10-Q 1 asan-20220430.htm 10-Q asan-20220430
000147772001/312023Q1FALSE.020800014777202022-02-012022-04-300001477720us-gaap:CommonClassAMember2022-05-31xbrli:shares0001477720us-gaap:CommonClassBMember2022-05-3100014777202022-04-30iso4217:USD00014777202022-01-3100014777202021-02-012021-04-30iso4217:USDxbrli:shares0001477720us-gaap:CommonStockMember2022-01-310001477720us-gaap:AdditionalPaidInCapitalMember2022-01-310001477720us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-310001477720us-gaap:RetainedEarningsMember2022-01-310001477720us-gaap:CommonStockMember2022-02-012022-04-300001477720us-gaap:AdditionalPaidInCapitalMember2022-02-012022-04-300001477720us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-02-012022-04-300001477720us-gaap:RetainedEarningsMember2022-02-012022-04-300001477720us-gaap:CommonStockMember2022-04-300001477720us-gaap:AdditionalPaidInCapitalMember2022-04-300001477720us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-300001477720us-gaap:RetainedEarningsMember2022-04-300001477720us-gaap:CommonStockMember2021-01-310001477720us-gaap:AdditionalPaidInCapitalMember2021-01-310001477720us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-310001477720us-gaap:RetainedEarningsMember2021-01-3100014777202021-01-310001477720us-gaap:CommonStockMember2021-02-012021-04-300001477720us-gaap:AdditionalPaidInCapitalMember2021-02-012021-04-300001477720us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-012021-04-300001477720us-gaap:RetainedEarningsMember2021-02-012021-04-300001477720us-gaap:CommonStockMember2021-04-300001477720us-gaap:AdditionalPaidInCapitalMember2021-04-300001477720us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-300001477720us-gaap:RetainedEarningsMember2021-04-3000014777202021-04-300001477720us-gaap:CustomerConcentrationRiskMemberasan:CustomerOneMemberus-gaap:RevenueFromContractWithCustomerMember2022-02-012022-04-30xbrli:pure00014777202022-05-012022-04-300001477720us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-04-300001477720us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2022-04-300001477720us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2022-04-300001477720us-gaap:MoneyMarketFundsMember2022-04-300001477720us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2022-04-300001477720us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2022-04-300001477720us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2022-04-300001477720us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2022-04-300001477720us-gaap:FairValueInputsLevel1Memberus-gaap:CertificatesOfDepositMember2022-04-300001477720us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2022-04-300001477720us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Member2022-04-300001477720us-gaap:CertificatesOfDepositMember2022-04-300001477720us-gaap:FairValueInputsLevel1Member2022-04-300001477720us-gaap:FairValueInputsLevel2Member2022-04-300001477720us-gaap:FairValueInputsLevel3Member2022-04-300001477720us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMember2022-04-300001477720us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2022-04-300001477720us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel3Member2022-04-300001477720us-gaap:USTreasuryAndGovernmentMember2022-04-300001477720us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-04-300001477720us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2022-04-300001477720us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-04-300001477720us-gaap:CorporateDebtSecuritiesMember2022-04-300001477720us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-01-310001477720us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2022-01-310001477720us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2022-01-310001477720us-gaap:MoneyMarketFundsMember2022-01-310001477720us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2022-01-310001477720us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2022-01-310001477720us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2022-01-310001477720us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2022-01-310001477720us-gaap:FairValueInputsLevel1Memberus-gaap:CertificatesOfDepositMember2022-01-310001477720us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2022-01-310001477720us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Member2022-01-310001477720us-gaap:CertificatesOfDepositMember2022-01-310001477720us-gaap:FairValueInputsLevel1Member2022-01-310001477720us-gaap:FairValueInputsLevel2Member2022-01-310001477720us-gaap:FairValueInputsLevel3Member2022-01-310001477720us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMember