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The call presented multiple clear operational and product momentum signals — above-guidance revenue, expanding profitability, improving retention trends, strong AI product adoption, and a strategic acquisition (Stack.ai) that accelerates the AI roadmap. At the same time, management flagged several near-term headwinds (PLG drag, cautious guidance that does not fully assume tech vertical recovery, acquisition margin impact, and SBComp/dilution). On balance the positives (revenue/profit beat, improving NRR trend, AI traction, cash/RPO growth, and strategic M&A) outweigh the lowlights, but the company remains in an early phase of AI monetization with some conservatism reflected in guidance.
Asana guided Q2 FY27 revenue of $213.0–$215.0 million (growth 8.2%–9.2% YoY) with ~50 basis points of that growth from the Stack.ai acquisition and an immaterial FX impact; Q2 non‑GAAP operating income of $18–$20 million (8.5%–9.3% margin) and non‑GAAP net income per share of $0.08–$0.09 assuming ~237 million diluted shares. For full‑year FY27 management expects revenue of $855.5–$863.5 million (8.2%–9.2% YoY) including ~50 bps from Stack.ai and an approximate 20 bps constant‑currency tailwind, a non‑GAAP operating margin of at least 9.75%, and non‑GAAP net income of $0.37 per share assuming ~239 million diluted shares. They reiterated key assumptions: PLG remains a ~2‑point drag on ARR growth, only modest NRR improvement is modeled, tech vertical improvement is not assumed in the guide, FY27 AI product bookings are targeted to be ~15% of net‑new ARR (Q1 was 17%), Stack.ai is expected to be roughly a 1 percentage‑point drag on operating margins in Q2 and H2 (fully reflected), and management expects Q4 exit operating margin above the full‑year guidance; cash after the acquisition is projected to remain >$350 million and ~$155 million remains available under the share repurchase program.
Q1 revenue $205.1M, up 9.5% year-over-year and above the high end of guidance. Non-GAAP operating margin was 11.5% with non-GAAP operating income of $23.6M; company characterized margin performance as a significant year-over-year improvement. GAAP net income $24.4M, $0.10 per diluted share. Adjusted free cash flow $34.4M (17% of revenue).
In-quarter net revenue retention (NRR) improved to 97% (fourth consecutive quarterly improvement); trailing 4-quarter dollar-based NRR was 96%. Core customer NRR was 97%; customers spending ≥$100K had NRR of 96%. Core customers (≥$5K ARR) totaled 26.1K and revenues from that cohort grew 10% YoY, representing 76% of revenue.
AI product bookings represented 17% of net-new ARR in Q1 (ahead of the 15% full-year pace target). Number of customers spending >$100K annually on AI Studio nearly doubled quarter-over-quarter. Tasks involving AI teammates are completed nearly 9x faster, signaling strong productivity gains and adoption.
Customer case studies show tangible efficiency and time savings: FedEx reclaimed ~1,200 hours annually, reduced intake review time from 90 to 30 minutes and achieved 9x speed-to-market improvements; COS achieved a 90% reduction in campaign setup time, doubled asset output to >1,000 assets per campaign, and eliminated nearly 3,000 annual manual hours.
International revenue grew 12% YoY, outpacing overall company growth with strength in EMEA and APAC. The technology vertical returned to positive YoY growth for the first time in eight quarters, driven in part by AI product adoption (customers such as Anthropic and CoreWeave).
Cash, cash equivalents and marketable securities approx. $424.6M at quarter end. Remaining performance obligations (RPO) $518.1M, up 23% YoY; current RPO grew 9% YoY and represents 79% of total RPO. Ending deferred revenue $320.1M, up 11% YoY. Executed $45M share buyback in the quarter with ~$155M remaining authorization.
Acquisition of Stack.ai: ~$75M upfront cash plus equity earnout; adds ~50 employees and customers/workflows (some customers with >1,000 workflows). Company states Stack.ai accelerates the AI/automation roadmap by over a year and is expected to contribute incremental AI capability and ~50 basis points of revenue contribution in the near term.
Good day. And thank you for standing by. Welcome to the Asana First Quarter Fiscal Year 27 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *1 again.
Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Eva, 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 27. With me on today's call are Daniel Mark Rogers, our chief executive officer, and Aziz Megji, our chief financial officer. Today's call will include forward looking statements including statements regarding the expected release and benefit of our product offerings, and our expectation for revenue to be generated by those offerings, our retention and expansion opportunities, our expectation for our financial outlook, including our FY27 full year guidance, strategic plans, including with respect to current or future M&A activity, our market position and growth opportunities, and our capital allocation, including our stock repurchase program, among other items. Forward looking statements include risks, uncertainties, and assumptions that may cause our actual result to be materially different from those ex...
