Asana Inc at UBS Global Technology and AI Conference Transcript

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

Question: Taylor McGinnis - UBS AG - Analyst : Maybe a good place to start since you guys just reported last night and were very kind to come here right after reporting. Maybe you could just give a little recap of the 3Q earnings call. You guys had a nice beat in the quarter, raised the 4Q numbers. And maybe you could just talk about what you think are the key takeaways for the group.

Question: Taylor McGinnis - UBS AG - Analyst : Perfect. And I'd love to touch on the improvement in in-period NRR because I think that was the highlight of the print, and I know investors have been waiting for that trough. So could you just talk about what's giving you comfort that you're at or nearing that bottom? And how do you think about the drivers of that metric as you look ahead?

Question: Taylor McGinnis - UBS AG - Analyst : Yes. I want to talk about the tech vertical because the tech vertical, to your point earlier, had been the main source of some of that pressure as it was for a number of other software companies given all the rightsizing and optimization activity that's occurred over the last couple of years. So in terms of giving you comfort as we look ahead that we're maybe past the worst of it, why is that? Is it that now these companies have gone through a number of renewals, you're now beyond that? Is it that there's more cross-sell opportunity with these AI solutions, maybe it's your own execution, maybe it's a mix of all those things? But could you just unpack what gives you the comfort that you're beyond that and the drivers behind that? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 9:55PM, ASAN.N - Asana Inc at UBS Global Technology and AI Conference

Question: Taylor McGinnis - UBS AG - Analyst : Yeah. That's really helpful color because there's been a number of high-profile tech risks of the late. So I'd love to hear what you guys are hearing from your customers in terms of seat expansion activity and some of the trends that you're seeing there. Perhaps it's that now these companies have been through a number of rightsizing activities such that companies are just leaner in terms of their software spend today overall than before. But why despite some of these headlines like is that not a concern potentially?

Question: Taylor McGinnis - UBS AG - Analyst : Yeah, that's really helpful and I appreciate all of that color. Another highlight of the print was you talked about for those smaller customers that you saw a high in terms of gross retention. Now I know that area has been impacted by some of the SEO disruption and top of funnel disruption that we've seen from some of the changes with the rise of AI search.

Question: Taylor McGinnis - UBS AG - Analyst : And month-over-month. Yes. So can you maybe talk about what initiatives has Asana put in place to mitigate some of that impact? It sounds like it's still a headwind today. But is there a period of time as you look ahead that you think you'll start to see that really lessening?

Question: Taylor McGinnis - UBS AG - Analyst : Okay, perfect. That was helpful color. On -- you talked a bit earlier that part of the offset, even if you are still seeing some headwind to seat expansion is adding in these newer products, right? So you talked about AI Studio. I know in the past, you talked about foundational service plans and more in implementing that into deals. So can you just give us an update in terms of adoption so far? I know there was some color on the call that you gave, so maybe you could recap that for the audience. And when you include those services into these deals, what uplift do you see on that?

Question: Taylor McGinnis - UBS AG - Analyst : Yes. So let's talk about Teammates because I know that, that's like an exciting offering that's coming up and we're approaching the DA dates for that. So Teammates is the AI agent offering. You've had AI Studio, which is no code workflow automation. Can you talk a little bit about like how you're positioning both of those products? Do they complement each other? What are the big use cases? Which customer segments are they geared towards? How should we just think about that opportunity overall?

Question: Taylor McGinnis - UBS AG - Analyst : Yeah. And any -- I know it's still early, right? You mentioned 30 customers that are in beta testing for it. But any early signals that you guys can draw on how that might compare to what you saw with AI Studio? So is the opportunity for Teammates as big as AI Studio? Could it ramp similar? Or how should we compare those two?

Question: Taylor McGinnis - UBS AG - Analyst : And on that piece about the new TAMs, right, and it's taking into you to areas that you historically haven't competed in, I guess, how is the competitive landscape evolving off the back of that? So when you have customers that -- I know Teammates is still early, but when they are looking at Teammates, when they've evaluated AI Studio, who typically are they comparing those solutions to? Is it DIY? Is it other SaaS solutions, maybe AI natives? What does the competitive landscape look like there?

Question: Taylor McGinnis - UBS AG - Analyst : Yes. And then in terms of how the pricing model is evolving off the back of this. I know this is a question that you guys get commonly where historically, the model has been tied to seats and seat expansion. And now with the introduction of AI, that's changing. So could you comment like where -- obviously, we're in the early innings, right? But how are you guys thinking about monetizing AI and where that might go?

Question: Taylor McGinnis - UBS AG - Analyst : Yes. That makes sense. And then in terms of how AI is contributing to revenue today and where that could go, I think the original ARR number that you disclosed, I think it was $20 million, right, about a quarter or two quarters ago? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 9:55PM, ASAN.N - Asana Inc at UBS Global Technology and AI Conference

Question: Taylor McGinnis - UBS AG - Analyst : Yes, because I think some of the math that we ran was that on an ARR basis exiting this year, could maybe start to add a point to growth. And knowing that that's going to be revenue growth in the future. I guess the source of the question is, is that if the core business is stabilizing, and AI now is going to start to become this incremental tailwind, is this potentially setting us on up for a growth reacceleration? So maybe just talk even at a high level, does Asana have ambitions to see growth elevated even further than where it is today? And if so, would be the building blocks potentially to get there?

Question: Taylor McGinnis - UBS AG - Analyst : Yeah, that was going to be my last question to ramp it up is how we think about the margin trajectory from here because I know the comment that you gave on the call last night was obviously, there's been tremendous expansion this year. So don't expect the same level of expansion, especially as you try to reinvest to ignite growth. So could you talk to, because there was such a great expansion this year, where still are the incremental opportunities? And I guess even just as you look out, how do you think about balancing growth and margin and what the appropriate levels could look like going forward?

Question: Taylor McGinnis - UBS AG - Analyst : Totally makes sense. Well, Sonalee and Aziz, thank you so much for the time, and everyone let's give them a round of applause for taking a flight after earnings and making it to the tech conference. So appreciate it. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 9:55PM, ASAN.N - Asana Inc at UBS Global Technology and AI Conference