that could simplify workflows, automate handoffs, and improve reporting.

Speaker #2: After evaluating Asana against our peers, they chose Asana for its superior user experience, flexibility, and ease of adoption, requiring minimal training while still offering the customization needed to modernize their workflows.

Speaker #2: We also saw strong momentum in the public sector this quarter, including a meaningful new win with a major German government research agency that manages roughly 6,000 projects each year.

Dan Rogers: We also saw strong momentum in the public sector this quarter, including a meaningful new win with a major German government research agency that manages roughly 6,000 projects each year. This was a competitive win. They selected Asana for its ease of use, templates, workflows, Work Graph-driven OKR support, and enterprise-grade security. They're implementing Asana as an audit-compliant system to manage thousands of research and innovation funding projects across Germany and Europe. Asana gives them real-time visibility into project progress, budgets, team allocations, and much more. We're also seeing sustained momentum in our channel ecosystem, with partner-attached growth for the third straight quarter and consistently higher NRR in accounts where partners are engaged. The global biopharmaceutical customer win that Dan mentioned was secured in partnership with a global SI partner.

We also saw strong momentum in the public sector this quarter, including a meaningful new win with a major German government research agency that manages roughly 6,000 projects each year. This was a competitive win. They selected Asana for its ease of use, templates, workflows, Work Graph-driven OKR support, and enterprise-grade security. They're implementing Asana as an audit-compliant system to manage thousands of research and innovation funding projects across Germany and Europe. Asana gives them real-time visibility into project progress, budgets, team allocations, and much more. We're also seeing sustained momentum in our channel ecosystem, with partner-attached growth for the third straight quarter and consistently higher NRR in accounts where partners are engaged. The global biopharmaceutical customer win that Dan mentioned was secured in partnership with a global SI partner.

Speaker #2: This was a competitive win. They selected Asana for its ease of use, templates, workflows, work graph-driven OKR support, and enterprise-grade security. They are implementing Asana as an audit-compliant system to manage thousands of research and innovation funding projects across Germany and Europe.

Speaker #2: Asana gives them real-time visibility into project progress, budgets, team allocations, and much more. We're also seeing sustained momentum in our channel ecosystem, with partner-attached growth for the third straight quarter and consistently higher NRR in accounts where partners are engaged.

Speaker #2: The global biopharmaceutical customer win that Dan mentioned was secured in partnership with a global SI partner. We also landed key new logos with partners at a leading automotive manufacturer in India, a major UK food delivery platform, and a global enterprise digital experience platform.

Dan Rogers: We also landed key new logos with partners at a leading automotive manufacturer in India, a major UK food delivery platform, and a global enterprise digital experience platform. While the tech sector continued to be a headwind to our growth this quarter, we successfully renewed with several large tech companies, as Dan noted. This was one of the key factors impacting NRR improvement quarter over quarter. Core customer NRR and 100,000-plus customer NRR both improved 100 basis points to 97% and 96%, respectively. In quarter, NRR improved across all cohorts. Enhancements in our support infrastructure, improvements in customer satisfaction metrics, and AI-driven onboarding for self-serve customers resulted in our lowest churn numbers for monthly customers in the past year. In our SMB business, we continue to be affected by the evolving top-of-funnel dynamics we mentioned last quarter, particularly in relation to LLM-driven changes in search and paid media investments.

We also landed key new logos with partners at a leading automotive manufacturer in India, a major UK food delivery platform, and a global enterprise digital experience platform. While the tech sector continued to be a headwind to our growth this quarter, we successfully renewed with several large tech companies, as Dan noted. This was one of the key factors impacting NRR improvement quarter over quarter. Core customer NRR and 100,000-plus customer NRR both improved 100 basis points to 97% and 96%, respectively. In quarter, NRR improved across all cohorts. Enhancements in our support infrastructure, improvements in customer satisfaction metrics, and AI-driven onboarding for self-serve customers resulted in our lowest churn numbers for monthly customers in the past year. In our SMB business, we continue to be affected by the evolving top-of-funnel dynamics we mentioned last quarter, particularly in relation to LLM-driven changes in search and paid media investments.

Speaker #2: While the tech sector continued to be a headwind to our growth this quarter, we successfully renewed with several large tech companies, as Dan noted.

Speaker #2: This was one of the key factors impacting NRR improvement quarter over quarter. Core customer NRR and 100,000-plus customer NRR both improved 100 basis points to 97% and 96%, respectively.

Speaker #2: In-quarter NRR improved across all cohorts. Enhancements in our support infrastructure, improvements in customer satisfaction metrics, and AI-driven onboarding for self-serve customers resulted in our lowest churn numbers from monthly customers in the past year.

Speaker #2: In our SMB business, we continue to be affected by the evolving top-of-funnel dynamics we mentioned last quarter, particularly in relation to LLM-driven changes in search and paid media pressures. This focuses on three investment areas.

Dan Rogers: Our approach to mitigate these pressures focuses on three areas. First, we're building modern self-serve experiences that get users to value fast. Our new Prompt-to-Project flow takes someone from a prompt on our website to a working Asana project in seconds. We're optimizing each stage of the buyer journey to turn that engagement into durable growth. Second, we're evolving our content strategy and technical foundation to maintain authority as AI-led discovery changes, strengthening our presence where LLMs train and ensuring Asana shows up as the leading answer in our category. Third, we're implementing smarter behavior-based personalization for high-propensity accounts to improve both acquisition and expansion. As we shared last quarter, we expect these headwinds to persist through Q4. We concluded the quarter with our marquee customer event, the Work Innovation Summit in London and New York, where we officially introduced AI Teammates to the world.

Our approach to mitigate these pressures focuses on three areas. First, we're building modern self-serve experiences that get users to value fast. Our new Prompt-to-Project flow takes someone from a prompt on our website to a working Asana project in seconds. We're optimizing each stage of the buyer journey to turn that engagement into durable growth. Second, we're evolving our content strategy and technical foundation to maintain authority as AI-led discovery changes, strengthening our presence where LLMs train and ensuring Asana shows up as the leading answer in our category. Third, we're implementing smarter behavior-based personalization for high-propensity accounts to improve both acquisition and expansion. As we shared last quarter, we expect these headwinds to persist through Q4. We concluded the quarter with our marquee customer event, the Work Innovation Summit in London and New York, where we officially introduced AI Teammates to the world.

Speaker #2: First, we're building modern self-serve experiences that get users to value fast. Our approach to mitigate these issues is our new prompt-to-project flow, which takes someone from a prompt on our website to a working Asana project in seconds.

Speaker #2: And we're optimizing each stage of the buyer journey to turn that engagement into durable growth. Second, we're evolving our content strategy and technical foundation to maintain authority as AI-led discovery changes.

Speaker #2: Strengthening our presence where LLMs train and ensuring Asana shows up as the leading answer in our category. Third, we're implementing smarter behavior-based personalization for high-propensity accounts to improve both acquisition and expansion.

Speaker #2: As we shared last quarter, we expect these headwinds to persist through Q4. We concluded the quarter with our marquee customer event, the Work Innovation Summit in London and New York, where we officially introduced AI teammates to the world.

Speaker #2: Across the two events, we had over 1,600 customers, partners, and analysts in attendance. Our sponsors included Google, AWS, KPMG, and Deloitte. The strategic impact of these events was immediately clear from the response from third-party experts.

Dan Rogers: Across the two events, we had over 1,600 customers, partners, and analysts in attendance. Our sponsors included Google, AWS, KPMG, and Deloitte. The strategic impact of these events was immediately clear from the response from third-party experts. We held over 30 industry analyst briefings, with one analyst noting, "No one is doing agentic like Asana. That's what makes you best in class." This was echoed by another industry analyst who called our multi-player human-plus-AI collaboration approach unique in the market. These global events are a critical component of our go-to-market motion. They are driving new business, strengthening executive relationships, and validating our strategy as a leader in agentic AI. Quoting from one of our financial services customers, "The event was one of the most stimulating, engaging conferences I've been to in a while.

Across the two events, we had over 1,600 customers, partners, and analysts in attendance. Our sponsors included Google, AWS, KPMG, and Deloitte. The strategic impact of these events was immediately clear from the response from third-party experts. We held over 30 industry analyst briefings, with one analyst noting, "No one is doing agentic like Asana. That's what makes you best in class." This was echoed by another industry analyst who called our multi-player human-plus-AI collaboration approach unique in the market. These global events are a critical component of our go-to-market motion. They are driving new business, strengthening executive relationships, and validating our strategy as a leader in agentic AI. Quoting from one of our financial services customers, "The event was one of the most stimulating, engaging conferences I've been to in a while.

Speaker #2: We held over 30 industry analyst briefings, with one analyst noting, "No one is doing agentic like Asana." That's what makes you best in class.

Speaker #2: This is echoed by another industry analyst who called our multi-player human-plus-AI collaboration approach unique in the market. These global events are a critical component of our go-to-market motion.

Speaker #2: They are driving new business, strengthening executive relationships, and validating our strategy as the leader in agentic AI. Quitting from one of our financial services customers, the event was one of the most stimulating, engaging conferences I've been to in a while.

Speaker #2: Asana's application of AI is like no other company today. Another Fortune 100 multinational mass media and entertainment customer said, "I love that this event was focused on helping me get more out of what we're already doing, which inspires me to want to buy more." We are energized by Sonalee to walk through the financial partnership and everything strategy.

Dan Rogers: Asana's application of AI is like no other company today." Another Fortune 100 multinational mass media and entertainment customer said, "I love that this event was focused on helping me get more out of what we're already doing, which inspires me to want to buy more." We are energized by this feedback and the validation of our strategy. With that, I'll turn it over to Sonalee to walk through the financial highlights for the quarter. Anne, I want to thank you for your partnership and everything you've brought to Asana. I'm grateful for the support, clarity, and customer focus you've helped instill across the business. You've had an enormous impact on the company and so many people here. Now, let's turn to our financial results for the quarter.

Asana's application of AI is like no other company today." Another Fortune 100 multinational mass media and entertainment customer said, "I love that this event was focused on helping me get more out of what we're already doing, which inspires me to want to buy more." We are energized by this feedback and the validation of our strategy. With that, I'll turn it over to Sonalee to walk through the financial highlights for the quarter.

Speaker #2: this feedback and the validation of our you've brought to Asana. I'm quarter. highlights for the And I want to thank you for With that, I'll turn it

Sonalee Parekh: Anne, I want to thank you for your partnership and everything you've brought to Asana. I'm grateful for the support, clarity, and customer focus you've helped instill across the business. You've had an enormous impact on the company and so many people here. Now, let's turn to our financial results for the quarter.

Speaker #1: Unless

Speaker #1: .

Speaker #2: You've had an impact on the enormous company and so many people here. Let's turn to our financials for the quarter. Now,

Speaker #2: Results revenues came in at $201 million, up 9% year over year, which exceeded the high end of our guidance by almost 0.1 percentage point.

Dan Rogers: Q3 revenues came in at $201 million, up 9% year over year, which exceeded the high end of our guidance by almost one percentage point. We have 25,413 core customers, or customers spending $5,000 or more on an annualized basis. Revenues from core customers grew 10% year over year. This cohort represented 76% of our revenues in Q3. We have 785 customers spending $100,000 or more on an annualized basis, and this customer cohort grew at 15% year over year. As a reminder, we define these customer cohorts based on annualized GAAP revenues in a given quarter. Our overall dollar-based net retention rate was 96%. Core customer NRR was 97%. And among customers spending $100,000 or more, NRR was 96%. As a reminder, our NRR is a trailing four-quarter average and therefore a lagging indicator of more recent trends. Our in-quarter NRRs improved across all cohorts.

