Asana, Inc. · NYSE:ASAN
Asana — Investor Day (October 2023)
110 slides from Asana's investor day presentation, Oct 3, 2023
Slide 1: Asana Investor Day 2023
October 3, 2023 Asana Investor Day 2023
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation and the accompanying oral presentation include express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, our abi
Slide 3: Welcome
3 Catherine Buan Head of Investor Relations WelcomeAsana Investor Day 2023
Slide 4: Agenda
4 How AI will help us win the category | Dustin Moskovitz The Asana Difference | Alex Hood Winning the Enterprise | Anne Raimondi (Short break) Opportunities for growth and leverage | Tim Wan Q&A Agenda
Slide 5: Chapter 1: How AI will help us win the category
5 Dustin Moskovitz Co-founder and Chief Executive Officer Chapter 1How AI will help us win the category
Slide 6: Slide 6
Slide 7: AI is an accelerant of our mission
7 AI is an accelerant of our mission
Slide 8: We're focused on the enterprise
8 We’re focused on the enterprise
Slide 9: Landing new enterprise customers
9 Landing new enterprise customers
Slide 10: Landing new enterprise customers, increasing adoption
10 Landing new enterprise customers Increasing adoption
Slide 11: Driving seat expansion
11 Landing new enterprise customers Increasing adoption Driving seat expansion
Slide 12: AI has joined the team
Al has joined the team @oR
Slide 13: There's a smarter way to work
13 There’s a smarter way to work Drive clarity and accountability Maximize impact Scale with confidence
Slide 14: Asana's Work Graph + AI
14 Asana’s Work Graph® + AI
Slide 15: Asana Flywheel
15 Asana Flywheel
Slide 16: The Asana Flywheel
16 More teams Better AI More relationships Better results faster Ease of adoption Accuracy, reliability and traceability Work Graph Efficiency and joy The Asana Flywheel
Slide 17: The Asana Flywheel
17 More teams Better AI More relationships Better results faster Ease of adoption Accuracy, reliability and traceability Work Graph Efficiency and joy The Asana Flywheel
Slide 18: The Asana Flywheel
18 More teams Better AI More relationships Better results faster Ease of adoption Accuracy, reliability and traceability Work Graph Efficiency and joy The Asana Flywheel
Slide 19: The Asana Flywheel
19 More teams Better AI More relationships Better results faster Ease of adoption Accuracy, reliability and traceability Work Graph Efficiency and joy The Asana Flywheel
Slide 20: The Asana Flywheel
20 More teams Better AI More relationships Better results faster Ease of adoption Accuracy, reliability and traceability Work Graph Efficiency and joy The Asana Flywheel
Slide 21: The Asana Flywheel
21 More teams Better AI More relationships Better results faster Ease of adoption Accuracy, reliability and traceability Work Graph Efficiency and joy The Asana Flywheel
Slide 22: Quality work data matters
22 Quality work data matters
Slide 23: Asana's Work Graph
23 Asana’s Work Graph®
Slide 24: Slide 24
Slide 25: Air-Traffic Control + Co-pilot
Air-Traffic Control+Co-pilot
Slide 26: Slide 26
Slide 27: Air-Traffic Control + Co-pilot: The Asana difference
l Air-Traffic Control+Co-pilot The Asana difference
Slide 28: Chapter 2: The Asana Difference
28 Chief Product Officer Chapter 2The Asana Difference Alex Hood
Slide 29: How we work hasn't changed in years
29 Email Docs Spreadsheets How we work hasn't changed in 30 years
Slide 30: Asana
&asana
Slide 31: Powered by the Asana Work Graph
31 Powered by the Asana Work Graph®
Slide 32: The power of Asana Intelligence: Maximize impact
32 The power of Asana Intelligence Maximize impact
Slide 33: Asana Intelligence: Drive clarity and accountability
33 The power of Asana Intelligence Maximize impact Drive clarity and accountability
Slide 34: Asana Intelligence: Scale with confidence
34 The power of Asana Intelligence Maximize impact Drive clarity and accountability Scale with confidence
Slide 35: The Asana difference
lThe Asana difference Air-Traffic Control+Co-pilot
Slide 36: The black box problem
The black box problem “How generative models could 20 WEES ‘THE ECONOMIST (APR. 19, 2023) “Beware the rise of the black box ere eTaL THE FINANCIAL TIMES (SEPT. 19, 2022)
Slide 37: The black box problem
The black box problem Are these good recommendations? 37
Slide 38: The black box problem
The black box problem Are these good recommendations? How do I unpack these assumptions? 38
Slide 39: The black box problem
The black box problem Are these good recommendations? How do I unpack these assumptions? How do I trust this will help our teams make good decisions? 39
Slide 40: What does AI mean for our customers?
