Asana (ASAN) Q2 2027 earnings summary

Executive summary

• Q2 revenue reached $216.4 million, up 10% year-over-year, exceeding guidance, with accelerating growth and improved profitability driven by AI products and expansion in large customer segments.

• AI products (AI Studio, AI Teammates) accounted for 25% of net new ARR, up from 17% last quarter, and are now embedded in core offerings via Agentic Work Management.

• Net retention rate (NRR) improved to 97% overall, with core and $100,000+ customer cohorts at 98%.

• Core customers ($5,000+ annual spend) grew to 26,778, representing 77% of revenue, and customers spending $100,000+ increased 16% year-over-year to 890.

• StackAI acquisition completed, enhancing AI platform strategy and contributing to growth and product capabilities.

Financial highlights

• Q2 revenue: $216.4 million, up 10% year-over-year; StackAI contributed 50 basis points to growth.

• Non-GAAP operating margin was 10%, up 300 basis points year-over-year; adjusted free cash flow margin was 20%.

• Gross margin was 87%, down 120 basis points sequentially due to higher AI infrastructure costs and product mix shift.

• Net income was $23.8 million, or $0.10 per diluted share; GAAP net loss narrowed to $39.2 million.

• Adjusted free cash flow was $42.3 million, benefiting from strong collections.

Outlook and guidance

• Q3 revenue expected at $217–$219 million (8–9% year-over-year growth), with a $700,000 headwind from AWM packaging transition.

• Full-year FY27 revenue guidance: $858.5–$863.5 million (9% growth at midpoint), including a $1.2 million headwind from AWM/consumption transition.

• Non-GAAP operating income for FY27: $84.5–$86.5 million (approx. 10% margin).

• AI products expected to represent ~20% of net new ARR for the full year.

• Minimal FY27 revenue contribution expected from new applications (Client Management, Service Management, Command); meaningful impact anticipated in FY28.