Q1 2026 Asana Inc Earnings Call Transcript
Key Points
- Asana Inc (ASAN) achieved non-GAAP profitability for the first time in Q1 fiscal year 2026, marking a significant milestone.
- AI Studio reached general availability and surpassed $1 million in ARR, demonstrating strong early momentum.
- Total revenues increased by 9% year-over-year, exceeding the top end of guidance.
- Non-tech verticals grew faster than overall growth, with manufacturing, energy, media, entertainment, and financial services showing strong performance.
- A landmark $100 million-plus contract renewal with one of the largest employers in the world highlights Asana's enterprise capabilities.
- The $100 million-plus renewal, while significant, resulted in a modest ACV downgrade, impacting net retention rates.
- There is increased buyer scrutiny and elongation in decision-making processes, particularly in enterprise and tech verticals.
- Net retention rate (NRR) is expected to be pressured in Q2 due to downgrade pressures in enterprise and middle market segments.
- The macroeconomic environment presents risks, with potential for elongated sales cycles and increased budget scrutiny.
- Despite strong new business momentum, downgrade pressures and macroeconomic risks may limit the reflection of growth in overall revenue.
I would now like to hand the call over to Eva Leung, Head of Investor Relations. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Asana's first quarter fiscal year 2026. With me on today's call are Dustin Moskovitz, Asana Co-Founder and 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 expected release and benefits of our product offerings, including AI studio and our expectation for revenue to be generated by AI studio or retention and expansion opportunities, our expectation for our financial outlook including our revised full year guidance, strategic plans and our market position and growth opportunities and our capital allocation strategy, including our stock repurchase programs.
Forward-looking statements involve risks, uncertainties and assumptions that may
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