Asana Inc Q2 2025 Earnings Call Transcript

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

Question: Taylor McGinnis - UBS Securities LLC - Analyst : Hi. Thanks so much for taking my questions. Just the first one. So you talked about seeing stabilization and expansion rates in the quarter and being through the worst of the renewal optimization. But it also sounds like upside might have been a little bit lighter due to some deal delays. So can you just offer what gives you confidence in the acceleration implied in 4Q based on what you're seeing at the start of 3Q? Is that just a function of retention rates improving and starting to maybe see an inflection in revenue growth amongst technology companies? Or do you need to see an acceleration in other verticals or an improvement in net upsells? Thank you so much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2024 / 8:30PM, ASAN.N - Q2 2025 Asana Inc Earnings Call

Question: Taylor McGinnis - UBS Securities LLC - Analyst : Great. Thank you. And then maybe Dustin, one for you, which is the -- you talked a lot about innovation around Asana and AI and what you guys are doing there as well as it relates to some tinkering around pricing and packaging. So can you just maybe talk about when those changes could be a bigger driver of growth down the line, and some of the customer feedback that you've heard that's driving those decisions? Thank you.

Question: Josh Baer - Morgan Stanley & Co. LLC - Analyst : Thanks. And Tim, it's been great working with you. Good luck in the next chapter. Wanted to ask about the deals that were pushed. Any sense for why they were pushed, how big they were, how many, and what gives you confidence that they'll close next quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2024 / 8:30PM, ASAN.N - Q2 2025 Asana Inc Earnings Call

Question: Josh Baer - Morgan Stanley & Co. LLC - Analyst : Got it. Thanks, Anne. And maybe for Tim or Dustin, just wondering if there's any more context as far as the CFO transition. Any more color you could provide as far as the timing and the change? Thank you.

Question: George Iwanyc - Oppenheimer & Co., Inc. - Analyst : Thank you for taking my question. And Tim, I also wish you the best with what's ahead. Anne, maybe just starting with the technology vertical, can you give us a little bit of color there? Have you reached that point of stability with most of your customers there and maybe put that in perspective of what you're seeing from a logo churn standpoint as well?

Question: George Iwanyc - Oppenheimer & Co., Inc. - Analyst : Okay. And just following up on that with respect to logo churn? And then maybe, give us a sense of where you are with the sales initiatives across the four points that you are highlighting?

Question: Rich Mangus - Wolfe Research Securities - Analyst : Hey, guys. This is Rich Magnus on for Alex. Can you talk more about how the competitive landscape has evolved over the last 12 months? And separately, can you give us some more color on how to think about billings trends over the next few quarters? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2024 / 8:30PM, ASAN.N - Q2 2025 Asana Inc Earnings Call

Question: Rich Mangus - Wolfe Research Securities - Analyst : Yeah, for sure.

Question: Michael Funk - BofA Global Research (US) - Analyst : Yeah, hi. Thank you for the questions this evening. And Tim, thank you again for all the help with the company. So a couple if I could. You mentioned a couple times that some deal stalled in the pipeline during the quarter. Can you be more specific about where in the pipeline they stalled? Presumably, you have metrics on deal closure rates, certainty as you're closer to the end of the pipeline of the deal versus the beginning. So any additional color or commentary there would be appreciated.

Question: Michael Funk - BofA Global Research (US) - Analyst : Okay. And then I think the company investor focus and the stock reaction aftermarket is primarily the 3Q guide and the greater weighting on 4Q now, I think, presume or the imply for 4Q sequential dollars step-up, if you will, to larger moves in the last couple of years. So what concrete breakdown of the factors can you give us to give us confidence in that 4Q revenue step-up, whether that is your forecast for less seat churn, large deals go-lives that you have towards the end of pipeline? Anything to help people get more confidence in the back-end loading for the year would be appreciated.

Question: Brent Thill - Jefferies LLC - Analyst : Tim, congrats on the eight-year run and moving forward in the next chapter. Dustin, you're not alone in terms of what's happening in the software industry. It feels like many are taking down guide or seeing things pushed out. I guess from your perspective, what do you think is going on if you had to take a look at a 40,000-foot level? Is it consuming what customers have? Is it AI stall? Is there a blend of things that you're seeing? What do you would you think is actually causing this stall out across the industry?

Question: Brent Thill - Jefferies LLC - Analyst : Great. A quick one for on Tim or Anne. About a year ago, Ed joined and took over on the sales side. Can you walk through the changes kind of how far you are in implementing some of those changes that you've made or maybe they're fine tunes. I don't know how you would characterize his strategic actions, but if you can just give us a sense of kind of where you're at for that journey you're having, having Ed onboard since last August?

Question: Jackson Ader - KeyBanc Capital Markets - Analyst : Thanks for taking our questions, guys. Anne or Dustin, the first question for you guys on the impact in the tech sector. How much of the modest slope in the reacceleration curve is kind of due to that sector's subdued spending now? And then how much do you think that the steepening of that curve could be juiced by tech coming back in the future as being one of the, I assume, an early adopter or frequent adopter of some of your AI innovations?

Question: Jackson Ader - KeyBanc Capital Markets - Analyst : Right. Okay. All right. Thank you. And then, Dustin, just a couple of quick follow-ups on the 10b5-1. And I know I've asked this before, but it's just relevant again. Do you worry at all about like the -- your stepping in again and again, at some point, sends counterproductive message to employees or the company around operational and financial discipline? And then second, is there anything that we should take away from the relative size of this plan that starts a couple of days from now versus the 30 million shares from last year?

Question: Patrick Walravens - Citizens JMP Securities, LLC - Analyst : Well, great. Thank you. So bigger picture here, Dustin. How do you see this whole world of AI agents playing out? You guys have years and you have nine different features I think that are generally available from one of your slides. Bret Taylor just launched Sierra. Benioff just announced Agentforce and said that was going to be the highlight of Dreamforce. So what should investors expect in terms of how these things are going to be differentiated? And how do you see it playing out?

Question: Patrick Walravens - Citizens JMP Securities, LLC - Analyst : Awesome. Thank you. And Tim, if I could ask you a follow up. You know it's been great working with you and looking forward to getting to do it again. But what do you think is the number one metric that investors should be looking at for Asana? So after you're gone, that's over the next year or two, what's the number one thing we should be focused on to see that this business is turning around?