Asana Reports Q2 Earnings with Strong Revenue Growth and Improved Retention Metrics
Asana (ASAN) reported second-quarter revenue of $216.4 million, a 10% year-over-year increase that exceeded the high end of its guidance range. The company achieved a non-GAAP operating margin of 10.1%, up by approximately 300 basis points from the prior year while keeping expenses flat. Net retention rates improved across all cohorts, with an overall dollar-based net retention rate (NRR) reaching 97% and core customer NRR at 98%. The company also saw strong growth in its large enterprise segment, including a 16% increase in customers spending $100,000 or more annually. Despite these positive results, Asana faces headwinds from product-led growth (PLG) and the transition to new pricing models. Management warned of gross margin pressure due to higher AI infrastructure costs and changes like Agentic Work Management packaging transitions. The company raised its full-year target for AI products contributing to net new ARR from 15% to 20%, reflecting strong adoption of recent product launches such as AI Studio and AI Teammates.
Tickers: $ASAN
Topics: AI growth customer expansion net retention rate revenue