Asana’s results for the second quarter were well received by the market, driven by broad-based growth across geographies and customer segments. Management attributed the company’s outperformance to accelerated international momentum, growing adoption of AI Studio, and operational improvements that led to meaningful margin expansion. CEO Dan Rogers highlighted that non-tech verticals like manufacturing and retail led growth, while international revenue outpaced domestic gains. Anne Raimondi, chief operating officer, emphasized the company’s success in consolidating legacy platforms and expanding core customer accounts through tailored workflow solutions.
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Asana (ASAN) Q2 CY2025 Highlights:
- Revenue: $196.9 million vs analyst estimates of $193.1 million (9.9% year-on-year growth, 2% beat)
- Adjusted EPS: $0.06 vs analyst estimates of $0.05 ($0.01 beat)
- Adjusted Operating Income: $14.01 million vs analyst estimates of $9.34 million (7.1% margin, 50% beat)
- The company slightly lifted its revenue guidance for the full year to $785 million at the midpoint from $782.5 million
- Management raised its full-year Adjusted EPS guidance to $0.24 at the midpoint, a 9.1% increase
- Operating Margin: -25.1%, up from -42.9% in the same quarter last year
- Customers: 25,006 customers paying more than $5,000 annually
- Net Revenue Retention Rate: 96%, up from 95% in the previous quarter
- Annual Recurring Revenue: $802.7 million vs analyst estimates of $801.7 million (10.1% year-on-year growth, in line)
- Billings: $220.3 million at quarter end, up 28.6% year on year
- Market Capitalization: $3.29 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Asana’s Q2 Earnings Call
- Brent Bracelin (Piper Sandler) asked CEO Dan Rogers about his decision to join Asana and any surprises since joining. Rogers highlighted the company's unique position at the intersection of AI and workflow automation, emphasizing customer enthusiasm for AI-powered collaboration.
- Alex Zukin (Wolfe Research) inquired about the scalability of AI Studio use cases and demand environment trends. COO Anne Raimondi explained that cross-functional deployments are driving expansion, while also acknowledging ongoing buyer scrutiny and top-of-funnel pressures in small business.
- Steve Enders (Citi) questioned how search engine changes are impacting acquisition and how these factors are reflected in the company’s outlook. CFO Sonalee Parekh responded that SMB headwinds are accounted for in guidance and that improvements in conversion rates partly offset lower traffic.
- Matt Bullock (Bank of America) sought details on large customer renewals in the tech sector and the impact of AI Studio on mitigating down-sell risk. Raimondi described improved renewal discipline and noted that foundational service plans and AI Studio adoption are supporting healthier account growth.
- Lucky Schreiner (D.A. Davidson) asked about the role of partners in AI Studio deployment. Raimondi explained that partner-managed accounts are increasingly important, especially in international markets, and that partner certification on AI Studio exceeded targets this quarter.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will be monitoring (1) the pace of adoption and monetization for AI Studio and upcoming AI teammates features, (2) the impact of partner-driven expansion on net retention and international growth, and (3) the company’s ability to offset small business top-of-funnel headwinds through improved self-serve experiences and targeted product launches. Execution on large enterprise renewals and continued margin improvement will also be key focus areas.
Asana currently trades at $13.82, down from $14.24 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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