2022-01-310001477720us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2022-01-310001477720us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel3Member2022-01-310001477720us-gaap:USTreasuryAndGovernmentMember2022-01-310001477720us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-01-310001477720us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2022-01-310001477720us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-01-310001477720us-gaap:CorporateDebtSecuritiesMember2022-01-310001477720us-gaap:SecuredDebtMemberasan:TermLoanAgreementMember2020-04-300001477720us-gaap:SecuredDebtMemberasan:TermLoanAgreementMember2022-02-012022-04-300001477720us-gaap:SecuredDebtMemberasan:TermLoanAgreementMember2022-04-300001477720asan:January2020ConvertibleNoteMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-300001477720asan:June2020ConvertibleNoteMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-06-260001477720us-gaap:ComputerEquipmentMember2022-04-300001477720us-gaap:ComputerEquipmentMember2022-01-310001477720us-gaap:FurnitureAndFixturesMember2022-04-300001477720us-gaap:FurnitureAndFixturesMember2022-01-310001477720us-gaap:LeaseholdImprovementsMember2022-04-300001477720us-gaap:LeaseholdImprovementsMember2022-01-310001477720us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-04-300001477720us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-01-310001477720us-gaap:ConstructionInProgressMember2022-04-300001477720us-gaap:ConstructionInProgressMember2022-01-310001477720us-gaap:ConvertibleDebtMember2020-01-012020-06-30asan:debt_instrument0001477720us-gaap:ConvertibleDebtMemberasan:January2020ConvertibleNoteMember2020-01-310001477720us-gaap:ConvertibleDebtMemberasan:June2020ConvertibleNoteMember2020-06-300001477720us-gaap:ConvertibleDebtMemberus-gaap:CommonClassBMember2021-07-012021-07-010001477720us-gaap:ConvertibleDebtMember2021-07-010001477720us-gaap:ConvertibleNotesPayableMember2021-02-012021-04-300001477720us-gaap:SecuredDebtMemberasan:TermLoanAgreementMember2021-04-3000014777202021-01-012021-01-310001477720asan:HostingRelatedServicesMember2022-04-300001477720asan:SoftwareBasedServicesMember2022-04-300001477720us-gaap:EmployeeStockOptionMember2022-02-012022-04-300001477720us-gaap:EmployeeStockOptionMember2021-02-012021-04-300001477720us-gaap:RestrictedStockUnitsRSUMember2022-02-012022-04-300001477720us-gaap:RestrictedStockUnitsRSUMember2021-02-012021-04-300001477720asan:EarlyExercisedStockOptionsMember2022-02-012022-04-300001477720asan:EarlyExercisedStockOptionsMember2021-02-012021-04-300001477720us-gaap:EmployeeStockMember2022-02-012022-04-300001477720us-gaap:EmployeeStockMember2021-02-012021-04-300001477720us-gaap:CommonClassAMember2022-04-300001477720us-gaap:CommonClassBMember2022-04-300001477720us-gaap:CommonClassAMember2022-02-012022-04-30asan:vote0001477720us-gaap:CommonClassBMember2022-02-012022-04-3000014777202022-02-012022-02-010001477720us-gaap:EmployeeStockOptionMember2022-02-012022-04-300001477720us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:EmployeeStockOptionMember2022-02-012022-04-300001477720us-gaap:RestrictedStockUnitsRSUMember2022-02-012022-04-3000014777202021-11-012022-01-310001477720us-gaap:RestrictedStockUnitsRSUMember2022-01-310001477720us-gaap:RestrictedStockUnitsRSUMember2022-04-300001477720us-gaap:CostOfSalesMember2022-02-012022-04-300001477720us-gaap:CostOfSalesMember2021-02-012021-04-300001477720us-gaap:ResearchAndDevelopmentExpenseMember2022-02-012022-04-300001477720us-gaap:ResearchAndDevelopmentExpenseMember2021-02-012021-04-300001477720us-gaap:SellingAndMarketingExpenseMember2022-02-012022-04-300001477720us-gaap:SellingAndMarketingExpenseMember2021-02-012021-04-300001477720us-gaap:GeneralAndAdministrativeExpenseMember2022-02-012022-04-300001477720us-gaap:GeneralAndAdministrativeExpenseMember2021-02-012021-04-300001477720us-gaap:EmployeeStockMember2020-09-300001477720us-gaap:EmployeeStockMember2021-02-010001477720us-gaap:EmployeeStockMember2022-02-0100014777202020-09-30asan:period0001477720us-gaap:EmployeeStockMemberus-gaap:CommonClassAMember2020-09-300001477720us-gaap:EmployeeStockMemberus-gaap:CommonClassAMember2020-09-302020-09-300001477720us-gaap:EmployeeStockMember2022-02-012022-04-300001477720us-gaap:EmployeeStockMember2021-02-012021-04-300001477720us-gaap:EmployeeStockMember2022-04-300001477720country:US2022-02-012022-04-300001477720country:US2021-02-012021-04-300001477720us-gaap:NonUsMember2022-02-012022-04-300001477720us-gaap:NonUsMember2021-02-012021-04-300001477720country:US2022-04-300001477720country:US2022-01-310001477720us-gaap:NonUsMember2022-04-300001477720us-gaap:NonUsMember2022-01-31