40 What does AI mean for our customers?
Slide 41: Good morning, Sandra
‘Tuesday, October 3 Good morning, Sandra @asana
Slide 42: Sasana
Sasana
Slide 43: Capacity planning
asana rat of potential capac an © Season Kickott Capacity Planning Stadum nrastuctre Capacity planning » [BY rep evionment a. Z =
Slide 44: Cyber Security Team
Cyber Security Team Goals 2024 employee cybersecurity training complete Achieve complete coverage of intrusion detection Projects Daily standup 2 | 2023 Forecasting ‘Technology infrastructure Upgrade ee ee Members (33) @® Prive Losner @ consiance abate (@) srsmine davis
Slide 45: What does AI mean for our business?
45 What does AI mean for our business?
Slide 46: Increasing ability to penetrate our TAM
46 Increasing ability to penetrate our TAM
Slide 47: Increasing ability to penetrate our TAM
47 Increasing ability to penetrate our TAM
Slide 48: Increasing ability to penetrate our TAM
48 Increasing ability to penetrate our TAM
Slide 49: The black box problem
The black box problem “How generative models could 20 WEES ‘THE ECONOMIST (APR. 19, 2023) “Beware the rise of the black box ere eTaL THE FINANCIAL TIMES (SEPT. 19, 2022)
Slide 50: The black box problem
The black box problem Are these good recommendations? 50
Slide 51: The black box problem
The black box problem Are these good recommendations? How do I unpack these assumptions? 51
Slide 52: The black box problem
The black box problem Are these good recommendations? How do I unpack these assumptions? How do I trust this will help our teams make good decisions? 52
Slide 53: Increasing ability to penetrate our TAM
53 Increasing ability to penetrate our TAM
Slide 54: Building for the enterprise
54 Building for the enterprise
Slide 55: Differentiation vs barrier to entry
Low differentiation asana High barrier to entry Workflow Management Project Management Task Management Low barrier to entry High differentiation 55
Slide 56: Powered by the Asana Work Graph
56 Powered by theAsana Work Graph®
Slide 57: Chapter 3: Winning the Enterprise
57 Chapter 3Winning the Enterprise Anne Raimondi Chief Operating Officer
Slide 58: Agenda
58 Agenda Customer fireside chat Foundation for product offerings Strategies for moving upmarket
Slide 59: Pricing plans and packages
59 l Individuals Personal Starter Advanced Enterprise Enterprise+ $0 up to 10 users Small teams Organizations Cross functional enterprises Strategic enterprises $10.99 up to 500 users $24.99 up to 500 users Contact sales Contact sales Unlimited essentials Three project views Basic Workflows Unlimite
Slide 60: Pricing plans and packages
60 l Individuals Personal Starter Advanced Enterprise Enterprise+ $0 up to 10 users Small teams Organizations Cross functional enterprises Strategic enterprises $10.99 up to 500 users $24.99 up to 500 users Contact sales Contact sales Unlimited essentials Three project views Basic Workflows Unlimite
Slide 61: Pricing plans and packages
61 l Individuals Personal Starter Advanced Enterprise Enterprise+ $0 up to 10 users Small teams Organizations Cross functional enterprises Strategic enterprises $10.99 up to 500 users $24.99 up to 500 users Contact sales Contact sales Unlimited essentials Three project views Basic Workflows Unlimite
Slide 62: Pricing plans and packages
62 l Individuals Personal Starter Advanced Enterprise Enterprise+ $0 up to 10 users Small teams Organizations Cross functional enterprises Strategic enterprises $10.99 up to 500 users $24.99 up to 500 users Contact sales Contact sales Unlimited essentials Unlimited views Workflow Bundles Asana Intel
