US ▾
ASAN
Earnings call · Jul 2026 (Q2 FY27)

Asana Q2 FY27 earnings call ASAN

Sep 3, 2026 Source

Executive summary

Asana Q2 FY27 — AI Products Drive Growth and Expansion

Asana delivered a solid Q2 FY27, exceeding revenue and profitability expectations, driven by improving core business health and strong AI product momentum. The company is transitioning to Agentic Work Management (AWM), embedding AI capabilities into core offerings to drive deeper adoption and consumption-based growth, while navigating near-term revenue recognition impacts and PLG headwinds. This strategic shift aims to expand market reach and foster long-term operating leverage.

Highlights

5

  • Revenue was $216.4 million, up 10% year-over-year, exceeding the high end of guidance.

  • Overall Net Retention Rate (NRR) improved to 97% from 96%, with core customer NRR at 98% and large customer NRR (>$100K spend) at 98%.

  • AI products (AI Studio and AI Teammate) drove 25% of net new ARR, up from 17% last quarter, exceeding the 15% full-year target.

  • U.S. revenue grew 10% year-over-year, returning to double-digit growth for the first time in over 2 years.

  • Non-GAAP operating margin expanded by approximately 300 basis points year-over-year to 10% in Q2.

Concerns

3

  • PLG (Product-Led Growth) headwind continues to impact revenue growth, estimated at approximately 100 basis points in Q3 and 150 basis points in Q4.

  • Gross margin declined by approximately 120 basis points from last quarter to 87%, primarily due to higher AI infrastructure costs and the Stack AI acquisition.

  • Transition to Agentic Work Management (AWM) and consumption-based revenue recognition creates a $1.2 million revenue timing headwind in the second half of FY27.

Guidance & targets

CategoryTargetConfidence
Revenue
$217M to $219M
high materiality
High
Revenue growth
8% to 9% year-over-year
high materiality
High
Non-GAAP operating income
$18 million to $19 million
medium materiality
High
Non-GAAP operating margin
8% to 9%
medium materiality
High
Non-GAAP net income per share
$0.08
medium materiality
High
Revenue
$858.5 million to $863.5 million
high materiality
High
Revenue growth
9% year-over-year at the midpoint
high materiality
High
Non-GAAP operating income
$84.5 million to $86.5 million
high materiality
High
Non-GAAP operating margin
approximately 10%
high materiality
High
Non-GAAP net income per share
$0.37
medium materiality
High
AI Products contribution to net new ARR
approximately 20%
high materiality
Medium
Revenue timing impact from AWM packaging transition
$1.2 million headwind
medium materiality
High
Gross margin
mid-80s
medium materiality
High
PLG headwind to revenue growth
approximately 100 basis points
high materiality
High
PLG headwind to revenue growth
approximately 150 basis points
high materiality
High
Incremental operating expense from Stack AI
approximately 1 percentage point of revenue
medium materiality
High
Incremental AWM and agentic application launch investment
approximately $3 million
low materiality
High
Financial contribution from new applications (ACM, ASM, Command)
more meaningful as a key growth driver
high materiality
Medium

ASAN operating KPIs by quarter

ASAN operating KPIs stated on its earnings calls, by fiscal quarter
KPI Apr 2026 Q1 FY27This call Jul 2026 Q2 FY27Change vs prior quarter
Customers above an annual spend threshold Spending $5,000 or more
26.103K We have 26,103 core customers, which we define as customers spending $5,000 or more on an annualized basis. Source transcript
26.778K We have 26,778 core customers which we define as customers spending $5,000 or more on an annualized basis. Source transcript
+2.6%
Customers above an annual spend threshold Spending $100,000 or more
817 We have 817 customers spending $100,000 or more on an annualized basis, and this customer cohort grew 12% year-over-year. Source transcript
890 We now have 890 customers spending $100,000 or more on an annualized basis. Source transcript
+8.9%
Remaining performance obligation (RPO)
$518.1M Our remaining performance obligations, or RPO, were $518.1 million, up 23% year-over-year, and current RPO grew 18% year-over-year. Source transcript
$522M Our remaining performance obligations, or RPO, was $522 million, and current RPO grew 10% year-over-year. Source transcript
+0.8%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Remaining Performance Obligations (RPO) $522M end of Q2 FY27
Current RPO 10% YoY growth end of Q2 FY27

Represents 81% of total RPO and will be recognized over the next 12 months.

