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What changed in Asana, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Asana, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+389 added−419 removedSource: 10-K (2025-03-18) vs 10-K (2024-03-14)

Top changes in Asana, Inc.'s 2025 10-K

389 paragraphs added · 419 removed · 287 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeDuring 2023, we were recognized with the following awards that highlight our unwavering dedication to co-creating an environment where our employees thrive and ultimately, drive the growth and success of our customers. • Fortune and Great Place to Work’s Best Workplace in Technology, for the sixth year in a row (#19 for 2023); • Fortune and Great Place to Work’s Best Workplace for Millennials, for the sixth year in a row (#8 for 2023); • Fortune and Great Place to Work’s Best Workplace in the Bay Area, for the seventh year in a row; 20 Table of Contents • Inc’s Best Workplaces, for the sixth year in a row; • Fast Company’s 2023 Best Workplaces for Innovators in the Enterprise category, and finally; • People Magazine’s Companies Who Care (#90 for 2023).
Biggest changeDuring 2024, we were recognized with the following awards that highlight our unwavering dedication to co-creating an environment where our employees thrive and, ultimately, drive the growth and success of our customers. • Fortune and Great Place to Work’s Best Workplace in the Bay Area, for the eighth year in a row; • Fortune and Great Place to Work’s Best Workplace in Technology for the seventh year in a row; and • Inc.’s Best Workplaces for the seventh year in a row.
Our competition addresses the project portfolio management, work management, goal management, and workflow management categories, including, but not limited to, solutions around collaboration, communication, and coordination. Our competitors fall into the following groups: companies specifically offering work management solutions; companies offering productivity suites; and companies specializing in vertical, department-specific solutions.
Our competition addresses the work management, project portfolio management, goal management, and workflow management categories, including, but not limited to, solutions around collaboration, communication, and coordination. Our competitors fall into the following groups: companies specifically offering work management solutions; companies offering productivity suites; and companies specializing in vertical, department-specific solutions.
We will continue to invest in expanding our product offerings and enhancing the features and functionality of our platform, particularly in the areas of AI, integrations, automation, functional workflows, security, and organization-wide use cases.
We continue to invest in expanding our product offerings and enhancing the features and functionality of our platform, particularly in the areas of AI, integrations, automation, functional workflows, security, and organization-wide use cases.
Our security program includes conducting risk assessments of our systems that process the data 16 Table of Contents our customers store in Asana; monitoring for security events; maintaining incident response, disaster recovery, and business continuity plans that explicitly address and provide guidance to our employees in furtherance of the security, confidentiality, integrity, and availability of customer data; and having a qualified third party perform security assessments on a periodic basis to test against security standards and practices.
Our security program includes conducting risk assessments of our systems that process the data our customers store in Asana; monitoring for security events; maintaining incident response, disaster recovery, and business continuity plans that explicitly address and provide guidance to our employees in furtherance of the security, confidentiality, integrity, and availability of customer data; and having a qualified third party perform security assessments on a periodic basis to test against security standards and practices.
Information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form 10-K. The Asana logo, “Asana,” “Work Graph,” and our other registered or common law trademarks, service marks or trade names appearing in this Annual 22 Table of Contents Report on Form 10-K are the property of Asana, Inc.
Information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form 10-K. The Asana logo, “Asana,” “Work Graph,” and our other registered or common law trademarks, service marks or trade names appearing in this Annual Report on Form 10-K are the property of Asana, Inc.
Copies of our reports on Form 10-K, Forms 10-Q, Forms 8-K, and amendments to those reports may also be obtained, free of charge, electronically through our investor relations website located at investors.asana.com as soon as reasonably practicable after we file such material with, or furnish it to, the SEC.
Copies of our reports on Form 10-K, Forms 10-Q, Forms 8-K, and 15 Table of Contents amendments to those reports may also be obtained, free of charge, electronically through our investor relations website located at investors.asana.com as soon as reasonably practicable after we file such material with, or furnish it to, the SEC.
Product-led To demonstrate the value of our platform to potential paying customers, we provide free trials of our paid Asana Advanced offering, in addition to our free Personal offering, for teams of up to 10 people.
Product-led Model To demonstrate the value of our platform to potential paying customers, we provide free trials of our paid Asana Advanced tier offering, in addition to our free Personal tier offering, for teams of up to 10 people.
Our current customer base spans numerous industry categories, including technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services, and includes many category leaders across these diverse industries. Sales and Marketing We employ a hybrid go-to-market approach, combining a product-led model with direct sales efforts.
Our current customer base spans numerous industry categories, including technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services, and includes many category leaders across these diverse industries. Sales and Marketing We employ a hybrid go-to-market approach, combining a product-led model, direct sales and channel partners.
Our global Asana community connects over 500,000 users to Asana and each other online and offline, and creates champions to help spread the word about Asana.
Our global Asana community connects over 800,000 users to Asana and each other online and offline, and creates champions to help spread the word about Asana.
We use these channels, as well as social media, including our X (formerly Twitter) account (@asana), our LinkedIn page (www.linkedin.com/company/asana), our Instagram account (@asana), our Facebook page (www.facebook.com/asana/), and Threads profiles (@asana and @moskov), to communicate with investors and the public about our company, our products and services and other matters.
We use these channels, as well as social media, our LinkedIn page (www.linkedin.com/company/asana), our Instagram account (@asana), our Facebook page (www.facebook.com/asana/), and Threads profiles (@asana and @moskov), to communicate with investors and the public about our company, our products and services and other matters.
Additionally, we are, or may become, subject to various U.S. federal and state consumer protection laws which require us to publish statements that accurately and fairly describe how we handle personal information and choices individuals may have about the way we handle their personal information.
Additionally, we are, or may become, subject to various U.S. federal and state consumer protection laws which require us to publish statements that accurately and fairly describe how we handle personal information and choices individuals may have about the way we handle their personal information. See the section titled Item 1A.
The Asana platform maintains a robust API that enables developers to build apps on Asana and integrate efficiently with applications like Microsoft Teams, Slack, Jira, Salesforce, Gmail, Adobe Creative Cloud and many more. Integrations connect Asana with applications so that teams are able to coordinate work, no matter where it occurs.
The Asana platform maintains a robust API that enables developers to build apps on Asana and integrate efficiently with hundreds of third-party applications like Microsoft Teams, Slack, Jira, Salesforce, Google Workspace, Adobe Creative Cloud and many more. Integrations connect Asana with applications so that teams are able to coordinate work, no matter where it occurs.
Marketing and Customer Success We market our platform through owned properties, such as our website, first-party events like the Work Innovation Summit, third-party events, social media channels, media coverage, paid acquisition, and word of mouth to promote discovery and adoption. Every month millions of people visit asana.com, and hundreds of thousands of people register for the product.
Marketing We market our platform through owned properties, such as our website, first-party events like the Work Innovation Summit global series, third-party events, social media channels, media coverage, paid acquisition, and word of mouth to promote discovery and adoption. Every month millions of people visit asana.com, and hundreds of thousands of people register to try our platform and products.
Further, we ourselves are users—all of our employees are committed to using Asana internally, every single day—ensuring our entire organization is in touch with the platform’s capabilities and can rapidly identify or suggest improvements. Our research and development team is responsible for the design, development, testing, and delivery of solutions for our platform.
Further, we ourselves are users—all of our employees are committed to using Asana internally, every day—ensuring our entire organization is in 13 Table of Contents touch with the platform’s capabilities and can rapidly identify improvements and test emerging features. Our research and development team is responsible for the design, development, testing, and delivery of solutions for our platform.
See the section titled Item 1A. Risk Factors for additional information about some of the laws and regulations to which we may become subject and about the risks to our business associated with such laws and regulations. Our Customers We have customers of all sizes, ranging from individuals to global organizations.
Risk Factors for additional information about some of the laws and regulations to which we may become subject and about the risks to our business associated with such laws and regulations. 11 Table of Contents Our Customers We have customers of all sizes, ranging from individuals to global organizations.
In our most recent global employee engagement survey, 74% of our employees indicated they would recommend Asana as a great place to work and 74% reported feeling an overall sense of belonging. Asana employed 1,840 people as of January 31, 2024, of which approximately 78% were located in the United States and approximately 22% were located internationally.
In our most recent global employee engagement survey, 75% of our employees indicated they would recommend Asana as a great place to work and 76% reported feeling an overall sense of belonging. Asana employed 1,819 people as of January 31, 2025, of which approximately 73% were located in the United States and approximately 27% were located internationally.
We do this by distributing responsibility so that every employee has one or more areas of responsibility; we use Asana to keep everyone aligned on the high-level purpose of their work and the expected results; and build teams with equitable outcomes in mind.
We do this by distributing responsibility so that every employee has one or more areas of responsibility and using Asana to keep everyone aligned on the high-level purpose of their work and the expected results.
We strive to be transparent about our privacy and data protection practices. Law and regulatory guidance continues to evolve when it comes to privacy and data protection.
Health Insurance Portability and Accountability Act (“HIPAA”). We strive to be transparent about our privacy and data protection practices. Law and regulatory guidance continues to evolve when it comes to privacy and data protection.
We deliver periodic training to our employees on privacy practices, review and map the data we collect, use, and share, and have created a global customer rights program to reply to customer requests pertaining to data privacy. Additionally, Enterprise customers can purchase a version of Asana that is compliant with the U.S. Health Insurance Portability and Accountability Act (“HIPAA”).
We deliver periodic training to our employees on privacy practices, review and map the data we collect, use, and share, and have created a global customer rights program to reply to customer requests pertaining to data privacy. Additionally, Enterprise customers can purchase a version of Asana that can be used to comply with their obligations under the U.S.
We pursue the registration of our domain names, trademarks, and service marks in the United States and in certain locations outside the United States. Human Capital Management We aim to be the change we want to see in the workplace.
We continually review our development efforts to assess the existence and patentability of new intellectual property. We pursue the registration of our domain names, trademarks, and service marks in the United States and in certain locations outside the United States. Human Capital Management We aim to be the change we want to see in the workplace.
As data protection authorities and regulators interpret and issue guidance on the EU GDPR, along with other new and existing privacy, data protection, and security laws around the world, we will continue to follow developments and enhance our privacy program as needed.
As data protection authorities and regulators interpret and issue guidance on the EU GDPR, along with other new and existing privacy, data protection, and security laws around the world, we will continue to follow developments and enhance our privacy program as needed. In the ordinary course of our business, we may process confidential, proprietary, and sensitive information, including personal information.
As customers realize the productivity benefits provided by Asana, our platform often becomes critical to managing their work and achieving their objectives, which drives further adoption and expansion opportunities. This is evidenced by our dollar-based net retention rate, which generally increases with greater organizational s pend.
As customers experience the productivity benefits of Asana, our platform becomes critical to managing work and achieving business objectives, which drives further adoption and expansion. This pattern of increasing platform value is evidenced by our dollar-based net retention rate, which generally increases with greater organizational spend.
As of January 31, 2024, o ur Glassdoor overall score sat at 4.2 out of 5.0, including an 87% approval rating of our CEO, and a 81% 5-star ratings distribution.
As of January 31, 2025 , o ur Glassdoor overall score sat at 4.0 out of 5.0, including an 81% approval rating of our CEO.
We believe we compete favorably based on the following competitive factors: • The Asana Work Graph®, our unique and differentiated data model; 19 Table of Contents • adaptability to a broad range of use cases; • features and functionality of platform capabilities; • developments and enhancements of work management solutions; • customer service and support efforts; • ease of use, performance, price, and reliability of solutions, including AI-powered features; • scalability and security; • brand strength; and • our ability to create easy to use integrations for, and robust, effective partnerships with, other larger enterprise software solutions and tools.
We believe we compete favorably based on the following competitive factors: • The Asana Work Graph®, our unique and differentiated data model; • ease of use, performance, price, and reliability of solutions, including AI-powered features; • critical structure, security, and observability that makes AI governable at scale; • adaptability to a broad range of use cases; • features and functionality of platform capabilities; • customer service and support efforts; • scalability and security; • our Work Innovation lab, a research and thought leadership platform, generates proprietary insights and research that executives and organizations utilize in strategic decision-making; • brand strength; and • our ability to create easy to use integrations for, and robust, effective partnerships with, other larger enterprise software solutions and tools.
Our secure and scalable platform with AI-powered features adds structure to unstructured work, creating clarity, accountability, and impact for everyone within an organization—executives, department heads, team leads, and individuals—so everyone understands exactly who is doing what, by when, and why. Background Asana was created because our co-founders experienced firsthand the coordination challenges of a growing company.
Our secure and scalable platform with AI-powered features adds structure to unstructured work, creating clarity, accountability, and impact for everyone within an organization—executives, department heads, team leads, and individuals. In Asana, everyone understands who is doing what, by when, how and why.
Through the community, Asana users can become Ambassadors to deepen their Asana knowledge and inspire their teams, connect with peers in the online Forum, and attend in-person and online Asana on Tour community events to improve their Asana expertise. Research and Development Key to our success is the time, attention, and investment we place on continued innovation in our platform.
Through the community, Asana users can become Ambassadors to deepen their Asana knowledge and inspire their teams, connect with peers in the online Forum, and attend in-person and online Asana on Tour community events to improve their Asana expertise.
Asana provides interactive dynamic views—list, calendar, board, timeline, goals, portfolio, reports and more—so that teams can work together on the same underlying data in whatever way makes most sense to them.
Asana provides interactive dynamic views—list, calendar, board, timeline, goals, portfolio, reports and more—so that teams can work together on the same underlying data in whatever way makes most sense to them. 8 Table of Contents Approach to AI Our approach to AI centers on the concept that AI is no longer just a tool—it’s a teammate.
Our direct sales force has a global presence, and consists of sales teams focused primarily on accounts with expansion opportunities including department-specific and organization-wide use cases such as strategic planning, employee onboarding, and goal setting and tracking.
Our direct sales force has a global presence, and consists of sales teams focused primarily on accounts with expansion opportunities including department-specific and organization-wide use cases such as strategic planning, employee onboarding, and goal setting and tracking. Channel Partners We have built a robust ecosystem of value-added resellers, managed service providers, and technology partners across more than 50 countries.
Several states within the United States have enacted or proposed privacy, data protection, and security laws and we expect more states to pass similar laws in the future.
Accordingly, we are, or may become, subject to numerous privacy, data protection, and security requirements, including federal, state, local, and foreign laws, and regulations related to privacy, data protection, and security. Several states within the United States have enacted or proposed privacy, data protection, and security laws and we expect more states to pass similar laws in the future.
Commitment to Privacy, Data Protection, and Security Upholding the trust that we have established with our customers and gaining the trust of new customers remains a priority for us and as a result, we have implemented safeguards designed to protect the confidentiality and security of customer data.
We provide our software as a service to customers, so the technology we build includes deployment tools to ensure we can publish software updates rapidly and safely, as well as monitoring and automation tools. 10 Table of Contents Commitment to Security Upholding the trust that we have established with our customers and gaining the trust of new customers remains a priority for us and as a result, we have implemented safeguards designed to protect the confidentiality and security of customer data.
In contrast, others approach the problem of work management with a container model, relating tables of data which force units of work into singular constructs; for example, a task can only live in one project or a message can only live in one channel.
In contrast, others approach the problem of work management with a container model, relating tables of data which force units of work into a singular construct, leading to duplicated work.
Industry Background Organizations spend too much time and effort on coordination Work continues to get harder to manage as organizations try to move faster to accomplish ambitious goals and respond to changing global conditions and market demands. According to Asana’s 2023 Anatomy of Work Index report, 58% of an average knowledge worker’s work week is spent on busywork.
Our Market Challenges we Solve Work continues to get harder to manage as organizations try to move faster to accomplish ambitious goals and respond to changing global conditions and market demands. According to Asana’s 2024 State of Work Innovation report, 53% of an average knowledge worker’s week is spent on busywork, rather than strategic, high value projects.
The Asana Work Graph adds value for executives when work is connected to goals and there is a single source of truth for every department with the right security, permissions, control, and enterprise requirements to handle work for the largest companies, regardless of industry.
The Work Graph serves as the single source of truth for every department with the right security, permissions, control, and enterprise requirements needed to handle work for the largest companies, regardless of industry. Asana AI Asana AI differentiates itself through its foundation on the Work Graph data model.
Our compensation programs are designed to align employee interests with the long-term success of the company and to foster cross-business collaboration. As part of our promotion and retention efforts, we invest in ongoing leadership development through programs such as our Conscious Leadership training program, and encourage managers to utilize development offerings in our learning and development platform.
As part of our promotion and retention efforts, we also invest in ongoing leadership development through programs such as our Conscious Leadership training program, and encourage managers to utilize development offerings in our learning and development platform. In addition, we regularly conduct employee surveys to gauge employee engagement and identify areas of focus.
As of January 31, 2024, we had been granted 71 U.S. patents, had 72 U.S. patent applications pending, and four notices of allowance. Our issued patents expire between January 2031 and May 2043. We have not applied for patents in foreign jurisdictions. We continually review our development efforts to assess the existence and patentability of new intellectual property.
As of January 31, 2025 , we had been granted 101 U.S. patents, had 75 U.S. patent applications pending, and eight notices of allowance. Our issued patents expire between January 2030 and September 2043. We have not 14 Table of Contents applied for patents in foreign jurisdictions.
The Asana Work Graph provides individuals, team leads, and executives with dynamic, up-to-date views into the work that is most relevant to them, across multiple people and projects. The core tenet of our platform is to create clarity and accountability up, down, and across the organization, maximize every employee’s impact, and help organizations scale these efficiencies with security and control.
Customer Value The core tenet of our platform is to create clarity and accountability up, down, and across the organization, to maximize every employee’s impact, and help organizations scale these efficiently with security and control. • Drive greater clarity and accountability Asana drives clarity and accountability by connecting work to company goals.
We also offer our customers the option to partner with a list of managed service providers, consulting firms, and system integrators to help customize their account, onboard teams and run onsite training.
We also offer our customers the option to partner with a list of managed service providers, consulting firms, and system integrators to help customize their account, onboard teams and run onsite training. 12 Table of Contents We engage in thought leadership through The Work Innovation Lab – a research and thought leadership platform by Asana that develops human-centered insight and original research to help businesses evolve today to meet the growing needs and challenges of the future of work.
We shard customer data in our distributed datastore (located in several data centers around the world) to achieve high scale, availability, performance, as well as redundancy to protect against data loss. Our platform services keep track of connected devices and data requests, automatically sending updates to devices as data is refreshed.
Extensible, Efficient Technology Platform Our cloud-native platform includes proprietary software services built on top of infrastructure provided by our preferred cloud provider, Amazon Web Services. We shard customer data in our distributed datastore (located in several data centers around the world) to achieve high scale, availability, performance, as well as redundancy to protect against data loss.