Slide 63: Summary of key changes to packaging strategy
63 Summary of key changes to packaging strategy Enterprise+ plan
Slide 64: Summary of key changes to packaging strategy
64 Summary of key changes to packaging strategy Enterprise+ plan AI features
Slide 65: Summary of key changes to packaging strategy
65 Summary of key changes to packaging strategy User and feature limits across tiers AI features Enterprise+ plan
Slide 66: Foundation for growth
66 Foundation for growth Enterprise+ plan AI features User and feature limits
Slide 67: New packaging
New packaging Customer value @asana Personal Starter Advanced Enterprise Enterprise+ eo
Slide 68: New packaging
New packaging Faster conversion & expansion Customer value Personal Starter Advanced Enterprise Enterprise+ @asana
Slide 69: New packaging
New packaging More expansion / up-tiering and larger land opportunities Faster conversion & expansion Customer value Personal Starter Advanced Enterprise Enterprise+ @asana
Slide 70: New packaging
New packaging More expansion / up-tiering and larger land opportunities NEW TIER Faster conversion & expansion Customer value Personal Starter Advanced Enterprise Enterprise+ @asana 70
Slide 71: GTM leaders
71 GTM leaders Neeracha Taychakhoonavudh Head of Customer Experience Shannon Duffy Chief Marketing Officer Ed McDonnell Chief Revenue Officer
Slide 72: Fireside chat: Strategies for moving upmarket
72 Ed McDonnell Chief Revenue Officer Fireside chat Strategies for moving upmarket
Slide 73: Chapter 4: Opportunities for growth and leverage
73 Chief Financial Officer Chapter 4Opportunities for growth and leverage Tim Wan 73
Slide 74: Agenda
74 Agenda Upmarket traction Opportunities for growth Growth philosophy 74
Slide 75: Upmarket traction
75 Upmarket traction
Slide 76: Strong revenue growth
76 $143M $645M1 Strong revenue growth GAAP revenue as of fiscal year-end January 31st 46% CAGR FY20 → FY24E FY20 FY21 FY22 FY23 FY24E Note 1 Assumes mid-point of FY24 annual guidance as of September 5, 2023. 76
Slide 77: Driven by rapid Core customer acquisition
77 Number of Core customers Number of paying customers <$5K Notes Asana defines customers spending over $5,000 as those organizations on a paid subscription plan that had $5,000 or more in annualized GAAP revenues in a given quarter, respectively, inclusive of discount 44% CAGR >66K >126K 4,797 20,7
Slide 78: Faster seat growth within our Core customers
78 >660K Number of paid seats in Core customersNumber of paid seats in <$5K customers Faster seat growth within our Core customers 47% CAGR >1.0M >410K >1.9M 11% CAGR Q2FY20 Q2FY24 Q2FY20 Q2FY24 Note Asana defines Core customers as those organizations on a paid subscription plan that had $5,000 or m
Slide 79: Uptiering Core customers has increased ARPUs
79 ARPU for Core customers $151 $247 Q2FY20 Q2FY24 64% increase Uptiering our Core customers has increased ARPUs Notes Asana defines Core customers as those organizations on a paid subscription plan that had $5,000 or more in annualized GAAP revenues in a given quarter, inclusive of discounts. ARPUs
Slide 80: ~3X revenue growth rate for Core customers
80 Annualized revenue run-rate for Core customersAnnualized revenue run-rate for <$5K customers Notes Asana defines customers spending over $5,000 as those organizations on a paid subscription plan that had $5,000 or more in annualized GAAP revenues in a given quarter, respectively, inclusive of dis
Slide 81: Enterprise momentum
