Asana (ASAN) raised its full-year operating margin guidance to 10% from 9.5% at the start of the year and increased its AI product revenue target during a presentation at Piper Sandler's 5th Annual Growth Frontiers Conference on Tuesday, Sept. 15, citing accelerating adoption of its AI offerings.
Second-quarter revenue grew 10% year-over-year, and the company beat its top-line guidance by $2.4 million. CFO Aziz Megji noted that about 1.2 percentage points of growth were pushed from Q2 into Q3 and Q4 as a result of packaging changes.
AI products contributed 25% of net new ARR in the quarter, up from 17% in Q1. The full-year AI contribution target was raised to 20% from an initial 15%. Megji said roughly a quarter of Asana's customers with $100,000 or more in annual recurring revenue have adopted at least one AI product. The platform offers 30 out-of-the-box AI teammates among its agentic and collaborative work management tools.
Net retention improved for a fifth straight quarter, reaching 97% overall. Customers in the $100,000-plus ARR segment posted 98% net retention on a four-quarter average, up from 96%, while the $5,000-plus cohort remained at or above 100%.
Committed revenue per organization accelerated to 11% in Q2 from 7% in the prior quarter. Up-market growth returned to double digits for the first time in two years since Asana was founded approximately 18 years ago by Dustin Moskovitz.
Megji highlighted the company's Enterprise Work Graph as a central product differentiator, saying it provides the organizational context that enables governance, persistent memory and multiplayer environments for AI-driven workflows. He also pointed to a TMT account that shifted from a projected $1 million contraction to an expansion.
Gross profit margin held at 88%. Asana also reported that over 60% of its workforce relocated from high-cost to lower-cost geographies over the past year, with key hubs in Warsaw, Poland, and Vancouver, Canada. High-cost locations now represent less than half of total employees.
Trailing twelve-month results showed a loss of $0.65 per share. Analysts forecast profitability in fiscal 2027 at $0.39 per share. Shares rose 38% over the preceding three months but remain down 28% year-to-date.
Approximately 25% of Asana's customer base, including agencies and professional services firms, already use the platform for client management.