The admin console also allows organizations to oversee app access and configure security settings to match their privacy, data protection, and security posture. Our Technology The architecture we have built to power Asana is secure and scalable, offering users a customized experience that is easy to navigate while handling complex data management behind the scenes.
Our Technology The architecture we have built to power Asana is secure and scalable, offering users a customized experience that is easy to navigate while handling complex data management behind the scenes. We designed our systems to allow flexible access to the Asana Work Graph, allowing us to build rich new functionality quickly and innovate in the work management space.
Information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form 10-K. Compensation and Benefits We believe that our future success largely depends upon our continued ability to attract and retain highly skilled employees.
Compensation and Benefits We believe that our future success largely depends upon our continued ability to attract and retain highly skilled employees.
Our Solution We are a pure play work management company, committed to building the best platform capable of serving organizations of all sizes around the world. With Asana: • Individuals can manage their work, from tasks to cross-functional projects and workflows, and see how it ladders up to strategic initiatives and organization-wide goals.
From individual contributors to the executive leadership team, across departments and roles in a wide range of businesses. With Asana: • Individuals can manage their work, from tasks to cross-functional projects and workflows, and see how it ladders up to strategic initiatives and organization-wide goals.
Asana allows users to connect the goals set at the top of an organization to the strategic portfolios put in place to achieve them, all the way to the cross-functional projects and individual tasks that will support those strategies.
From the goals at the top of an organization to the strategic portfolios in place to achieve those goals, down to the cross-functional projects and individual tasks that support those strategies – Asana captures and maps it all. This clarity and transparency helps individuals, teams, departments, and leaders work smarter to drive better outcomes, faster.
As individuals, teams, and their guests realize the productivity benefits we provide, Asana becomes an integral part of their day-to-day work and critical to helping them achieve their objectives. 18 Table of Contents Direct Sales In conjunction with our product-led model, we have a targeted direct sales team focused on promoting new use cases, expanding our footprint within our existing customer base, and landing large enterprise accounts with a top-down motion.
Direct Sales We have a targeted direct sales team focused on promoting new use cases, expanding our footprint within our existing customer base, and landing large enterprise accounts with a top-down motion.
We define a paying customer as a customer on a paid subscription plan. As of January 31, 2024, we had over 150,000 paying customers globally, representing an increase of more than 11,000 from January 31, 2023 and an increase of approximately 31,000 from January 31, 2022.
We define a paying customer as a customer on a paid subscription plan. As of January 31, 2025 , we had over 169,000 paying customers globally. Of those paying customers, 24,062 were Core customers, and 726 of those paying customers spent $100,000 or more with us on an annualized basis.
Our Asana on Asana approach provides our employees with clarity into how their work directly contributes to our mission, supports our customers, and enables them to do their most impactful work. Features of our Platform Asana is a single unified platform that provides clarity at every level of an organization for individuals, team leads, and executives.
Our Asana on Asana approach provides our employees with clarity into how their work directly contributes to our business goals and mission, supports our customers, and enables them to do their most impactful work. Research and Development Key to our success is the time, attention, and investment we place on continued innovation in our platform.
When surprises or disruptions occur, it is easy for team leads to adjust the plan, reallocate resources, and communicate updates in real time. • Executives can communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights into which initiatives are on track or at risk.
They can also adjust plans and reallocate resources in real time to drive outcomes faster. • Executives can communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights into how all work in the organization is tracking against strategic objectives.
It enables organizations to align work to goals, coordinate intra- and cross-team work, gain visibility into progress, automate workflows across departments, and scale work securely.
Our Solution Asana brings users together on a single unified platform that provides clarity at every level of an organization for individuals, team leads, and executives. It enables organizations to align work to goals, coordinate cross-functional work, gain visibility into progress, automate workflows across departments, and scale work securely.
This clarity reduces busywork and helps individuals get work done faster. • Team leads and directors can manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones without having to create work for teams to come up with this information in spreadsheets, email, or via a status meeting.
Individuals can collaborate with teammates and gain visibility into each team member’s responsibilities and progress, maximizing effectiveness and reducing distractions from high impact work. • Team leads and directors can manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones without having to ask for updates and distract workers.
The Asana Work Graph provides a structured map of how work actually gets done inside organizations. Our unique data model captures the relationship between the work that teams undertake, the information about that work, the people doing the work, and the outcomes of that work.
The Asana Work Graph ® Underpinning our platform is the Asana Work Graph®, our proprietary data model. The Asana Work Graph provides a structured map of how all work gets done inside an organization.
We also treat our culture like a product, meaning we continuously gather feedback from our employees so we can fine-tune and iterate on our programs, processes, and goals. 9 Table of Contents As of January 31, 2024, our Glassdoor overall score sat at 4.2 out of 5.0, including an 87% approval rating of our CEO, and a 81% 5-star ratings distribution.
We also treat our culture like a product, meaning we continuously gather feedback from our employees so we can fine-tune and iterate on our programs, processes, and goals. Finally, we are Asana power users.
Drive greater clarity and accountability Asana drives clarity and accountability by connecting work to company goals, all on a single platform. It’s a single source of truth for how work gets done inside organizations.
It’s a single source of truth for how work gets done inside organizations, which means everyone stays focused on priorities.
Item 1. Business Overview Asana is a leading work management software platform with an enterprise focus that helps organizations set and track goals, drive strategic initiatives, and manage work in one place. Over 150,000 paying customers us e Asana to automate complex operational workflows like product launches and employee onboarding, resource planning, tracking company-wide strategic initiatives and more.
Over 169,000 paying customers across 200 countries and territories us e Asana to connect their work to company goals and orchestrate mission-critical workflows like product launches, employee onboarding, resource planning, tracking company-wide strategic initiatives and more.
Scale with confidence Asana is uniquely built for scale because of the Asana Work Graph. Organizations across a wide range of industries trust Asana for security, governance, and control. End users, IT professionals, and CIOs choose Asana for its category-leading net promoter score, cross-functional capabilities, and ability to scale company wide.
Organizations and their leaders—from end users to 9 Table of Contents IT professionals and chief information officers—choose Asana for its category-leading net promoter score and cross-functional capabilities.
This allows our client software to surface real-time information efficiently and provides a fast, responsive experience to our customers. We provide our software as a service to customers, so the technology we build includes deployment tools to ensure we can publish software updates rapidly and safely, as well as monitoring and automation tools.
Our platform services keep track of connected devices and data requests, automatically sending updates to devices as data is refreshed. This allows our client software to surface real-time information efficiently and provides a fast, responsive experience to our customers.
Our Culture Our company culture is a core driver of our business success and enables us to work towards achieving our mission. A core tenet of our culture is a shared commitment to mindfulness, which informs our product, business, and people decisions and shapes how we interact with each other daily.
Our Culture Our company culture is a core driver of our business success and enables us to work towards achieving our mission. Each of our values is purposefully aligned with what will guide us to achieve our mission: To help humanity thrive by enabling the world's teams to work together effortlessly.
Apps built on Asana may use app components, which enable developers to display customized widgets, forms, and rules within Asana's user interface that empower teams to work more efficiently. 10 Table of Contents Asana Work Graph ® Hierarchy The Asana Work Graph®, our data model, captures the relationships, information, and people connected to units of work—tasks, projects, portfolios, goals, and more—to enable a complete, connected, and up-to-date map of work in an organization.
Apps built on Asana can use app components, which enables developers to display their own customized widgets, forms, and rules within Asana’s user interface, empowering teams to work more.
As of January 31, 2024, our dollar-based net retention rate within organizations spending $5,000 or more with us on an annualized basis (“Core customers”) was 105%, consisting of 21,646 customers. Our dollar-based net retention rate within organizations spending $100,000 or more with us on an annualized basis was 115%, consisting of 607 customers.
As of January 31, 2025, our dollar-based net retention rate for Core customers (those spending $5,000 or more annually) was 97%, representing 24,062 customers. For our largest customers, spending $100,000 or more annually, our dollar-based net retention rate was 96%, comprising 726 customers.
Enterprise and Enterprise+ customers can also purchase Enterprise Key Management to gain more control over their data and meet their organization’s most critical compliance needs. In addition to security, we are committed to protecting the privacy rights of our customers.
Data Protection and Privacy for Our Customers We are committed to protecting the privacy rights of our customers.
We run this analysis in conjunction with our annual compensation review program conducted with the assistance of a third-party pay equity firm. We thoroughly investigate any inconsistencies identified in this analysis and have a dedicated budget maintained to remediate pay gaps that may be discovered in the course of these studies.
Our compensation programs are designed to align employee interests with the long-term success of the company and to foster cross-business collaboration. In conjunction with our annual compensation review program, we run a regression-based analysis of our pay equity globally with the assistance of a third-party firm to ensure that we are promoting and retaining the best talent.
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Instead of spending time on work that generated results, they were spending time in status meetings and long email threads trying to coordinate work effectively to achieve their objectives, a pain universal to organizations.
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Item 1. Business Overview Asana is an enterprise work management software platform that unifies cross-functional teams so businesses can effectively set and track goals, drive strategic initiatives, and manage work effectively.
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As there were no products in the market that adequately addressed this, our co-founders were inspired to create Asana to solve this problem for the world’s teams. Since inception, Asana has registered millions of users in over 200 countries and territories.
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Why Asana was Founded Asana was created because our co-founders experienced firsthand the work coordination challenges faced by large and growing companies. Instead of spending time on high impact work that generated results, employees get stuck in status meetings and struggle to coordinate work via emails, documents and communication apps.
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Customers rely on Asana to manage everything from goal setting and tracking to capacity planning, product launches, and driving digital transformation. With Asana, users experience higher productivity and engagement, which has led to rapid adoption across teams, departments, and organizations. As of January 31, 2024, we had over 3 million paid users.
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In short, organizations are drowning in tools and crave clarity around how work connects to business goals. Our co-founders created Asana to address this work transparency and coordination problem. They developed a solution that brings cross-functional teams together effectively and creates a system of record across all work and all levels of an organization.
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How Asana Helps Organizations Teams are spending too much time coordinating work and not enough time doing the jobs they were hired for.
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It is built for scale and captures the relationship between the work that teams undertake, the information about that work, the people doing the work, and the outcomes of that work.
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Asana is a leading work management platform that brings cross-functional teams together, creates a system of record across initiatives, and across levels of an organization so that everyone has the information they need to get their work done.
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This unique data architecture enables the AI to maintain comprehensive context about how work actually flows through an organization, ensuring its recommendations and actions are grounded in accurate, up-to-date information about team workflows and organizational practices.
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All of this clarity and connectivity is enhanced by Asana’s AI capabilities that help entire organizations — individuals, teams, departments, and leaders — work smarter and drive better outcomes, faster. The technology that makes this possible is the Asana Work Graph®, our proprietary data model.
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Leveraging this structured work data, Asana AI allows humans and AI to collaborate together to automate manual work, get insights on what to prioritize, and adapt workflows to an organization's evolving needs. Asana takes a human-centered, ethical approach to AI. We have built our AI via strategic partnerships with leading foundational model providers, ensuring enterprise-grade security and reliability.
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Unlike other platforms built for specific teams or around narrow use cases and tasks, the Asana Work Graph was built to scale. We also designed our platform to be easy to use and intuitive to all users, regardless of role or technical proficiency.
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Our AI Principles that define how we build and deploy AI are on our website. Our Business Model Asana is a multi-product company and our go-to-market strategy has evolved to emphasize our direct sales approach and further investments in our channel partner program, all while maintaining our successful product-led growth motion.
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Our platform allows users to work the way they want with the interface that is right for them, using tasks, lists, calendars, boards, timelines, reporting dashboards, and workload, all while providing trusted scalability, security, and reliability.
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This allows us to better serve enterprise buyers and reach teams of all sizes. 6 Table of Contents Many customers initially adopt our platform through product-led channels such as our website and free trials, often quickly expanding through customer support and professional services via the promotion of new use cases.
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AI is amplified by the Asana Work Graph ® The Asana Work Graph, our data model, is the technology that sets Asana’s AI capabilities, called Asana Intelligence, apart.
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To further strengthen our enterprise motion, we established a partner program which includes a robust ecosystem of value-added resellers, managed service providers, and technology partners across more than 50 countries. These partners have unique expertise, services and products that complement Asana’s portfolio.
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It’s the technology that makes it possible for every individual and team to view their work in a way that is personally relevant to them, while maintaining a single, up-to-date, record of every goal, portfolio, project, and task.
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Our sales program supports partner success via comprehensive education and certification resources and a global partner directory where customers can connect with Asana partners directly for project support or managed services. The effectiveness of our hybrid go-to-market approach is demonstrated by our strong customer metrics.
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With this differentiated data model, focus on ease of use and adoption, and unique context around 6 Table of Contents how work actually happens inside organizations, AI capabilities offered on the platform are more reliable, accurate, and traceable. Asana’s AI capabilities are powered by real-time work data from across a customer’s Work Graph.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur third-party payment processing partners must also maintain compliance with current and future merchant standards to accept credit cards as payment for our paid subscription plans. Substantial losses due to fraud or our inability to accept credit card payments would cause our customer base to significantly decrease and would harm our business.
Biggest changeIn addition, credit card issuers or other payment methods may change merchant standards, including data protection and documentation standards, required to utilize their services from time to time. Our third-party payment processing partners must also maintain compliance with current and future merchant standards to accept credit cards as payment or facilitate other methods of payment for our paid subscription plans.
Our recruiting efforts may also be limited by laws and regulations, such as restrictive immigration laws, and restrictions on travel imposed by certain governments, as well as delays in processing or a lack of availability of visas. In addition, our past and future restructuring efforts may adversely affect our ability to attract and retain employees.
Our recruiting and retention efforts may also be limited by laws and regulations, such as restrictive immigration laws, and restrictions on travel imposed by certain governments, as well as delays in processing or a lack of availability of visas. In addition, our past and future restructuring efforts may adversely affect our ability to attract and retain employees.
Breaches of our security measures or those of our third-party service providers, including supply chain attacks or other threats to our business operations, could result in unauthorized access to our sites, networks, systems, and accounts; unauthorized access to, and misappropriation of, individuals’ personal information or other sensitive, confidential or proprietary information of ourselves, our customers, or other third parties; viruses, worms, spyware, or other malware being served from our platform, mobile application, networks, or systems; deletion or modification of content or the display of unauthorized content on our platform; interruption, disruption, or malfunction of operations or our ability to provide our services; costs relating to breach remediation, deployment of additional personnel and protection technologies, and response to governmental investigations and media inquiries and coverage; engagement of third-party experts and consultants; or litigation, regulatory action, and other potential liabilities.
Breaches of our security measures or those of our third parties, including supply chain attacks or other threats to our business operations, could result in unauthorized access to our sites, networks, systems, and accounts; unauthorized access to, and misappropriation of, individuals’ personal information or other sensitive, confidential or proprietary information of ourselves, our customers, or other third parties; viruses, worms, spyware, or other malware being served from our platform, mobile application, networks, or systems; deletion or modification of content or the display of unauthorized content on our platform; interruption, disruption, or malfunction of operations or our ability to provide our services; costs relating to breach remediation, deployment of additional personnel and protection technologies, and response to governmental investigations and media inquiries and coverage; engagement of third-party experts and consultants; or litigation, regulatory action, and other potential liabilities.
We believe that our ability to compete depends upon many factors both within and beyond our control, including the following: • rapid developments in our technology, including the successful deployment of AI in our product; • adaptability of our platform to a broad range of use cases; • continued market acceptance of our platform and the timing and market acceptance of new features and enhancements to our platform or the offerings of our competitors; • ease of use, performance, price, security, and reliability of solutions developed either by us or our competitors; • our brand strength; • selling and marketing efforts, including our ability to grow our market share domestically and internationally; • the size and diversity of our customer base; • customer support efforts; and • our ability to continue to create easy to use integrations for, and robust, effective partnerships with, other larger enterprise software solutions and tools.
We believe that our ability to compete depends upon many factors both within and beyond our control, including the following: • rapid developments in our technology, including the successful deployment of AI in our products; • adaptability of our platform to a broad range of use cases; • continued market acceptance of our platform and the timing and market acceptance of new features and enhancements to our platform or the offerings of our competitors; • ease of use, performance, price, security, and reliability of solutions developed either by us or our competitors; • our brand strength; • selling and marketing efforts, including our ability to grow our market share domestically and internationally; • the size and diversity of our customer base; • customer support efforts; and • our ability to continue to create easy to use integrations for, and robust, effective partnerships with, other larger enterprise software solutions and tools.
Such incidents could include, but are not limited to, cyber-attacks, software bugs and vulnerabilities, malicious internet-based activity, online and offline fraud, server malfunctions, software or hardware failures, malicious code, malware (including as a result of advanced persistent threat intrusion), viruses, social engineering (including through deep fakes, which may become increasingly more difficult to identify, and phishing attacks), ransomware, supply chain attacks and vulnerabilities through our third-party partners, denial-of-service attacks, credential stuffing, credential harvesting, loss of data or other information technology assets, adware, telecommunications failures, earthquakes, fire, floods, attacks enhanced or facilitated by AI, and other similar threats, efforts by individuals or groups of hackers and sophisticated organizations, including state-sponsored organizations, threat actors, “hacktivists,” organized criminal threat actors, errors or malfeasance of our personnel, misconfiguration, and security vulnerabilities in the software or systems on which we rely.
Such incidents include, but are not limited to, cyber-attacks, software bugs and vulnerabilities, malicious internet-based activity, online and offline fraud, server malfunctions, software or hardware failures, malicious code, malware (including as a result of advanced persistent threat intrusion), viruses, social engineering (including through deep fakes, which are increasingly more difficult to identify, and phishing attacks), ransomware, supply chain attacks and vulnerabilities through our third-party partners, denial-of-service attacks, credential stuffing, credential harvesting, loss of data or other information technology assets, adware, telecommunications failures, earthquakes, fire, floods, attacks enhanced or facilitated by AI, and other similar threats, efforts by individuals or groups of hackers and sophisticated organizations, including state-sponsored organizations, threat actors, “hacktivists,” organized criminal threat actors, errors or malfeasance of our personnel, misconfiguration, and security vulnerabilities in the software or systems on which we rely.
Demand for our platform is affected by a number of factors, some of which are beyond our control, such as the rate of market adoption of work management solutions; the timing of development and release of competing new products; the development and acceptance of new features, integrations, and capabilities for our platform, including features, integrations, or capabilities that utilize AI; price, product, and service changes by us or our competitors; technological changes and developments within the markets we serve; growth, contraction, and rapid evolution of our market; and general economic conditions and trends including a downturn or recession, rising inflation, and rising interest rates.
