Asana Inc at Bank of America Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mike Funk - BofA Securities, Inc. - Analyst : Great. And then just some more details here quickly. I think you said GA later in 2024 is that the expectation for timing?

Question: Mike Funk - BofA Securities, Inc. - Analyst : Okay. And I'm sure you're deep in the weeds on this, but it's a topic investors care deeply about is pricing and how you're thinking about pricing or if you haven't settled yet at least what different iterations of pricing you might be considering?

Question: Mike Funk - BofA Securities, Inc. - Analyst : Okay. That makes sense. And I'm sure also very near and dear to your heart is thinking about managing the cost and then the margin impact of rolling out AI and obviously the compute required for that. So how are you thinking about balancing that? And Tim, you know that the drive forward with obviously, R&D, new development, new product, AI functionality versus continuing to improve margin.

Question: Mike Funk - BofA Securities, Inc. - Analyst : from from Okay. And I want to shift the conversation a bit. I will leave some time at the end for any investors who weren't able to attend the event that you may have more questions about the release on the AI Teammates but I wanted to shift, It's a common question we're asking across all the presentation. But, I think, very topical for Asana, and that's on the macro and one thing that I have noticed that investors have noticed is the uneven performance and commentary from CWM companies when talking about the macro impact. And notably I think Asana, your release said that you weren't necessarily seen a lot of negative or pressure from the macro. Very positive results relative to some peers. So what is the macro environment today versus 6 or 12 months ago? And what do you think is differentiating Asana in that macro environment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 8:20PM, ASAN.N - Asana Inc at Bank of America Global Technology Conference

Question: Mike Funk - BofA Securities, Inc. - Analyst : Did you say flat quarter-over-quarter there last quarter and I know you said, you know, this coming quarter will be --

Question: Mike Funk - BofA Securities, Inc. - Analyst : Okay.

Question: Mike Funk - BofA Securities, Inc. - Analyst : Okay. And then just carry that conversation on I think you also talked about an inflection in revenue revenue growth by fourth-quarter?

Question: Mike Funk - BofA Securities, Inc. - Analyst : I think a lot of other questions that I received are have to do with what gives you that degree of confidence and what breadcrumbs can we follow? What data points can we look at? How do we as outsiders not seen the same granular data that you have internally to give you confidence? What can we look at to give us greater confidence in that inflection? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 8:20PM, ASAN.N - Asana Inc at Bank of America Global Technology Conference

Question: Mike Funk - BofA Securities, Inc. - Analyst : In for a roadmap for us, then looking at media and Japan and the improvement in rep productivity that we saw over there can you give us any indication of how that slope progressed, the rep productivity that we can then overlay with the Americas to at least predict that rep productivity?

Question: Mike Funk - BofA Securities, Inc. - Analyst : Can you scale where we are today versus 21, 22 rep productivity. Are we 20% below that, 10% below that? All good indicators for us to get more confidence in that back half an inflection?

Question: Mike Funk - BofA Securities, Inc. - Analyst : Okay. But trending back to that level or is that a level that can't be reached because 21, --- (multiple speakers) REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 8:20PM, ASAN.N - Asana Inc at Bank of America Global Technology Conference

Question: Mike Funk - BofA Securities, Inc. - Analyst : Okay.

Question: Mike Funk - BofA Securities, Inc. - Analyst : I think something we discussed after last quarter on the follow up is we were talking about are there differences maybe in purchasing of collaborative work management, Asana project versus other software solutions? And how you land in the price point, maybe also explaining some of the difference and what you're seeing versus other software companies that are talking about continued elongation of sales cycle and depth and spending. Can you just reiterate what you told me on that call back, which if you recall how you framed it?

Question: Mike Funk - BofA Securities, Inc. - Analyst : AI teammates by next quarter because you also mentioned -- collaboration on consolidation last quarter, -- which was new to me at least here and you called out. So publicly, I guess number one, what do you think is driving the increase in vendor consolidation of collaborative work management? And then second, do you think that consolidation is going to be a greater driver of growth in the future, not overtaking net new, but still be a more meaningful contributor? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 8:20PM, ASAN.N - Asana Inc at Bank of America Global Technology Conference

Question: Mike Funk - BofA Securities, Inc. - Analyst : And any additional color on the consolidation. So for example, reasons that you're winning during consolidation types of customer, size of customers, -- who's displacing during consolidations?

Question: Mike Funk - BofA Securities, Inc. - Analyst : And just taking that a roadmap comment in my first question about the product announcement today. How would you rank order AI roadmap and even talk evolution and the decision to displace a different provider? Just put another way are you displacing companies because customers are on easier, uncertain about their AI road map of product evolution because there are solutions out there that have announced -- new evolutions later this year haven't really articulated what those are going to be. It's going to be on some uncertainty. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 8:20PM, ASAN.N - Asana Inc at Bank of America Global Technology Conference

Question: Mike Funk - BofA Securities, Inc. - Analyst : It's very clear. You rolled out new pricing and packaging last October, right? Can you give us an update on customer acceptance of the new packaging and pricing?

Question: Mike Funk - BofA Securities, Inc. - Analyst : And then what is the internal debate in the plan on pricing in the future? Do you expect to have annual price increases? Is it more aligned with material product enhancements. What is that debate and decision?

Question: Mike Funk - BofA Securities, Inc. - Analyst : Okay. That makes sense. Can we talk about SMB [permanence], it's seems to be some mixed messaging about which companies are pulling back from SMB who's leaning in more some companies seem to be blaming each other point to others is pulling back not pulling back. So can you just describe what is happening in SMB and how you're performing there and maybe where there is there is not more or less competition?

Question: Mike Funk - BofA Securities, Inc. - Analyst : You talked a bit about this, the head count reductions impacting sure growth. I think earlier you attributed that in the past to technology industry exposure, we've been outsized layoffs, at least were during 2023. On the flip side, can you talk about industries or verticals where you are seeing greater strength?

Question: Mike Funk - BofA Securities, Inc. - Analyst : And then just looking at my notes, you said your enterprise software demand stood out to us relative to a lot of the a lot of the peers. And just kind of touching on my earlier question. Why do you think that. -- The enterprise software demand your comments to be much more positive relative to a lot of your peers? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 8:20PM, ASAN.N - Asana Inc at Bank of America Global Technology Conference

Question: Mike Funk - BofA Securities, Inc. - Analyst : And then it's back to focus on the enterprise versus the SMB, I mean, it seems like a lot of the companies in this space now focusing upmarket. On the enterprise we have seen uneven results last few quarters. You know, just curious if a company reporting tonight, and just love to hear your kind of quick thought into that branch, which to be longer short that stock into their print?.

Question: Mike Funk - BofA Securities, Inc. - Analyst : Yeah.

Question: Mike Funk - BofA Securities, Inc. - Analyst : Okay. Do you see Smartsheet very often during the RFP process?

Question: Mike Funk - BofA Securities, Inc. - Analyst : Are there first two, some of the companies you're displacing during consolidation? Are they generally smaller vendors? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 8:20PM, ASAN.N - Asana Inc at Bank of America Global Technology Conference

Question: Mike Funk - BofA Securities, Inc. - Analyst : Okay, we've got a minute and a half left off. The audience have any questions about AI release. Earlier to, we may have a mic in the back. If not, I can always relay them up here as well. Okay. I think, we're all set then. Tim, thank you so much and thank you again.