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________________________________
FORM 10-Q
___________________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO

Commission File Number 001-39495
___________________________________________________________________
Asana, Inc.
(Exact name of registrant as specified in its Charter)
___________________________________________________________________
Delaware
26-3912448
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
633 Folsom Street, Suite 100
San Francisco, California 94107
(Address of principal executive offices and Zip Code)
(415) 525-3888
(Registrant’s telephone number, including area code)
___________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, $0.00001 par value per share
ASAN
New York Stock Exchange
Long-Term Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒
As of May 31, 2022, the number of shares of the registrant’s Class A common stock outstanding was 104,769,623 and the number of shares of the registrant’s Class B common stock outstanding was 85,489,359.




TABLE OF CONTENTS
Page





SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risk and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition; business strategy and plans; and objectives of management for future operations are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: our ability to grow or maintain our dollar-based net retention rate, expand usage of our platform within organizations, and sell subscriptions to our platform; our ability to convert individuals, teams, and organizations on our free and trial versions into paying customers; the timing and success of new features, integrations, capabilities, and enhancements by us, or by our competitors to their products, or any other changes in the competitive landscape of our market; our ability to achieve widespread acceptance and use of our platform; growth in the work management market; the amount and timing of operating expenses and capital expenditures, as well as entry into operating leases, that we may incur to maintain and expand our business and operations and to remain competitive; our focus on growth to drive long-term value; the timing of expenses and our expectations regarding our cost of revenues, gross margin, and operating expenses; the effect of uncertainties related to the global COVID-19 pandemic on our business, results of operations, and financial condition; expansion of our sales and marketing activities; our protections against security breaches, technical difficulties, or interruptions to our platform; our ability to successfully defend litigation brought against us, potential dispute-related settlement payments, or other litigation-related costs; our expectations about additional hiring; potential pricing pressure as a result of competition or otherwise; anticipated fluctuations in foreign currency exchange rates; potential costs and the anticipated timing of expenses related to the acquisition of businesses, talent, technologies, or intellectual property, including potentially significant amortization costs and possible write-downs; and general economic conditions in either domestic or international markets, including the societal and economic impact of the COVID-19 pandemic, including on the rate of global IT spending, and geopolitical uncertainty and instability.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that such information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments.



You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed with the Securities and Exchange Commission (the “SEC”) as exhibits to this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect.

Additional Information

Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” “our company,” and “Asana” refer to Asana, Inc. and its consolidated subsidiaries. The Asana design logo, “Asana,” and our other registered or common law trademarks, service marks, or trade names appearing in this Quarterly Report on Form 10-Q are the property of Asana, Inc. Other trade names, trademarks, and service marks used in this Quarterly Report on Form 10-Q are the property of their respective owners.