Q3 revenues came in at $201 million, up 9% year over year, which exceeded the high end of our guidance by almost one percentage point. We have 25,413 core customers, or customers spending $5,000 or more on an annualized basis. Revenues from core customers grew 10% year over year. This cohort represented 76% of our revenues in Q3. We have 785 customers spending $100,000 or more on an annualized basis, and this customer cohort grew at 15% year over year. As a reminder, we define these customer cohorts based on annualized GAAP revenues in a given quarter. Our overall dollar-based net retention rate was 96%. Core customer NRR was 97%. And among customers spending $100,000 or more, NRR was 96%. As a reminder, our NRR is a trailing four-quarter average and therefore a lagging indicator of more recent trends. Our in-quarter NRRs improved across all cohorts.

Speaker #2: We have 25,413 core customers, or customers spending $5,000 or more on an annualized basis. Revenues from core customers grew 10% year over year.

Speaker #2: This cohort year, customer spending grew over the annualized at GAAP revenues in a customers cohort. These Q3 revenues were $785 million, and the cohort grew year on year by 15%.

Speaker #2: Based on net basis, the dollar retention rate was 96%. GNRHR core customer was 97%, and among customers spending $100,000 or more.

Speaker #2: Gnrh-r was 96% . As a reminder , our a Gnrhr is trailing four quarter average and therefore a lagging indicator of more recent trends Our .

Speaker #2: in quarter ners improved across all cohorts . The $100,000 plus cohort had the largest improvement amongst the cohorts . Q3 in quarter gnrh-r increased mostly due to improvements in downgrade and expansion our .

Dan Rogers: The $100,000-plus cohort had the largest improvement among the cohorts. Q3 in-quarter NRR increased mostly due to improvements in downgrade and expansion, thanks to our multi-product strategy and seat reach. While we have more work ahead, I am encouraged that Q3 marks our second consecutive quarter of in-quarter NRR improvement. While Q4 includes several large enterprise renewals that are concentrated in our technology vertical, we believe that we are at or near the floor, and the initiatives we have in place position us for continued NRR improvement over the intermediate, and long term. This continues to be a key area of focus, and we believe the initiatives in place on the retention side and the expansion opportunity with our AI platform set us up for continued improvement going forward. Now, moving to profitability, where I will be discussing our non-GAAP results.

The $100,000-plus cohort had the largest improvement among the cohorts. Q3 in-quarter NRR increased mostly due to improvements in downgrade and expansion, thanks to our multi-product strategy and seat reach. While we have more work ahead, I am encouraged that Q3 marks our second consecutive quarter of in-quarter NRR improvement. While Q4 includes several large enterprise renewals that are concentrated in our technology vertical, we believe that we are at or near the floor, and the initiatives we have in place position us for continued NRR improvement over the intermediate, and long term. This continues to be a key area of focus, and we believe the initiatives in place on the retention side and the expansion opportunity with our AI platform set us up for continued improvement going forward. Now, moving to profitability, where I will be discussing our non-GAAP results.

Speaker #2: multi-product strategy and seat reach Thanks to . While we work have more ahead , I am encouraged that Q3 marks our second consecutive quarter of in quarter Gnrh-r .

Speaker #2: Improvement in Q4 includes several large enterprise renewals that are concentrated in the technology vertical. We believe that we are at or near the floor, and the initiatives we have in place position us for continued GNRH-R improvement over the intermediate and long term.

Speaker #2: This continues to be a key area of focus, and we believe the initiatives in place on the retention side and the expansion.

Speaker #2: Opportunity AI with our up for set us continued improvement going forward . moving to Now profitability , where I discussing will be our non-GAAP results .

Speaker #2: We continue to be extremely focused on driving efficiency and productivity throughout our business, maximizing the leverage we enjoy from our strong gross margin at 89%.

Dan Rogers: We continue to be extremely focused on driving efficiency and productivity throughout our business, maximizing the operating leverage we enjoy from our strong gross margin at 89%. We expect to maintain these levels of gross margin in fiscal year 2026 while expanding operating margin as we continue to scale. We continue to make meaningful improvements in our operating expenses as a percentage of revenue. R&D expenses were $47.3 million, or 24% of revenue, down 14% year over year. Sales and marketing expenses were $86.5 million, or 43% of revenue, down 3% year over year. G&A expenses were $29.1 million, or 14% of revenue. As a result of driving productivity and efficiency gains, we delivered an 8% operating margin, or $16.3 million of operating income in the quarter, which is a 12 percentage point improvement year over year.

We continue to be extremely focused on driving efficiency and productivity throughout our business, maximizing the operating leverage we enjoy from our strong gross margin at 89%. We expect to maintain these levels of gross margin in fiscal year 2026 while expanding operating margin as we continue to scale. We continue to make meaningful improvements in our operating expenses as a percentage of revenue. R&D expenses were $47.3 million, or 24% of revenue, down 14% year over year. Sales and marketing expenses were $86.5 million, or 43% of revenue, down 3% year over year. G&A expenses were $29.1 million, or 14% of revenue. As a result of driving productivity and efficiency gains, we delivered an 8% operating margin, or $16.3 million of operating income in the quarter, which is a 12 percentage point improvement year over year.

Speaker #2: We expect to maintain these levels of gross margin in fiscal year 2026, as well as our operating margin. As we continue to scale, we are making meaningful improvements to expenses in our operating costs as a percentage of revenue.

Speaker #2: R&D expenses were 47.3 million , or revenue , 24% of down 14% year over year . Sales and marketing expenses were 86.5 million , or 43% of revenue , down 3% year over year .

Speaker #2: G&A expenses were 29.1 million , or 14% of revenue result of driving , as a productivity and efficiency gains . We an delivered 8% operating or margin , 16.3 million , of operating income in the quarter , which is a point 12 percentage improvement year over year .

Speaker #2: Income net was $17.9 million, or $0.07 per share, on a diluted basis. There was an improvement in profitability. Our team continues to focus on operating leverage, reallocating spend to the highest ROI go-to-market motions, optimizing infrastructure and cloud costs, and exercising discipline across discretionary spend.

Dan Rogers: Net income was $17.9 million, or $0.07 per share on a diluted basis. Our profitability improvement continues to be driven by operating leverage, reallocating spend to the highest ROI go-to-market motions, optimizing infrastructure and cloud costs, and exercising discipline across discretionary spend. We're also aligning our talent footprint with industry benchmarks by shifting certain roles to more cost-effective regions, creating a strong foundation for sustained efficiency and multi-year margin expansion. Moving on to the balance sheet and cash flow. Cash, cash equivalents, and marketable securities at the end of Q3 were approximately $463.6 million. Our remaining performance obligation, or RPO, was $500.9 million, up 23% from the year-ago quarter. Current RPO will be recognized over the next 12 months and was 77% of RPO and grew 15% from the year-ago quarter. Our total ending Q3 deferred revenue was $305.1 million, up 8% year over year.

Net income was $17.9 million, or $0.07 per share on a diluted basis. Our profitability improvement continues to be driven by operating leverage, reallocating spend to the highest ROI go-to-market motions, optimizing infrastructure and cloud costs, and exercising discipline across discretionary spend. We're also aligning our talent footprint with industry benchmarks by shifting certain roles to more cost-effective regions, creating a strong foundation for sustained efficiency and multi-year margin expansion. Moving on to the balance sheet and cash flow. Cash, cash equivalents, and marketable securities at the end of Q3 were approximately $463.6 million. Our remaining performance obligation, or RPO, was $500.9 million, up 23% from the year-ago quarter. Current RPO will be recognized over the next 12 months and was 77% of RPO and grew 15% from the year-ago quarter. Our total ending Q3 deferred revenue was $305.1 million, up 8% year over year.

Speaker #2: We're also aligning our talent footprint with industry benchmarks by shifting certain more cost-effective roles to effective regions, creating a strong foundation for sustained efficiency and multi-year margin expansion.

Speaker #2: Moving on, balance sheet and cash flow. Cash, cash equivalents, and marketable securities at the end of Q3 were approximately $463.6 million.

Speaker #2: remaining performance obligation , or RPO , was 500.9 million , up 23% from the year ago quarter . Current RPO will be recognized over the next 12 months and was 77% of RPO and grew 15% from the year ago quarter .

Speaker #2: Our Q3 ending deferred total revenue was 305.1 million , up 8% year over year Building on . our margin strength , operating Q3 adjusted free cash flow was 13.4 million , or 7% , on a margin basis .

Dan Rogers: Building on our operating margin strength, Q3 adjusted free cash flow was $13.4 million, or 7% on a margin basis. We continue to take a disciplined approach to capital allocation. Given our strong balance sheet, positive free cash flow, and confidence in our long-term strategy, we believe share repurchases are an effective way to return value to shareholders while offsetting dilution. This quarter, we bought back $30.8 million of our Class A common stock, or 2.2 million shares, at an average price of $14.10 per share. As of 31 October 2025, we had $97.5 million remaining for repurchases moving forward. Now, moving to guidance. For Q4 fiscal 2026, we expect revenues of $204 to 206 million, representing 8 to 9% growth year over year. We expect non-GAAP operating income of $14 million to 16 million, representing an operating margin of 7 to 8%.

Building on our operating margin strength, Q3 adjusted free cash flow was $13.4 million, or 7% on a margin basis. We continue to take a disciplined approach to capital allocation. Given our strong balance sheet, positive free cash flow, and confidence in our long-term strategy, we believe share repurchases are an effective way to return value to shareholders while offsetting dilution. This quarter, we bought back $30.8 million of our Class A common stock, or 2.2 million shares, at an average price of $14.10 per share. As of 31 October 2025, we had $97.5 million remaining for repurchases moving forward. Now, moving to guidance. For Q4 fiscal 2026, we expect revenues of $204 to 206 million, representing 8 to 9% growth year over year. We expect non-GAAP operating income of $14 million to 16 million, representing an operating margin of 7 to 8%.

Speaker #2: We take a disciplined, continued approach to capital allocation. We are given a strong balance sheet, positive cash flow, and confidence in our long-term strategy.

Speaker #2: We believe , share repurchases are an way to return value to shareholders . While effective offsetting dilution . This quarter , we bought back class $30.8 million of our A common stock or , 2.2 million shares at an average price of $14.10 per share .

Speaker #2: As we of October 31st , $97.5 million remaining for repurchases . Moving had forward . Now moving to guidance Q4 fiscal 2026 , expect we revenues of 204 to 206 million , representing 8 to 9% growth year year over .

Speaker #2: We expect non-GAAP operating income of $14 million to $16 million, representing an operating margin of 7% to 8%. We also expect non-GAAP net income per share, assuming diluted, to be $0.07, with a weighted average shares outstanding of approximately 244 million.

Dan Rogers: We expect non-GAAP net income per share of $0.07, assuming diluted weighted average shares outstanding of approximately 244 million. For the full year, we are updating our revenue guidance to $789 to 791 million, representing 9% year-over-year growth from $780 million to 790 million previously. Currency is about 40 basis points growth benefit to our full-year guidance, 10 basis points less of an impact from what we guided last quarter. We are raising our guidance to incorporate our actual Q3 results. SMB continues to grow at a healthy double-digit pace, though, as Anne noted earlier, we are seeing top-of-funnel pressure given the evolving search landscape, which we expect to be a continued headwind to our small business growth in Q4. These dynamics are fully reflected in our updated Q4 and full-year fiscal year 2026 revenue guidance.