Demand for our platform is affected by a number of factors, some of which are beyond our control, such as the rate of market adoption of work management solutions; the timing of development and release of competing new products; the development and acceptance of new features, integrations, and capabilities for our platform, including features, integrations, or capabilities that utilize AI; price, product, and service changes by us or our competitors; technological changes and developments within the markets we serve; growth, contraction, and rapid evolution of our market; and general economic conditions and trends including a downturn or recession, inflation, and fluctuating interest rates.
Further, obtaining the necessary authorizations, including any required licenses, for particular transactions or uses of our platform may be time-consuming, is not guaranteed, and may result in the delay or loss of sales opportunities.
Further, obtaining the necessary authorizations, including any required licenses, for particular transactions or uses of our platform may be time-consuming, is not guaranteed, and may result in the delay or loss of customers or sales opportunities.
Our quarterly financial results may fluctuate due to a variety of factors, many of which are outside of our control and may be difficult to predict, including, but not limited to: • the level of demand for our platform; • our ability to grow or maintain our dollar-based net retention rate, expand usage within organizations, and sell subscriptions; • the timing and success of new features, integrations, capabilities, and enhancements by us to our platform, or by our competitors to their products, including the development and deployment of AI driven features, or any other changes in the competitive landscape of our market; • our ability to achieve widespread acceptance and use of our platform; • errors in our forecasting of the demand for our platform, which would lead to lower revenues, increased costs, or both; • the amount and timing of operating expenses and capital expenditures, as well as entry into operating leases, that we may incur to maintain and expand our business and operations and to remain competitive; • the timing of expenses and recognition of revenues; • security breaches, technical difficulties, or interruptions to our platform; • pricing pressure as a result of competition or otherwise; • adverse litigation judgments, other dispute-related settlement payments, or other litigation-related costs; • the number of new employees hired; • the timing of the grant or vesting of equity awards to employees, directors, or consultants; 25 Table of Contents • seasonal buying patterns for software spending; • declines in the values of foreign currencies relative to the U.S. dollar; • rising global interest rates, which may affect our customers’ spending patterns and our return on investments; • impact of inflation on our costs and on customer spending; • changes in, and continuing uncertainty in relation to, the legislative or regulatory environment; • legal and regulatory compliance costs in new and existing markets; • costs and timing of expenses related to the potential acquisition of businesses, talent, technologies, or intellectual property, including potentially significant amortization costs and possible write-downs; • health epidemics, such as influenza, and other highly communicable diseases or viruses; and • general economic conditions in either domestic or international markets, including geopolitical uncertainty and instability and their effects on software spending.
Our quarterly financial results may fluctuate due to a variety of factors, many of which are outside of our control and may be difficult to predict, including, but not limited to: • the level of demand for our platform; • our ability to grow or maintain our dollar-based net retention rate, expand usage within organizations, and sell subscriptions; • the timing and success of new features, integrations, capabilities, and enhancements by us to our platform, or by our competitors to their products, including the development and deployment of AI driven features, or any other changes in the competitive landscape of our market; • our ability to achieve widespread acceptance and use of our platform; • errors in our forecasting of the demand for our platform, which would lead to lower revenues, increased costs, or both; • the amount and timing of operating expenses and capital expenditures, as well as entry into operating leases, that we may incur to maintain and expand our business and operations and to remain competitive; • the timing of expenses and recognition of revenues; • security breaches, technical difficulties, or interruptions to our platform; • pricing pressure as a result of competition or otherwise; • adverse litigation judgments, other dispute-related settlement payments, or other litigation-related costs; • the number of new employees hired; • the timing of the grant or vesting of equity awards to employees, directors, or consultants; • seasonal buying patterns for software spending; • declines in the values of foreign currencies relative to the U.S. dollar; • fluctuating global interest rates, which may affect our customers’ spending patterns and our return on investments; • impact of inflation on our costs and on customer spending; • changes in, and continuing uncertainty in relation to, the legislative or regulatory environment; 18 Table of Contents • legal and regulatory compliance costs in new and existing markets; • costs and timing of expenses related to the potential acquisition of businesses, talent, technologies, or intellectual property, including potentially significant amortization costs and possible write-downs; • health epidemics, such as influenza, and other highly communicable diseases or viruses; and • general economic conditions in either domestic or international markets, including geopolitical uncertainty and instability, tariffs and changes in trade agreements, and their effects on software spending.
In addition, we will face risks in doing business internationally that could adversely affect our business and results of operations, including: • the need to localize and adapt our platform for specific countries, including translation into foreign languages and associated expenses; • privacy and data protection laws that impose different and potentially conflicting obligations with respect to how personal information is processed or require that customer data be stored in a designated territory; • difficulties in staffing and managing foreign operations; • regulatory and other delays and difficulties in setting up foreign operations; • different pricing environments, longer sales cycles, longer accounts receivable payment cycles, and collections issues; • new and different sources of competition; • weaker protection for intellectual property and other legal rights than in the United States and practical difficulties in enforcing intellectual property and other rights outside of the United States; • laws and business practices favoring local competitors; • compliance challenges related to the complexity of multiple, conflicting, and changing governmental laws and regulations, including employment, tax, sanctions, privacy, data protection, and security laws and regulations; • increased financial accounting and reporting burdens and complexities; • declines in the values of foreign currencies relative to the U.S. dollar; • restrictions on the transfer of funds; • potentially adverse tax consequences; • the cost of and potential outcomes of any claims or litigation; • future accounting pronouncements and changes in accounting policies; • changes in tax laws or tax regulations; • health or similar issues, such as a pandemic or epidemic; and • regional and local economic and political conditions, such as global economic downturns or recessions in the regions in which we do business, bank failures, as well as macroeconomic and policy impacts of political instability and armed conflicts.
In addition, we will face risks in doing business internationally that could adversely affect our business and results of operations, including: • the need to localize and adapt our platform for specific countries, including translation into foreign languages and associated expenses; 30 Table of Contents • privacy and data protection laws that impose different and potentially conflicting obligations with respect to how personal information is processed or require that customer data be stored in a designated territory; • difficulties in staffing and managing foreign operations; • regulatory and other delays and difficulties in setting up foreign operations; • different pricing environments, longer sales cycles, longer accounts receivable payment cycles, and collections issues; • new and different sources of competition; • weaker protection for intellectual property and other legal rights than in the United States and practical difficulties in enforcing intellectual property and other rights outside of the United States; • laws and business practices favoring local competitors; • compliance challenges related to the complexity of multiple, conflicting, and changing governmental laws and regulations, including employment, tax, sanctions, privacy, data protection, and security laws and regulations; • increased financial accounting and reporting burdens and complexities; • declines in the values of foreign currencies relative to the U.S. dollar; • restrictions on the transfer of funds; • potentially adverse tax consequences; • the cost of and potential outcomes of any claims or litigation; • future accounting pronouncements and changes in accounting policies; • changes in tax laws or tax regulations; • health or similar issues, such as a pandemic or epidemic; and • regional and local economic and political conditions, such as global economic downturns or recessions in the regions in which we do business, tariffs and changes in trade agreements, bank failures, as well as macroeconomic and policy impacts of political instability and armed conflicts.
For instance, if we 35 Table of Contents do not help organizations on our platform quickly resolve issues and provide effective ongoing user experience at the individual, team, and organizational levels, our ability to convert organizations on our free and trial versions into paying customers will suffer, and our reputation with existing or potential customers will be harmed.
For instance, if we do not help organizations on our platform quickly resolve issues and provide effective ongoing user experience at 29 Table of Contents the individual, team, and organizational levels, our ability to convert organizations on our free and trial versions into paying customers will suffer, and our reputation with existing or potential customers will be harmed.
On November 7, 2022, we entered into an agreement with several banks and other financial institutions or entities for which Silicon Valley Bank (“SVB”) acted as issuing lender, administrative agent and collateral agent, under which we may incur loans in an aggregate principal amount not to exceed $150 million, consisting of a term loan facility in an aggregate principal amount equal to $50 million and a revolving loan facility in an aggregate principal amount of up to $100 million, including a $30 million letter of credit sub-facility (collectively and as amended on April 13, 2023, the “November 2022 Senior Secured Credit Facility”).
On November 7, 2022, we entered into an agreement with several banks and other financial institutions or entities for which Silicon Valley Bank (“SVB”) acted as issuing lender, administrative agent and collateral agent, under which we may incur loans in an aggregate principal amount not to exceed $150 million, consisting of a term loan facility in an aggregate principal amount equal to $50 million and a revolving loan facility in an aggregate principal amount of up to $100 million, including a $30 million letter of credit sub-facility (collectively and as amended on April 13, 2023, June 18, 2024, and November 18, 2024, the “November 2022 Senior Secured Credit Facility”).
Failure to effectively develop and leverage our direct sales capabilities would harm our ability to expand usage of our platform within our customer base and achieve broader market acceptance of our platform.
Failure to effectively develop and leverage our sales capabilities would harm our ability to expand usage of our platform within our customer base and achieve broader market acceptance of our platform.
A claim brought against us that is uninsured or underinsured could result in unanticipated costs and could have a material adverse effect on our business, results of operations, and financial condition. 40 Table of Contents Our use of “open source” and third-party software could impose unanticipated conditions or restrictions on our ability to commercialize our solutions and could subject us to possible litigation.
A claim brought against us that is uninsured or underinsured could result in unanticipated costs and could have a material adverse effect on our business, results of operations, and financial condition. 35 Table of Contents Our use of “open source” and third-party software could impose unanticipated conditions or restrictions on our ability to commercialize our solutions and could subject us to possible litigation.
Numerous factors may impede our ability to add new customers, convert individuals, teams, and organizations using our free and trial versions into paying customers, expand usage within organizations, and sell subscriptions to our platform, including but not limited to, our failure to attract and effectively train new sales and marketing personnel, failure to retain and motivate our current sales and marketing personnel, failure to develop or expand relationships with partners, failure to compete effectively against alternative products or services, failure to successfully deploy new features and integrations, failure to provide a quality 26 Table of Contents customer experience and customer support, or failure to ensure the effectiveness of our marketing programs.
Numerous factors may impede our ability to add new customers, convert individuals, teams, and organizations using our free and trial versions into paying customers, expand usage within organizations, and sell subscriptions to our platform, including but not limited to, our failure to attract and effectively train new sales and marketing personnel, failure to retain and motivate our current sales and marketing personnel, failure to develop or expand relationships with partners, failure to compete effectively against alternative products or services, failure to successfully deploy new features and integrations, failure to provide a quality customer experience and customer support, or failure to ensure the effectiveness of our marketing programs.
Security incidents and attendant consequences may cause customers to stop using our services, deter new customers from using our services, and negatively impact our ability to grow and operate our business.
Security incidents and material attendant consequences may cause customers to stop using our services, deter new customers from using our services, and negatively impact our ability to grow and operate our business.
Customers may or may not renew their subscription plans as a result of a number of factors, including their satisfaction or dissatisfaction with our platform, our pricing or pricing structure, the pricing or capabilities of the products and services offered by our competitors, the effects of general economic conditions including a downturn or recession, rising inflation and rising interest rates, or customers’ budgetary constraints.
Customers may or may not renew their subscription plans as a result of a number of factors, including their satisfaction or dissatisfaction with our platform, our pricing or pricing structure, the pricing or capabilities of the products and services offered by our competitors, the effects of general economic conditions including a downturn or recession, inflation and fluctuating interest rates, or customers’ budgetary constraints.
We have invested and continue to invest financial and other resources to train and develop our direct sales force in order to complement our product-led go-to-market approach. Our business, results of operations, and financial condition will be harmed if our efforts do not generate a corresponding increase in revenues.
We have invested and continue to invest financial and other resources to train and develop our direct sales force and channel partners in order to complement our product-led go-to-market approach. Our business, results of operations, and financial condition will be harmed if our efforts do not generate a corresponding increase in revenues.
Additionally, where an artificial intelligence model ingests personal information and makes connections using such information, those technologies may reveal other personal or sensitive information generated by the model. Our use of AI and machine learning technologies in our product and operations gives rise to legal, business, and operational risks.
Additionally, where an artificial intelligence model ingests personal information and makes connections using such information, those technologies may reveal other personal or sensitive information generated by the model. Our use of AI and machine learning technologies in our products and operations gives rise to legal, business, and operational risks.
In the large enterprise market, the customer’s decision to use our platform can sometimes be an enterprise-wide decision, in which case, we will likely be required to provide greater levels of customer education to familiarize potential customers with the use and benefits of our platform, as well as training and support.
In the large enterprise market, the customer’s decision to use our platform can sometimes be an enterprise-wide decision, in which case, we will likely be required to provide greater levels of customer education to familiarize potential customers with the use and benefits of our platform, as well as training and on-going support.
The current macroeconomic environment, including rising interest rates, instability in financial markets, bank failures, and headwinds for technology customers, may impact the adoption of our platform generally and our success in engaging with new customers and expanding relationships with existing customers may be impacted by these conditions.
The current macroeconomic environment, including fluctuating interest rates, instability in financial markets, bank failures, and headwinds for technology customers, may impact the adoption of our platform generally and our success in engaging with new customers and expanding relationships with existing customers may be impacted by these conditions.
We are continuing to develop and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the SEC is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and that information required to be disclosed in reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is accumulated and communicated to our principal executive and financial officers.
We are continuing to develop and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the SEC is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and that information required to be disclosed in reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is accumulated and communicated to our principal 42 Table of Contents executive and financial officers.
Legal, regulatory, social and ethical issues relating to the use of AI and machine learning technologies in our product and business may result in reputational harm and liability. Our platform integrates generative AI and machine learning technology into certain features that we offer to our customers.
Legal, regulatory, social and ethical issues relating to the use of AI and machine learning technologies in our products and business may result in reputational harm and liability. Our platform integrates generative AI and machine learning technology into certain features that we offer to our customers.
We plan to leverage our direct sales force, both domestically and internationally, to expand use of our platform within our customer base, and reach larger teams and organizations. We may additionally make strategic investments in expanding our sales capabilities in the future.
We plan to leverage our direct sales force and channel partners, both domestically and internationally, to expand use of our platform within our customer base, and reach larger teams and organizations. We may additionally make strategic investments in expanding our sales capabilities in the future.
We may not achieve anticipated revenue growth from our direct sales force if we are unable to leverage and develop talented direct sales personnel, if direct sales personnel are unable to achieve desired productivity levels in a reasonable period of time, or if we are unable to retain our existing direct sales personnel.
We may not achieve anticipated revenue growth from our direct sales force if we are unable to leverage and develop talented direct sales personnel, if direct sales personnel and channel partners are unable to achieve desired productivity levels in a reasonable period of time, or if we are unable to retain our existing direct sales personnel and channel partners.
Remote work has become more common and has increased risks to our information technology systems and data, as more of our employees utilize network connections, computers, and devices outside our premises or network, including working from home, while in transit and in public locations.
Remote work has increased risks to our information technology systems and data, as more of our employees utilize network connections, computers, and devices outside our premises or network, including working from home, while in transit and in public locations.
Any of these events would have a material adverse effect on our business, results of operations, and financial condition. 39 Table of Contents Our failure to obtain or maintain the right to use certain of our intellectual property would negatively affect our business.
Any of these events would have a material adverse effect on our business, results of operations, and financial condition. 34 Table of Contents Our failure to obtain or maintain the right to use certain of our intellectual property would negatively affect our business.
To the extent that increasing numbers of these individuals, teams, and organizations do not become, or lead others to become, paying customers, we will not realize the intended benefits of this marketing strategy, we will continue to pay the costs associated with hosting such free and trial versions, our ability to grow our business will be harmed, and our business, results of operations, and financial condition will suffer.
To the extent that increasing numbers of these individuals, teams, and organizations do not become, or lead others to become, paying customers, we will not realize the intended benefits of this marketing strategy, we will continue to 20 Table of Contents pay the costs associated with hosting such free and trial versions, our ability to grow our business will be harmed, and our business, results of operations, and financial condition will suffer.
We operate in a highly competitive industry, and competition presents an ongoing threat to the success of our business. Our ability to compete and ensure our success requires developments in our technology, including the successful deployment of artificial intelligence in our product.
We operate in a highly competitive industry, and competition presents an ongoing threat to the success of our business. Our ability to compete and ensure our success requires developments in our technology, including the successful deployment of artificial intelligence in our products.
If we are unsuccessful in collecting such taxes due from our customers, we would be held liable for such costs, thereby adversely affecting our results of operations and harming our business. We may be subject to taxation in several jurisdictions around the world with increasingly complex tax laws, the application of which can be uncertain.
If 40 Table of Contents we are unsuccessful in collecting such taxes due from our customers, we would be held liable for such costs, thereby adversely affecting our results of operations and harming our business. We may be subject to taxation in several jurisdictions around the world with increasingly complex tax laws, the application of which can be uncertain.
We believe our revenue growth depends on a number of factors, including, but not limited to, our ability to: • attract new individuals, teams, and organizations as customers; • grow or maintain our dollar-based net retention rate, expand usage within organizations, and sell subscriptions; • price and package our subscription plans effectively; • convert individuals, teams, and organizations on our free and trial versions into paying customers; • achieve widespread acceptance and use of our platform, including in markets outside of the United States; 23 Table of Contents • strategically expand our direct sales force and leverage our existing sales capacity; • expand the features and capabilities of our platform, including the successful deployment of AI features in our product; • provide excellent customer experience and customer support; • maintain the security, privacy, and reliability of our platform or systems that process confidential data; • successfully compete against established companies and new market entrants, as well as existing software tools; and • increase awareness of our brand on a global basis.
We believe our revenue growth depends on a number of factors, including, but not limited to, our ability to: • attract new individuals, teams, and organizations as customers; • grow or maintain our dollar-based net retention rate, expand usage within organizations, and sell subscriptions; • price and package our subscription plans effectively; • convert individuals, teams, and organizations on our free and trial versions into paying customers; • achieve widespread acceptance and use of our platform, including in markets outside of the United States; • strategically expand our direct sales force and channel partner program and leverage our existing sales capacity; • expand the features and capabilities of our platform, including the successful deployment of AI features in our products; • provide excellent customer experience and customer support; • maintain the security, privacy, and reliability of our platform or systems that process confidential data; • successfully compete against established companies and new market entrants, as well as existing software tools; and 16 Table of Contents • increase awareness of our brand on a global basis.
We cannot assure you that additional financing will be available to us on favorable terms when required, or at all. If we raise additional funds through the issuance of equity, equity-linked, or debt securities, those securities may have rights, preferences, or privileges senior to the rights of existing stockholders, and existing stockholders may experience dilution.
We cannot assure you that additional financing will be available to us on favorable terms when required, or at all. If we raise additional funds through the issuance of equity, equity-linked, or debt securities, those securities may 41 Table of Contents have rights, preferences, or privileges senior to the rights of existing stockholders, and existing stockholders may experience dilution.