SELECT RISK FACTORS AFFECTING OUR BUSINESS
Investing in our common stock involves numerous risks, including the risks described in “Part II—Other Information, Item 1A. Risk Factors” of this Quarterly Report on Form 10-Q. Below are some of these risks, any one of which could materially adversely affect our business, financial condition, results of operations, and prospects.
We have experienced rapid growth in recent periods, and our recent growth rates may not be indicative of our future growth.
We have a limited operating history at our current scale, which makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful.
We have a history of losses and may not be able to achieve profitability or, if achieved, sustain profitability.
We believe our long-term value as a company will be greater if we focus on growth, which may negatively impact our profitability in the near and medium term.
Our quarterly results may fluctuate significantly and may not meet our expectations or those of investors or securities analysts.
The ongoing COVID-19 pandemic has affected how we and our customers operate and has adversely affected the global economy, and the duration and extent to which this will affect our business, future results of operations, and financial condition remains uncertain.
If we are unable to attract new customers, convert individuals, teams, and organizations using our free and trial versions into paying customers, and expand usage within organizations or develop new features, integrations, capabilities, and enhancements that achieve market acceptance, our revenue growth would be harmed.
If the market for work management solutions develops more slowly than we expect or declines, our business would be adversely affected, and the estimates of market opportunity and forecasts of market growth may prove to be inaccurate.
We operate in a highly competitive industry, and competition presents an ongoing threat to the success of our business.
Failure to effectively develop and expand our direct sales capabilities would harm our ability to expand usage of our platform within our customer base and achieve broader market acceptance of our platform.
The loss of one or more of our key personnel, in particular our co-founder, President, Chief Executive Officer, and Chair, Dustin Moskovitz, would harm our business.
We must continue to attract and retain highly qualified personnel in very competitive markets to continue to execute on our business strategy and growth plans.
Our failure to protect our sites, networks, and systems against security breaches, or otherwise to protect our confidential information or the confidential information of our users, customers, or other third parties, would damage our reputation and brand, and substantially harm our business and results of operations.
If we fail to manage our technical operations infrastructure, or experience service outages, interruptions, or delays in the deployment of our platform, our results of operations may be harmed.
If we are unable to ensure that our platform interoperates with a variety of software applications that are developed by others, including our integration partners, we may become less competitive and our results of operations may be harmed.
Our culture has contributed to our success, and if we cannot maintain this culture as we grow, we could lose the high employee engagement fostered by our culture, which could harm our business.



Our business depends on a strong brand, and if we are not able to maintain and enhance our brand, our ability to expand our base of customers may be impaired, and our business and results of operations will be harmed.
We rely on third parties maintaining open marketplaces to distribute our mobile application. If such third parties interfere with the distribution of our platform, our business would be adversely affected.
We receive, process, store, and use business and personal information, which subjects us to governmental regulation and other legal obligations related to privacy, data protection and data security, and our actual or perceived failure to comply with such obligations could harm our business and expose us to liability.
Sales to customers outside the United States and our international operations expose us to risks inherent in international sales and operations.
The trading price of our Class A common stock may be volatile and may decline regardless of our operating performance.
The dual class structure of our common stock has the effect of concentrating voting control with those stockholders who held our capital stock prior to the listing of our Class A common stock on the New York Stock Exchange (“NYSE”), including our founders, directors, executive officers, and their respective affiliates, limiting or precluding your ability to influence corporate matters.

Sales of substantial amounts of our Class A common stock in the public markets, or the perception that sales might occur, could cause the market price of our Class A common stock to decline.
If we are unable to adequately address these and other risks we face, our business may be harmed.





PART I—FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
ASANA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
April 30, 2022January 31, 2022
Assets
Current assets
Cash and cash equivalents$197,328 $240,403 
Marketable securities84,057 71,628 
Accounts receivable, net 66,978 59,085 
Prepaid expenses and other current assets48,620 40,278 
Total current assets396,983 411,394 
Property and equipment, net98,229 99,632 
Operating lease right-of-use assets173,675 174,083 
Investments, noncurrent1,128 2,760 
Other assets21,056 19,166 
Total assets$691,071 $707,035 
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable$15,819 $11,557 
Accrued expenses and other current liabilities60,562 60,915 
Deferred revenue, current198,938 170,143 
Operating lease liabilities, current13,945 12,573 
Total current liabilities289,264 255,188 
Term loan, net33,450 34,612 
Deferred revenue, noncurrent3,088 4,082 
Operating lease liabilities, noncurrent206,869 208,422 
Other liabilities2,427 891 
Total liabilities535,098 503,195 
Commitments and contingencies (Note 8)
Stockholders' equity
Common stock2 2 
Additional paid-in capital1,085,875 1,034,252 
Accumulated other comprehensive loss(1,248)(626)
Accumulated deficit (928,656)(829,788)
Total stockholders’ equity155,973 203,840 
Total liabilities and stockholders’ equity$691,071 $707,035 

See accompanying Notes to Condensed Consolidated Financial Statements.