Current RPO (excluding large multiyear contract from Q2 FY26) approximately 11% YoY growth Q2 FY27

accelerated from 8% last quarter

Underlying RPO was stronger than reported growth rates suggest due to comparison against a large multiyear contract in Q2 FY26.

Total RPO (excluding large multiyear contract from Q2 FY26) approximately 12% YoY growth Q2 FY27

accelerated from 7% last quarter

Underlying RPO was stronger than reported growth rates suggest due to comparison against a large multiyear contract in Q2 FY26.

Product announcements

ProductTypeDetails
Agentic Work Management (AWM)launch
Asana Client Management (ACM)expansion
Asana Service Management (ASM)expansion
Asana Commandexpansion
Stack AI integrationupdate

Deals & partnerships

Stack AI Acquisition of Stack AI

Acquisition of Stack AI, which has a lower gross margin profile given its subscale. Integration aims to provide a more complete solution for enterprise AI transformation initiatives.

Leading AI lab Expansion of existing relationship

Expansion included adding seats, in addition to the expansion with AI teammates mentioned last quarter.

Global streaming service Expansion of existing relationship

Expansion included both seats and AI Studio.

Darktrace New logo win

Notable new logo win for EMEA team.

Leading U.K.-based financial service company New logo win

Notable new logo win for EMEA team.

Delivery Hero Expansion of existing relationship

Expanded relationship with Asana, including AI products.

Fortune 500 media company Largest AI expansion deal multi-million dollar 3-year

Spanning AI Studio and AI Teammates. Played a key role in expansion despite customer operating with a smaller workforce.

Indeed Use of AI products for automation

Deployed AI Studio to automate project discovery and technical scope. Piloting AI teammates as an autonomous brand auditor across 60+ countries and 28 languages.

Watchman Use of AI teammates for operations

UAE-based Textile Care business using AI teammates to identify their customer support and returns process, with teammates handling research, risk review, claim checks, and customer messaging.

Australia's largest retailers Early wins with Asana and Stack AI

Early validation of the opportunity to bring Asana and Stack AI together for larger, more complex enterprise workflows.

Risks & headwinds

PLG (Product-Led Growth) headwind Q3 FY27, Q4 FY27

Approximately 100 bps pressure to revenue growth in Q3 FY27, increasing to 150 bps in Q4 FY27.

Mitigation:Focusing acquisition spend on high-LTV ICP (Ideal Customer Profile) customers; leveraging AWM and ACM in the PLG funnel to improve conversion and retention.

Gross margin pressure from AI investments Q3 FY27, Q4 FY27

Approximately 150 bps across Q3 and Q4 FY27.

Mitigation:Higher AI infrastructure and compute costs, and mix shift to lower-margin AI products. Mitigation includes optimization and routing efficiencies in AI product delivery, and rationalizing other cost bases to maintain overall margin expansion.

Revenue timing impact from AWM transition H2 FY27

$1.2 million headwind in H2 FY27 (roughly split between Q3 and Q4).

Mitigation:Shift from ratable to consumption-based revenue recognition for new AI teammate sales and AWM packaging changes. This is a timing impact only, with no change to customer economics, ARR, bookings, billings, deferred revenue, RPO, or cash flow, and is expected to normalize in FY28.

Delay in consumption package purchases Q3 FY27, Q4 FY27

May delay some consumption package purchases by a matter of months.

