Q1 2025 Asana Inc Earnings Call Transcript
Key Points
- Q1 revenues grew 13% year over year, with revenue from the largest customers growing even faster.
- Non-GAAP operating margins improved by 5 percentage points year over year.
- Strong international revenue growth, particularly in EMEA and Japan, with overall international revenues growing 14.5% year over year.
- Significant progress in AI integration, with positive feedback from early adopters and strategic customers.
- Increased pipeline and predictability in the business, with expectations for re-acceleration in the second half of the year.
- Overall dollar-based net retention rate was 100%, indicating limited expansion within existing customers.
- Q2 revenue growth guidance of 9% to 10% year over year, showing a deceleration compared to Q1.
- Non-GAAP loss from operations expected to be between $23.0 million to $21.0 million for Q2, indicating ongoing profitability challenges.
- Concerns about AI driving more seat compression, potentially impacting future revenue growth.
- Ongoing budget scrutiny and headwinds affecting customer spending and expansion, particularly in the US.
Good day, and thank you for standing by. Welcome to Asana's first-quarter 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Catherine Buan, Head of Investor Relations. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Asana's first quarter fiscal year 2025. With me on today's call are Dustin Moskovitz, Asana's Co-Founder and CEO; Anne Raimondi, our Chief Operating Officer and Head of Business; and Tim Wan, our Chief Financial Officer.
Today's call will include forward-looking statements, including statements regarding our expectations for free cash flow, our financial outlook, strategic plans, and our market position and growth opportunities. Forward-looking statements involve risks, uncertainties, and assumptions that may cause our actual results to be materially different from those expressed or implied by the
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