1


ASANA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended April 30,
20222021
Revenues$120,646 $76,673 
Cost of revenues 12,438 7,914 
Gross profit108,208 68,759 
Operating expenses:
Research and development 65,205 39,967 
Sales and marketing 96,123 56,784 
General and administrative 43,112 21,990 
Total operating expenses204,440 118,741 
Loss from operations(96,232)(49,982)
Interest income and other income (expense), net(1,346)8 
Interest expense(357)(10,374)
Loss before provision for income taxes(97,935)(60,348)
Provision for income taxes933 310 
Net loss$(98,868)$(60,658)
Net loss per share:
Basic and diluted$(0.52)$(0.37)
Weighted-average shares used in calculating net loss per share:
Basic and diluted189,590162,079

See accompanying Notes to Condensed Consolidated Financial Statements.
2


ASANA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
(unaudited)
Three Months Ended April 30,
20222021
Net loss$(98,868)$(60,658)
Other comprehensive loss:
Net unrealized losses on marketable securities(121)(11)
Change in foreign currency translation adjustments(501)35 
Comprehensive loss$(99,490)$(60,634)

See accompanying Notes to Condensed Consolidated Financial Statements.
3


ASANA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(in thousands)
(unaudited)

Common StockAdditional
Paid-In
Accumulated
Other
Comprehensive Income (Loss)
Accumulated DeficitTotal
Stockholders’ Equity (Deficit)
SharesAmount
Balances at January 31, 2022188,298 $2 $1,034,252 $(626)$(829,788)$203,840 
Issuance of common stock upon the exercise of options825 — 2,216 — — 2,216 
Vesting of early exercised stock options— — 277 — — 277 
Issuance of common stock upon the vesting and settlement of restricted stock units633 — — — — — 
Issuance of common stock under employee share purchase plan353 — 9,156 — — 9,156 
Stock-based compensation expense— — 39,974 — — 39,974 
Net unrealized losses on marketable securities— — — (121)— (121)
Foreign currency translation adjustments— — — (501)— (501)
Net loss— — — — (98,868)(98,868)
Balances at April 30, 2022190,109 $2 $1,085,875 $(1,248)$(928,656)$155,973 

See accompanying Notes to Condensed Consolidated Financial Statements.









4


ASANA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - CONTINUED
(in thousands)
(unaudited)

Common StockAdditional
Paid-In
Accumulated
Other
Comprehensive Income (Loss)
Accumulated Deficit
Total
Stockholders’ Equity (Deficit)
SharesAmount
Balances at January 31, 2021161,480 $2 $528,616 $39 $(541,446)$(12,789)
Issuance of common stock upon the exercise of options1,380 — 2,850 — — 2,850 
Vesting of early exercised stock options— — 642 — — 642 
Repurchases of common stock(6)— — — — — 
Issuance of common stock upon the vesting and settlement of restricted stock units, net of shares withheld for taxes367 — — — — — 
Issuance of common stock for employee share purchase plan250 — 6,127 — — 6,127 
Stock-based compensation expense— — 16,105 — — 16,105 
Net unrealized loss on marketable securities— — — (11)— (11)
Foreign currency translation adjustments— — — 35 — 35 
Net loss— — — — (60,658)(60,658)
Balances at April 30, 2021163,471 $2 $554,340 $63 $(602,104)$(47,699)


See accompanying Notes to Condensed Consolidated Financial Statements.    
5


ASANA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended April 30,
20222021
Cash flows from operating activities
Net loss$(98,868)$(60,658)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for doubtful accounts627 196 
Depreciation and amortization3,104 973 
Amortization of deferred contract acquisition costs3,045 1,629 
Stock-based compensation expense39,909 16,031 
Net amortization of premium on marketable securities55 336 
Non-cash lease expense3,639 4,526 
Amortization of discount on convertible notes and term loan issuance costs4 6,251 
Non-cash interest expense 3,930 
Changes in operating assets and liabilities:
Accounts receivable(8,531)(3,182)
Prepaid expenses and other current assets(11,803)(2,383)
Other assets(2,196)(1,858)
Accounts payable4,681 (2,451)
Accrued expenses and other liabilities791 2,827 
Deferred revenue27,801 20,025 
Operating lease liabilities(3,391)6,364 
Net cash used in operating activities(41,133)(7,444)
Cash flows from investing activities
Purchases of marketable securities(46,554)(34,002)
Sales of marketable securities 351 
Maturities of marketable securities35,581 44,352 
Purchases of property and equipment(1,048)(16,969)
Capitalized internal-use software costs(70)(183)
Net cash used in investing activities(12,091)(6,451)
Cash flows from financing activities
Proceeds from term loan, net of issuance costs 9,000 
Repayment of term loan(667)(167)
Repurchases of common stock (13)
Proceeds from exercise of stock options2,228 2,974 
Proceeds from employee stock purchase plan9,156 6,127 
Net cash provided by financing activities10,717 17,921 
Effect of foreign exchange rates on cash and cash equivalents(568)29 
Net increase (decrease) in cash and cash equivalents(43,075)4,055 
Cash and cash equivalents
Beginning of period240,403 259,878 
End of period$197,328 $263,933 

