Asana (ASAN) Q1 2027 earnings summary

Executive summary

• Q1 revenue reached $205.1 million, up 9.5%–10% year-over-year, exceeding guidance and driven by strong customer retention, expansion, and AI product adoption.

• Non-GAAP operating margin expanded to 11.5%, up 720 basis points year-over-year, with record GAAP operating margin improvement.

• Acquisition of StackAI/StackAl for $75 million in cash plus equity-based earn-out accelerates the AI roadmap by over a year and adds ~50 employees.

• Customer base expanded, with 12% growth in $100K+ customers and 7% growth in core customers year-over-year.

• Leadership transitions included appointment of a new CFO and Chief Accounting Officer.

Financial highlights

• Q1 revenue: $205.1 million (+9.5% YoY); core customer revenue grew 10% YoY, representing 76% of total revenue.

• Gross margin was 88%; non-GAAP operating income was $23.6 million (11.5% margin); net income was $24.4 million or $0.10 per diluted share.

• Free cash flow was $34.4 million, up significantly year-over-year; cash, equivalents, and marketable securities at quarter-end: $424.6 million.

• 817 customers spending $100,000+ annually, up 12% YoY; core customers (>$5,000) at 26,103.

• Deferred revenue at quarter-end: $323.1 million (+11% YoY); RPO was $518.1 million (+23% YoY).

Outlook and guidance

• Q2 FY27 revenue expected at $213–$215 million (+8.2%–9.2% YoY), with StackAI contributing ~50 bps to growth.

• Q2 non-GAAP operating income expected at $18–$20 million (8.5%–9.3% margin); non-GAAP EPS $0.08–$0.09.

• FY27 revenue guidance: $855.5–$863.5 million (+8.2%–9.2% YoY); non-GAAP operating margin at least 9.75%; non-GAAP EPS $0.37.

• AI product bookings expected to contribute ~15%–17% of net new ARR for FY27.

• StackAI expected to be a ~1 percentage point drag on operating margins in Q2 and H2 FY27.