Any failure by us to achieve and sustain profitability would cause the trading price of our Class A common stock to decline. We believe our long-term value as a company will be greater if we focus on growth, which may negatively impact our profitability in the near and medium term.
Any failure by us to achieve and sustain profitability would cause the trading price of our Class A common stock to decline. 17 Table of Contents We believe our long-term value as a company will be greater if we focus on growth, which may negatively impact our profitability in the near and medium term.
The market for work management solutions is increasingly competitive, fragmented, and subject to rapidly changing technology, shifting user and customer needs, new market entrants, and frequent introductions of new products and services. We compete with companies that range in size from large and diversified with significant 28 Table of Contents spending resources to smaller companies.
The market for work management solutions is increasingly competitive, fragmented, and subject to rapidly changing technology, shifting user and customer needs, new market entrants, and frequent introductions of new products and services. We compete with companies that range in size from large and diversified with significant spending resources to smaller companies.
The effects of these regulations are difficult to predict and we expect other jurisdictions to adopt similar laws. Additionally, certain privacy laws extend rights to consumers (such as the right to delete certain personal information) and regulate automated decision making, which may be incompatible with our use of 43 Table of Contents artificial intelligence.
The effects of these regulations are difficult to predict and we expect other jurisdictions to adopt similar laws. Additionally, certain privacy laws extend rights to consumers (such as the right to delete certain personal information) and regulate automated decision making, which may be incompatible with our use of artificial intelligence.
Any one of these competitive pressures in our market, or our failure to compete effectively, may result in price reductions; fewer customers; reduced revenues, gross profit, and gross margin; increased net losses; and loss of 29 Table of Contents market share. Any failure to meet and address these factors would harm our business, results of operations, and financial condition.
Any one of these competitive pressures in our market, or our failure to compete effectively, may result in price reductions; fewer customers; reduced revenues, gross profit, and gross margin; increased net losses; and loss of market share. Any failure to meet and address these factors would harm our business, results of operations, and financial condition.
Our ability to continue to develop or use such technologies may be dependent on our access to technology offered by vendors and specific third-party software and infrastructure providers, such as processing hardware or third-party AI models, and we cannot control the quality, availability, or cost of such vendor offerings or third-party software and infrastructure offerings.
Our ability to continue to develop or use such technologies may be dependent on our access to technology offered by vendors and specific third-party software and infrastructure providers, such as processing hardware or 25 Table of Contents third-party AI models, and we cannot control the quality, availability, or cost of such vendor offerings or third-party software and infrastructure offerings.
Our competitors, as well as a number of other entities, including non-practicing entities and individuals, may own or claim to own intellectual property relating to our industry. As we face increasing competition and our public profile 38 Table of Contents increases, the possibility of intellectual property rights claims against us may also increase.
Our competitors, as well as a number of other entities, including non-practicing entities and individuals, may own or claim to own intellectual property relating to our industry. As we face increasing competition and our public profile increases, the possibility of intellectual property rights claims against us may also increase.
For example, the cross-border transfer landscape in Europe is currently unstable and other countries outside of Europe have enacted or are considering enacting cross-border data transfer restrictions and laws requiring data residency or other restrictions around the location of the storage and processing of data, which could increase the cost and complexity of doing business.
For example, the cross-border transfer landscape in Europe is complex and other countries outside of Europe have enacted or are considering enacting cross-border data transfer restrictions and laws requiring data residency or other restrictions around the location of the storage and processing of data, which could increase the cost and complexity of doing business.
As a result of these factors, these sales opportunities may require us to devote greater sales, research and development, and customer support resources to these customers, resulting in increased costs, lengthened sales cycles, and diversion of our own sales and professional services resources to a smaller number of larger customers.
As a result of these factors, these sales opportunities may require us to devote greater sales, research and development, and customer support resources to these customers, resulting in increased costs, 19 Table of Contents lengthened sales cycles, and diversion of our own sales and professional services resources to a smaller number of larger customers.
For these purposes, 45 Table of Contents an ownership change generally occurs where the aggregate change in stock ownership by one or more stockholders or groups of stockholders owning at least 5% of a corporation’s stock exceeds more than 50 percentage points over a three-year period.
For these purposes, an ownership change generally occurs where the aggregate change in stock ownership by one or more stockholders or groups of stockholders owning at least 5% of a corporation’s stock exceeds more than 50 percentage points over a three-year period.
Inability to import personal information to the United States may significantly and negatively impact our business operations, including limiting our ability to collaborate with service providers, contractors, and other companies subject to European and other privacy, data protection, and security laws; or requiring us to increase our data processing capabilities in Europe or elsewhere at significant expense.
Inability to import personal information to the 37 Table of Contents United States may significantly and negatively impact our business operations, including limiting our ability to collaborate with service providers, contractors, and other companies subject to European and other privacy, data protection, and security laws; or requiring us to increase our data processing capabilities in Europe or elsewhere at significant expense.
Also, we may not be successful in developing or maintaining relationships with key participants in the mobile industry or in ensuring that Asana operates effectively with a range of operating systems, networks, devices, browsers, protocols, and standards.
Also, we may not be successful in developing or maintaining relationships with key participants in the mobile industry or in ensuring that Asana operates effectively with a range of operating systems, networks, devices, browsers, protocols, 27 Table of Contents and standards.
Sales to customers outside the United States and our international operations expose us to risks inherent in international sales and operations. For the fiscal year ended January 31, 2024, 39% of our revenues were generated from customers outside the United States. We have operations in multiple cities globally.
Sales to customers outside the United States and our international operations expose us to risks inherent in international sales and operations. For the fiscal year ended January 31, 2025, 39.8% of our revenues were generated from customers outside the United States. We have operations in multiple cities globally.
The November 2022 Senior Secured Credit Facility contains customary events of default relating to, among other things, payment defaults, breach of covenants, cross acceleration to material indebtedness, bankruptcy-related defaults, judgment defaults, and the occurrence of certain change of 46 Table of Contents control events.
The November 2022 Senior Secured Credit Facility contains customary events of default relating to, among other things, payment defaults, breach of covenants, cross acceleration to material indebtedness, bankruptcy-related defaults, judgment defaults, and the occurrence of certain change of control events.
Preparing for and attempting to comply with these laws and other obligations requires significant 41 Table of Contents resources and, potentially, changes to our technologies, systems, and practices and those of any third parties that process personal information on our behalf.
Preparing for and attempting to comply with these laws and other obligations requires significant resources and, potentially, changes to our technologies, systems, and practices and those of any third parties that process personal information on our behalf.
We expect to continue to make future investments and expenditures related to the growth of our business, including: • strategic investment in our sales and marketing activities; • continued investments in research and development to introduce new features and enhancements to our platform, including integration of AI in our product; • hiring employees necessary to support our goals; • investments in infrastructure; • leveraging our operations across our multiple geographies; and 24 Table of Contents • costs associated with our general and administrative organization.
We expect to continue to make future investments and expenditures related to the growth of our business, including: • strategic investment in our sales and marketing activities; • continued investments in research and development to introduce new features and enhancements to our platform, including integration of AI in our products; • hiring employees necessary to support our goals; • investments in infrastructure; • leveraging our operations across our multiple geographies; and • costs associated with our general and administrative organization.
We have experienced rapid growth in recent periods and we may not be able to achieve similar revenue growth rates in the future. Further, as we continue to operate in a new and rapidly changing category of work management software, widespread acceptance and use of our platform is critical to our future growth and success.
We have experienced significant growth in prior periods and we may not be able to achieve similar revenue growth rates in the future. Further, as we continue to operate in a new and rapidly changing category of work management software, widespread acceptance and use of our platform is critical to our future growth and success.
Errors, failures, vulnerabilities, or bugs have in the past, and may in the future, occur in our platform and mobile application, especially when updates are deployed or new features, integrations, or capabilities are rolled out. Any such errors, failures, vulnerabilities, or bugs may not be found until after new features, integrations, or capabilities have been released.
Errors, failures, vulnerabilities, or bugs have in the past, and may in the future, occur in 26 Table of Contents our platform and mobile application, especially when updates are deployed or new features, integrations, or capabilities are rolled out. Any such errors, failures, vulnerabilities, or bugs may not be found until after new features, integrations, or capabilities have been released.
If we (or a third party upon whom we rely) experience a security incident or are perceived to have experienced a security incident, we may experience adverse consequences, such as government enforcement actions (for example, investigations, fines, penalties, audits, and inspections); additional reporting requirements and/or oversight; restrictions on processing confidential, proprietary, and sensitive data (including personal information); litigation (including class claims); indemnification obligations; negative publicity; reputational harm; monetary fund 31 Table of Contents diversions; diversion of management attention; interruptions in our operations (including availability of data); financial loss; and other similar harms.
If we (or a third party with whom we work) experience a security incident or are perceived to have experienced a security incident, we may experience material adverse consequences, such as government enforcement actions (for example, investigations, fines, penalties, audits, and inspections); additional reporting requirements and/or oversight; restrictions on processing confidential, proprietary, and sensitive data (including personal information); litigation (including class claims); indemnification obligations; negative publicity; reputational harm; monetary fund diversions; diversion of management attention; interruptions in our operations (including availability of data); financial loss; and other similar harms.
If we fail to meet or exceed such expectations for these or any other reasons, the trading price of our Class A common stock would fall, and we would face costly litigation, including securities class action lawsuits. We may not be able to effectively manage our growth. We have experienced rapid growth and increased demand for our platform.
If we fail to meet or exceed such expectations for these or any other reasons, the trading price of our Class A common stock would fall, and we would face costly litigation, including securities class action lawsuits. We may not be able to effectively manage our growth. We have historically experienced significant growth and increasing demand for our platform.
Violations of Trade Controls may subject our company, including responsible personnel, to various adverse consequences, including civil or criminal penalties, government investigations, and 44 Table of Contents loss of export privileges.
Violations of Trade Controls may subject our company, including responsible personnel, to various adverse consequences, including civil or criminal penalties, government investigations, and loss of export privileges.
Our ability to expand usage of our platform within our customer base and achieve broader market acceptance among businesses will depend to a significant extent on our ability to expand our sales operations successfully, particularly our direct sales efforts targeted at broadening use of our platform across departments and entire organizations.
Our ability to expand usage of our platform within our customer base and achieve broader market acceptance among businesses will depend to a significant extent on our ability to expand our sales operations successfully, particularly our sales and marketing efforts targeted at broadening use of our platform across departments and entire 22 Table of Contents organizations.
In addition, our future growth rate is subject to a number of uncertainties, such as general macroeconomic and market conditions, including rising interest rates, inflation, actual or anticipated bank failures, instability in financial markets, and economic downturns or recessions in the regions in which we do business.
In addition, our future growth rate is subject to a number of uncertainties, such as general macroeconomic and market conditions, including fluctuating interest rates, inflation, actual or anticipated bank failures, instability in financial markets, tariffs and changes in trade agreements, and economic downturns or recessions in the regions in which we do business.
We have a history of losses, and we may not be able to achieve profitability or, if achieved, sustain profitability. We have incurred net losses in each fiscal year since our founding. We generated net losses of $257.0 million and $407.8 million for the fiscal years ended January 31, 2024 and January 31, 2023, respectively.
We have a history of losses, and we may not be able to achieve profitability or, if achieved, sustain profitability. We have incurred net losses in each fiscal year since our founding. We generated net losses of $255.5 million and $257.0 million for the fiscal years ended January 31, 2025 and January 31, 2024 , respectively.
During times of war and other major conflicts, we and the third parties upon which we rely may be vulnerable to a heightened risk of these attacks, including retaliatory cyber-attacks, that could materially disrupt our systems and operations, supply chain, and ability to produce, sell and distribute our services.
During times of war and other major conflicts, we and the third parties with whom we work may be vulnerable to a heightened risk of these attacks, including retaliatory cyber-attacks, that could materially disrupt our systems and operations, supply chain, and ability to produce, sell and distribute our services.
If our information technology systems, or those of third parties upon which we rely, or our data are or were compromised or operate in an unintended way, we could experience adverse consequences, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; and other adverse consequences.
If our information technology systems, or those of third parties with whom we work, or our data are compromised or operate in an unintended way, we could experience adverse consequences, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; and other adverse consequences.
Operating in international markets requires significant resources and management attention and subjects us to regulatory, economic, and political risks that are different 36 Table of Contents from those in the United States.
Operating in international markets requires significant resources and management attention and subjects us to regulatory, economic, and political risks that are different from those in the United States.
Our ability to achieve revenue growth will depend, in large part, on our success in attracting, training, and retaining sufficient numbers of capable sales personnel to support our growth.
Our ability to achieve revenue growth will depend, in large part, on our success in attracting, training, and retaining sufficient numbers of capable sales personnel in our direct sales force and channel partners to support our growth.
As of January 31, 2024, we had an accumulated deficit of $1,494.6 million. We do not expect to be profitable in the near future, and we cannot assure you that we will achieve profitability in t he future or that, if we do become profitable, we will sustain profitability.
As of January 31, 2025 , we had an accumulated deficit of $1,828.5 million. We do not expect to be profitable in the near future, and we cannot assure you that we will achieve profitability in t he future or that, if we do become profitable, we will sustain profitability.
As a result, we and the third parties upon which we rely face a variety of evolving threats, including but not limited to ransomware attacks, which could cause security incidents. Security incidents can compromise the confidentiality, integrity, and availability of this information or our systems.
As a result, we and the third parties with whom we work face a variety of evolving threats, including but not limited to ransomware attacks, which could cause security incidents. Security incidents can and do compromise the confidentiality, integrity, and availability of this information or our systems.
These laws continue to evolve in scope and are subject to differing interpretations, and may contain inconsistencies or pose conflicts with other legal requirements.
These laws continue to evolve in scope and are subject to 36 Table of Contents differing interpretations, and may contain inconsistencies or pose conflicts with other legal requirements.
In the past few years, numerous U.S. states—including California, Virginia, Colorado, Connecticut, and Utah—have enacted comprehensive privacy laws that impose certain obligations on covered businesses, including providing specific disclosures in privacy notices and affording residents with certain rights concerning their personal information such as the right to access, correct, or delete certain personal information, and to opt-out of certain data processing activities, such as targeted advertising, profiling, and automated decision-making.
For example, numerous U.S. states have enacted comprehensive privacy laws that impose certain obligations on covered businesses, including providing specific disclosures in privacy notices and affording residents with certain rights concerning their personal information such as the right to access, correct, or delete certain personal information, and to opt-out of certain data processing activities, such as targeted advertising, profiling, and automated decision-making.
Additional risks and uncertainties not presently known to us or that we currently believe are not material may also impair our business, financial condition, results of operations, and growth prospects . Risks Related to Our Business and Industry We have experienced rapid growth in recent periods, and our recent growth rates may not be indicative of our future growth.
Additional risks and uncertainties not presently known to us or that we currently believe are not material may also impair our business, financial condition, results of operations, and growth prospects . Risks Related to Our Business and Industry Our prior growth rates may not be indicative of our future growth.
We have a limited operating history at our current scale, which makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful. We have been growing rapidly in recent periods and, as a result, have a relatively short history operating our business at its current scale.
We have a limited operating history at our current scale, which makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful. We have experienced significant growth in prior periods and, as a result, have a relatively short history operating our business at its current scale.
Our actual or perceived failure to comply with such obligations could lead to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; and other adverse business consequences.
Our actual or perceived failure to comply with such obligations (or such failure by the third parties with whom we work) could lead to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; and other adverse business consequences.
Trade Controls may prohibit or restrict the sale or supply of certain products, including encryption items and other technology, and services to certain governments, persons, entities, countries, and territories, including those that are the target of comprehensive sanctions.
These Trade Controls, which may be enacted at any time, may prohibit or restrict the sale or supply of certain products, including encryption items and other technology, and services to certain governments, persons, entities, countries, and territories, including those that are the target of comprehensive sanctions.
If work management solutions do not achieve widespread adoption, or there is a reduction in demand for work management solutions caused by a lack of customer acceptance, technological challenges including the successful integration of AI in our product, weakening economic conditions, privacy, data protection, or security concerns, competing technologies and products, decreases in corporate spending, or otherwise, it could result in decreased revenues, and our business, results of operations, and financial condition would be adversely affected.
If work management solutions do not achieve widespread adoption, or there is a reduction in demand for work management solutions caused by a lack of customer acceptance, technological challenges, or if work management solutions are disrupted by developments in AI and we are unable to successfully integrate AI in our products, weakening economic conditions, privacy, data protection, or security concerns, competing technologies and products, decreases in corporate spending, or otherwise, it could result in decreased revenues, and our business, results of operations, and financial condition would be adversely affected.
Failure or perceived failure by us to comply with our privacy notices and policies, privacy-related obligations to users, customers, or other third parties, or our privacy-related legal obligations, or any data compromise that results in the accidental or unauthorized release, misuse, or transfer of business or personal information or other user or customer data, may result in domestic or foreign governmental enforcement actions, investigations, penalties, audits, inspections, fines, injunctions, litigation, or public statements against us by our users, customers, consumers, regulators, consumer advocacy groups, or others, which would have an adverse effect on our reputation and business.
Failure or perceived failure by us (or third parties with whom we work) to comply with our privacy notices and policies, privacy-related obligations to users, customers, or other third parties, or privacy or security-related legal obligations, or any data compromise that results in the accidental or unauthorized release, misuse, or transfer of business or personal information or other user or customer data, may result in domestic or foreign governmental enforcement actions, investigations, penalties, audits, inspections, fines, injunctions (including bans or restrictions on processing personal data, and orders to destroy or not use personal information), litigation, or public statements against us by our users, customers, consumers, regulators, consumer advocacy groups, or others, additional reporting requirements and/or oversight; which would have an adverse effect on our reputation and business.
We are subject to stringent and evolving U.S. and foreign laws, regulations, rules, contractual obligations, industry standards, policies and other obligations related to artificial intelligence, privacy, data protection, and security.
We, and the third parties with whom we work, are subject to stringent and evolving U.S. and foreign laws, regulations, rules, contractual obligations, industry standards, policies and other obligations related to artificial intelligence, privacy, data protection, and security.
Finally, changes in our platform or future changes in Trade Controls, such as those we have seen issued by the United States and other governments in response to the invasion of Ukraine by Russia and the armed conflict in Israel and the Gaza Strip, could result in our inability to provide our platform to certain customers or decreased use of our platform by existing or potential customers with international operations.
Finally, changes in our platform or future changes in Trade Controls, such as those we have seen issued by the United States and other governments in response to the conflicts between Ukraine and Russia and in the Middle East, could result in our inability to provide our platform to certain customers or decreased use of our platform by existing or potential customers with international operations.