See accompanying Notes to Condensed Consolidated Financial Statements.
6


ASANA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(in thousands)
(unaudited)
Three Months Ended April 30,
20222021
Supplemental cash flow data
Cash paid for income taxes$1,583 $480 
Cash paid for interest$219 $160 
Supplemental non-cash investing and financing information
Purchase of property and equipment in accounts payable and accrued expenses$1,170 $13,544 
Vesting of early exercised stock options$277 $642 

See accompanying Notes to Condensed Consolidated Financial Statements.
7

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1.    Organization
Organization and Description of Business
Asana, Inc. (“Asana” or the “Company”) was incorporated in the state of Delaware on December 16, 2008. Asana is a work management platform that helps teams orchestrate work, from daily tasks to cross-functional strategic initiatives. The Company is headquartered in San Francisco, California.
Note 2.    Basis of Presentation and Summary of Significant Accounting Policies
Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and include the accounts of the Company’s wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated on consolidation.
The unaudited condensed consolidated balance sheet as of January 31, 2022 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis. In management's opinion, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to state fairly the balance sheet, statements of comprehensive loss, and stockholders' equity (deficit), and statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period.
These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 24, 2022.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Estimates and assumptions reflected in the consolidated financial statements include, but are not limited to, revenue recognition, the useful lives and carrying values of long-lived assets, the fair value of the Convertible Notes (as defined in Note 6), the fair value of common stock for periods prior to the Direct Listing, stock-based compensation expense, the period of benefit for deferred contract acquisition costs, and income taxes. Actual results could differ from those estimates.
Risks and Uncertainties
At the onset of the COVID-19 pandemic, the Company temporarily closed its headquarters and other physical offices, required its employees and contractors to work remotely, and implemented travel restrictions, all of which represented a significant disruption in how the Company operates its business. While the Company’s headquarters and certain other physical offices have since reopened and business travel has resumed, its employees and contractors currently have the option to continue to work remotely, and operations continue to be affected by the COVID-19 pandemic. The operations of the Company’s partners and customers have likewise been disrupted. While the duration and extent of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the extent and effectiveness of containment and mitigation actions, the emergence of variant strains of the virus, and the availability and widespread use of effective vaccines, it has already had an adverse effect on the global economy and the ultimate societal and economic impact of the COVID-19 pandemic remains unknown. In particular, the conditions caused by this pandemic could affect the rate of global IT spending and could adversely affect demand for the Company’s platform, lengthen the Company’s sales cycles, reduce the value or duration of subscriptions, negatively impact collections of accounts receivable, reduce expected spending from new customers, cause some of the Company’s paying customers to go out of business, limit the ability of the Company’s direct sales force to travel to customers and potential customers, and affect contraction or attrition rates of the Company’s customers, all of which could adversely affect the Company’s business, results of operations, and financial condition. As of the date of issuance of the financial statements, the Company is not aware of any specific event or circumstance related to COVID-19 that would require it to update its estimates or judgments or adjust the carrying value of its assets or liabilities. Actual results could differ from those estimates and any such differences may be material to the condensed consolidated financial statements. 
8

