Asana, Inc. (NYSE: ASAN)(LTSE: ASAN) has reported its first quarter fiscal 2026 financial results, highlighting significant improvements across various key metrics. Here are the specific figures:
- Revenues for the first quarter were $187.3 million, marking a 9% increase year over year.
- GAAP operating margin saw a notable improvement, standing at 23% of revenues, compared to 38% in the first quarter of fiscal 2025.
- Non-GAAP operating income reached $8.1 million, representing 4% of revenues, a significant turnaround from a non-GAAP operating loss of $15.8 million, or 9% of revenues, in the first quarter of fiscal 2025.
- GAAP net loss was $40.0 million, compared to $63.7 million in the first quarter of fiscal 2025, with a loss per share of $0.17, down from $0.28 in the same period last fiscal year.
- Non-GAAP net income stood at $12.0 million, a considerable improvement from a net loss of $13.3 million in the first quarter of fiscal 2025. Non-GAAP net income per share was $0.05, compared to a loss per share of $0.06 in the first quarter of fiscal 2025.
- Cash flows from operating activities improved to $6.8 million, compared to negative $1.9 million in the first quarter of fiscal 2025. Adjusted free cash flow also saw a positive swing, reaching $9.9 million, up from negative $4.3 million in the first quarter of fiscal 2025.
In terms of customer metrics: The number of core customers, or those spending $5,000 or more on an annualized basis, grew to 24,297 in Q1, representing a 10% increase year over year. Revenues from core customers in Q1 also grew 10% year over year. The number of customers spending $100,000 or more on an annualized basis in Q1 grew to 728, marking a 20% increase year over year. * The overall dollar-based net retention rate in Q1 was 95%, while specific retention rates for core customers and those spending $100,000 or more annually were 96% and 95%, respectively.
Furthermore, Asana provided a financial outlook for the second quarter of fiscal 2026, expecting revenues of $192.0 million to $194.0 million, representing year-over-year growth of 7% to 8%. The company also anticipates non-GAAP operating income of $8.0 million to $10.0 million with a 4% to 5% operating margin. For the full fiscal year 2026, Asana forecasts revenues of $775.0 million to $790.0 million, an increase of 7% to 9% year over year, along with a non-GAAP operating margin of at least 5.5% and non-GAAP net income per share of $0.22.
Asana's performance in the first quarter and its outlook for the coming periods indicate positive momentum across various financial and operational aspects, reflecting the company's efforts to drive durable, profitable growth. Following these announcements, the company's shares moved 1.28%, and are now trading at a price of $18.615. For more information, read the company's full 8-K submission here.