81 92% CAGR 95% CAGR 118% CAGR $8M Q2FY20 Number of paying customers $100K+ Notes Asana defines customers spending over $5,000 as those organizations on a paid subscription plan that had $5,000 or more in annualized GAAP revenues in a given quarter, respectively, inclusive of discount 41 553 Enterpr
Slide 82: Expanding upmarket drives leverage in the business
82 ~35X Additional Lifetime Value1 $325K $100K+ Customer Average ACV $23K Core Customer Average ACV Notes 1 Lifetime Value = average customer ACV divided by annual logo churn % multiplied by gross margin. ACV = Annualized GAAP revenue per quarter divided by total number of customers at end of quarte
Slide 83: Enterprise strength across multiple verticals
83 Enterprise strength across multiple verticals Professional Services Media Consumer + Retail AutomotiveHealthcare Industrial
Slide 84: Opportunities for growth
84 Opportunities for growth 84
Slide 85: Dollar-based net retention rate trends for Core customers
85 Dollar-based net retention rate trends for Core customers User growth more prone to macro tail/headwinds, while ARPU & churn see greater resilience Q2FY 19 Use rs ARPU Rete ntio n Q2FY 20 Use rs ARPU Rete ntio n Use rs ARPU Rete ntio n Q2FY 21 Q2FY 22 Use rs ARPU Rete ntio n Q2FY 23 Use rs ARPU R
Slide 86: Dollar-based net retention rate trends for Core customers
86 >110%1 Q2FY 19 Q2FY 20 Q2FY 21 Q2FY 22 Q2FY 23 Q2FY 24 Use rs ARPU Rete ntio n Fu tu re >125%1 >120%+ 86 Dollar-based net retention rate trends for Core customers User growth more prone to macro tail/headwinds, while ARPU & churn see greater resilience Note Each Q2 NRR indexed to actual NRR as of
Slide 87: Gross retention for Enterprise segment remains strong
87 98% Logo Retention Gross Dollar Retention 97% 86% 89% 96% 87% 100% 96% 95% Q2FY20 Q2FY21 Q2FY22 Q2FY23 Q2FY24 Future Notes Enterprise segment defined as customers on a paid subscription plan that had $100,000 or more in annualized GAAP revenues in a given quarter, inclusive of discounts. Gross re
Slide 88: Collaborative Work Management is a large and growing market
88 15% CAGR Sources IDC Worldwide Collaborative Applications Forecast 2023-2027. IDC Worldwide Project and Portfolio Management Software Forecast, 2022-2026 and Asana estimates. Collaborative Work Management is a large & growing market $79B 2027 $45B 2023 88
Slide 89: ~2M paid seats today in our Core customers
89 ~2M paid seats today in our Core customers ~2M paid seats Notes Asana defines Core customers as those organizations on a paid subscription plan that had $5,000 or more in annualized GAAP revenues in a given quarter, inclusive of discounts. 89
Slide 90: A $10 billion opportunity within existing Core customers
90 A $10 billion opportunity within existing Core customers <5% penetration in Core customer base ~40M knowledge workers ~2M paid seats Notes Asana defines Core customers as those organizations on a paid subscription plan that had $5,000 or more in annualized GAAP revenues in a given quarter, inclus
Slide 91: Greenfield opportunity across one billion knowledge workers
91 ~2M paid seats Asana has a greenfield opportunity to provide value to one billion global Knowledge Workers ~40M knowledge workers 1B knowledge workers1 91 Notes 1 Estimate based on September 2019 report by Forrester Research, Inc.
Slide 92: Opportunity within our Core customer base
92 Opportunity within our Core customer base $10B Global Knowledge Workers 1 Billion Of the Global 2K uses Asana1 48% 92 Notes 1 Estimate based on FY23 data.
