Asana, Inc. (NYSE:ASAN) Q3 2023 Earnings Call Transcript

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Dustin Moskovitz: It’s a complex hypothetical question. I think some things we’re working. Some things we revisited as we always do when we’re sort of executing in the wild. But for the most part, I think that the rising tide of the category was continuing, and we were investing into that trend. And so just in terms of like the 20,000-foot view, yes, I’d expect it to continue. I think it’s still working. We’re succeeding in our move upmarket to enterprise and especially just seeing a lot of learnings there and exactly how to make customers successful, very, very quickly and again, reintegrating that straight into the product experience. So, all of that, I think, will be strengths that we build on even before we start hiring again, there’s still quite a lot of onus here, quite a lot of customers growing.

And so it’s a little hard for me to think about it because it almost sounds like we stopped the whole engine, which isn’t the case. We’re just taking a beat ourselves before we step on the gas again in the future.

Jackson Ader: Okay. All right. Got it. And then as my follow-up, Tim, I just — I’m curious why wouldn’t $40 million in annual savings bring the timing of the free cash flow breakeven in — even if you don’t want to like put a date on it, I shouldn’t $40 million of annual savings, bring the time line in a little bit?

Tim Wan: Yes, I mean I think a lot of this is really about kind of trying to understand and assess what the macro is going to look like and the growth rate over the next two years. I think to a degree, we grow faster. I absolutely believe that we’ll be able to pull it in. But if the economy actually gets worse. And sitting here today, there’s just like no signals that things will be better yet. So, I’d rather be more cautious and conservative as we continue to provide both guidance and outlook on kind of the financials.

Jackson Ader: Thank you.

Operator: Our next question comes from the line of Jason Celino with KeyBanc Capital Markets. Please go ahead.

Jason Celino: Hey, thanks everyone for filling me in. I guess just a couple of Q4 guidance questions. I totally understand the macro challenges, and I think came in your prepared remarks, you said that you’re assuming the environment to kind of remain the same for Q4. But when I look at kind of the sequential growth, it’s much less than what we saw in Q3. So I guess, how conservative is this Q4? And are there any other factors that might not be kind of thinking about?

Tim Wan: I would say we are being extremely thoughtful and conservative in terms of how we provided the Q4 guidance.

Jason Celino: Okay. Perfect. I think, yes, I think I can leave it at that and I’ll then pass it on.

Tim Wan: Okay. Thank you.

Operator: Thank you. Our next question comes from the line of Robert Simmons with D.A. Davidson. Please go ahead.

Robert Simmons: Hey, thanks for taking my question. So one of the things you mentioned in the script was maximizing data from the product-led motion. And I’m wondering if you could give us some more details on what that means. Is that something on the lines of talk about with Amazon to kind of get them up and running quickly and that sort of thing, or is there more to it?

Anne Raimondi: Yes. Thanks so much for that question. I think we are excited about that on a number of fronts, both in larger accounts where there is team adoption across the board? And how do we get that information more quickly to our sales team with the context on which teams? What’s the usage? How they’re already collaborating with other teams and departments that are fully deployed. So certainly, product data in existing accounts. as well as product data in new accounts and new sign-ups, how we can do a faster, more intelligent job with the scoring of that product usage early in their journey and pass those and more quickly to sales to have really relevant and rich conversations early on. A lot of times what we see is if we can get customers set up early on and talk to them about the total potential of Asana, that growth is accelerated. So we just want to do more of that, leveraging the rich insights and data we have in our product platform.

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