Mitigation:Seeding every customer with AI teammates and Dash starting in mid-September. This is factored into the prudent FY27 AI Products net new ARR target of 20%.

What to watch in Q3 FY27

PLG Headwind Impact

Q3 FY27, Q4 FY27, and beyond into FY28
Current ~100 bps revenue pressure in Q3, ~150 bps in Q4 FY27
Target Reduction in headwind, or stabilization

Why it matters

Significant impact on overall revenue growth and NRR, especially in the sub-$5K customer base.

The PLG headwind we did this last quarter builds throughout the year the impact of lower PLG bookings compounds into the revenue base each quarter. So the drag on reported revenue growth increases even if the underlying self-serve trend does not deteriorate further. That pressure comes as several of our underlying growth acceleration levers are improving.

Q&A highlights

How will the right AI teammate surface to users in AWM without requiring manual discovery, and can you provide an example?

Dan Rogers explained that AWM aims to embed AI directly into the user experience. The AI Chief of Staff, Dash, will suggest relevant teammates, and input nudges will recommend pre-built teammates based on task type and work graph history. This addresses the discovery hurdle for agents in enterprise AI, making them more accessible and integrated into workflows.

“You said, rather than having to find the right agent, the right teammate can surface based on what the customer is trying to accomplish. That sounds like a very good idea to me. How is that going to work and maybe you could share a simple example of a teammate surfacing to help the user?”

asked by Patrick Walravens · answered by Daniel Rogers

2 min read 5 chapters

Detailed narrative

Core Business Health and Growth Acceleration

Asana's core business is demonstrating improved health, with overall Net Retention Rate (NRR) rising to 97% and NRR for large customers (spending over $100,000) reaching 98%. The technology sector delivered its second consecutive quarter of year-over-year growth, and U.S. revenue expanded by 10% year-over-year, marking its first double-digit growth in over two years. This acceleration is driven by stronger bookings, improved retention within tech customers, increasing AI product adoption, and successful new logo acquisition.

AI Product Momentum and Monetization

AI Studio and AI Teammate are emerging as a new growth vector, contributing 25% of net new ARR, surpassing the full-year target of 15%. Customers adopting these AI products exhibit deeper engagement, better retention, and faster expansion. A notable 3-year, multi-million dollar AI expansion deal with a Fortune 500 media company highlighted how AI products can effectively offset traditional seat contraction and drive overall expansion through usage and outcome-based value.

Agentic Work Management (AWM) Launch

Asana is set to launch Agentic Work Management (AWM) in mid-September, integrating AI Teammates (including over 30 prebuilt options), AI Studio (for no-code workflow automation), and Asana Dash (an AI chief of staff) directly into every paid package tier. This strategic move aims to embed AI capabilities deeply into business-critical workflows, simplifying adoption and fostering consumption-based revenue. The pricing model is structured around 'requests' to ensure predictability and align with customer value, with Asana managing the underlying AI model optimization.

New Application Expansion (ACM, ASM, Command)

Asana is expanding its market reach with new applications: Asana Client Management (ACM), Asana Service Management (ASM), and Asana Command. These purpose-built solutions leverage Asana's existing enterprise work graph to orchestrate humans, AI agents, and systems across specialized workflows such as client delivery, service delivery, and product development. These applications target new buying centers and represent significant opportunities for Total Addressable Market (TAM) expansion.

Financial Model Transition and Headwinds

The transition to AWM and consumption-based revenue recognition will result in a $1.2 million revenue timing headwind in the second half of FY27 and approximately 150 basis points of gross margin pressure in Q3 and Q4, primarily due to costs incurred ahead of consumption-based revenue. Additionally, Product-Led Growth (PLG) headwinds continue to impact revenue growth, estimated at 100-150 basis points in the second half. The company is strategically focusing acquisition spend on high-Lifetime Value (LTV) Ideal Customer Profile (ICP) customers to improve future NRR.

AI-generated summary of the company's earnings call. Not investment advice.