Slide 93: Foundation for growth
9393 Foundation for growth Enterprise+ plan AI features User and feature limits
Slide 94: GTM strategy shift accelerates time to $100K+
94 Our GTM strategy shift has unlocked new avenues to accelerate time from acquisition to $100K+ 94 $500K $100K Customer 1 Customer 2 Customer 3
Slide 95: Growth philosophy
95 Growth philosophy 95
Slide 96: Balancing growth and profitability
96 Balancing growth and profitability FY20 1HFY24 86% 90% 45% 33% 67% 51% 22% 17% (49)% (10)% (31)% (1)% Gross margin R&D S&M G&A Operating margin Free cash flow margin → → → → → → % of revenue (Non-GAAP) 96These non-GAAP financial measures are presented in addition to, and should not be considered
Slide 97: Balancing growth and profitability: medium and long term targets
97 1HFY24 90% 33% 51% 17% (10)% (1)% Balancing growth and profitability Medium Term Long Term 88%+ 88%+ 28-31% 22-25% 47-50% 30-33% 10-13% 8-9% (6)-4% 20%+ Positive 30%+ Operating margin Free cash flow margin Gross margin R&D S&M G&A 97 % of revenue (Non-GAAP) These non-GAAP financial measures are p
Slide 98: Levers for accelerating growth
98 Expansion into our core customers Levers for accelerating growth 98
Slide 99: Levers for accelerating growth
99 Expansion into our core customers Acquire new enterprise customers Levers for accelerating growth 99
Slide 100: Levers for accelerating growth
100 Expansion into our core customers Acquire new enterprise customers New packaging with Asana Intelligence Levers for accelerating growth 100
Slide 101: Q&A
101 Q&A 101
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102 102
Slide 103: GAAP to Non-GAAP Reconciliation Appendix
103 GAAP to Non-GAAP Reconciliation 103 Appendix
Slide 104: Gross Profit and Gross Margin reconciliation
104 FY20 GAAP to Non-GAAP Reconciliation 1HFY24 GAAP Loss from Operations Plus: stock-based compensation and related employer payroll tax associated with RSUs In millions 104 Gross Profit and Gross Margin % of revenue % of revenue Non-GAAP Gross Profit $122.7 $283.8 $0.1 $122.8 86% $0.8 $284.6 90% 9
Slide 105: Operating Loss and Operating Margin reconciliation
105 FY20 GAAP to Non-GAAP Reconciliation 1HFY24 GAAP Loss from Operations Plus: stock-based compensation and related employer payroll tax associated with RSUs In millions 105 Operating Loss and Operating Margin % of revenue % of revenue Plus: Direct Listing $(119.6) $48.4 $1.9 (84)% - $101.1 - (44)%
Slide 106: Research and Development reconciliation
106 FY20 GAAP to Non-GAAP Reconciliation 1HFY24 GAAP Research and Development Less: stock-based compensation and related employer payroll tax associated with RSUs In millions 106 Research and Development % of revenue % of revenue Non-GAAP research and development $89.7 $160.7 $(24.9) $64.8 45% $(56.
Slide 107: Sales and Marketing reconciliation
107 GAAP to Non-GAAP Reconciliation 107 Sales and Marketing FY20 1HFY24 GAAP sales and marketing Less: stock-based compensation and related employer payroll tax associated with RSUs In millions % of revenue % of revenue Less: restructuring costs $105.8 $189.7 $(10.1) - $(28.7) $0.2 74% 60% Non-GAAP
Slide 108: General and Administrative reconciliation
108 FY20 GAAP to Non-GAAP Reconciliation 1HFY24 GAAP general and administrative Less: stock-based compensation and related employer payroll tax associated with RSUs In millions General and Administrative % of revenue % of revenue Less: direct listing expenses $46.8 $(13.2) $(1.9) 33% Less: impairmen
Slide 109: Free cash flow reconciliation
109 FY20 Free cash flow 1HFY24 Net cash provided by (used in) operating activities Less: purchases of property and equipment In millions % of revenue % of revenue Less: capitalized internal-use software Plus: purchases of property and equipment from build-out of corporate headquarters Plus: direct l
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