We expect non-GAAP net income per share of $0.07, assuming diluted weighted average shares outstanding of approximately 244 million. For the full year, we are updating our revenue guidance to $789 to 791 million, representing 9% year-over-year growth from $780 million to 790 million previously. Currency is about 40 basis points growth benefit to our full-year guidance, 10 basis points less of an impact from what we guided last quarter. We are raising our guidance to incorporate our actual Q3 results. SMB continues to grow at a healthy double-digit pace, though, as Anne noted earlier, we are seeing top-of-funnel pressure given the evolving search landscape, which we expect to be a continued headwind to our small business growth in Q4. These dynamics are fully reflected in our updated Q4 and full-year fiscal year 2026 revenue guidance.

Speaker #2: For the full year, we are updating our revenue guidance to $789 million to $791 million, representing 9% year-over-year growth from $780 million to $790 million previously.

Speaker #2: Currency is about 40 basis points . Growth to benefit our year full guidance . Ten basis points less of an from what impact we guided last quarter .

Speaker #2: raising our are We guidance to incorporate our actual Q3 results . SMB continues to grow at a healthy double digit pace , though , as an noted earlier , we are seeing funnel top of pressure given the evolving search landscape , which we a continued expect to be our small business Q4 in growth .

Speaker #2: These dynamics are fully our updated reflected in Q4 and full year fiscal year 26 revenue guidance . On a non-GAAP basis , expect full year we income of 52.5 to 54.5 million , representing an operating margin of 7% , up from our prior guidance of 6% .

Dan Rogers: On a non-GAAP basis, we expect full-year operating income of $52.5 to 54.5 million, representing an operating margin of 7%, up from our prior guidance of 6%. We are reinvesting a portion of our Q3 operating profit outperformance back into the business, primarily in our AI platform and product development initiatives. As a result, our Q4 operating margin guidance reflects the impact of this reinvestment as we support the roadmap and build toward long-term growth acceleration. In addition, we expect non-GAAP net income per share of $0.25 to 0.26, assuming diluted weighted average shares outstanding of approximately 243 million. Across the leadership team, we're aligned on the priorities that position Asana to lead in the agentic enterprise and accelerate both growth and margin expansion over the long term.

On a non-GAAP basis, we expect full-year operating income of $52.5 to 54.5 million, representing an operating margin of 7%, up from our prior guidance of 6%. We are reinvesting a portion of our Q3 operating profit outperformance back into the business, primarily in our AI platform and product development initiatives. As a result, our Q4 operating margin guidance reflects the impact of this reinvestment as we support the roadmap and build toward long-term growth acceleration. In addition, we expect non-GAAP net income per share of $0.25 to 0.26, assuming diluted weighted average shares outstanding of approximately 243 million. Across the leadership team, we're aligned on the priorities that position Asana to lead in the agentic enterprise and accelerate both growth and margin expansion over the long term.

Speaker #2: We are reinvesting a portion of our Q3 operating profit outperformance back into the business, primarily in AI platform and product development initiatives.

Speaker #2: a result , As operating margin Q4 reflects the impact of this reinvestment as we support the roadmap and build toward long term growth acceleration .

Speaker #2: In addition, we expect non-GAAP net income per share of $0.25 to $0.26, assuming diluted weighted average shares outstanding of approximately 243 million.

Speaker #2: Across the leadership team, we're aligned on the priorities that position us to lead to an agentic enterprise and accelerate both growth and margin expansion over the long term.

Speaker #2: AI studio momentum continues to strengthen , and we believe scaling our AI platform with teammates will be a major durable growth . And with that driver of operator , we're ready for questions .

Dan Rogers: AI Studio momentum continues to strengthen, and we believe scaling our AI platform with teammates will be a major driver of durable growth. And with that, operator, we're ready for questions. As a reminder, to ask a question, you will need to press Star 11 on your telephone. To remove yourself from the queue, you may press Star 11 again. You will be limited to one question and one follow-up to allow everyone the opportunity to participate. Please stand by while we compile the Q&A roster. Our first question comes from the line of Matt Bullock of Bank of America. Please go ahead, Matt. Great. Thanks for taking the question. First, I wanted to ask about AI Studio, specifically the self-serve launch. Anything you can share in terms of early learnings from that launch? Any feedback in terms of ARR contribution from the self-serve launch?

AI Studio momentum continues to strengthen, and we believe scaling our AI platform with teammates will be a major driver of durable growth. And with that, operator, we're ready for questions.

Speaker #3: As a reminder , to ask a question , you will need to press star one one on your telephone . To remove yourself from the queue , you may press star one .

Operator: As a reminder, to ask a question, you will need to press Star 11 on your telephone. To remove yourself from the queue, you may press Star 11 again. You will be limited to one question and one follow-up to allow everyone the opportunity to participate. Please stand by while we compile the Q&A roster. Our first question comes from the line of Matt Bullock of Bank of America. Please go ahead, Matt.

Speaker #3: One . Again , you will be limited to question and one follow up to allow one everyone the opportunity to participate . Please stand by while we compile the Q&A roster .

Speaker #3: Our first question comes from the line of Matt Bullock of Bank of America . Please go ahead . Matt .

Speaker #4: Great . Thanks for taking the question . I first I wanted to ask about AI studio , specifically the self-serve launch . Anything you can share in terms of early learnings from from that launch .

Matt Maynard: Great. Thanks for taking the question. First, I wanted to ask about AI Studio, specifically the self-serve launch. Anything you can share in terms of early learnings from that launch? Any feedback in terms of ARR contribution from the self-serve launch?

Speaker #4: Any feedback in RR terms of contribution from the self-serve launch? And then separately, I would love to hear more color on the influence.

Speaker #4: AI studio is having . You know , on the renewals this year . Given that it's the first renewal cycle you guys had being a multi-product have company .

Dan Rogers: Then separately, we'd love to hear more color on the influence AI Studio is having on the renewals this year, given that it's the first renewal cycle you guys have had being a multi-product company. Hi, Matt. It's Anne. I'm happy to answer that. In terms of AI Studio self-serve, we just launched that last quarter. And so what we're pleased with is just the wide adoption and customers really trying it out, customers of all sizes, including those that regularly buy self-serve from us. So that's the good news is, it just really democratizes access to AI Studio, and people get to try it and actually get value out of it. So we're continuing to watch that and watch consumption on that. It also gives a signal and the sales team signal on where to call into the self-serve signals in corporate and enterprise.

Then separately, we'd love to hear more color on the influence AI Studio is having on the renewals this year, given that it's the first renewal cycle you guys have had being a multi-product company.

Speaker #5: Hi , Matt . It's an I'm happy to answer that in terms of AI studio self-serve , we just launched that last quarter .

Anne Raimondi: Hi, Matt. It's Anne. I'm happy to answer that. In terms of AI Studio self-serve, we just launched that last quarter. And so what we're pleased with is just the wide adoption and customers really trying it out, customers of all sizes, including those that regularly buy self-serve from us. So that's the good news is, it just really democratizes access to AI Studio, and people get to try it and actually get value out of it. So we're continuing to watch that and watch consumption on that. It also gives a signal and the sales team signal on where to call into the self-serve signals in corporate and enterprise.

Speaker #5: And so we are we're pleased with is just the wide adoption and customers really trying it out . Customers all of sizes , including those that buy self-serve regularly from us .

Speaker #5: that's So the good news . Is it just really democratizes access to AI studio and people get to try it and actually get value out of it .

Speaker #5: So, we're continuing to watch that and monitor consumption on that. It also gives us signals and the sales team signals on where to call into the self-serve.

Speaker #5: signals You know , in corporate and enterprise . So excited about that . And continuing to watch that . You asked a good question about renewals .

Speaker #5: I think AI studio has been a real help in renewal conversations . One , its strategic . There's just more for us to sell to customers , and we're really helping to advise them on their AI strategy .

Dan Rogers: So excited about that and continuing to watch that. You asked a good question about renewals. I think AI Studio has been a real help in renewal conversations. One, it's strategic. There's just more for us to sell to customers, and we're really helping to advise them on their AI strategy overall. So we're pleased with how that's been helping renewals. And then for customers that have bought AI Studio, what we're really paying attention to is adoption and consumption. And so getting as many use cases implemented as possible, having them see real value. So those are how we're monitoring everything around AI Studio. Thank you. Our next question comes from the line of Steve Enders of Citi. Please go ahead, Steve. Okay, great. Thanks for taking the questions here. And great to have worked with you. And best of luck on your next adventure there.

So excited about that and continuing to watch that. You asked a good question about renewals. I think AI Studio has been a real help in renewal conversations. One, it's strategic. There's just more for us to sell to customers, and we're really helping to advise them on their AI strategy overall. So we're pleased with how that's been helping renewals. And then for customers that have bought AI Studio, what we're really paying attention to is adoption and consumption. And so getting as many use cases implemented as possible, having them see real value. So those are how we're monitoring everything around AI Studio.

Speaker #5: Overall . So we're pleased with how that's been helping renewals . And then for customers that have bought AI studio , what we're really paying attention to is adoption .

Speaker #5: And consumption . And so getting as use many cases implemented as possible , having them see real value . So those are how we're monitoring everything around AI studio

Speaker #5: . Thank

Speaker #3: You have the next question from the line of Steve Enders of Citi. Please go ahead, Steve.

Operator: Thank you. Our next question comes from the line of Steve Enders of Citi. Please go ahead, Steve.

Speaker #4: Okay . Great . Thanks for thanks for taking the questions here . And great to great to have worked with you and best of luck on the on your next next adventure .

Steve Enders: Okay, great. Thanks for taking the questions here. And great to have worked with you. And best of luck on your next adventure there.

Speaker #4: There . I guess just to start , I want to ask on I guess within the tech vertical specifically , I think there's been some I guess further , further high profile layoffs in that space .

Dan Rogers: I guess just to start, I want to ask on, I guess, within the tech vertical specifically, and I think there's been some, I guess, further high-profile layoffs in that space. I guess, what is it that you're seeing that's maybe giving you confidence that we're, I guess, near a trough there, that things are going to improve? And just how are you kind of viewing the impact of that into Q4 and maybe into the next year? Yeah, hi. First, to kind of answer your question on, we do see tech vertical stabilizing. It does remain an overall headwind to us, but there are a few important dynamics worth calling out. First is we don't see a follow-on downgrade path with those tech customers. Once they've downgraded once, they tend not to downgrade again. And that's a meaningful shift.

I guess just to start, I want to ask on, I guess, within the tech vertical specifically, and I think there's been some, I guess, further high-profile layoffs in that space. I guess, what is it that you're seeing that's maybe giving you confidence that we're, I guess, near a trough there, that things are going to improve? And just how are you kind of viewing the impact of that into Q4 and maybe into the next year?

Speaker #4: I guess , what is it that you're seeing ? That's maybe giving you giving you confidence that we're , I guess , near a near a trough there that things are going to improve .

Speaker #4: And just how are you kind of viewing the impact of that into Q4 and maybe into year ?

Speaker #6: Yeah . Hi . First , to kind of answer your question on , we do see tech tech vertical stabilizing . It does remain overall headwind to us , but there are a few important dynamics worth calling out .