We are required to provide an annual management report on the effectiveness of our internal control over financial reporting. 47 Table of Contents Our independent registered public accounting firm is required to formally attest to the effectiveness of our internal control over financial reporting and may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed, or operating.
Our independent registered public accounting firm is required to formally attest to the effectiveness of our internal control over financial reporting and may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed, or operating.
If we are unable to effectively anticipate and manage these risks, or if it is difficult for customers to access and use our platform, our business, results of operations, and financial condition may be harmed.
If we are unable to effectively anticipate and manage these risks, or if it is difficult for customers to access and use our platform, our business, results of operations, and financial condition may be harmed. The loss of one or more of our key personnel could harm our business.
For example, a settlement may require us to obtain a license to continue practices found to be in violation of a third party’s rights, which may not be available on reasonable terms and may significantly increase our operating expenses. A license to continue such practices may not be available to us at all.
We may be required to settle such litigation on terms that are unfavorable to us. For example, a settlement may require us to obtain a license to continue practices found to be in violation of a third party’s rights, which may not be available on reasonable terms and may significantly increase our operating expenses.
Any compromise or breach of our security measures, or those of our third-party service providers, could also violate applicable privacy, data protection, security, and other laws, and cause significant legal and financial exposure, adverse publicity, and a loss of confidence in our security measures, which could have a material adverse effect on our business, results of operations, and financial condition.
Any compromise or breach of our security measures, or those of the third parties with whom we work, could also violate applicable privacy, data protection, security, and other laws, and cause significant legal and financial 24 Table of Contents exposure, adverse publicity, and a loss of confidence in our security measures, which could have a material adverse effect on our business, results of operations, and financial condition.
As a result, we may also be required to develop alternative non-infringing technology or practices or discontinue the practices. The development of alternative non-infringing technology or practices would require significant effort and expense.
A license to continue such practices may not be available to us at all. As a result, we may also be required to develop alternative non-infringing technology or practices or discontinue the practices. The development of alternative non-infringing technology or practices would require significant effort and expense.
We offer free and trial subscription plans to promote brand awareness and organic adoption of our platform. Our marketing strategy depends in part on individuals, teams, and organizations who use our free and trial versions of our platform convincing others within their organizations to use Asana and to become paying customers.
Our marketing strategy depends in part on individuals, teams, and organizations who use our free and trial versions of our platform convincing others within their organizations to use Asana and to become paying customers.
If we enable or offer solutions that draw scrutiny or controversy due to their perceived or actual negative impact on our customers, we may experience brand or reputational harm, competitive disadvantages, consumer complaints, legal liability, and other adverse consequences, any of which could materially adversely affect our business, results of operations, and financial condition. 32 Table of Contents If we fail to manage our technical operations infrastructure, or experience service outages, interruptions, or delays in the deployment of our platform, our results of operations may be harmed.
If we enable or offer solutions that draw scrutiny or controversy due to their perceived or actual negative impact on our customers, we may experience brand or reputational harm, competitive disadvantages, consumer complaints, legal liability, and other adverse consequences, any of which could materially adversely affect our business, results of operations, and financial condition.
Further, our customers provide us with credit card billing information online, and we do not review the physical credit cards used in these transactions, which increases our risk of exposure to fraudulent activity.
Further, our 32 Table of Contents customers provide us with payment billing information online, and we do not review the physical credit cards used in these transactions or do additional verification beyond what we collect online, which increases our risk of exposure to fraudulent activity.
Additionally, certain privacy, data protection, and security obligations may require us to implement and maintain specific security measures or industry-standard or reasonable security measures to protect our information technology systems and confidential, proprietary, and sensitive information.
We expend resources and modify our business activities to try to protect against security incidents. Additionally, certain privacy, data protection, and security obligations require us to implement and maintain specific security measures or industry-standard or reasonable security measures to protect our information technology systems and confidential, proprietary, and sensitive information.
We also incur charges, which we refer to as chargebacks, from the credit card companies for claims that the customer did not authorize the credit card transaction for subscription plans, something that we have experienced in the past.
We also incur charges and fees associated with those charges, which we refer to as chargebacks, from the credit card companies or banks or third-party payment processors for claims that the customer did not authorize the transaction for subscription plans, something that we have experienced in the past.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeGovernance The Audit Committee of our Board of Directors is responsible for assisting the Board in overseeing the Company’s risk assessment and risk management processes, including risks related to cybersecurity and data privacy. Our Head of Security, who reports to our Head of Engineering and works with other members of management, manages the Company’s cybersecurity program.
Biggest changeGovernance The Audit Committee of our board of directors is responsible for assisting the Board in overseeing the Company’s risk assessment and risk management processes, including risks related to cybersecurity and data 50 Table of Contents privacy. Our Head of Security, who reports to our Head of Engineering and works with other members of management, manages the Company’s cybersecurity program.
Risk Factors , including “If our information technology systems, or those of third parties upon which we rely, or our data are or were compromised or operate in an unintended way, we could experience adverse consequences, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; and other adverse consequences”, for additional information about the risks from cybersecurity threats that may materially affect our business.
Risk Factors , including “If our information technology systems, or those of third parties with whom we work, or our data are or were compromised or operate in an unintended way, we could experience adverse consequences, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; and other adverse consequences”, for additional information about the risks from cybersecurity threats that may materially affect our business.
Item 1C. Cybersecurity Risk Management and Strategy We have implemented and maintain a formal information security management program designed to identify, assess, and manage material risks from cybersecurity threats to our critical networks, services, and data.
Item 1C. Cybersecurity Risk Management and Strategy We implement and maintain a formal information security management program designed to identify, assess, and manage material risks from cybersecurity threats to our critical networks, services, and data.
For 54 Table of Contents example, our security, privacy, and IT teams may review the vendor’s security protocols, data retention policies and privacy policies, privacy practices, and security track record, and advise on implementation best practices. See the section titled Item IA.
For example, our security, privacy, and IT teams may review the vendor’s security protocols, data retention policies and privacy policies, privacy practices, and security track record, and advise on implementation best practices. See the section titled Item IA.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties Our corporate headquarters is located in San Francisco, California, where we lease approximately 266,000 square feet of office space pursuant to a lease that expires in October 2033. We began occupying this space during fiscal 2022 as our new corporate headquarters. In addition, we maintain additional offices in North America and internationally in APAC and EMEA.
Biggest changeItem 2. Properties Our corporate headquarters is located in San Francisco, California, where we lease approximately 266,000 square feet of office space pursuant to a lease that expires in October 2033. We began occupying this space during fiscal 2022 as our new corporate headquarters. We also maintain additional offices in the United States and internationally.
We may procure additional space in the future if we add employees or expand geographically. We believe our facilities are adequate and suitable for our current needs and that, should it be needed, suitable additional or alternative space will be available to accommodate our operations. 55 Table of Contents
We may procure additional space in the future if we add employees or expand geographically. We believe our facilities are adequate and suitable for our current needs and that, should it be needed, suitable additional or alternative space will be available to accommodate our operations. 51 Table of Contents

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeWe are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows or financial condition. Item 4. Mine Safety Disclosures Not applicable. 56 Table of Contents PART II
Biggest changeWe are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows or financial condition. Item 4. Mine Safety Disclosures Not applicable. 52 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

82 edited+17 added−22 removed67 unchanged
Biggest changeNet cash provided by financing activities of $381.4 million for fiscal 2023 consisted of $347.3 million in proceeds from the private placement financing net of offering costs, $49.6 million in net proceeds from the November 2022 Senior Secured Credit Facility, $17.1 million in proceeds from our employee stock purchase plan, and $5.8 million in proceeds from the exercise of stock options, partially offset by $38.3 million for the repayment of our April 2020 Senior Secured Term Loan.
Biggest changeNet cash used in investing activities of $289.1 million for fiscal 2024 consisted of $319.1 million in purchases of marketable securities, $7.7 million in purchases of property and equipment, and $5.4 million in capitalized internal-use software costs, partially offset $43.1 million in maturities of marketable securities. 66 Table of Contents Financing Activities Net cash used in financing activities of $58.1 million for fiscal 2025 consisted of $78.4 million in repurchases of common stock and $2.5 million in repayment of term loan, partially offset by $13.7 million in proceeds from employee stock purchase plan and $9.1 million in proceeds from exercise of stock options.
Financing Activities Net cash provided by financing activities of $16.8 million for fiscal 2024 consisted of $15.1 million in proceeds from our employee stock purchase plan and $4.8 million in proceeds from the exercise of stock options, partially offset by $3.1 million for the repayment of our April 2020 Senior Secured Term Loan.
Net cash provided by financing activities of $16.8 million for fiscal 2024 consisted of $15.1 million in proceeds from our employee stock purchase plan and $4.8 million in proceeds from the exercise of stock options, partially offset by $3.1 million for the repayment of our April 2020 Senior Secured Term Loan.
Capitalized Software Development Costs Software development costs consist of certain payroll and stock compensation costs incurred to develop functionality for our cloud-based platform and internally built software platforms, as well as certain upgrades and enhancements that are expected to result in enhanced functionality. Costs incurred in the preliminary stages of development are expensed as incurred.
Capitalized Software Development Costs Software development costs consist of certain payroll and stock-based compensation costs incurred to develop functionality for our cloud-based platform and internally built software platforms, as well as certain upgrades and enhancements that are expected to result in enhanced functionality. Costs incurred in the preliminary stages of development are expensed as incurred.
Our future capital requirements will depend on many factors, including our revenue growth rate, subscription renewal activity, billing frequency, our dollar-based-net-retention rate, the timing and extent of spending to support our research and development efforts, particularly for the introduction of new and enhanced products and features, the performance of sales and marketing activities, costs associated with international expansion, additional capital expenditures to invest in existing and new office spaces, as well as increased general and administrative expenses to support being a publicly traded company.
Our future capital requirements will depend on many factors, including our revenue growth rate, subscription renewal activity, billing frequency, our dollar-based-net-retention rate, the timing and extent of spending to support our research and development efforts, particularly for the introduction of new and enhanced products and features, including the integration of AI in our products, the performance of sales and marketing activities, costs associated with international expansion, additional capital expenditures to invest in existing and new office spaces, as well as increased general and administrative expenses to support being a publicly traded company.
Net cash used in operating activities of $17.9 million for fiscal 2024 reflects our net loss of $257.0 million, adjusted by non-cash items such as stock-based compensation expense of $202.4 million, amortization of deferred contract acquisition costs of $22.0 million, non-cash lease expense of $18.1 million, depreciation and amortization of $14.3 million, impairment of long-lived assets of $5.0 million, and provision for expected credit losses of $3.1 million, partially offset by net accretion of discount on marketable securities of $3.4 million and net cash outflows of $22.6 million from changes in our operating assets and liabilities.
Net cash used in operating activities of $17.9 million for fiscal 2024 reflects our net loss of $257.0 million, adjusted by non-cash items such as stock-based compensation expense of $202.4 million, amortization of deferred contract acquisition cost of $22.0 million, non-cash lease expense of $18.1 million, depreciation and amortization of $14.3 million, impairment of long-lived assets of $5.0 million, and provision for expected credit losses of $3.1 million, partially offset by net accretion of discount on marketable securities of $3.4 million and net cash outflows of $22.6 million from changes in our operating assets and liabilities.
We expect our gross profit to increase in dollar amount and our subscription gross margin to remain relatively consistent over the long term. Operating Expenses Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses.
We expect our gross profit to increase in dollar amount and our gross margin to remain relatively consistent over the long term. Operating Expenses Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses.
The increase in revenues was primarily due to the addition of new paying customers and a continued shift in our sales mix toward our higher priced subscription plans, such as Business, Advanced, Enterprise and Enterprise+ plans.
The increase in revenues was primarily due to the addition of new paying customers and a continued shift in our sales mix toward our higher priced subscription plans, such as Advanced, Enterprise and Enterprise+ plans.
The following graph compares (i) the cumulative total stockholder return on our Class A common stock from September 30, 2020 (the date our Class A common stock commenced trading on the NYSE) through January 31, 2024 with (ii) the cumulative total return of the Standard & Poor's (S&P) 500 Index and the Standard & Poor’s Information Technology Index over the same period, assuming the investment of $100 in our Class A common stock and in both of the other indices on September 30, 2020 and the reinvestment of dividends.
The following graph compares (i) the cumulative total stockholder return on our Class A common stock from September 30, 2020 (the date our Class A common stock commenced trading on the NYSE) through January 31, 2025 with (ii) the cumulative total return of the Standard & Poor's (S&P) 500 Index and the Standard & Poor’s Information Technology Index over the same period, assuming the investment of $100 in our Class A common stock and in both of the other indices on September 30, 2020 and the reinvestment of dividends.
We expect to maintain this full valuation allowance for the foreseeable future as it is more likely than not the deferred tax assets will not be realized based on our history of losses. 62 Table of Contents Results of Operations The following tables set forth our results of operations for the periods presented and as a percentage of our revenues for those periods.
We expect to maintain this full valuation allowance for the foreseeable future as it is more likely than not the deferred tax assets will not be realized based on our history of losses. 58 Table of Contents Results of Operations The following tables set forth our results of operations for the periods presented and as a percentage of our revenues for those periods.
Additionally, cash from operations could also be affected by various risks and uncertainties in connection with the impact of an economic downturn or recession, significant market volatility in the global economy, timing and ability to collect payments from our customers and other risks detailed in Part I—Item 1A. Risk Factors .
Additionally, cash from operations could also be affected by various risks and uncertainties in connection with the impact of an economic downturn or recession, significant market volatility in the global economy, timing and ability to collect payments from our customers and other risks detailed in Part I—Item 1A.
These amounts were partially offset by a $37.6 million increase in deferred revenue resulting from increased billings for subscriptions.
These amounts were partially offset by a $37.6 million increase deferred revenue resulting from increased billings for subscriptions.
For further information regarding operating lease commitments, refer to Note 9. Leases . (2) Consists of a 60-month contract with Amazon Web Services for hosting-related services and other non-cancellable purchase commitments with various parties primarily for software-based services. Refer to Note 8. Commitments and Contingencies for further details on related commitments.
For further information regarding operating lease commitments, refer to Note 8. Leases . (2) Consists of a 60-month contract with Amazon Web Services for hosting-related services and other non-cancellable purchase commitments with various parties primarily for software-based services. Refer to Note 7. Commitments and Contingencies for further details on related commitments.
Our operating results and growth opportunity depend, in part, on our ability to attract new customers and scale within those same organizations. We believe we have significant greenfield opportunities among addressable customers worldwide and we will continue to invest in our research and development and our sales and marketing organizations to address this opportunity.
Our operating results and growth opportunity depend, in part, on our ability to attract new customers and expand within those same organizations. We believe we have significant greenfield opportunities among addressable customers worldwide and we will continue to invest in our research and development and our sales and marketing organizations to address this opportunity.
Pursuant to the terms of the revolving credit facility, we are required to pay an annual commitment fee that accrues at a rate of 0.15% per annum on the unused portion of the borrowing commitments under the revolving credit facility. Refer to Note 7. Debt for further details.
Pursuant to the terms of the revolving credit facility, we are required to pay an annual commitment fee that accrues at a rate of 0.15% per annum on the unused portion of the borrowing commitments under the revolving credit facility. Refer to Note 6. Debt for further details.
We define a paying customer as a customer on a paid subscription plan. We define customers spending over $5,000 and $100,000 as those organizations on a paid subscription plan that had $5,000 or more or $100,000 or more in annualized GAAP revenues in a given quarter, respectively, inclusive of 59 Table of Contents discounts.
We define a paying customer as a customer on a paid subscription plan. 55 Table of Contents We define customers spending over $5,000 and $100,000 as those organizations on a paid subscription plan that had $5,000 or more or $100,000 or more in annualized GAAP revenues in a given quarter, respectively, inclusive of discounts.
In November 2022, we entered into a four-year credit agreement with SVB, which provided for a senior secured credit facilities in the aggregate principal amount of up to $150.0 million, consisting of a term loan facility in the aggregate principal amount of $50.0 million and a revolving loan facility in an aggregate principal amount of up to $100.0 million, including a $30.0 million letter of credit sub-facility (as amended on April 13, 2023, the “November 2022 Senior Secured Credit Facility”).
In November 2022, we entered into a four-year credit agreement with SVB, which provided for a senior secured credit facilities in the aggregate principal amount of up to $150.0 million, consisting of a term loan facility in the aggregate principal amount of $50.0 million and a revolving loan facility in an aggregate principal amount of up to $100.0 million, including a $30.0 million letter of credit sub-facility (as amended on April 13, 2023, June 18, 2024, and November 18, 2024, the “November 2022 Senior Secured Credit Facility”).
The expected term assumptions are determined based on the vesting terms, exercise terms, and contractual lives of the options. The expected term of the ESPP represents the period of time that purchase rights are expected to be outstanding. • Risk-free rate— We use the U.S.
The expected term assumptions are determined based on the vesting terms, exercise terms, and contractual lives of the awards. The expected term of the ESPP represents the period of time that purchase rights are expected to be outstanding. • Risk-free rate— We use the U.S.
The net cash outflows from changes in operating 69 Table of Contents assets and liabilities primarily consisted of a $25.6 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, a $18.9 million decrease in operating lease liabilities, a $9.5 million increase in accounts receivable due to higher customer billings, a $5.2 million decrease in accrued expenses and other liabilities primarily from decreases in accrued payroll liabilities, a $0.6 million decrease in accounts payable, and a $0.5 million increase in other assets.
The net cash outflows from changes in operating assets and liabilities primarily consisted of a $25.6 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, a $18.9 million decrease in operating lease liabilities, a $9.5 million increase in accounts receivable due to higher customer billings, a $5.2 million decrease in accrued expenses and other liabilities primarily from decreases in accrued payroll liabilities, a $0.6 million decrease in accounts payable, and a $0.5 million increase in other assets.
No demands have been made upon us to provide indemnification under such agreements, and there are no claims that we are aware of that could have a material effect on our financial position, results of operations, or cash flows. Critical Accounting Estimates Our financial statements are prepared in accordance with GAAP.
No demands have been made upon us to provide indemnification under such agreements, and there are no claims that we are aware of that could have a material effect on our financial position, results of operations, or cash flows. 67 Table of Contents Critical Accounting Estimates Our financial statements are prepared in accordance with GAAP.
The lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of operations. Our lease agreements generally do not contain any residual value guarantees, restrictions, or covenants. We have lease agreements with lease and non-lease components.
The lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of operations. Our lease agreements generally do not contain any residual value guarantees, restrictions, or covenants. 69 Table of Contents We have lease agreements with lease and non-lease components.
Treasury yield for our risk-free interest rate that corresponds with the expected term. • Dividend yield— We utilize a dividend yield of zero, as we do not currently issue dividends, nor do we expect to do so in the future. • Fair value of common stock— Prior to our direct listing, we estimated the fair value of common stock; see Common Stock Valuations below.