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Concentration of Credit Risk
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, and marketable securities. Substantially all the Company’s cash and cash equivalents are held with financial institutions that management believes are of high credit quality. Such deposits may, at times, exceed federally insured limits. Cash equivalents are invested in highly rated money market funds.
A large portion of the Company’s customers authorize the Company to bill their credit card accounts through the Company’s third-party payment processing partners, presenting additional credit risk. For the three months ended April 30, 2022 and April 30, 2021, there was no individual customer that accounted for 10% or more of the Company’s revenues. The Company had one customer account for approximately 30% of accounts receivable as of April 30, 2022. No customer accounted for more than 10% of accounts receivable as of January 31, 2022.
Fair Value of Financial Instruments
The carrying amounts reflected in the condensed consolidated balance sheets for cash equivalents, accounts receivable, and accounts payable approximate their respective fair values due to the short maturities of those instruments. Available-for-sale marketable securities are recorded at fair value on the condensed consolidated balance sheets.
The Company accounts for certain of its financial assets at fair value. In determining and disclosing fair value, the Company uses a fair value hierarchy established by U.S. GAAP. The guidance defines fair value as an exit price, representing the amount that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Observable inputs such as quoted prices in active markets.
Level 2—Inputs other than the quoted prices in active markets that are observable either directly or indirectly.
Level 3—Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.
Reclassifications
The Company reclassified $4.1 million of deferred revenue, noncurrent from other liabilities, noncurrent for the comparative condensed consolidated balance sheets to conform to the current year presentation.
Recently Issued Accounting Pronouncements Not Yet Adopted
In October 2021, the FASB issued ASU No. 2021-08, Business Combinations - Accounting for Contract Liabilities from Contracts with Customers, which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification Topic 606 in order to align the recognition of a contract liability with the definition of a performance obligation. The guidance is effective for the Company’s fiscal years beginning after February 1, 2023. The Company is currently evaluating the impact of adopting ASU 2021-08.
Recently Adopted Accounting Pronouncements
On February 1, 2022, the Company adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity's own equity, and modifies the guidance on diluted earnings per share calculations as a result of these changes. The adoption of the guidance did not have an impact on the Company’s condensed consolidated financial statements.
9

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
On February 1, 2021, the Company adopted ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including accounts receivables. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in more timely recognition of credit losses. The adoption of the guidance did not have a material impact on the Company’s condensed consolidated financial statements.
On February 1, 2021, the Company adopted ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in ASU No. 2018-15 amend the definition of a hosting arrangement and requires a customer in a hosting arrangement that is a service contract to capitalize certain costs as if the arrangement were an internal-use software project. The Company adopted ASU No. 2018-15 as of February 1, 2021 using a prospective transition approach. The adoption of the guidance did not have a material impact on the Company’s condensed consolidated financial statements.
Note 3.    Revenues
Deferred Revenue and Remaining Performance Obligations
The Company recognized $74.0 million and $45.1 million of revenues during the three months ended April 30, 2022 and 2021, respectively, that were included in the deferred revenue balances at January 31, 2022 and 2021, respectively.
Deferred revenue that will be recognized within the next twelve months is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent. As of April 30, 2022, the Company's remaining performance obligations from subscription contracts was $250.4 million, of which the Company expects to recognize approximately 87% as revenues over the next 12 months and the remainder thereafter.
Deferred Contract Acquisition Costs
Deferred contract acquisition costs are amortized over a period of benefit of three years. The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in the software-as-a-service industry.
The following table summarizes the activity of deferred contract acquisition costs (in thousands):
Three Months Ended April 30,
20222021
Beginning balance$22,771 $12,093 
Capitalization of contract acquisition costs6,081 4,122 
Amortization of deferred contract acquisition costs(3,045)(1,629)
Ending balance$25,807 $14,586 
Deferred contract acquisition costs, current$12,292 $6,896 
Deferred contract acquisition costs, noncurrent13,515 7,690 
Total deferred contract acquisition costs$25,807 $14,586 
Deferred contract acquisition costs, current is presented within prepaid expenses and other current assets in the condensed consolidated balance sheets. Deferred contract acquisition costs, noncurrent is presented within other assets in the condensed consolidated balance sheets.
10

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 4.    Fair Value Measurements
The following table summarizes, for assets and liabilities measured at fair value, the respective fair value and classification by level of input within the fair value hierarchy (in thousands):
April 30, 2022
Level 1Level 2Level 3Total
Current Assets
Cash equivalents
Money market funds$133,454 $ $ $133,454 
Commercial paper 5,546  5,546 
Certificates of deposit 600  600 
Total cash equivalents$133,454 $6,146 $ $139,600 
Marketable securities
U.S. treasury bonds$27,996 $ $ $27,996 
Commercial paper 30,613  30,613 
Corporate bonds 24,596  24,596 
Certificate of deposit 852  852 
Total marketable securities$27,996 $56,061 $ $84,057 
Non-current Assets
Corporate bonds 1,128  1,128 
Total assets$161,450 $63,335 $ $224,785 
January 31, 2022
Level 1Level 2Level 3Total
Current Assets
Cash equivalents
Money market funds$176,855 $ $ $176,855 
Commercial paper    
Certificates of deposit    
Total cash equivalents$176,855 $ $ $176,855 
Marketable securities
U.S. treasury bonds$ $ $ $ 
Commercial paper 44,943 44,943 
Corporate bonds 26,685 26,685 
Certificate of deposit    
Total marketable securities$ $71,628 $ $71,628 
Non-current Assets
Corporate bonds 2,760  2,760 
Total assets$176,855 $74,388 $ $251,243 
11