Dan Rogers: Yeah, hi. First, to kind of answer your question on, we do see tech vertical stabilizing. It does remain an overall headwind to us, but there are a few important dynamics worth calling out. First is we don't see a follow-on downgrade path with those tech customers. Once they've downgraded once, they tend not to downgrade again. And that's a meaningful shift.

Speaker #6: First, we don't see a follow-on downgrade path with those tech customers that were downgraded. Once they've downgraded, they tend not to downgrade again.

Speaker #6: that's a And meaningful shift . So in fact , several of our largest customers tech this quarter actually expanded as they renewed and logo churn continued to We improve .

Dan Rogers: So, in fact, several of our largest tech customers this quarter actually expanded as they renewed. Logo churn continued to improve. We also saw, and certainly we'll touch on this later, I'm sure, a 12-month high in gross retention amongst our monthly customers. We do see this nice, and just kind of rounding out the piece here on AI Studio, a nice move from multi-product moving us off of seat-based products. AI Studio and AI Teammates open up new budgets for us, new use cases, and they do create a strong lever to mitigate those seat downgrades. They also introduce a new consumption-based revenue stream with our Foundational Service Plans, and those drive deeper adoption and much higher utilization in our customers, making it even stickier.

So, in fact, several of our largest tech customers this quarter actually expanded as they renewed. Logo churn continued to improve. We also saw, and certainly we'll touch on this later, I'm sure, a 12-month high in gross retention amongst our monthly customers. We do see this nice, and just kind of rounding out the piece here on AI Studio, a nice move from multi-product moving us off of seat-based products. AI Studio and AI Teammates open up new budgets for us, new use cases, and they do create a strong lever to mitigate those seat downgrades. They also introduce a new consumption-based revenue stream with our Foundational Service Plans, and those drive deeper adoption and much higher utilization in our customers, making it even stickier.

Speaker #6: Also, I saw and certainly will touch on this later. I'm sure a 12-month high in gross retention amongst monthly subscriptions for some customers. And then we do see this kind of rounding out the piece here on AI Studio.

Speaker #6: A nice multi-product move is taking us off of seat-based products. AI Studio and AI teammates open up new budgets for us.

Speaker #6: New use cases and they do a to strong lever those seat downgrades . They also introduced a consumption new based revenue stream with our foundational service plans .

Speaker #6: And those drive deeper adoption and much higher utilization in our customers . And making the even stickier . as And then , customers stick with us to do cross-functional workflows , even more deepened by our studios , that helps us expand into new budgets and makes a lot more less dependent on employee count at those tech companies .

Dan Rogers: And then as customers stick with us to do cross-functional workflows, even more deepened by AI Studio, that helps us expand into new budgets and makes us a lot more less dependent on employee count of those tech companies. Okay, that's helpful. And maybe just to follow up, just to get a little bit more clarity on the Q4 guide, it looks like a pretty healthy raise here. And just kind of wondering maybe what's changed in your assumptions for Q4 versus how you were thinking about it last quarter when you provided the guide there. Yeah, sure. Thanks for the question. So four things I'd really call out that I'm seeing which are giving me confidence this quarter to raise that full-year guide. So the beat in Q3 was driven by consistent execution across most of our core pillars. So first thing to call out is enterprise strength.

And then as customers stick with us to do cross-functional workflows, even more deepened by AI Studio, that helps us expand into new budgets and makes us a lot more less dependent on employee count of those tech companies.

Speaker #4: Okay , that's that's helpful . And maybe just to follow up , just to get a little bit more clarity on on the for Q guide , you know , it looks like a pretty , pretty healthy , healthy here .

Steve Enders: Okay, that's helpful. And maybe just to follow up, just to get a little bit more clarity on the Q4 guide, it looks like a pretty healthy raise here. And just kind of wondering maybe what's changed in your assumptions for Q4 versus how you were thinking about it last quarter when you provided the guide there.

Speaker #4: Race, I'm just kind of wondering, maybe what's changed in your assumptions for Q4 versus how you were thinking about it last quarter when you provided the guide there?

Speaker #2: Yeah , sure . Thanks for the question . So four things I'd really call out that I'm seeing , which are giving me confidence this quarter to raise that full year guide .

Sonalee Parekh: Yeah, sure. Thanks for the question. So four things I'd really call out that I'm seeing which are giving me confidence this quarter to raise that full-year guide. So the beat in Q3 was driven by consistent execution across most of our core pillars. So first thing to call out is enterprise strength.

Speaker #2: The beat in Q3 was driven by consistent execution across most of our core pillars. The first thing to call out is enterprise strength.

Speaker #2: We saw a 15% year over year increase in customer spending , $100,000 or more . And we're seeing stable demand trends in this segment .

Dan Rogers: We saw a 15% year-over-year increase in customer spending $100,000 or more. We're seeing stable demand trends in this segment and improvement in pipeline conversion that is leading to productivity gains. So the other thing I would just mention there is that while we don't typically break out our $50,000 to $100,000 customer cohort, we saw exceptional strength there this quarter. On the international side, that remains a strength for our business, so especially EMEA and Japan. So continued strength there. International revenues grew 12% year-over-year, outpacing our overall corporate growth rate, improving in NRR. I think this is really key. You'll have noted my commentary around this changed. So we successfully renewed with several of the large tech companies that I called out last quarter that were looming. This was one of the key factors that impacted our NRR improvement quarter over quarter.

We saw a 15% year-over-year increase in customer spending $100,000 or more. We're seeing stable demand trends in this segment and improvement in pipeline conversion that is leading to productivity gains. So the other thing I would just mention there is that while we don't typically break out our $50,000 to $100,000 customer cohort, we saw exceptional strength there this quarter. On the international side, that remains a strength for our business, so especially EMEA and Japan. So continued strength there. International revenues grew 12% year-over-year, outpacing our overall corporate growth rate, improving in NRR. I think this is really key. You'll have noted my commentary around this changed. So we successfully renewed with several of the large tech companies that I called out last quarter that were looming. This was one of the key factors that impacted our NRR improvement quarter over quarter.

Speaker #2: And improvement in pipe conversion . That is leading to productivity gains . So the other thing I would just mention there is that whilst we don't typically break out our 50,000 to $100,000 customer cohort , we saw exceptional strength there .

Speaker #2: This quarter on the international side , that remains a strength for our business . So especially EMEA and Japan . So continued strength there .

Speaker #2: International revenues grew 12% year over year, outpacing our overall corporate growth rate improvement in RR. I think this is really key.

Speaker #2: And you'll have noted like my commentary around this changed . So we successfully successfully renewed with several of the large tech companies that I called out last quarter that were looming .

Speaker #2: This was one of the key factors that impacted gnrh-r our improvement quarter over quarter within our retention monthly customer base is , Dan said , is at a 12 month high , and that reflects a lot of the work and investments we've made to strengthen customer satisfaction .

Dan Rogers: Retention within our monthly customer base, as Dan said, is at a 12-month high. And that reflects a lot of the work and investments we've made to strengthen customer satisfaction and the in-product experience, which you've heard Anne talk about over the last several quarters. And then finally, AI momentum. So we saw continued momentum with AI Studio. We saw sequential strong quarter-over-quarter growth. That's helping drive conversations with customers at renewal, which Anne just touched upon. So AI Studio and FSP are leading to larger initial lens, expansion, and mitigation of downgrade. So just a reminder of what I said in my prepared remarks is that I'm really encouraged by the Q3 trends in NRR. And that was part of what gave me the confidence on raising the guide overall. Yep. Our next question comes from the line of Josh Baer of Morgan Stanley. Please go ahead, Josh.

Sonalee Parekh: Retention within our monthly customer base, as Dan said, is at a 12-month high. And that reflects a lot of the work and investments we've made to strengthen customer satisfaction and the in-product experience, which you've heard Anne talk about over the last several quarters. And then finally, AI momentum. So we saw continued momentum with AI Studio. We saw sequential strong quarter-over-quarter growth. That's helping drive conversations with customers at renewal, which Anne just touched upon. So AI Studio and FSP are leading to larger initial lens, expansion, and mitigation of downgrade. So just a reminder of what I said in my prepared remarks is that I'm really encouraged by the Q3 trends in NRR. And that was part of what gave me the confidence on raising the guide overall.

Speaker #2: And the In-product experience , which you've heard and talk about over the last several quarters . And then finally , AI momentum . So we saw continued momentum with AI studio .

Speaker #2: We saw sequential , strong quarter over quarter . That's growth drive helping conversations with customers at renewal , which Anne just touched upon .

Speaker #2: So AI studio and FSP are leading to larger lens initial expansion . And mitigation of downgrade . So , you know , just a reminder , as what I said in my prepared remarks is that I'm really encouraged by Q3 the trends in Nr , and part of what that was gave me the confidence on on raising the guide overall .

Speaker #3: Year . Our next question comes from the line of John Baer of Morgan Stanley . Please go ahead . Josh , I'm sorry .

Operator: Yep. Our next question comes from the line of Josh Baer of Morgan Stanley. Please go ahead, Josh.

Speaker #7: Thank you . Yes . Questions for Dan . Just as AI agents become embedded across probably most productivity tools , how should we think about Asana's competitive position there ?

Dan Rogers: I'm sorry. Yes. Thank you. Questions for Dan. Just as AI agents become embedded across probably most productivity tools, how should we think about Asana's competitive position there? I mean, are you expecting Asana to be one of many agents that knowledge workers engage with? Or is it important for Asana to really become that orchestration layer that coordinates all agentic workflows across the enterprise? And if so, what really differentiates you, gives you the advantage to win that opportunity? Thanks, Josh. Appreciate the insightful question. Yeah, look, here's how I would frame it. This is not going to be a winner-takes-all opportunity for agents. In fact, we will sit alongside many of the other agentic players. But to turn to your question of differentiation, the way I think about it is today, broadly speaking, the alternatives fit into three different buckets. Bucket number one, single-player co-pilots and personal assistants.

Josh Baer: I'm sorry. Yes. Thank you. Questions for Dan. Just as AI agents become embedded across probably most productivity tools, how should we think about Asana's competitive position there? I mean, are you expecting Asana to be one of many agents that knowledge workers engage with? Or is it important for Asana to really become that orchestration layer that coordinates all agentic workflows across the enterprise? And if so, what really differentiates you, gives you the advantage to win that opportunity?

Speaker #7: I mean , are you expecting asana to be one of many agents that knowledge workers engage with , or is it important for to really asana become that orchestration layer that coordinates all agentic across the workflows enterprise ?

Speaker #7: And if so, what really differentiates you and gives you the advantage to win that opportunity?

Speaker #6: Thanks , Josh Appreciate the insightful question . Yeah , look , here's how I would frame it . This is not going to be a winner takes all opportunity for agents .

Dan Rogers: Thanks, Josh. Appreciate the insightful question. Yeah, look, here's how I would frame it. This is not going to be a winner-takes-all opportunity for agents. In fact, we will sit alongside many of the other agentic players. But to turn to your question of differentiation, the way I think about it is today, broadly speaking, the alternatives fit into three different buckets. Bucket number one, single-player co-pilots and personal assistants.

Speaker #6: In fact , we will sit alongside many of the other Agentic But to players . your question of turn to differentiation , the way I it think about is today , broadly speaking , the alternative is fit into three different buckets .

Speaker #6: Bucket number one single player , co-pilots and personal assistants . Now there is great for personal productivity . They're very easy to pilot .