Treasury yield for our risk-free interest rate that corresponds with the expected term. • Dividend yield— We utilize a dividend yield of zero, as we do not currently issue dividends, nor do we expect to do so in the future. • Fair value of common stock— Prior to our direct listing, we estimated the fair value of common stock.
As of January 31, 2024 and 2023, we had 607 and 506 customers spending over $100,000 on an annualized basis, respectively. Dollar-based Net Retention Rate We expect to derive a portion of our revenue growth from expansion within our existing customer base, where we have an opportunity to expand adoption of Asana across teams, departments, and organizations.
As of January 31, 2025 and 2024, we had 726 and 607 customers spending over $100,000 on an annualized basis, respectively. Dollar-based Net Retention Rate We expect to derive a portion of our revenue growth from expansion within our existing customer base, where we have an opportunity to expand adoption of Asana across teams, departments, and organizations.
Any impairment to the associated right-of-use assets, leasehold improvements, or other assets as a result of a sublease is recognized in the period the sublease is executed and recorded in the consolidated statements of operations. 74 Table of Contents Recent Accounting Pronouncements See Note 2.
Any impairment to the associated right-of-use assets, leasehold improvements, or other assets as a result of a sublease is recognized in the period the sublease is executed and recorded in the consolidated statements of operations. Recent Accounting Pronouncements See Note 2.
As a result, these 71 Table of Contents amounts have been capitalized as deferred contract acquisition costs within prepaid and other current assets and other assets on the consolidated balance sheets. We amortize deferred contract acquisition costs over a period of benefit of three years.
As a result, these amounts have been capitalized as deferred contract acquisition costs within prepaid and other current assets and other assets on the consolidated balance sheets. We amortize deferred contract acquisition costs over a period of benefit of three years.
See Note 17. Restructuring to our consolidated financial statements included in Item 8. Financial Statements and Supplementary Data in this Annual Report on Form 10-K for more information. 63 Table of Contents The following table sets forth the components of our statements of operations data, for each of the periods presented, as a percentage of revenues.
See Note 16. Restructuring to our consolidated financial statements included in Item 8. Financial Statements and Supplementary Data in this Annual Report on Form 10-K for more information. 59 Table of Contents The following table sets forth the components of our statements of operations data, for each of the periods presented, as a percentage of revenues.
We account for modifications to employee contributions as they occur. 72 Table of Contents We recognize stock-based compensation expense ratably over the requisite service period, which is generally the vesting period of the respective award. We account for forfeitures as they occur.
We account for modifications to employee contributions as they occur. We recognize stock-based compensation expense ratably over the requisite service period, which is generally the vesting period of the respective award. We account for forfeitures as they occur.
Interest Income and Other Income (Expense), Net and Interest Expense Interest income and other income (expense), net consists of income earned on our marketable securities and investments, in addition to foreign currency transaction gains and losses.
Interest Income and Other Income (Expense), Net and Interest Expense Interest income and other income (expense), net consists of income earned on our marketable securities and investments, in addition to foreign currency transaction gains and losses. Interest expense consists of interest expense from our credit facilities.
Future minimum lease payments related to this lease as of January 31, 2024 were $309.7 million. Our CEO acts as a personal guarantor to the lease for the full rent payments over t he entire term of the lease should we default on our obligations. For further information on our commitments and contingencies, refer to Note 8.
Future minimum lease payments related to this lease as of January 31, 2025 were $281.6 million. Our CEO acts as a personal guarantor to the lease for the full rent payments over t he entire term of the lease should we default on our obligations. For further information on our commitments and contingencies, refer to Note 7.
Our total available borrowing capacity under the revolving credit facility was $78.6 million as of January 31, 2024. On March 27, 2023, First Citizens BancShares, Inc. (“First Citizens”) announced that it had entered into an agreement to purchase assets and liabilities of SVB, inclusive of our November 2022 Senior Secured Credit Facility.
Our total available borrowing capacity under the revolving credit facility was $78.4 million as of January 31, 2025. 64 Table of Contents On March 27, 2023, First Citizens BancShares, Inc. (“First Citizens”) announced that it had entered into an agreement to purchase assets and liabilities of SVB, inclusive of our November 2022 Senior Secured Credit Facility.
Free Cash Flow We define free cash flow as net cash from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs, plus non-recurring expenditures such as capital expenditures from the purchases of property and equipment associated with the build-out of our corporate headquarters in San Francisco, restructuring costs, and direct listing expenses.
Free Cash Flow and Adjusted Free Cash Flow We define free cash flow as net cash from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs, plus non-recurring capital expenditures from the purchases of property and equipment associated with the build-out of our corporate headquarters in San Francisco.
Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended January 31, 2023, filed with the SEC on March 24, 2023. Non-GAAP Financial Measures The following tables present certain non-GAAP financial measures for each period presented below.
Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024, filed with the SEC on March 14, 2024. 61 Table of Contents Non-GAAP Financial Measures The following tables present certain non-GAAP financial measures for each period presented below.
As of January 31, 2024, under the November 2022 Senior Secured Credit Facility there was $50.0 million drawn and $46.9 million was outstanding under the term loan, no amounts outstanding under the revolving credit facility and an aggregate $21.4 million in letters of credit issued under the credit sub-facility.
As of January 31, 2025, under the November 2022 Senior Secured Credit Facility there was $50.0 million drawn and $44.4 million was outstanding under the term loan, no amounts outstanding under the revolving credit facility and an aggregate $21.6 million in letters of credit issued under the credit sub-facility.
Our primary uses of cash from operating activities are for personnel-related expenses, marketing expenses, and third-party hosting-related and software expenses. In the last several years, we have generated negative cash flows from operating activities and have supplemented working capital requirements through net proceeds from the sale of equity and equity-linked securities and the issuance of convertible notes.
Our primary uses of cash from operating activities are for personnel-related expenses, marketing expenses, and third-party hosting-related and software expenses. In prior years, we generated negative cash flows from operating activities and supplemented working capital requirements through net proceeds from the sale of equity and equity-linked securities.
Since August 26, 2021, our Class A common stock has also been listed on the LTSE under the symbol “ASAN.” Holders of Record As of March 1, 2024, we had 122 holders of record of our Class A common stock and 14 holders of record of our Class B common stock.
Since August 26, 2021, our Class A common stock has also been listed on the LTSE under the symbol “ASAN.” Holders of Record As of March 1, 2025, we had 118 holders of record of our Class A common stock and 13 holders of record of our Class B common stock.
We anticipate continuing to invest in innovation and technology development, and as a result, we expect research and development expenses to continue to increase in dollar amount but to decrease as a percentage of revenues over time.
We anticipate continuing to invest in innovation and technology development, including the integration of AI in our products, and as a result, we expect research and development expenses to continue to increase in dollar amount, but to decrease as a percentage of revenues over time.
Year Ended January 31, 2024 2023 2022 (percent of revenues) Revenues 100 % 100 % 100 % Cost of revenues 10 10 10 Gross margin 90 90 90 Operating expenses: Research and development 50 54 54 Sales and marketing 60 79 75 General and administrative 22 30 31 Total operating expenses 131 164 160 Loss from operations (41) (75) (70) Interest income and other income (expense), net 3 1 * Interest expense * * (5) Loss before provision for income taxes (39) (74) (75) Provision for income taxes * * * Net loss (39) % (75) % (76) % ________________ * Less than 1% Note: Certain figures may not sum due to rounding.
Year Ended January 31, 2025 2024 2023 (percent of revenues) Revenues 100 % 100 % 100 % Cost of revenues 11 10 10 Gross margin 89 90 90 Operating expenses: Research and development 47 50 54 Sales and marketing 58 60 79 General and administrative 21 22 30 Total operating expenses 126 131 164 Loss from operations (37) (41) (75) Interest income and other income (expense), net 3 3 1 Interest expense * * * Loss before provision for income taxes (35) (39) (74) Provision for income taxes * * * Net loss (35) % (39) % (75) % ________________ * Less than 1% Note: Certain figures may not sum due to rounding.
We use non-GAAP loss from operations and non-GAAP net loss in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP loss from operations and non-GAAP net loss provide our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.
We believe that non-GAAP loss from operations and non-GAAP net loss provide our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.
As discussed above, we have never declared or paid a cash dividend on our Class A common stock and do not anticipate declaring or paying a cash dividend in the foreseeable future. 57 Table of Contents Unregistered Sales of Equity Securities None. Issuer Purchase of Equity Securities None. Item 6. [Reserved] 58 Table of Contents Item 7.
As discussed above, we have never declared or paid a cash dividend on our Class A common stock and do not anticipate declaring or paying a cash dividend in the foreseeable future. 53 Table of Contents Unregistered Sales of Equity Securities None.
As of January 31, 2024 and January 31, 2023, we had $271.2 million and $233.6 million, respectively, of deferred revenue of which $265.3 million and $226.4 million, respectively, were recorded as a current liability. This deferred revenue will be recognized as revenues when all of the revenue recognition criteria are met.
As of January 31, 2025 and January 31, 2024, we had $302.8 million and $271.2 million, respectively, of deferred revenue of which $300.8 million and $265.3 million, respectively, were recorded as a current liability. This deferred revenue will be recognized as revenues when all of the revenue recognition criteria are met.
Financial Statements and Supplementary Data in this Annual Report on Form 10-K for more information. 67 Table of Contents Free Cash Flow Year Ended January 31, 2024 2023 2022 (in thousands) Net cash provided by (used in) investing activities $ (289,135) $ 64,492 $ 27,561 Net cash provided by financing activities $ 16,777 $ 381,391 $ 37,210 Net cash used in operating activities $ (17,931) $ (160,058) $ (83,785) Less: Purchases of property and equipment (7,721) (5,351) (41,587) Capitalized internal-use software costs (5,440) (1,806) (1,132) Add: Restructuring costs paid 707 7,663 — Purchases of property and equipment for build-out of corporate headquarters — 2 38,610 Direct listing expenses paid — — 270 Free cash flow $ (30,385) $ (159,550) $ (87,624) Liquidity and Capital Resources Since inception, we have financed operations primarily through the net proceeds we have received from the sales of our preferred stock and common stock, the issuance of senior mandatory convertible promissory notes in January and June 2020 to a trust affiliated with our CEO, cash generated from the sale of subscriptions to our platform, and financing activities including the private placement transaction with our CEO.
Financial Statements and Supplementary Data in this Annual Report on Form 10-K for more information. 63 Table of Contents Free Cash Flow and Adjusted Free Cash Flow Year Ended January 31, 2025 2024 2023 (in thousands) Net cash provided by (used in) investing activities $ (6,129) $ (289,135) $ 64,492 Net cash provided by (used in) financing activities $ (58,093) $ 16,777 $ 381,391 Net cash provided by (used in) operating activities $ 14,925 $ (17,931) $ (160,058) Less: Purchases of property and equipment (5,569) (7,721) (5,351) Capitalized internal-use software costs (6,713) (5,440) (1,806) Add: Purchases of property and equipment for build-out of corporate headquarters — — 2 Free cash flow $ 2,643 $ (31,092) $ (167,213) Add: Restructuring costs paid — 707 7,663 Adjusted free cash flow $ 2,643 $ (30,385) $ (159,550) Liquidity and Capital Resources Since inception, we have financed operations primarily through the net proceeds we have received from the sales of our preferred stock and common stock, the issuance of senior mandatory convertible promissory notes in January and June 2020 to a trust affiliated with our CEO, cash generated from the sale of subscriptions to our platform, and financing activities including the private placement transaction with our CEO.
As of January 31, 2024, we had 21,646 Core customers contributing approximately 71% of revenues for the fiscal year then ended. As of January 31, 2023, we had 19,432 Core customers who contributed approximately 70% of revenue for the fiscal year then ended.
As of January 31, 2025, we had 24,062 Core customers contributing approximately 72% of revenues for the fiscal year then ended. As of January 31, 2024, we had 21,646 Core customers who contributed approximately 71% of revenue for the fiscal year then ended.
Cash Flows The following table shows a summary of our cash flows for the periods presented: Year Ended January 31, 2024 2023 2022 (in thousands) Net cash used in operating activities $ (17,931) $ (160,058) $ (83,785) Net cash provided by (used in) investing activities (289,135) 64,492 27,561 Net cash provided by financing activities 16,777 381,391 37,210 Operating Activities Our largest source of operating cash is cash collection from sales of subscriptions to our paying customers.
Risk Factors . 65 Table of Contents Cash Flows The following table shows a summary of our cash flows for the periods presented: Year Ended January 31, 2025 2024 2023 (in thousands) Net cash provided by (used in) operating activities $ 14,925 $ (17,931) $ (160,058) Net cash (used in) provided by investing activities (6,129) (289,135) 64,492 Net cash (used in) provided by financing activities (58,093) 16,777 381,391 Operating Activities Our largest source of operating cash is cash collection from sales of subscriptions to our paying customers.
Interest expense increased $2.0 million during fiscal 2024 compared to fiscal 2023 primarily due to an increase in interest rates. 65 Table of Contents Comparison of the Fiscal Years Ended January 31, 2023 and 2022 For a comparison of our results of operations for the fiscal years ended January 31, 2023 and 2022, see Part II— Item 7.
Interest expense decreased $0.3 million during fiscal 2025 compared to fiscal 2024 primarily due to a decrease in interest rates. Comparison of the Fiscal Years Ended January 31, 2024 and 2023 For a comparison of our results of operations for the fiscal years ended January 31, 2024 and 2023, see Part II— Item 7.
The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and that do not correlate to the operation of the business.
The amount of employer payroll tax-related items on employee stock transactions is dependent on our stock price and other factors that are beyond our control and that do not correlate to the operation of the business. The restructuring costs are related to the reduction of our global workforce, which resulted in expenses related to severance, benefits, and other related items.
Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is included on our consolidated balance sheets as a liability and is recorded as revenues over the term of the subscription agreement.
A substantial source of our cash provided by operating activities is our customer billings for subscription to our platform. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is included on our consolidated balance sheets as a liability and is recorded as revenues over the term of the subscription agreement.
Our secure and scalable platform with AI-powered features adds structure to unstructured work, creating clarity, accountability, and impact for everyone within an organization—executives, department heads, team leads, and individuals—so everyone understands exactly who is doing what, by when, and why. Asana is flexible and applicable to virtually any use case across departments and organizations of all sizes.
Our secure and scalable platform with AI-powered features adds structure to unstructured work, creating clarity, accountability, and impact for everyone within an organization—executives, department heads, team leads, and individuals. In Asana, everyone understands exactly who is doing what, by when, how and why.
The increase was primarily due to an increase of $4.8 million in third-party hosting costs as we increased capacity to support customer usage and growth of our customer base, an increase of $2.5 million in infrastructure and application performance monitoring costs, an increase of $1.6 million in credit card processing fees, and an increase of $1.5 million in amortization of capitalized software development costs, partially offset by a decrease of $2.1 million in personnel-related costs due to decreased headcount and a decrease of $0.5 million in fees to third party support vendors. 64 Table of Contents Our gross margin stayed consistent during fiscal 2024 compared to fiscal 2023.
The increase was primarily due to an increase of $6.6 million in third-party hosting costs as we increased capacity to support customer usage and growth of our customer base, an increase of $4.3 million in infrastructure and application performance monitoring costs, an increase of $2.4 million in amortization of capitalized software development costs, an increase of $0.6 million in partner delivered services, partially offset by a decrease of $0.9 million in allocated overhead costs and a decrease of $0.8 million in personnel-related costs. 60 Table of Contents Our gross margin decreased during fiscal 2025 compared to fiscal 2024 primarily due to increased third-party hosting costs and infrastructure and application performance monitoring costs.
Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business. The following tables reconcile the most directly comparable GAAP financial measure to each of these non-GAAP financial measures.
All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business.
Year Ended January 31, 2024 2023 2022 (in thousands) Non-GAAP loss from operations $ (58,099) $ (207,280) $ (157,055) Non-GAAP net loss $ (45,132) $ (207,222) $ (162,915) Free cash flow $ (30,385) $ (159,550) $ (87,624) Non-GAAP Loss From Operations and Non-GAAP Net Loss We define non-GAAP loss from operations as loss from operations plus stock-based compensation expense and the related employer payroll tax associated with RSUs, impairment of long-lived assets, as well as non-recurring costs, such as restructuring costs and direct listing expenses.
Year Ended January 31, 2025 2024 2023 (in thousands) Non-GAAP loss from operations $ (40,787) $ (58,099) $ (207,280) Non-GAAP net loss $ (29,588) $ (45,132) $ (207,222) Free cash flow $ 2,643 $ (31,092) $ (167,213) Adjusted free cash flow $ 2,643 $ (30,385) $ (159,550) Non-GAAP Loss From Operations and Non-GAAP Net Loss We define non-GAAP loss from operations as loss from operations plus stock-based compensation expense and the related employer payroll tax associated with RSUs, impairment of long-lived assets, and restructuring costs.
Year Ended January 31, 2024 2023 2022 (in thousands) Revenues $ 652,504 $ 547,212 $ 378,437 Cost of revenues (1) 64,524 56,559 38,897 Gross profit 587,980 490,653 339,540 Operating expenses: Research and development (1) 324,688 297,209 203,124 Sales and marketing (1) 391,955 434,961 282,897 General and administrative (1) 141,334 166,309 118,703 Total operating expenses 857,977 898,479 604,724 Loss from operations (269,997) (407,826) (265,184) Interest income and other income (expense), net 20,624 6,933 (1,536) Interest expense (3,952) (2,000) (18,385) Loss before provision for income taxes (253,325) (402,893) (285,105) Provision for income taxes 3,705 4,875 3,237 Net loss $ (257,030) $ (407,768) $ (288,342) __________________ (1) Amounts include stock-based compensation expense as follows: Year Ended January 31, 2024 2023 2022 (in thousands) Cost of revenues $ 1,549 $ 1,658 $ 806 Research and development 112,619 100,083 57,480 Sales and marketing 59,217 58,504 29,631 General and administrative 29,033 28,717 16,644 Total stock-based compensation expense (1) $ 202,418 $ 188,962 $ 104,561 __________________ (1) The table above includes $0.9 million of stock-based compensation expense for the fiscal year ended January 31, 2023 that was incurred as a result of the restructuring.
