Asana Inc Q4 2025 Earnings Call Transcript

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

Question: Pinjalim Bora - JPMorgan - Analyst : Sonalee, two questions for you. Maybe unpack the assumptions in the guidance a little bit. What are you assuming from an NRR standpoint, are you assuming that going above 100%? And then it seems like AI, you're seeing some modest contribution there. Any way to quantify that? And then lastly, on efficiency, I mean you are already seems like talking about a 1,000-basis-point improvement to plus 5%. That's impressive. But as we embark on this journey, how do you define success if you kind of look forward a couple of years, where does that 5% go? Where do you think are kind of low-hanging fruit on kind of the OpEx lines and where they settle over the next couple of years?

Question: Michael Funk - Bank of America - Analyst : And first, Justin, congratulations on everything you've achieved and good luck for next chapter. (inaudible) philanthropic activities. So first, you mentioned during the call a few times, aligning price to value and refining pricing and packaging. I just wanted to better understand what the quantification of that means. So I mean, it sounds as if lowering pricing to make the product more attractive, customer stickier. And then I also just want to know as part of the first question, if that would impact the guidance for fiscal year '26, the alignment of pricing.

Question: Michael Funk - Bank of America - Analyst : And then quickly check my understanding of the strategy. I thought that previous commentary or last quarter's commentary, if I'm wrong, please correct me, was greater focus on NRR, so current customers and less on net new. Tonight, you said that new business focus shifted focus to new business acquisition. So is that a shift in the strategy? And then if it is, what led to that shift in the strategy away from prioritizing existing and more towards net new?

Question: Robert Oliver - Robert W. Baird & Co., Inc. - Analyst : Great. My question is for Anne. And I know one of your priorities is channel, and I was hoping you could provide a little bit more color. I know this has been a priority of you guys now for a little while. So I wanted to understand when you're looking at FY26, what is new in terms of the strategy? And what's going to constitute success at this point next year? Is it going to be a number of new partners, new regions? I know Dustin called out the importance of partners to AI Studio. So a little bit more color on that would be great. And then I just had a quick follow-up for Sonalee.

Question: Robert Oliver - Robert W. Baird & Co., Inc. - Analyst : Yes. And then Sonalee, for you, just I know you said in your prepared remarks that the guidance for the top line assumes no material change to the current macro for SMB or enterprise. And that comment comes on a day where the market is forecasting a material change. So I just wanted to get a sense for what sort of baseline you're factoring in there of that guide? Any more color on that to help us understand what that means would be great. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 10, 2025 / 8:30PM, ASAN.N - Q4 2025 Asana Inc Earnings Call

Question: Brent Bracelin - Piper Sandler Companies - Analyst : Dustin, 17-year journey here, impressive. Can you just walk us through maybe the timeline of the succession plan? Is this something your goal and aspiration is to implement over the next 6 months, 12 months? Is this all external and internal? Any color there? And then, Anne could you also weigh in on the demand front as well? I had some questions just around the tariff wars, a lot of uncertainty out there, recessionary fears. What are you seeing top of funnel on the enterprise side? Any color there just as we go into another period of uncertainty would be super helpful.

Question: Brent Bracelin - Piper Sandler Companies - Analyst : Any color on what you're seeing out there in yet another year of 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. MARCH 10, 2025 / 8:30PM, ASAN.N - Q4 2025 Asana Inc Earnings Call

Question: Steven Enders - Citi - Analyst : I guess just to start, Dustin, just the firms out looking for a new CEO, I guess, what are the things that you're looking to prioritize? Or what are the the characteristics of the new CEO that you're looking to bring in to take this company to the next level?

Question: Steven Enders - Citi - Analyst : Okay. That's great to hear. And then just for a quick follow-up, like I guess I'm trying to understand, I guess, maybe some of the disconnect between, I guess, what looks like strong billings or strong RPO in the quarter (inaudible) kind of more in the mid-teens range or low to mid-teens range and the guide for next year. So can you just kind of help us think through what's being accounted for? Has there been kind of incremental churn or just help us think what's actually being accounted for between the strength, it looks like in the quarter versus the outlook.

Question: Brent Thill - Jefferies - Analyst : Just on the sales changes, I was hoping if you can elaborate. Is that a big change in the go-to-market? Or is this a 5% to 10% fine-tuned? How do

Question: Brent Thill - Jefferies - Analyst : Okay. And then I think just maybe trying to reconcile low 20% RPO to now you're guiding to high single-digit growth, I believe, and correct me if I'm wrong, but I'm just trying to understand the bridge why there would be such a disconnect and then looking at sub-10% growth, why in a market that seems like it's growing double digit, what's happening.