Speaker #6: They're great at doing lightweight , individual tasks , but they don't across an scale organization . Each person's kind of building their own version , and that is leading to agent sprawl .

Dan Rogers: Now, they're great for personal productivity. They're very easy to pilot. They're great at doing lightweight individual tasks, but they don't scale across an organization. Each person is kind of building their own version. And that is leading to agent sprawl. Context often stays siloed. The knowledge doesn't compound. Quality and cost vary by individual. There's no shared governance model. Second approach we see, or bucket two for agents we see, is point solutions. And these are from some of the systems like CRM or ITSM solutions. Those are deeply integrated into the tools that they're already being used. And so they're really good for structured workflows within their domain. But as you can imagine, they're limited in that narrow ecosystem. They don't address a lot of the cross-functional work or the unstructured work between the spaces and between the departments.

Now, they're great for personal productivity. They're very easy to pilot. They're great at doing lightweight individual tasks, but they don't scale across an organization. Each person is kind of building their own version. And that is leading to agent sprawl. Context often stays siloed. The knowledge doesn't compound. Quality and cost vary by individual. There's no shared governance model. Second approach we see, or bucket two for agents we see, is point solutions. And these are from some of the systems like CRM or ITSM solutions. Those are deeply integrated into the tools that they're already being used. And so they're really good for structured workflows within their domain. But as you can imagine, they're limited in that narrow ecosystem. They don't address a lot of the cross-functional work or the unstructured work between the spaces and between the departments.

Speaker #6: The context often stays siloed . The knowledge doesn't compound quality and costs vary by individual , and is no shared governance model . Second approach we see or bucket two for agents point we see is solutions , and these are from some of the systems like CRM or ITSM solutions .

Speaker #6: Those are deeply integrated into tools so that they're already being used . And so they're really good for structured workflows within their . But as you can imagine , they're in that limited ecosystem .

Speaker #6: They don't address a lot of cross-functional work or the unstructured work between the spaces and between the departments. The third bucket is DIY solutions that people are really hacking and building directly on top of LLM providers.

Dan Rogers: Third bucket is DIY solutions that people are really hacking and building directly on top of LLM providers. They're super flexible for experimentation, attractive for quick prototypes or bespoke workflows. But again, these seem to run into issues with governance, duplication, scaling costs, cross-team coordination, and maintaining those prompts and controlling access and assuring consistency, all requires ongoing admin. So at Asana, we take a completely different approach. Our platform has context, controls, and checkpoints built in. So if you look at AI Teammates, these address many of those gaps because they operate as true members of the team, not just individual co-pilots. So if you think about all of the context that Asana has in our Work Graph, who's doing what by when, how, and why, those are the key ingredients that's missing in those other approaches. Intelligence alone isn't enough.

Third bucket is DIY solutions that people are really hacking and building directly on top of LLM providers. They're super flexible for experimentation, attractive for quick prototypes or bespoke workflows. But again, these seem to run into issues with governance, duplication, scaling costs, cross-team coordination, and maintaining those prompts and controlling access and assuring consistency, all requires ongoing admin. So at Asana, we take a completely different approach. Our platform has context, controls, and checkpoints built in. So if you look at AI Teammates, these address many of those gaps because they operate as true members of the team, not just individual co-pilots. So if you think about all of the context that Asana has in our Work Graph, who's doing what by when, how, and why, those are the key ingredients that's missing in those other approaches. Intelligence alone isn't enough.

Speaker #6: They're super flexible for experimentation , attractive for quick prototypes or bespoke workflows . But again , these seem to run into issues with governance , duplication , scaling costs , cross team coordination and maintaining those prompts .

Speaker #6: And controlling access and assuring consistency all require ongoing administration. So we take a completely different approach. The I Aero platform has context controls and checkpoints built in.

Speaker #6: So if you look at AI teammates , these address many of those gaps because they operate as true members of the team , not just individual .

Speaker #6: So if you look at AI teammates , these address many of those gaps because they operate as true members of the team , not just individual co-pilots So if you think about all of the context that asana has in our work , graph , who's doing what by , when , why ?

Speaker #6: Those are the key ingredients that's missing in those other approaches . Intelligence alone isn't enough . AI this needs rich context and rich workflows to be effective , but asana also provides the checkpoints review steps , permissions , and governance models to prevent that sprawl and maintain quality and cost control at scale .

Dan Rogers: AI needs this rich context and rich workflows to be effective. But Asana also provides the checkpoints, review steps, permissions, and governance models to prevent that sprawl and maintain quality and cost control at scale. Because AI Studio and AI Teammates work together in one system, customers get reliable automations that are repeatable for work, as well as flexible agents for more nuanced judgment-based work. This is all without that overhead that we talked about on those DIY agent solutions, all without the limitations of some of those functional silos of CRM and ITSM native tools. The result is an AI layer that actually scales across teams and not just within them. Great. Thank you for your insights. Question comes from the line of Rob Oliver of Baird. Please go ahead, Rob. Great. Thank you. Good afternoon. I also wanted to extend my best wishes to you.

AI needs this rich context and rich workflows to be effective. But Asana also provides the checkpoints, review steps, permissions, and governance models to prevent that sprawl and maintain quality and cost control at scale. Because AI Studio and AI Teammates work together in one system, customers get reliable automations that are repeatable for work, as well as flexible agents for more nuanced judgment-based work. This is all without that overhead that we talked about on those DIY agent solutions, all without the limitations of some of those functional silos of CRM and ITSM native tools. The result is an AI layer that actually scales across teams and not just within them.

Speaker #6: And because AI , studio and AI teammates work together in one system , customers get reliable automations that are repeatable for work as well as flexible agents .

Speaker #6: For more nuanced , judgment based work . So this is without that all overhead that we talked about on those DIY agent solutions .

Speaker #6: All without the limitations of some of those functional silos of CRM and exam-native tools. The result is an AI layer that actually scales across teams and not just within them.

Speaker #7: Great . Thank you for your insights .

Josh Baer: Great. Thank you for your insights.

Speaker #3: Question comes from the line of Rob Oliver, a Baird. Please go ahead, Rob.

Question comes from the line of Rob Oliver of Baird. Please go ahead, Rob.

Speaker #8: Thank you . Great . Good afternoon . And I also wanted to extend my best wishes to you . And it's been nice working with you .

Rob Oliver: Great. Thank you. Good afternoon. I also wanted to extend my best wishes to you.

Speaker #8: Dan , my question is for you just around the channel ecosystem and some of the momentum that you called out there guys . Partner attached growth being strong again , can you give us some sense for where you see kind of the partner ecosystem currently as someone who has a background with a lot of companies that have pretty advanced partner ecosystems , where is Kind of it today ?

Dan Rogers: It's been nice working with you. Dan, my question is for you just around the channel ecosystem and some of the momentum that you guys called out there, partner attached growth being strong again. Can you give us some sense for where you see kind of the partner ecosystem currently as someone who has a background with a lot of companies that have pretty advanced partner ecosystems? Where is it today? Kind of what inning are we in? Where does it need to be? And where in particular are you guys seeing that traction today? And then I had a quick follow-up as well for Sonalee. Thanks. Yeah. And Anne mentioned we're hot on the heels about London and New York with summits. And we had the opportunity to do partner breakouts at both of those. And I couldn't be more excited about our channel ecosystem.

It's been nice working with you. Dan, my question is for you just around the channel ecosystem and some of the momentum that you guys called out there, partner attached growth being strong again. Can you give us some sense for where you see kind of the partner ecosystem currently as someone who has a background with a lot of companies that have pretty advanced partner ecosystems? Where is it today? Kind of what inning are we in? Where does it need to be? And where in particular are you guys seeing that traction today? And then I had a quick follow-up as well for Sonalee.

Speaker #8: . What inning are we in ? Where does it need to be and where in particular are you guys seeing that traction ? Today ?

Speaker #8: And then I had a quick follow-up as well for Sonali. Thanks.

Speaker #6: Yeah . Anne mentioned we're hot on the heels of our London and New York with summits . And we had the opportunity to do partner breakouts at both of those .

Sonalee Parekh: Thanks. Yeah. And Anne mentioned we're hot on the heels about London and New York with summits. And we had the opportunity to do partner breakouts at both of those. And I couldn't be more excited about our channel ecosystem.

Speaker #6: And I couldn't be more excited about our channel ecosystem , our product our and category lends itself very well to the channel so I .

Dan Rogers: Our product and our category lends itself very well to the channel. And so I see nothing but opportunity for us in building out that channel ecosystem. As I talk to many of our partners today, they just want to do more. They want us to be more consistent in how we help them to be successful. And so I do see it as a true ecosystem and partnership where we help ensure their success and not just a transactional channel for us. So yeah, very excited about the partner opportunity and think we're at the early innings of it. Great. Very helpful. Thanks. Appreciate that. And then Sonalee, just for you, obviously a lot of work has been done by you and the team on the cost optimization side, infrastructure, cloud.

Our product and our category lends itself very well to the channel. And so I see nothing but opportunity for us in building out that channel ecosystem. As I talk to many of our partners today, they just want to do more. They want us to be more consistent in how we help them to be successful. And so I do see it as a true ecosystem and partnership where we help ensure their success and not just a transactional channel for us. So yeah, very excited about the partner opportunity and think we're at the early innings of it.

Speaker #6: I see nothing but opportunity for us in building out that channel and ecosystem. As I talk to many of our partners today, they just want more.

Speaker #6: To do so, we need to be more consistent in how we help them to be successful. I do see it as a true ecosystem and partnership where we help ensure their success and not just a transactional channel for us.

Speaker #6: So, yeah, I'm very excited about the partner opportunity and think we're at the early innings of it.

Speaker #8: Great . Very helpful . Thanks . Appreciate that . And then suddenly , just for you , obviously a lot of work been done by you and the team on the cost optimization side , infrastructure , cloud and just was curious , you know , I know you've been reallocating kind of stuff around the to try to organization higher , higher ROI , but when it comes to those costs , how much do we have runway on that ?

Rob Oliver: Great. Very helpful. Thanks. Appreciate that. And then Sonalee, just for you, obviously a lot of work has been done by you and the team on the cost optimization side, infrastructure, cloud.

Dan Rogers: Just was curious. I know you've been reallocating kind of stuff around the organization to try to drive higher ROI. When it comes to those costs, how much more runway do we have on that? Have they been optimized? Is there more to go? If you can give us a flavor for what might be left, that would be great. Thank you. Yeah. The work is definitely not done. Thank you. Appreciate your support. There is more margin upside to go for as we think about the remainder of this year, fiscal 2027, and beyond. Growing profitably continues to be a key focus of this team with continued emphasis on geo mix benefits in terms of where our headcount sits, vendor rationalization, there's more to do there, productivity improvements in sales and marketing, which Dan has been very focused on.

Just was curious. I know you've been reallocating kind of stuff around the organization to try to drive higher ROI. When it comes to those costs, how much more runway do we have on that? Have they been optimized? Is there more to go? If you can give us a flavor for what might be left, that would be great.

Speaker #8: Have they been optimized? Is there more to go? If you can give us a flavor for what might be left, that would be great.

Speaker #8: Thank you .

Speaker #2: the work Yeah . So is definitely not done . you . Appreciate Thank your support . But there is more margin upside to go for as we think about the remainder of this year .