Year Ended January 31, 2025 2024 2023 (in thousands) Revenues $ 723,876 $ 652,504 $ 547,212 Cost of revenues (1) 77,193 64,524 56,559 Gross profit 646,683 587,980 490,653 Operating expenses: Research and development (1) 341,467 324,688 297,209 Sales and marketing (1) 419,950 391,955 434,961 General and administrative (1) 152,001 141,334 166,309 Total operating expenses 913,418 857,977 898,479 Loss from operations (266,735) (269,997) (407,826) Interest income and other income (expense), net 19,647 20,624 6,933 Interest expense (3,683) (3,952) (2,000) Loss before provision for income taxes (250,771) (253,325) (402,893) Provision for income taxes 4,765 3,705 4,875 Net loss $ (255,536) $ (257,030) $ (407,768) __________________ (1) Amounts include stock-based compensation expense as follows: Year Ended January 31, 2025 2024 2023 (in thousands) Cost of revenues $ 1,387 $ 1,549 $ 1,658 Research and development 115,953 112,619 100,083 Sales and marketing 64,320 59,217 58,504 General and administrative 29,611 29,033 28,717 Total stock-based compensation expense (1) $ 211,271 $ 202,418 $ 188,962 __________________ (1) The table above includes $0.8 million and $0.9 million of stock-based compensation expense for the fiscal year ended January 31, 2025 and 2023, respectively, that was incurred as a result of the restructuring.
We have generated losses from our operations as reflected in our accumulated deficit of $1,494.6 million as of January 31, 2024 and negative cash flows from operating activities for fiscal 2024, fiscal 2023, and fiscal 2022. As of January 31, 2024 , our principal sources of liquidity were cash, cash equivalents, and marketable securities of $519.5 million.
We have generated losses from our operations as reflected in our accumulated deficit of $1,828.5 million as of January 31, 2025, positive cash flows from operating activities for fiscal 2025, and negative cash flows from operating activities for fiscal 2024 and fiscal 2023.
Non-GAAP Loss From Operations Year Ended January 31, 2024 2023 2022 (in thousands) Loss from operations $ (269,997) $ (407,826) $ (265,184) Add: Stock-based compensation and related employer payroll tax associated with RSUs 207,036 191,286 108,129 Impairment of long-lived asset 5,009 — — Adjustment for: restructuring costs (benefit) (1) (147) 9,260 — Non-GAAP loss from operations $ (58,099) $ (207,280) $ (157,055) Non-GAAP Net Loss Year Ended January 31, 2024 2023 2022 (in thousands) Net loss $ (257,030) $ (407,768) $ (288,342) Add: Stock-based compensation and related employer payroll tax associated with RSUs 207,036 191,286 108,129 Impairment of long-lived assets 5,009 — — Amortization of discount on convertible notes — — 10,628 Non-cash interest expense — — 6,670 Adjustment for: restructuring costs (benefit) (1) (147) 9,260 — Non-GAAP net loss $ (45,132) $ (207,222) $ (162,915) __________________ (1) Restructuring costs for the fiscal year ended January 31, 2023 were composed of severance and related charges of $8.4 million and stock-based compensation expense of $0.9 million.
Non-GAAP Loss From Operations Year Ended January 31, 2025 2024 2023 (in thousands) Loss from operations $ (266,735) $ (269,997) $ (407,826) Add: Stock-based compensation and related employer payroll tax associated with RSUs 214,689 207,036 191,286 Impairment of long-lived asset 6,785 5,009 — Adjustment for: restructuring costs (benefit) (1) 4,474 (147) 9,260 Non-GAAP loss from operations $ (40,787) $ (58,099) $ (207,280) Non-GAAP Net Loss Year Ended January 31, 2025 2024 2023 (in thousands) Net loss $ (255,536) $ (257,030) $ (407,768) Add: Stock-based compensation and related employer payroll tax associated with RSUs 214,689 207,036 191,286 Impairment of long-lived assets 6,785 5,009 — Adjustment for: restructuring costs (benefit) (1) 4,474 (147) 9,260 Non-GAAP net loss $ (29,588) $ (45,132) $ (207,222) __________________ (1) Restructuring costs for the fiscal years ended January 31, 2025 and 2023 were composed of severance and related charges of $3.7 million and $8.4 million, respectively, and stock-based compensation expense of $0.8 million and $0.9 million, respectively.
Cost of Revenues and Gross Margin Year Ended January 31, 2024 2023 $ Change % Change (dollars in thousands) Cost of revenues $ 64,524 $ 56,559 $ 7,965 14 % Gross margin 90 % 90 % Cost of revenues increased $8.0 million, or 14%, during fiscal 2024 compared to fiscal 2023.
Cost of Revenues and Gross Margin Year Ended January 31, 2025 2024 $ Change % Change (dollars in thousands) Cost of revenues $ 77,193 $ 64,524 $ 12,669 20 % Gross margin 89 % 90 % Cost of revenues increased $12.7 million, or 20%, during fiscal 2025 compared to fiscal 2024.
Comparison of the Fiscal Years Ended January 31, 2024 and 2023 Revenues Year Ended January 31, 2024 2023 $ Change % Change (dollars in thousands) Revenues $ 652,504 $ 547,212 $ 105,292 19 % Revenues increased $105.3 million, or 19%, during fiscal 2024 compared to fiscal 2023.
Comparison of the Fiscal Years Ended January 31, 2025 and 2024 Revenues Year Ended January 31, 2025 2024 $ Change % Change (dollars in thousands) Revenues $ 723,876 $ 652,504 $ 71,372 11 % Revenues increased $71.4 million, or 11%, during fiscal 2025 compared to fiscal 2024.
We expect our sales and marketing expenses to continue to increase in dollar amount but to decrease as a percentage of revenues over time, although the percentage may fluctuate from quarter to quarter and year to year depending on the extent and timing of our initiatives. 61 Table of Contents General and Administrative General and administrative expenses consist primarily of personnel-related expenses for our finance, human resources, information technology, and legal organizations.
We expect our sales and marketing expenses to continue to increase in dollar amount but to decrease as a percentage of revenues over time, although the percentage may fluctuate from period to period depending on the extent and timing of our initiatives.
We continue to have the ability to make additional borrowings under the November 2022 Senior Secured Credit Facility which is now held by SVB as a division of First Citizens. 68 Table of Contents In September 2022, we issued and sold 19,273,127 shares of our Class A common stock to our CEO in a private placement transaction at a purchase price of $18.16 per share, based on the closing trading price of our Class A common stock on September 2, 2022, for aggregate proceeds of approximately $350 million.
In September 2022, we issued and sold 19,273,127 shares of our Class A common stock to our CEO in a private placement transaction at a purchase price of $18.16 per share, based on the closing trading price of our Class A common stock on September 2, 2022, for aggregate proceeds of approximately $350 million. Refer to Note 10.
Investing Activities Net cash used in investing activities of $289.1 million for fiscal 2024 consisted of $319.1 million in purchases of marketable securities, $7.7 million in purchases of property and equipment, and $5.4 million in capitalized internal-use software costs, partially offset by $43.1 million in maturities of marketable securities Net cash provided by investing activities of $64.5 million for fiscal 2023 consisted of $143.9 million in maturities of marketable securities, partially offset by $72.2 million in purchases of marketable securities, $5.4 million in purchases of property and equipment from leasehold improvements, and $1.8 million in capitalized internal-use software costs.
Investing Activities Net cash used in investing activities of $6.1 million for fiscal 2025 consisted of $234.4 million in purchases of marketable securities, $6.7 million in capitalized internal-use software costs, and $5.6 million in purchases of property and equipment, offset by $240.6 million in maturities of marketable securities.
Interest Income, Interest Expense, and Other Income (Expense), Net Year Ended January 31, 2024 2023 $ Change % Change (dollars in thousands) Interest income and other income (expense), net $ 20,624 $ 6,933 $ 13,691 197 % Interest expense (3,952) (2,000) (1,952) 98 % Interest income and other income (expense), net increased $13.7 million during fiscal 2024 compared to fiscal 2023 due primarily to an increase in interest income from our investments in marketable securities.
Interest Income, Interest Expense, and Other Income (Expense), Net Year Ended January 31, 2025 2024 $ Change % Change (dollars in thousands) Interest income and other income (expense), net $ 19,647 $ 20,624 $ (977) (5) % Interest expense (3,683) (3,952) 269 (7) % Interest income and other income (expense), net decreased $1.0 million during fiscal 2025 compared to fiscal 2024 due primarily to a decrease in interest income from our investments in marketable securities.
The increase was primarily due to an increase of $28.9 million in personnel-related expenses driven by higher headcount, an increase of $5.5 million in allocated overhead costs as a result of increased overall costs to support the growth of our business and related infrastructure, and an increase of $0.9 million in fees to third party support vendors, partially offset by an increase of $6.3 million in capitalized internal-use software, a decrease of $1.0 million in cloud computing and related costs, and a decrease of $0.8 million in equipment and related costs.
The increase was primarily due to an increase of $22.8 million in personnel-related expenses, partially offset by a decrease of $2.4 million in allocated overhead costs, an increase of $2.0 million in capitalized internal-use software, a decrease of $1.3 million in cloud computing and related costs, and a decrease of $0.7 million in professional fees.
Since we do not have sufficient trading history of our common stock, we estimate the expected volatility of our stock options at the grant date by taking the average historical volatility of a group of comparable publicly traded companies over a period equal to the expected life of the options. • Expected term— Expected term represents the period that our stock-based awards are expected to be outstanding.
The Company utilized the average historical volatility of a group of comparable publicly traded companies over a period equal to the expected term prior to sufficient historical volatility of our stock being available, and uses the historical volatility of our common stock to estimate expected volatility over the expected term for new awards. • Expected term— Expected term represents the period that our stock-based awards are expected to be outstanding.
Net cash used in operating activities of $160.1 million for fiscal 2023 reflects our net loss of $407.8 million, adjusted by non-cash items such as stock-based compensation expense of $189.0 million, non-cash lease expense of $15.6 million, amortization of deferred contract acquisition costs of $15.1 million, depreciation and amortization of $12.7 million, provision for expected credit losses of $1.9 million, and net cash inflows of $13.4 million from changes in our operating assets and liabilities.
Net cash provided by operating activities of $14.9 million for fiscal 2025 reflects our net loss of $255.5 million, adjusted by non-cash items such as stock-based compensation expense of $211.3 million, amortization of deferred contract acquisition costs of $25.9 million, non-cash lease expense of $18.0 million, depreciation and amortization of $17.5 million, impairment of long-lived assets of $6.8 million and provision for expected credit losses of $3.2 million, partially offset by net accretion of discount on marketable securities of $5.5 million and net cash outflows of $6.8 million from changes in our operating assets and liabilities.
We define non-GAAP net loss as net loss plus stock-based compensation expense and the related employer payroll tax associated with RSUs, amortization of discount and non-cash contractual interest expense related to our senior mandatory convertible promissory notes, impairment of long-lived assets, and non-recurring costs such as restructuring costs and direct listing expenses.
We define non-GAAP net loss as net loss plus stock-based compensation expense and the related employer payroll tax associated with RSUs, impairment of long-lived assets, and restructuring costs. We use non-GAAP loss from operations and non-GAAP net loss in conjunction with traditional GAAP measures to evaluate our financial performance.
Contractual Obligations and Commitments The contractual commitment amounts in the table below are associated with agreements that are enforceable and legally binding.
Contractual Obligations and Commitments The contractual commitment amounts in the table below are associated with agreements that are enforceable and legally binding. Purchase orders issued in the ordinary course of business are not included in the table below, as our purchase orders represent authorizations to purchase rather than binding agreements.
We believe that free cash flow is a useful indicator of liquidity that provides information to management and investors, even if negative, about the amount of cash used in our operations other than that used for investments in property and equipment and capitalized internal-use software costs, adjusted for non-recurring expenditures. 66 Table of Contents Limitations and Reconciliations of Non-GAAP Financial Measures Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP.
We believe that free cash flow and adjusted free cash flow are useful indicators of liquidity that provide information to management and investors, even if negative, about the amount of cash used in our operations other than that used for investments in property and equipment and capitalized internal-use software costs, adjusted for expenditures which are distinguishable from our ongoing operations.
In addition, free cash flow does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools.
For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other 62 Table of Contents measures to evaluate their performance. In addition, free cash flow and adjusted free cash flow do not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period.
We measure stock-based compensation expense related to our restricted stock units, or RSUs, based on the fair value of the underlying shares on the date of grant. RSUs are subject to time-based vesting, which generally occurs over a period of four years.
The expected term represents the period that we expect our stock-based awards to be outstanding. 68 Table of Contents We measure stock-based compensation expense related to our restricted stock units, or RSUs, based on the fair value of the underlying shares on the date of grant.
For example, current macroeconomic headwinds have impacted customers’ renewal decisions and we expect this trend to continue into fiscal year 2025. As of January 31, 2024 and 2023, our dollar-based net retention rate was over 100% and over 115%, respectively.
For example, macroeconomic conditions have affected customers’ renewal decisions, which has impacted our dollar-based net retention rate in recent periods. As of January 31, 2025 and 2024, our dollar-based net retention rate was 96% and over 100%, respectively. As of January 31, 2025 and 2024, our dollar-based net retention rate for our Core customers was 97% and 105%, respectively.
These expenses also include non-personnel costs, such as outside legal, accounting, and other professional fees, software subscriptions and expensed computer equipment, certain tax, license, and insurance-related expenses, and allocated overhead costs. We have recognized and will continue to recognize certain expenses as part of being a publicly traded company, consisting of professional fees and other expenses.
General and Administrative General and administrative expenses consist primarily of personnel-related expenses for our finance, human resources, information technology, and legal organizations. These expenses also include non-personnel costs, such 57 Table of Contents as outside legal, accounting, and other professional fees, software subscriptions and expensed computer equipment, certain tax, license, and insurance-related expenses, and allocated overhead costs.
As a public company, we incur additional costs associated with accounting, compliance, insurance, and investor relations.
We have recognized and will continue to recognize certain expenses as part of being a publicly traded company, consisting of professional fees and other expenses. As a public company, we incur additional costs associated with accounting, compliance, insurance, and investor relations.
These amounts were partially offset by a $25.2 million increase in accounts receivable due to higher customer billings, a $24.0 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, $13.8 million decrease in operating lease liabilities, a $4.4 million decrease in accounts payable, and a $4.1 million increase in other assets.
The net cash outflows from changes in operating assets and liabilities primarily consisted of a $20.4 million increase in prepaid expenses and other current assets related to an increase in deferred contract acquisition costs, a $20.0 million decrease in operating lease liabilities, a $4.7 million increase in accounts receivable, and a $4.4 million increase in other assets.
We recognize revenues ratably over the related contractual term beginning on the date that the platform is made available to a customer. Due to the ease of implementation of our platform, revenues from professional services have been immaterial to date.
Subscription revenues are driven primarily by the number of paying customers, the number of paying users within the customer base, and the level of subscription plan. We recognize revenues ratably over the related contractual term beginning on the date that the platform is made available to a customer.
As of January 31, 2024 and 2023, our dollar-based net retention rate for our Core customers was 105% and over 120%, respectively. Our dollar-based net retention rate for customers spending over $100,000 on an annualized basis for the same periods was 115% and over 135%, respectively. Current Economic Conditions Global macroeconomic events including elevated inflation, the U.S.
Our dollar-based net retention rate for customers spending over $100,000 on an annualized basis for the same periods was 96% and 115%, respectively. Current Economic Conditions Global macroeconomic events including inflation, fluctuating interest rates, bank failures, supply chain disruptions, fluctuations in currency exchange rates, tariffs and changes in trade agreements, and geopolitical unrest have led to economic uncertainty.
These charges are non-recurring and not reflective of underlying trends in our business. See Note 17. Restructuring to our consolidated financial statements included in Item 8.
See Note 16. Restructuring to our consolidated financial statements included in Item 8.
There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance.
Limitations and Reconciliations of Non-GAAP Financial Measures Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP.
The net cash inflows from changes in operating assets and liabilities primarily consisted of a $59.4 million increase in deferred revenue resulting from increased billings for subscriptions and a $25.5 million increase in accrued expenses and other liabilities primarily from increases in accrued sales and value-added taxes and other liabilities.
These amounts were partially offset by a $31.6 million increase in deferred revenue resulting from increased billings for subscriptions, a $6.6 million increase in accrued expenses and other liabilities primarily from increases in accrued taxes and accrued payroll liabilities, and a $4.4 million increase in accounts payable.
Federal Reserve raising interest rates, bank failures, supply chain disruptions, fluctuations in currency exchange rates, and geopolitical unrest have led to economic uncertainty. These macroeconomic conditions have and are likely to continue to have adverse effects on the rate of global IT spending, including the buying patterns of our customers and prospective customers, and the length of our sales cycles.
These macroeconomic conditions have and are likely to continue to have adverse effects on the rate of global IT spending, including the buying patterns of our customers and prospective customers, and the length of our sales cycles. Components of Results of Operations Revenues We primarily generate revenues from subscription fees earned from customers accessing our cloud-based platform.
The decrease was primarily due to a decrease of $13.8 million in personnel-related costs due to decreased headcount, a decrease of $4.7 million in fees to third party support vendors, a decrease of $4.4 million in value-added tax reserves, a decrease of $3.5 million in allocated overhead costs, a decrease of $3.2 million in professional services, and a decrease of $1.9 million in insurance expenses, partially offset by an increase of $5.0 million in impairment charges related to subleased office space, an increase of $1.1 million in local taxes, and an increase of $1.0 million in provision for credit losses.
The increase was primarily due to an increase of $4.4 million in personnel-related costs, an increase of $4.3 million in professional fees, and an increase of $1.7 million in impairment charges related to subleased office space.
Overview Asana is a leading work management software platform with an enterprise focus that helps organizations drive strategic initiatives and automate work in one place. Over 150,000 paying customers use Asana to automate complex operational workflows like product launches and employee onboarding, resource planning, tracking company-wide strategic initiatives and more.
Over 169,000 paying customers across 200 countries and territories use Asana to connect their work to company goals and orchestrate mission critical workflows like product launches, employee onboarding, resource planning, tracking company-wide strategic initiatives and more.
We had a net loss of $257.0 million, $407.8 million, and $288.3 million for fiscal 2024, fiscal 2023, and fiscal 2022, respectively . Since our inception, over 55.0 million users have registered on Asana and millions of teams in virtually every country around the world have used Asana. As of January 31, 2024, we had over 3 million paid users.
As of January 31, 2025, we had 1,819 employees, representing a decrease of 1% since January 31, 2024. We had a net loss of $255.5 million, $257.0 million, and $407.8 million for fiscal 2025 , fiscal 2024 , and fiscal 2023 , respectively .
Operating Expenses Year Ended January 31, 2024 2023 $ Change % Change (dollars in thousands) Research and development $ 324,688 $ 297,209 $ 27,479 9 % Sales and marketing 391,955 434,961 (43,006) (10) % General and administrative 141,334 166,309 (24,975) (15) % Total operating expenses $ 857,977 $ 898,479 $ (40,502) (5) % Research and Development Research and development expenses increased $27.5 million, or 9%, during fiscal 2024 compared to fiscal 2023.
