Asana (ASAN) Fiscal Q2 2027 Earnings Call: AI Drives 25% of Net New ARR
Source Tradingkey
Key Takeaways
- Fiscal Q2 2027 revenue increased 10% year over year to $216.4 million, above the high end of Asana’s guidance. StackAI contributed approximately 50 basis points to reported growth.
- Non-GAAP operating margin reached 10%, up approximately 300 basis points year over year. Adjusted free cash flow was $42.3 million, representing a 20% margin.
- Overall dollar-based net retention rose to 97%. Net retention was 98% for both Core customers and customers spending at least $100,000 annually.
- AI Studio and AI Teammates generated approximately 25% of net new ARR, up from 17% in the prior quarter. More than 25% of customers spending at least $100,000 have purchased one or both products.
- Asana will begin moving new customers, self-service customers and sales-led renewals to Agentic Work Management in mid-September, embedding AI Teammates and Asana Dash into paid packages.
- Management expects fiscal 2027 revenue of $858.5 million to $863.5 million and a non-GAAP operating margin of approximately 10%. The outlook includes a $1.2 million revenue-recognition timing headwind from the transition toward consumption-based AI pricing.
Core Financial Results
| Metric | Fiscal Q2 2027 result | Change or context |
|---|---|---|
| Revenue | $216.4 million | Up 10% year over year |
| Core customers | 26,778 | Customers spending at least $5,000 annually |
| Revenue from Core customers | 77% of total revenue | Up 11% year over year |
| Customers spending at least $100,000 | 890 | Up 16% year over year |
| Overall dollar-based NRR | 97% | Improved from 96% |
| Core customer NRR | 98% | Improved across reported cohorts |
| $100,000-plus customer NRR | 98% | Up from 96% |
| Non-GAAP gross margin | 87% | Down approximately 120 basis points sequentially |
| Non-GAAP operating margin | 10% | Expanded approximately 300 basis points year over year |
| Non-GAAP net income | $23.8 million | $0.10 per diluted share |
| Adjusted free cash flow | $42.3 million | 20% margin; benefited by about $5 million from stronger collections |
| Cash, cash equivalents and marketable securities | Approximately $340 million | At quarter-end |
| Remaining performance obligations | $522 million | Current RPO grew 10% year over year |
| Deferred revenue | $350.7 million | Up 12% year over year |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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