Earnings Call Insights: Asana, Inc. (ASAN) Q3 2026
Management View
- CEO Daniel Rogers described the quarter as solid, highlighting that “Q3 revenues were $201 million, growing 9% year-over-year, exceeding the high end of our guidance.” Rogers emphasized the foundational role of AI Studio and the introduction of AI teammates, which are being used by customers to drive productivity gains. He noted, “I’m excited to share more about our AI platform…AI Studio delivered another good quarter with solid growth in sequential bookings, including early traction with self-serve users.”
- Rogers announced that retention within Asana’s monthly customer base is at a 12-month high and pointed to key customer expansions, including a Fortune 100 health care service provider crossing the $1 million ARR threshold and a global pharmaceutical leader adopting Asana for mobile clinical trial workflows.
- Asana introduced AI teammates at its Work Innovation Summit events, with general availability expected early next year and positive feedback from 30 beta customers. Rogers highlighted, “We’ve already built out 12 out-of-the-box teammates across engineering, IT, marketing, operations and PMO.”
- The company is not backfilling the COO role after Anne Raimondi’s departure, with go-to-market leaders now reporting directly to Rogers, aiming for tighter alignment and faster execution.
- CFO Sonalee Parekh stated, “Q3 revenues came in at $201 million, up 9% year-over-year, which exceeded the high end of our guidance by almost 1 percentage point.” Parekh added that non-GAAP operating income was $16.3 million for an 8% operating margin and reported, “Net income was $17.9 million or $0.07 per share on a diluted basis.”
Outlook
- For Q4 fiscal 2026, Parekh guided for revenues of $204 million to $206 million, “representing 8% to 9% growth year-over-year.” Non-GAAP operating income is expected at $14 million to $16 million with an operating margin of 7% to 8%, and non-GAAP net income per share of $0.07.
- Full year revenue guidance was adjusted to $789 million to $791 million, up from $780 million to $790 million previously, with non-GAAP operating income guidance raised to $52.5 million to $54.5 million (7% margin).
- Parekh indicated, “We are reinvesting a portion of our Q3 operating profit outperformance back into the business, primarily in our AI platform and product development initiatives.”
Financial Results
- Q3 revenues reached $201 million, with 25,413 core customers (spending $5,000+ annually); revenues from this cohort grew 10% year-over-year and represented 76% of total revenues. The $100,000+ cohort grew 15% year-over-year to 785 customers.
- Dollar-based net retention rate (NRR) was 96%; core customer NRR was 97%, and $100,000+ customer NRR was 96%. In-quarter NRR improved across all cohorts, “marking our second consecutive quarter of in-quarter NRR improvement,” according to Parekh.
- Gross margin was reported at 89%. R&D expenses were $47.3 million (24% of revenue), sales and marketing $86.5 million (43% of revenue), and G&A $29.1 million (14% of revenue). Free cash flow was $13.4 million (7% margin).
- Share repurchases totaled $30.8 million for 2.2 million shares at an average price of $14.10 per share, with $97.5 million remaining authorized.
Q&A
- Matthew Bullock, BofA Securities: Asked about AI Studio self-serve launch and its impact on ARR and renewals. Anne Raimondi responded that “wide adoption and customers really trying it out” is encouraging and that AI Studio “has been a real help in renewal conversations” by providing more value and strategic discussion.
- Steven Enders, Citigroup: Inquired about tech sector headwinds and Q4 guidance changes. CEO Rogers noted tech vertical is stabilizing, stating, “Once they’re downgraded once, they tend not to downgrade again…several of our largest tech customers this quarter actually expanded as they renewed.” Parekh pointed to enterprise strength, stable demand, improved NRR, and AI momentum as factors in raising guidance.
- Josh Baer, Morgan Stanley: Asked about Asana’s competitive position as AI agents become more common. Rogers explained, “Our AI platform has context, controls and checkpoints built in…AI teammates address many of those gaps because they operate as true members of the team, not just individual copilots.”
- Robert Oliver, Baird: Queried about the partner ecosystem. Rogers described the channel as early-stage but promising, while Parekh highlighted continued margin expansion opportunities balanced with reinvestment in AI.
- Jackson Ader, KeyBanc: Questioned retention and revenue growth dynamics. Raimondi explained improvements in downgrade and investments in multiproduct strategy, while Parekh reaffirmed the goal of both margin expansion and revenue acceleration through AI initiatives.
- Patrick Walravens, Citizens JMP: Asked about increasing organizational velocity. Rogers cited decision-making, rapid beta launches, and strong operating rhythm as methods. Parekh stated, “There is no reason in my mind that we can’t eventually aspire to be among the best-in-class in terms of enterprise SaaS software companies on margin.”
- Arsenije Matovic, Wolfe Research: Questioned large tech renewals versus expectations. Raimondi confirmed Q3 renewals performed better than expected, and Parekh indicated increased confidence going into Q4.
Sentiment Analysis
- Analysts were largely positive or cautiously optimistic, focusing on AI Studio adoption, retention improvements, tech sector resilience, and margin expansion, while asking for clarity on guidance and competitive differentiation.
- Management maintained a confident and upbeat tone in prepared remarks and Q&A, frequently referencing operational rigor and the impact of new AI products. Rogers used phrases such as “I’m excited” and “clear measurable progress,” while Parekh described guidance adjustments as based on “confidence on raising the guide overall.”
- Compared to the previous quarter, management’s tone was more assertive about NRR bottoming and more explicit on AI teammates’ rollout, while analysts appeared incrementally more constructive on retention and strategy.
Quarter-over-Quarter Comparison
- Q3 saw revenue growth of 9%, slightly below 10% in Q2, with core customer and $100,000+ cohort growth rates moderating from 12% and 19% to 10% and 15%, respectively.
- Guidance language shifted from cautious (potential NRR downgrades) in Q2 to more confident (NRR at or near the floor) in Q3. Management raised full-year revenue and margin guidance and signaled increased investment in AI.
- AI Studio and AI teammates momentum was more prominent in Q3, with specific customer wins and internal use cases highlighted.
- Analysts in Q3 continued to focus on retention, AI monetization, operational efficiency, and tech vertical headwinds but expressed greater confidence in management’s execution and multiproduct strategy.
- Strategic focus shifted toward deeper sector penetration, AI self-serve expansion, and organizational realignment after the COO’s departure.
Risks and Concerns
- Tech sector headwinds continue to impact growth, but Rogers noted stabilizing trends and less risk of further downgrades among tech customers.
- SMB segment remains pressured by evolving search landscape and LLM-driven changes, expected to persist through Q4. Management’s mitigation includes self-serve experience improvements, content strategy evolution, and behavioral personalization.
- Large enterprise renewals concentrated in the technology vertical present ongoing risk, but management expressed increased confidence due to operational rigor and new product offerings.
- Management acknowledged the need to balance margin expansion with reinvestment in AI to sustain product leadership and accelerate growth.
Final Takeaway
Asana delivered Q3 results that beat guidance on both revenue and margin, driven by disciplined execution, continued adoption of AI Studio, and the early success of AI teammates. Retention improvements, enterprise customer expansions, and positive initial feedback from new AI offerings underpin management’s confidence in raising full-year guidance. The departure of the COO led to a streamlined leadership structure, while investments in AI and operational efficiency remain central to the company’s long-term growth and profitability strategy.