Operating Expenses Year Ended January 31, 2025 2024 $ Change % Change (dollars in thousands) Research and development $ 341,467 $ 324,688 $ 16,779 5 % Sales and marketing 419,950 391,955 27,995 7 % General and administrative 152,001 141,334 10,667 8 % Total operating expenses $ 913,418 $ 857,977 $ 55,441 6 % During the year ended January 31, 2025, we realized $4.2 million in credits related to property taxes for our corporate headquarters.

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Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThese laws, regulations, and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies.
Biggest changeThese laws, regulations, and standards are subject to varying interpretations and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding 47 Table of Contents compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices.
The trading price of our Class A common stock has been and could continue to be subject to wide fluctuations in response to numerous factors in addition to the ones described in the preceding Risk Factors, many of which are beyond our control, including: • actual or anticipated fluctuations in our results of operations; • overall performance of the equity markets, the economy as a whole, and macroeconomic factors such as inflationary pressures; • changes in the financial projections we may provide to the public or our failure to meet these projections; • failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company, or our failure to meet these estimates or the expectations of investors; • changes in pricing of subscription plans to our platform; • actual or anticipated changes in our growth rate relative to that of our competitors; • changes in the anticipated future size or growth rate of our addressable markets; • announcements of new products, or of acquisitions, strategic partnerships, joint ventures, or capital-raising activities or commitments, by us or by our competitors; • additions or departures of board members, management, or key personnel; • rumors and market speculation involving us or other companies in our industry; • new laws or regulations or new interpretations of existing laws or regulations applicable to our business, including those related to privacy, data protection, and security in the United States or globally; • lawsuits threatened or filed against us; • other events or factors, including bank failures, war, incidents of terrorism, or responses to these events; • health epidemics, such as influenza, and other highly communicable diseases or viruses; and • sales, purchases, or expectations with respect to such transactions, of shares of our Class A common stock by us or our security holders, particularly by our founders, directors, executive officers, and principal stockholders, none of whom are subject to any contractual lock-up agreement or other contractual restrictions on transfer.
The trading price of our Class A common stock has been and could continue to be subject to wide fluctuations in response to numerous factors in addition to the ones described in the preceding Risk Factors, many of which are beyond our control, including: • actual or anticipated fluctuations in our results of operations; • overall performance of the equity markets, the economy as a whole, and macroeconomic factors such as inflationary pressures; • changes in the financial projections we may provide to the public or our failure to meet these projections; • failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company, or our failure to meet these estimates or the expectations of investors; • changes in pricing of subscription plans to our platform; • actual or anticipated changes in our growth rate relative to that of our competitors; • changes in the anticipated future size or growth rate of our addressable markets; • announcements of new products, or of acquisitions, strategic partnerships, joint ventures, or capital-raising activities or commitments, by us or by our competitors; • additions or departures of board members, management, or key personnel; • rumors and market speculation involving us or other companies in our industry; • new laws or regulations or new interpretations of existing laws or regulations applicable to our business, including those related to privacy, data protection, and security in the United States or globally; 44 Table of Contents • lawsuits threatened or filed against us; • other events or factors, including bank failures, war, incidents of terrorism, or responses to these events; • health epidemics, such as influenza, and other highly communicable diseases or viruses; and • sales, purchases, or expectations with respect to such transactions, of shares of our Class A common stock by us or our security holders, particularly by our founders, directors, executive officers, and principal stockholders, none of whom are subject to any contractual lock-up agreement or other contractual restrictions on transfer.
These anti-takeover provisions include: • a classified board of directors so that not all members of our board of directors are elected at one time; • the ability of our board of directors to determine the number of directors and to fill any vacancies and newly created directorships; • a requirement that our directors may only be removed for cause; • a prohibition on cumulative voting for directors; • the requirement of a super-majority to amend some provisions in our restated certificate of incorporation and amended and restated bylaws; • authorization of the issuance of “blank check” preferred stock that our board of directors could use to implement a stockholder rights plan; • provide for a dual class common stock structure in which holders of our Class B common stock, which has 10 votes per share, have the ability to control the outcome of matters requiring stockholder approval, even if they own significantly less than a majority of the outstanding shares of our Class B and Class A common stock, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets; • an inability of our stockholders to call special meetings of stockholders; and • a prohibition on stockholder actions by written consent, thereby requiring that all stockholder actions be taken at a meeting of our stockholders.
These anti-takeover provisions include: • a classified board of directors so that not all members of our board of directors are elected at one time; • the ability of our board of directors to determine the number of directors and to fill any vacancies and newly created directorships; • a requirement that our directors may only be removed for cause; 48 Table of Contents • a prohibition on cumulative voting for directors; • the requirement of a super-majority to amend some provisions in our restated certificate of incorporation and amended and restated bylaws; • authorization of the issuance of “blank check” preferred stock that our board of directors could use to implement a stockholder rights plan; • provide for a dual class common stock structure in which holders of our Class B common stock, which has 10 votes per share, have the ability to control the outcome of matters requiring stockholder approval, even if they own significantly less than a majority of the outstanding shares of our Class B and Class A common stock, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets; • an inability of our stockholders to call special meetings of stockholders; and • a prohibition on stockholder actions by written consent, thereby requiring that all stockholder actions be taken at a meeting of our stockholders.
In addition, institutional investors and certain investment funds may also be precluded, reluctant or unwilling to invest in entities with multiple class structures due to a lack of ability to meaningfully influence corporate affairs had policies through voting.
In addition, institutional investors and certain investment funds may also be precluded, reluctant or unwilling to invest in entities with multiple class structures due to a lack of ability to meaningfully influence corporate affairs and policies through voting.
Dustin Moskovitz, our co-founder, President, Chief Executive Officer, Chair, and largest stockholder, beneficially owns a significant percentage of our outstanding Class A common stock and Class B common stock, together representing a majority of the voting power of our capital stock as of January 31, 2024. Mr. Moskovitz could exert substantial influence over matters requiring approval by our stockholders.
Dustin Moskovitz, our co-founder, President, Chief Executive Officer, Chair, and largest stockholder, beneficially owns a significant percentage of our outstanding Class A common stock and Class B common stock, together representing a majority of the voting power of our capital stock as of January 31, 2025. Mr. Moskovitz could exert substantial influence over matters requiring approval by our stockholders.
If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business, and adversely affect our business, results of operations, and financial condition. 49 Table of Contents Our largest stockholder will have the ability to influence the outcome of director elections and other matters requiring stockholder approval.
If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business, and adversely affect our business, results of operations, and financial condition. Our largest stockholder will have the ability to influence the outcome of director elections and other matters requiring stockholder approval.
The provisions would not apply to suits brought to enforce a duty or liability created by the Securities Act, the Exchange Act or any other claim for which the U.S. federal courts have exclusive jurisdiction. 53 Table of Contents Furthermore, Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all such Securities Act actions.
The provisions would not apply to suits brought to enforce a duty or liability created by the Securities Act, the Exchange Act or any other claim for which the U.S. federal courts have exclusive jurisdiction. Furthermore, Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all such Securities Act actions.
However, any such projections involve risks, assumptions, and uncertainties, and our actual results could differ materially from such projections. Factors that could cause or contribute to such differences include, but are not limited to, those identified in these Risk Factors, some or all of which are not predictable or within our control.
However, any such projections involve risks, assumptions, and uncertainties, and our actual 46 Table of Contents results could differ materially from such projections. Factors that could cause or contribute to such differences include, but are not limited to, those identified in these Risk Factors, some or all of which are not predictable or within our control.
Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our results of operations to fall below the expectations of securities analysts and investors, resulting in a decline in the trading price of our Class A common stock.
Our results of 43 Table of Contents operations may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our results of operations to fall below the expectations of securities analysts and investors, resulting in a decline in the trading price of our Class A common stock.
As a result, mutual funds, exchange-traded funds, and other investment vehicles that attempt to passively track those indices may not invest in our Class A common stock if we are not included and the trading price of our Class A 50 Table of Contents common stock could be adversely affected.
As a result, mutual funds, exchange-traded funds, and other investment vehicles that attempt to passively track those indices may not invest in our Class A common stock if we are not included and the trading price of our Class A common stock could be adversely affected.
In such instances, we would expect to vigorously assert the validity and enforceability of the exclusive forum provisions of our restated certificate of incorporation. This may require significant additional costs associated with resolving such action in other jurisdictions, and there can be no assurance that the provisions will be enforced by a court in those other jurisdictions. Item 1B.
In such instances, we would expect to vigorously assert the validity and enforceability of the exclusive forum provisions of our restated certificate of incorporation. 49 Table of Contents This may require significant additional costs associated with resolving such action in other jurisdictions, and there can be no assurance that the provisions will be enforced by a court in those other jurisdictions.
In addition, stock markets with respect to newly public companies, particularly companies in the technology industry, have experienced significant price and volume fluctuations that have affected and continue to affect the stock prices of these companies. Stock prices of many companies, including technology companies, have fluctuated in a manner often unrelated to the operating performance of those companies.
In addition, companies in the technology industry have experienced significant price and volume fluctuations that have affected and continue to affect the stock prices of these companies. Stock prices of many companies, including technology companies, have fluctuated in a manner often unrelated to the operating performance of those companies.
In July 2017, FTSE Russell announced that it would require new constituents of its indices to have greater than 5% of the company’s voting rights in the hands of public stockholders. Under such policies, the dual class structure of our common stock may make us ineligible for inclusion in certain indices.
The FTSE Russell requires new constituents of its indices to have greater than 5% of the company’s voting rights in the hands of public stockholders. Under such policies, the dual class structure of our common stock may make us ineligible for inclusion in certain indices.
Although we have already hired additional employees to assist us in complying with these requirements, we may need to hire more employees in the future or engage outside consultants, which will increase our operating expenses.
Although we have already hired additional employees and engaged outside consultants to assist us in complying with these requirements, we may need to increase this staffing in the future, which will increase our operating expenses.
Any future such transactions, notes or issuances could result in substantial dilution to our existing stockholders and cause the trading price of our Class A common stock to decline. 52 Table of Contents Certain provisions in our corporate charter documents and under Delaware law may prevent or hinder attempts by our stockholders to change our management or to acquire a controlling interest in us, and the trading price of our Class A common stock may be lower as a result.
Certain provisions in our corporate charter documents and under Delaware law may prevent or hinder attempts by our stockholders to change our management or to acquire a controlling interest in us, and the trading price of our Class A common stock may be lower as a result.
In particular, health crises, such as the COVID-19 pandemic, and international conflicts, such as the invasion of Ukraine by Russia or the armed conflict in Israel and the Gaza Strip, including the reactions of governments, markets, and the general public, may result in a number of adverse consequences for our business, operations, and results of operations, both worldwide and in our offices in affected regions, many of which are beyond our control.
In particular, health crises and international conflicts, including between Ukraine and Russia and in the Middle East, including the reactions of governments, markets, and the general public, may result in a number of adverse consequences for our business, operations, and results of operations, both worldwide and in our offices in affected regions, many of which are beyond our control.
This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest substantial resources to comply with evolving laws, regulations, and standards, and this investment may result in increased general and administrative expenses and a diversion of management’s time and attention from business operations to compliance activities.
We intend to invest substantial resources to comply with evolving laws, regulations, and standards, and this investment may result in increased general and administrative expenses and a diversion of management’s time and attention from business operations to compliance activities.
If one or more of these analysts cease coverage of our company, or fail to regularly publish reports on us, the demand for our Class A common stock could decrease, which in turn could cause our trading price or trading volume to decline. 51 Table of Contents The requirements of being a public company may strain our resources, divert management’s attention, and affect our ability to attract and retain executive management and qualified board members.
If one or more of these analysts cease coverage of our company, or fail to regularly publish reports on us, the demand for our Class A common stock could decrease, which in turn could cause our trading price or trading volume to decline.
Our disaster recovery plan may not be sufficient to address all aspects or any unanticipated consequence or incident, and our insurance may not be sufficient to compensate us for the losses that could occur. 48 Table of Contents Risks Related To Ownership of Our Class A Common Stock The trading price of our Class A common stock may be volatile and could decline significantly and rapidly.
Our disaster recovery plan may not be sufficient to address all aspects or any unanticipated consequence or incident, and our insurance may not be sufficient to compensate us for the losses that could occur.
As a public company, we are subject to the reporting requirements of the Exchange Act, the listing standards of the NYSE and the LTSE, and other applicable securities rules and regulations.
The requirements of being a public company may strain our resources, divert management’s attention, and affect our ability to attract and retain executive management and qualified board members. As a public company, we are subject to the reporting requirements of the Exchange Act, the listing standards of the NYSE and the LTSE, and other applicable securities rules and regulations.
Future transfers by holders of Class B common stock will generally result in those shares converting to Class A common stock, subject to limited exceptions, such as certain transfers effected for estate planning purposes.
In addition, this may prevent or discourage unsolicited acquisition proposals or offers for our capital stock that you may believe are in your best interest as one of our stockholders. 45 Table of Contents Future transfers by holders of Class B common stock will generally result in those shares converting to Class A common stock, subject to limited exceptions, such as certain transfers effected for estate planning purposes.
Removed
In addition, this may prevent or discourage unsolicited acquisition proposals or offers for our capital stock that you may believe are in your best interest as one of our stockholders.
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Risks Related To Ownership of Our Class A Common Stock The trading price of our Class A common stock may be volatile and could decline significantly and rapidly.
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In March 2025, we announced the anticipated transition of Dustin Moskovitz from the role of Chief Executive Officer to focusing on serving as the Chair of the Board when a new Chief Executive Officer is appointed by the Board.
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We cannot guarantee that our share repurchase program will be fully implemented or that such program will enhance the long-term value of our share price. In June 2024, our board of directors authorized a stock repurchase program of up to $150 million of our outstanding Class A common stock.
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Repurchases are made on the open market, including via pre-set trading plans, in accordance with applicable securities laws. The program does not obligate us to acquire any particular amount of Class A common stock, and the repurchase program may be suspended or discontinued at any time at our discretion.
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Although the program has been approved, there is no obligation for the Company to repurchase any specific dollar amount of stock. The existence of our stock repurchase program could affect the price of our stock and could potentially reduce the market liquidity for our stock.
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Although our stock repurchase program is intended to enhance long-term stockholder value, there is no assurance that it will do so because the market price of our common stock may decline below the levels at which we repurchase shares, and short-term stock price fluctuations could reduce the effectiveness of the program.
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Repurchasing our common stock reduces the amount of cash we have available to fund working capital, capital expenditures, strategic acquisitions or investments, other business opportunities, and other general corporate projects, and we may fail to realize the anticipated long-term stockholder value of any stock repurchase program.
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This uncertainty may be exacerbated by the recent change of administration at the federal level, the appointment of a new Chair of the SEC and the ongoing reevaluation of regulatory priorities with respect to public companies, including changing regulatory and enforcement practices at the SEC and the national securities exchanges.
Added
Any future such transactions, notes or issuances could result in substantial dilution to our existing stockholders and cause the trading price of our Class A common stock to decline.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeIn the year ended January 31, 2024, 24% of our sales were denominated in currencies other than U.S. dollars. Our expenses, by contrast, are primarily denominated in U.S. dollars. As a result, any increase in the value of the U.S. dollar against these foreign currencies could cause our revenue to decline relative to our costs, thereby decreasing our margins.
Biggest changeAs a result, any increase in the value of the U.S. dollar against these foreign currencies could cause our revenue to decline relative to our costs, thereby decreasing our margins. We disclose the impact of realized foreign currency gains and losses within Note 12. Interest Income and Other Income (Expense), Net .
Interest Rate Risk Our cash, cash equivalents, and marketable securities primarily consist of cash on hand and highly liquid investments in money market funds, U.S. government securities, corporate bonds, and commercial paper.
Interest Rate Risk Our cash, cash equivalents, and marketable securities primarily consist of cash on hand and highly liquid investments in money market funds, U.S. government securities, corporate bonds, agency bonds, and commercial paper.
As the impact of foreign currency exchange rates are not projected to be material to our operating results, we have not entered into derivative or hedging transactions, but we may do so in the future if our exposure to foreign currency becomes more significant. 75
As the impact of foreign currency exchange rates are not projected to be material to our operating results, we have not entered into derivative or hedging transactions, but we may do so in the future if our exposure to foreign currency becomes more significant. 71
Our investments are exposed to market risk due to fluctuations in interest rates, which may affect our interest income and the fair value of our investments. As of January 31, 2024, a hypothetical increase in interest rates by 100 basis points would not have a material impact on our consolidated financial statements.
Our investments are exposed to market risk due to fluctuations in interest rates, which may affect our interest income and the fair value of our investments. As of January 31, 2025, a hypothetical increase in interest rates for our investments by 100 basis points would not have a material impact on our consolidated financial statements.
We do not have any other long-term debt or financial liabilities with floating interest rates that would subject us to interest rate fluctuations. As of January 31, 2024, a hypothetical increase of 100 basis points in interest rates would not have a material impact on our consolidated financial statements.
We do not have any other long-term debt or financial liabilities with floating interest rates that would subject us to interest rate fluctuations. As of January 31, 2025, a hypothetical increase of 100 basis points in interest rates for our revolving credit facility would not have a material impact on our consolidated financial statements.
As of January 31, 2024 and January 31, 2023, we had cash and cash equivalents of $236.7 million and $526.6 million, respectively, and marketable securities of $282.8 million and $2.7 million, respectively. We do not enter into investments for trading or speculative purposes.
As of January 31, 2025 and January 31, 2024, we had cash and cash equivalents of $184.7 million and $236.7 million, respectively, and marketable securities of $282.2 million and $282.8 million, respectively. We do not enter into investments for trading or speculative purposes.
Any borrowings under the revolving credit facility bear interest at a variable rate tied to the adjusted term SOFR, the prime rate, or the federal funds effective rate. As of January 31, 2024, we had $46.9 million outstanding under the credit facility.
Any borrowings under the revolving credit facility bear interest at a variable rate tied to the adjusted term SOFR, the prime rate, or the federal funds effective rate. As of January 31, 2025, we had $44.4 million outstanding under the credit facility.
We disclose the impact of realized foreign currency gains and losses within Note 13. Interest Income and Other Income (Expense), Net . A hypothetical 10% change in foreign currency rates would not have resulted in material gains or losses for the years ended January 31, 2024 and 2023.
A hypothetical 10% change in foreign currency rates would not have resulted in material gains or losses for the years ended January 31, 2025 and 2024.
Added
In the year ended January 31, 2025, 25% of our sales were denominated in currencies other than U.S. dollars. Our expenses, by contrast, are primarily 70 Table of Contents denominated in U.S. dollars.

Other ASAN 10-K year-over-year comparisons