Anne Raimondi: Thank you. Yeah. The work is definitely not done. Thank you. Appreciate your support. There is more margin upside to go for as we think about the remainder of this year, fiscal 2027, and beyond. Growing profitably continues to be a key focus of this team with continued emphasis on geo mix benefits in terms of where our headcount sits, vendor rationalization, there's more to do there, productivity improvements in sales and marketing, which Dan has been very focused on.

Speaker #2: Fiscal 27 and beyond . So profitably growing continues to be a key focus of this team . You know , with with continued emphasis on geo mix benefits in terms of where our headcount sits , vendor rationalization , there's more to do there , productivity improvements and sales and marketing , which Dan has been , you know , very focused on .

Speaker #2: And that will allow us to continue expanding margins and for multiple years to sequentially come. That being said, we are balancing margin expansion with reinvestments in our AI platform to sustain our product leadership and to accelerate growth.

Dan Rogers: That will allow us to continue expanding margin sequentially and for multiple years to come. That being said, we are balancing margin expansion with reinvestments in our AI platform to sustain our product leadership and to accelerate growth. Both are priorities, but we are investing alongside expanding margins to support that revenue acceleration goal. If you think about fiscal 2027, we will build off our exit margin in Q4, which you see how I guided today. The only thing I would just caution is don't expect the same rate of margin expansion in fiscal 2027 as you saw in 2026. I think that's well captured by consensus today. By no means is the work done. The other thing I would just say is we are reallocating spend. What we're doing is reallocating to areas where we see higher ROI.

That will allow us to continue expanding margin sequentially and for multiple years to come. That being said, we are balancing margin expansion with reinvestments in our AI platform to sustain our product leadership and to accelerate growth. Both are priorities, but we are investing alongside expanding margins to support that revenue acceleration goal. If you think about fiscal 2027, we will build off our exit margin in Q4, which you see how I guided today. The only thing I would just caution is don't expect the same rate of margin expansion in fiscal 2027 as you saw in 2026. I think that's well captured by consensus today. By no means is the work done. The other thing I would just say is we are reallocating spend. What we're doing is reallocating to areas where we see higher ROI.

Speaker #2: Both our priorities . But we are investing alongside expanding margins to support that revenue . Revenue acceleration goal . So if you think about fiscal 27 , we will build exit off our margin in Q4 , which , you know , you see how I guided today .

Speaker #2: The only thing I would just caution is don't expect the of margin expansion in fiscal 27 as you saw in 26 . But I that's well captured by consensus today .

Speaker #2: But , you know , by no means is the work done . And the other thing I would just say you know , is , we are reallocating spend and what we're doing is reallocating to areas where we see higher ROI .

Speaker #2: So , you know , that should have an overall , you know , benefit to , to , to operating margin . And then the final point I would make is just our gross margins continue to be , you know , in the 89 to 90% range .

Dan Rogers: So that should have an overall benefit to operating margin. And then the final point I would make is just our growth margins continue to be in the 89% to 90% range. So just the operating leverage that we get as we continue to grow and scale will continue to play through and have a positive impact on margins. Our next question comes from the line of Jackson Ader of KeyBank Capital Markets. Please go ahead, Jackson. Great. Thank you. The first question, it's really nice to see the retention rates picking up. And it sounds like that was due to lower gross churn. But if I think about revenue growth slowing just a little bit, should we read into this to mean that maybe the expansions or the upsell of existing customers was more muted than it has been in the prior quarters? Thank you. Hey, Jackson.

So that should have an overall benefit to operating margin. And then the final point I would make is just our growth margins continue to be in the 89% to 90% range. So just the operating leverage that we get as we continue to grow and scale will continue to play through and have a positive impact on margins.

Speaker #2: just the So operating leverage that we get as we continue to grow and scale will continue to play through and have a positive impact on margins .

Operator: Our next question comes from the line of Jackson Ader of KeyBank Capital Markets. Please go ahead, Jackson.

Speaker #3: Our next question comes from the of line Jackson Adder of KeyBanc Capital Markets . Please go ahead . Jackson .

Speaker #9: Great . Thank you . The first question , it's really nice to see the retention rates picking up . sounds And it like , you know , that was due to lower gross churn .

Jackson Ader: Great. Thank you. The first question, it's really nice to see the retention rates picking up. And it sounds like that was due to lower gross churn. But if I think about revenue growth slowing just a little bit, should we read into this to mean that maybe the expansions or the upsell of existing customers was more muted than it has been in the prior quarters?

Speaker #9: I think if the revenue growth is slowing just a little bit, should we read into this to mean that maybe the expansions or the upsell of existing customers was more muted than it has been in the prior quarters?

Speaker #9: you Thank .

Speaker #5: Hey , Jackson , it's an I'll take that . Yeah , I do think what we're with is the improvements pleased we saw in downgrade .

Anne Raimondi: Thank you. Hey, Jackson.

Dan Rogers: It's Anne. I'll take that. Yeah. I do think what we're pleased with is the improvements we saw in downgrade. And then, as Dan mentioned, seeing some good expansions in some of our large tech renewals. We really are investing in the multi-strategy, multi-product strategy approach. So in some cases, what we're seeing is that because we've got FSP and we've got AI Studio, what we're able to do is drive a flat or slightly uptick in renewal. But both of those are great for future retention and expansion. That's really where we've been making the investments, as well as on the monthly side. A large portion of our base is still monthly customers. That retention has been at a 12-month high. That's a lot of the work that we're doing both in customer support and in product experience.

It's Anne. I'll take that. Yeah. I do think what we're pleased with is the improvements we saw in downgrade. And then, as Dan mentioned, seeing some good expansions in some of our large tech renewals. We really are investing in the multi-strategy, multi-product strategy approach. So in some cases, what we're seeing is that because we've got FSP and we've got AI Studio, what we're able to do is drive a flat or slightly uptick in renewal. But both of those are great for future retention and expansion. That's really where we've been making the investments, as well as on the monthly side. A large portion of our base is still monthly customers. That retention has been at a 12-month high. That's a lot of the work that we're doing both in customer support and in product experience.

Speaker #5: Then, as Dan mentioned, we are seeing some good expansions in some of our large tech renewals. We are truly investing in the multistrategy, multiproduct strategy approach.

Speaker #5: So some in cases , what we're seeing is that because we've got FSP and we've got AI what studio , we're able to do is drive , you flat know , or slightly uptick in renewal .

Speaker #5: But both of those are great for future retention and expansion. And so that's really where we've been making the investments, as well as on the monthly side.

Speaker #5: So you know , a large portion of our base is still monthly customers . And that retention has been at a 12 month high .

Speaker #5: And so that's a lot of the work that we're doing both in customer support and in-product experience. So both of those levers, in terms of what we sell to larger customers, as well as continuing to make sure the monthly base is healthy, I think will ultimately lead to healthier retention.

Dan Rogers: So both of those levers in terms of what we can sell to larger customers, as well as continue to make sure the monthly base is healthy, I think will ultimately lead to healthier retention. Okay. All right. Got it. Thank you. And then a quick follow-up. Sonalee, it was this time a year ago, your first call with the company. And you said the goal, I can't remember exactly, that Asana could do both, right? You could both re-accelerate revenue and also expand operating cash flow margins. I think on the margin side, it's pretty clear what you were just talking about with Rob, absolutely delivered. But if we think about revenue acceleration coupled with that margin expansion, is that still doable? Is that still the goal, the expectation as we kind of head into 2027 or beyond? Yeah.

So both of those levers in terms of what we can sell to larger customers, as well as continue to make sure the monthly base is healthy, I think will ultimately lead to healthier retention.

Speaker #9: All right . Got it . Thank you . Okay . And then a quick follow up . So it this time a year ago .

Dan Rogers: Okay. All right. Got it. Thank you. And then a quick follow-up. Sonalee, it was this time a year ago, your first call with the company. And you said the goal, I can't remember exactly, that Asana could do both, right? You could both re-accelerate revenue and also expand operating cash flow margins. I think on the margin side, it's pretty clear what you were just talking about with Rob, absolutely delivered. But if we think about revenue acceleration coupled with that margin expansion, is that still doable? Is that still the goal, the expectation as we kind of head into 2027 or beyond? Yeah.

Speaker #9: Your first call with the company. You said you know the goal; I can't explain that exactly. Asana could do both, right?

Speaker #9: You could both reaccelerate revenue and also expand operating cash flow margins. I think on the margin side, it's like pretty clear what you were just talking about with Rob.

Speaker #9: Absolutely delivered . But if we think about revenue acceleration , coupled with that margin expansion , is that is that still doable ? still the Is that goal ?

Speaker #9: The expectation kind of as we head into 2027 or even beyond?

Speaker #2: Yeah . So without guiding to fiscal 27 , because , you know , I always do that in March . What I will say is that , you know , we are early innings on our new product strategy , our multi-product strategy .

Dan Rogers: So without guiding to fiscal 27, because I always do that in March, what I will say is that we are early innings on our new product strategy, our multi-product strategy. And I believe that AI Studio and AI Teammates are going to be the key unlock in terms of driving that growth re-acceleration. We, by no means, have given up on that. And it is absolutely this team's strategy to continue to do both. And I am strongly encouraged by what I saw on the NRR side. And if you think about NRR, if we can even drive it a couple of points, you're looking at a very, very different growth profile, a very, very different financial profile. And I didn't, when I put the comment in the prepared remarks about being at or near a bottom, I didn't put that in lightly.

Anne Raimondi: So without guiding to fiscal 27, because I always do that in March, what I will say is that we are early innings on our new product strategy, our multi-product strategy. And I believe that AI Studio and AI Teammates are going to be the key unlock in terms of driving that growth re-acceleration. We, by no means, have given up on that. And it is absolutely this team's strategy to continue to do both. And I am strongly encouraged by what I saw on the NRR side. And if you think about NRR, if we can even drive it a couple of points, you're looking at a very, very different growth profile, a very, very different financial profile. And I didn't, when I put the comment in the prepared remarks about being at or near a bottom, I didn't put that in lightly.

Speaker #2: And I believe that AI studio and AI team mates are going to be the key unlock in terms of driving that growth , acceleration .

Speaker #2: We by no means have given up on that . it is And absolutely this team's strategy to continue to do both . And , you I am know , strongly encouraged by what I saw on the Gnrh-r side and if you , you know , think about Gnr-r , if we can even drive it of a couple you're looking at a very , very different growth profile , a very , very different financial profile .

Speaker #2: And , you know , didn't . When , when I put the comment in the prepared remarks about being at or near a bottom , you know , I didn't put that in lightly .

Speaker #2: You know , giving me confidence what's data that I'm seeing is the underlying the Q3 trends . know , So , you second consecutive quarter of in quarter improvement , I don't know if you remember , but when I improve , I said , you know , saw the first quarter one quarter does not make a Well , trend .

Dan Rogers: What's giving me confidence is the data that I'm seeing underlying the Q3 trends. So second consecutive quarter of in-quarter improvement. I don't know if you remember, but when I saw the first quarter improve, I said, "One quarter does not make a trend." Well, two quarters certainly gives me a lot more confidence. Secondly, what a couple of us have called out on improvements in gross retention, that is across the board that we're seeing. And then the multi-product, it's early days. And I talked about the impact of AI Studio being small for this year. But as we look ahead and when I think about the contributors to our net bookings for fiscal 2027, AI Studio and AI teammates will play a much stronger role there. So you can count on us to be delivering both for you.

What's giving me confidence is the data that I'm seeing underlying the Q3 trends. So second consecutive quarter of in-quarter improvement. I don't know if you remember, but when I saw the first quarter improve, I said, "One quarter does not make a trend." Well, two quarters certainly gives me a lot more confidence. Secondly, what a couple of us have called out on improvements in gross retention, that is across the board that we're seeing. And then the multi-product, it's early days. And I talked about the impact of AI Studio being small for this year. But as we look ahead and when I think about the contributors to our net bookings for fiscal 2027, AI Studio and AI teammates will play a much stronger role there. So you can count on us to be delivering both for you.

Speaker #2: two quarters certainly gives me a lot more confidence . Secondly , you know , what a couple have called out on of us gross retention .

Speaker #2: That is across the board that we're seeing . And then , you know , the multi-product , it's it's early days . And I talked about the impact of AI studio being small for this year .

Speaker #2: But as we look ahead and when I think the about contributors to our net bookings for AI studio and fiscal 27 , AI will play teammates a stronger role .

Speaker #2: There . So you can you can count on count on us to to be delivering both for you . I'm going to hand over to Dan because I think have taken he wouldn't the job if he didn't feel like he could do both .

Speaker #6: Thanks , Sarah . Yeah , maybe I'll just add a little color and the color really is around . Look , number one , collaborative work management .

Dan Rogers: I'm going to hand over to Dan because I think he wouldn't have taken the job if he didn't feel like he could do both. Thanks, Anna. Yeah. Maybe I'll just add a little color. The color really is around, look, number one, collaborative work management. Our category is about to have its moment in the sun because of AI. CWM becomes the system of record for work, which means we've got the who, the what, the when, the where, the why, and the how of the work. That context is just great to make AI effective. That's exactly why we launched AI Studio and why we followed up this quarter with the beta launch of AI Teammates. Secondly, the PLG opportunity for us remains massive. Today, it's about 40% of our business.

I'm going to hand over to Dan because I think he wouldn't have taken the job if he didn't feel like he could do both. Thanks, Anna.

Dan Rogers: Yeah. Maybe I'll just add a little color. The color really is around, look, number one, collaborative work management. Our category is about to have its moment in the sun because of AI. CWM becomes the system of record for work, which means we've got the who, the what, the when, the where, the why, and the how of the work. That context is just great to make AI effective. That's exactly why we launched AI Studio and why we followed up this quarter with the beta launch of AI Teammates. Secondly, the PLG opportunity for us remains massive. Today, it's about 40% of our business.

Speaker #6: Our category is about to have its moment in the sun because of AI becomes the system of record for work , which means we've got the who , the what , the when , the where and the why and the how of the work and that context is just great to make AI effective .

Speaker #6: And that's exactly why we launched AI Studio, and why we followed up this quarter with the beta launch of AI Teammates.

Speaker #6: Secondly , the Plg opportunity for us remains massive . Today . It's about 40% of our business . And in an AI search , an LLM driven world , we can double down on those high performing channels with AI search and target our marketing really dollars towards higher propensity customers .

Dan Rogers: In an AI search and LLM-driven world, we can double down on those high-performing channels with AI search and really target our marketing dollars towards higher propensity customers. We're optimizing that trial experience, and we continue to help customers to reach value faster. CWM itself, this is number three, is a large and growing TAM. We have a recognized leadership position. But our work here isn't done. There's a huge runway for us to innovate and expand the surface where work gets done and deliver even more value to our customers. Fourth, and as Sona touched on, while we've made some progress in our go-to-market motion and efficiency, there's a lot more work to do.

In an AI search and LLM-driven world, we can double down on those high-performing channels with AI search and really target our marketing dollars towards higher propensity customers. We're optimizing that trial experience, and we continue to help customers to reach value faster. CWM itself, this is number three, is a large and growing TAM. We have a recognized leadership position. But our work here isn't done. There's a huge runway for us to innovate and expand the surface where work gets done and deliver even more value to our customers. Fourth, and as Sona touched on, while we've made some progress in our go-to-market motion and efficiency, there's a lot more work to do.

Speaker #6: we're So that optimizing experience , trial and we continue to help customers to reach value faster . QM . Itself , this is number three is a large and growing Tam .

Speaker #6: And we have a recognized leadership position. But our work here isn't done. There's a huge runway for us to innovate and expand the surface where work gets done and deliver even more value to our customers.

Speaker #6: And fourth , and as Sona touched on , whilst we've made some progress in our go to market motion and lot more efficiency , there's a work to do .

Speaker #6: So I'll be focusing on everything from persona based selling , tightening or execution and customer success improving productivity through higher propensity leads and routing across all of our segments to unlock the potential in our go to market motions .

Dan Rogers: So I'll be focusing on everything from persona-based selling, tightening our execution and customer success, improving productivity through higher propensity leads and routing across all of our segments to unlock the potential in our go-to-market motions. And finally, for me personally, my style is really about injecting tempo, which is about creating velocity for the organization, which is around faster decision-making, faster learning cycles, getting to beta faster, and strengthening the operating rhythm of the company. So all of these will lead to an improvement in innovation and execution velocity. Question comes from the line of Patrick Walravens of Citizens Bank. Please go ahead, Patrick. Oh, great. Thank you. I'm going to change my question, Dan, because what you just said was super interesting. So I love the idea of increasing the velocity. How do you actually do it? How do you get everyone to run faster?

So I'll be focusing on everything from persona-based selling, tightening our execution and customer success, improving productivity through higher propensity leads and routing across all of our segments to unlock the potential in our go-to-market motions. And finally, for me personally, my style is really about injecting tempo, which is about creating velocity for the organization, which is around faster decision-making, faster learning cycles, getting to beta faster, and strengthening the operating rhythm of the company. So all of these will lead to an improvement in innovation and execution velocity.

Speaker #6: And finally , for me you know , my style personally , is really about injecting tempo , which is about creating velocity for the organization , which is around faster decision making , faster learning cycles , getting to beta faster and strengthening the operating rhythm of the of the company .

Speaker #6: So all of these will lead to an improvement in invasion and execution velocity.

Operator: Question comes from the line of Patrick Walravens of Citizens Bank. Please go ahead, Patrick.

Speaker #3: Comes from the line of Patrick Walravens of Citizens Bank. Please go ahead, Patrick.

Speaker #10: Oh , great . Thank you . I'm going to change my question , Dan , because what you just said was super interesting .

Patrick Walravens: Oh, great. Thank you. I'm going to change my question, Dan, because what you just said was super interesting. So I love the idea of increasing the velocity. How do you actually do it? How do you get everyone to run faster?

Speaker #10: So I love the idea of increasing the velocity. How do you actually do it? Like, how do you get everyone to run faster?

Speaker #10: And you know , we have we have all the code red stuff going on with open AI and Google right now . And so many people are are commenting that , you know , just telling everyone to run faster doesn't mean it's going to work .

Dan Rogers: We have all the code red stuff going on with OpenAI and Google right now. So many people are commenting that just telling everyone to run faster doesn't mean it's going to work. Sometimes, in fact, it backfires. So how do you do it? How do you increase the velocity? Yeah. I'd say, fortunately, my prior experiences really were a training ground for velocity, high-tempo organizations executing at scale. So it's how I drive myself, but also the organizations. The first piece is around decision-making and ensuring that you have a tight way to make decisions quickly with the right people involved and the right information that you need. The second is really a mindset or an operating principle around getting things to beta.

We have all the code red stuff going on with OpenAI and Google right now. So many people are commenting that just telling everyone to run faster doesn't mean it's going to work. Sometimes, in fact, it backfires. So how do you do it? How do you increase the velocity?

Speaker #10: And sometimes , in fact , it backfires . So how do you do it ? How do you increase the velocity ?

Speaker #6: Yeah , I'd say , you know , my fortunately , my prior experiences really were a training ground for velocity . You know , high tempo organizations executing at scale .

Dan Rogers: Yeah. I'd say, fortunately, my prior experiences really were a training ground for velocity, high-tempo organizations executing at scale. So it's how I drive myself, but also the organizations. The first piece is around decision-making and ensuring that you have a tight way to make decisions quickly with the right people involved and the right information that you need. The second is really a mindset or an operating principle around getting things to beta.

Speaker #6: And so how I it's drive myself , but also the organizations , the first piece is around decision making . And , you know , ensuring that you have a tight way to make decisions quickly with the right people involved and the right information that you need .

Speaker #6: The second is really a mindset or operating principle around getting things to beta. That is about launching new products and new capabilities in the knowledge that you're going to quickly iterate on them afterwards.

Dan Rogers: That is about launching new products, launching new capabilities in the knowledge that you're going to quickly iterate on them afterwards. So it reduces the fear of kind of launching because you know that afterwards you're going to rapidly iterate. If you think about our AI Studio self-service experience, this gives us a massive set of data points to continue to improve that product, get it right to the middle of the bell curve. Then having the right operating rhythm so that everybody understands exactly what needs to be done by when and really kind of pushing the pace and the expectations around that with all of our leaders. Those are some of the things that we can kind of inculcate into the culture. Great. Thanks. And Sonalee, if I can just ask a follow-up.

That is about launching new products, launching new capabilities in the knowledge that you're going to quickly iterate on them afterwards. So it reduces the fear of kind of launching because you know that afterwards you're going to rapidly iterate. If you think about our AI Studio self-service experience, this gives us a massive set of data points to continue to improve that product, get it right to the middle of the bell curve. Then having the right operating rhythm so that everybody understands exactly what needs to be done by when and really kind of pushing the pace and the expectations around that with all of our leaders. Those are some of the things that we can kind of inculcate into the culture.

Speaker #6: And so it reduces the fear of kind of launching, because you know that afterwards you're going to rapidly iterate. If you think about our AI Studio self-service experience, this gives us a massive set of data points to continue to improve that product.

Speaker #6: You know , get it middle of the right to the bell curve and then having the right operating rhythm so that everybody understands exactly what needs to be done by when .

Speaker #6: We're really kind of pushing the pace and the expectations around that with all of our leaders. Those are some of the things that we can kind of inculcate into the culture.

Speaker #10: Great , thanks . And just I can ask a follow up . I mean , not with the time frame on it , but you know , when you talk about multi-year margin expansion and you know , this , this company is going to come up on $1 billion pretty quick .

Patrick Walravens: Great. Thanks. And Sonalee, if I can just ask a follow-up.

Dan Rogers: I mean, not with the time frame on it, but when you talk about multi-year margin expansion and this company is going to come up on a billion dollars pretty quick, where can the margins be? I mean, can they be in the 20s? Where can they be? Yeah. So when I think about the margin expansion that we've been driving thus far, it all starts with that 90% gross margin or 89% to 90% gross margin and the inherent operating leverage there. So think about it. If we continue growing, even if I'm not going to guide, but just even if you use consensus, just if we kept expenses fairly flat-ish in many areas, you would still get consistent several percentage points of margin improvement every single quarter on a sequential basis.

I mean, not with the time frame on it, but when you talk about multi-year margin expansion and this company is going to come up on a billion dollars pretty quick, where can the margins be? I mean, can they be in the 20s? Where can they be?

Speaker #10: can the Where margins be ? I mean , can they be in the 20s ? Where can they be ?

Speaker #2: Yeah. So when I think about the expansion that margin we've been driving thus far, you know, it all starts with that 90% gross margin or 89% to 90% gross margin.

Sonalee Parekh: Yeah. So when I think about the margin expansion that we've been driving thus far, it all starts with that 90% gross margin or 89% to 90% gross margin and the inherent operating leverage there. So think about it. If we continue growing, even if I'm not going to guide, but just even if you use consensus, just if we kept expenses fairly flat-ish in many areas, you would still get consistent several percentage points of margin improvement every single quarter on a sequential basis.

Speaker #2: And the inherent operating leverage there . So it . If we think about growing , continue even if like , I'm not going to guide , but it just even if you use consensus , you know , just if we kept expenses , you know , fairly flattish in , in many areas , you still would get know , consistent .

Speaker #2: several percentage You points of margin improvement . Every single quarter on a sequential basis . So there is no reason in my mind that we can't , you know , eventually be aspire to among the best in class in terms of enterprise , SaaS , software companies on margin .

Dan Rogers: So there is no reason in my mind that we can't eventually aspire to be among the best in class in terms of enterprise-sized software companies on margin. I always think we're the envy of many software companies with the gross margins that we have today. And even if AI Studio and AI Teammates take off the way we hope they do and there's a little bit of pressure on the gross margin, there is still a ton of runway. So something with a two in front of it is certainly within the realm of possibilities. Our next question comes from Arsenije Matovic of Wolfe Research. Please go ahead, Arsenije. Apologies. Arsenije, your line is now open. Go ahead. Hey. So sorry, can you hear me? Yes, sir. All right. So just thanks again for the question.

So there is no reason in my mind that we can't eventually aspire to be among the best in class in terms of enterprise-sized software companies on margin. I always think we're the envy of many software companies with the gross margins that we have today. And even if AI Studio and AI Teammates take off the way we hope they do and there's a little bit of pressure on the gross margin, there is still a ton of runway. So something with a two in front of it is certainly within the realm of possibilities.

Speaker #2: I always think , you know , we're the envy of of many software companies with the gross margins that we have today . And , you know , even if AI studio and AI teammates take off the way we hope they do , and there's , you know , a little bit of pressure on the gross margin , there is still a ton of runway .

Speaker #2: So, something with a two in front of it is certainly within the realm of possibilities.

Speaker #3: Next question comes from our senior matovic of Wolfe Research . Please go ahead . Asana, Inc. . Apologies , I said in your line is now open .

Operator: Our next question comes from Arsenije Matovic of Wolfe Research. Please go ahead, Arsenije. Apologies. Arsenije, your line is now open. Go ahead.

Speaker #3: Go ahead .

Speaker #11: Hey. So sorry. Can you hear me?

Speaker #3: Yes .

Arsenije Matovic: Hey. So sorry, can you hear me? Yes, sir. All right. So just thanks again for the question.

Speaker #11: Sir . All right , so just thanks again for the question . How did the large tech renewals in three Q trend versus your expectations given you know that heavier renewal volume in four Q are you more in expansion and confident retention in four Q than you were heading three Q into and is that also now the reflected in updated Just a follow guidance ?

Dan Rogers: How did the large tech renewals in Q3 trend versus your expectations, given that heavier renewal volume in Q4? Are you more confident in expansion and retention in Q4 than you were heading into Q3? And is that also now reflected in the updated guidance? Just a follow-up. Yeah. I'll take the Q3 renewals and what we're seeing in Q4. So they did perform better than we expected. We were very pleased by that. I think that's a combination of operational rigor on that, as well as more products to sell. I think we're bringing that same approach into Q4. In Q4, while we have a higher volume of tech renewals, they're more mid-sized compared to the larger ones that we had in Q3.

How did the large tech renewals in Q3 trend versus your expectations, given that heavier renewal volume in Q4? Are you more confident in expansion and retention in Q4 than you were heading into Q3? And is that also now reflected in the updated guidance? Just a follow-up.

Speaker #11: up .

Speaker #5: Yeah , I'll take the Q3 renewals . And what we're seeing in Q4 . So they did perform better than we expected . And we were very pleased by that .

Anne Raimondi: Yeah. I'll take the Q3 renewals and what we're seeing in Q4. So they did perform better than we expected. We were very pleased by that. I think that's a combination of operational rigor on that, as well as more products to sell. I think we're bringing that same approach into Q4. In Q4, while we have a higher volume of tech renewals, they're more mid-sized compared to the larger ones that we had in Q3.

Speaker #5: I think that's a combination of operational rigor on that, as well as more products to sell. I think we're bringing that same approach into Q4.

Speaker #5: While we have higher a volume of tech renewals , they're more midsize compared to the larger ones that we had in Q3 . So continuing to make sure we bring that operational discipline as well as now with the launch of teammates , you know , even more to sell and more conversations to have .

Dan Rogers: So, continuing to make sure we bring that operational discipline as well as now with the launch of teammates, even more to sell and more conversations to have. Yeah. And I'll just add to that. Just on the guidance side of things, when we look into Q4, even though we do have a large renewal base in Q4, as is typical, I would say I am more confident going into Q4 versus where I was when I guided on Q3. Got it. And just to follow up on that, you did mention the four factors supporting that confidence as well, but still embedding conservatism on your business. So I guess we just kind of unpack what specifically is supporting confidence in passing through, I think, double the beat in Q3, even with that slightly lighter FX tailwind than you expected entering last quarter. Yeah.

So, continuing to make sure we bring that operational discipline as well as now with the launch of teammates, even more to sell and more conversations to have.

Speaker #2: Yeah . And I'll just add to that , just on the guidance side of things , when we look into Q4 , even though we do have a large renewal base in Q4 , as is typical , I would say I am more confident going into Q4 versus where I was guided when I on Q3 .

Sonalee Parekh: Yeah. And I'll just add to that. Just on the guidance side of things, when we look into Q4, even though we do have a large renewal base in Q4, as is typical, I would say I am more confident going into Q4 versus where I was when I guided on Q3.

Speaker #2: .

Speaker #11: Just to follow up on that, you did mention the four factors supporting that confidence as well, but still embedding conservatism on new business.

Arsenije Matovic: Got it. And just to follow up on that, you did mention the four factors supporting that confidence as well, but still embedding conservatism on your business. So I guess we just kind of unpack what specifically is supporting confidence in passing through, I think, double the beat in Q3, even with that slightly lighter FX tailwind than you expected entering last quarter.

Speaker #11: So I guess we just kind of unpack what specifically is supporting confidence in passing through. I think double the beat in Q3.

Speaker #11: Q, even with that slightly lighter FX tailwind than you expected entering last quarter?

Speaker #2: Yeah . So net retention is a big factor there . So again , you know , it's two consecutive quarters now of in quarter net retention improvement .

Sonalee Parekh: Yeah.

Dan Rogers: So net retention is a big factor there. So again, it's two consecutive quarters now of in-quarter net retention improvement, and then the gross retention improvement across all cohorts. And importantly, the 100,000-plus cohorts saw the largest improvement among them. So that was even with the headwind from that large customer downgrade that we called out in Q1, but actually impacted from Q2 and will continue to impact for the next couple of quarters. So the fact that in Q3, we managed to improve in spite of that, that added to my confidence levels. And then the multi-product strategy, and specifically AI Studio and the foundational service plans or FSPs, those are actively driving expansion and helping to mitigate downgrades and certainly have been extremely helpful in renewal conversations.

So net retention is a big factor there. So again, it's two consecutive quarters now of in-quarter net retention improvement, and then the gross retention improvement across all cohorts. And importantly, the 100,000-plus cohorts saw the largest improvement among them. So that was even with the headwind from that large customer downgrade that we called out in Q1, but actually impacted from Q2 and will continue to impact for the next couple of quarters. So the fact that in Q3, we managed to improve in spite of that, that added to my confidence levels. And then the multi-product strategy, and specifically AI Studio and the foundational service plans or FSPs, those are actively driving expansion and helping to mitigate downgrades and certainly have been extremely helpful in renewal conversations.

Speaker #2: And then the gross retention improvement across all cohorts . And importantly the 100,000 plus cohort saw the largest improvement among them . So that was even with the headwind from that large customer downgrade that we called out in Q1 .

Speaker #2: But actually impacted from Q2 and will continue to impact for the next couple of quarters . So the fact that , you know , in Q3 , we managed to improve in spite of that , you know , that that added to my confidence levels .

Speaker #2: And know , the then , you multi-product strategy and specifically AI studio and the foundational service plans , or fsps , those are actively driving expansion and helping to mitigate downgrades and certainly have been extremely helpful in renewal conversations .

Speaker #2: And then , you know , there are the other items that I called out earlier , but , you know , we're seeing strength in other areas of our business , including new business .

Dan Rogers: Then there are the other items that I called out earlier, but we're seeing strength in other areas of our business, including new business. So the enterprise strength and that mid-market cohort, that $50,000 to $100,000, we don't break it out, but what I can tell you is what I saw this quarter was a lot of strength there. International, I continue to expect to, it's been strong for the last two quarters, expect continued strength. And then even in the enterprise side of the house, we saw a 15% year-over-year increase in customer spending of $100,000 or more. And if you couple that with stable demand trends and improvement in conversion, which leads to productivity gains, you end up with a, or I ended up with a more confident picture as I look towards Q4 in the full year. Thank you.

Then there are the other items that I called out earlier, but we're seeing strength in other areas of our business, including new business. So the enterprise strength and that mid-market cohort, that $50,000 to $100,000, we don't break it out, but what I can tell you is what I saw this quarter was a lot of strength there. International, I continue to expect to, it's been strong for the last two quarters, expect continued strength. And then even in the enterprise side of the house, we saw a 15% year-over-year increase in customer spending of $100,000 or more. And if you couple that with stable demand trends and improvement in conversion, which leads to productivity gains, you end up with a, or I ended up with a more confident picture as I look towards Q4 in the full year.

Speaker #2: So , you know , the enterprise strength and and that mid mid-market cohort , that 50 to 100,000 , you know , we don't we don't break it out .

Speaker #2: But what I can tell you is that what I saw this quarter was a lot of strength. There continues to be international growth. I expect, you know, it's been strong for the last two quarters.

Speaker #2: Expect continued strength and then even in the enterprise side of the house , we saw , you know , 15% year over year increase in customer spending , $100,000 or more .

Speaker #2: And if you couple that with stable demand trends improvement and in conversion, which leads to productivity gains, you end up with a or.

Speaker #2: I ended up with a more confident picture as I look towards Q4 in the full year.

Speaker #3: Thank you. I would now like to turn the conference back to Eva Leung for closing remarks. Madam.

Dan Rogers: Thank you.

Speaker #12: Thank you, everyone, for joining the call. On the road, we'll be attending the UBS and Barclays conference this and next week.

Dan Rogers: I would now like to turn the conference back to Eva Leung for closing remarks. Madam? Thank you, everyone, for joining the call. We'll be on the road attending the UBS and Barclays conferences this and next week. Looking forward to seeing all of you. As always, if you have any questions, please reach out to me at ir@asana.com. Thank you very much. And this concludes today's conference call. Thank you for participating. You may now disconnect.

I would now like to turn the conference back to Eva Leung for closing remarks. Madam?

Eva Leung: Thank you, everyone, for joining the call. We'll be on the road attending the UBS and Barclays conferences this and next week. Looking forward to seeing all of you. As always, if you have any questions, please reach out to me at ir@asana.com. Thank you very much. And this concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker #12: Looking forward to seeing all of you . As always , if you have any questions , please reach at out to me IR at Asana, Inc. .

Speaker #12: you very much Thank .

Q3 2026 Asana Inc Earnings Call

Request a DemoDemo

ASAN

Asana

Earnings