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

The following table summarizes the Company's investments in marketable securities on the condensed consolidated balance sheets (in thousands):
April 30, 2022
Amortized
Cost
Gross
Unrealized
Gains
Gross Unrealized LossesEstimated
Fair Value
Current Assets
U.S. treasury bonds$28,028 $ $(32)$27,996 
Commercial paper30,630  (17)30,613 
Corporate bonds24,732  (136)24,596 
Certificates of deposit853  (1)852 
Total marketable securities$84,243 $ $(186)$84,057 
Non-current Assets
Corporate bonds1,129  (1)1,128 
Total assets$85,372 $ $(187)$85,185 

January 31, 2022
Amortized
Cost
Gross
Unrealized
Gains
Gross Unrealized Losses
Estimated
Fair Value
Current Assets
U.S. treasury bonds$ $ $ $ 
Commercial paper44,951  (8)44,943 
Corporate bonds26,730 3 (48)26,685 
Certificates of deposit    
Total marketable securities$71,681 $3 $(56)$71,628 
Non-current Assets
Corporate bonds2,774  (14)2,760 
Total assets$74,455 $3 $(70)$74,388 
The Company periodically evaluates its investments for expected credit losses. The unrealized losses on the available-for-sale securities were primarily due to unfavorable changes in interest rates subsequent to the initial purchase of these securities. Gross unrealized losses of the Company’s available-for-sale securities that have been in a continuous unrealized loss position for 12 months or longer were immaterial as of April 30, 2022 and January 31, 2022. The Company expects to recover the full carrying value of its available-for-sale securities in an unrealized loss position as it does not intend or anticipate a need to sell these securities prior to recovering the associated unrealized losses. The Company also expects any credit losses would be immaterial based on the high-grade credit rating for each of such available-for-sale securities. As a result, the Company does not consider any portion of the unrealized losses as of April 30, 2022 or January 31, 2022 to represent credit losses.
In April 2020, the Company entered into a five-year $40.0 million term loan agreement with Silicon Valley Bank. As of April 30, 2022, $40.0 million was drawn and $37.7 million was outstanding under this term loan. The fair value of the term loan approximates its carrying value since the interest rate is at market.
12

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
In January 2020 and June 2020, the Company issued convertible notes to a trust affiliated with the Company’s Chief Executive Officer (“CEO”). The fair value of the convertible notes at issuance on January 30, 2020 and June 26, 2020 was $203.0 million and $112.0 million, respectively. The Company considers the fair values of the convertible notes to be a Level 3 measurement as the fair value is estimated using significant unobservable inputs. The fair value of the convertible notes was measured using a binomial lattice model. Inputs used to determine the estimated fair value of the convertible notes include the equity volatility of comparable companies, the risk-free interest rate, and the estimated fair value of the Company’s common stock.
On July 1, 2021, pursuant to the terms of the Convertible Notes (as defined in Note 6), upon meeting the closing trading price criteria for optional conversion by the Company, the Company elected to convert the Convertible Notes into the Company’s Class B Common Stock. Refer to Note 6. Convertible Notes—Related Party for additional information.
Note 5.    Balance Sheet Components
Property and Equipment, Net
Property and equipment, net, consisted of the following (in thousands):
April 30, 2022January 31, 2022
Desktop and other computer equipment$2,502 $2,217 
Furniture and fixtures9,216 8,788 
Leasehold improvements95,966 94,458 
Capitalized internal-use software12,362 12,249 
Construction in progress1
412 1,327 
Total gross property and equipment120,458 119,039 
Less: Accumulated depreciation and amortization(22,229)(19,407)
Total property and equipment, net$98,229 $99,632 
__________________
1 Construction in progress is primarily related to the build-out and improvements across the Company’s global offices. Refer to Note 9. Leases for additional information.
Depreciation and amortization expense was $3.1 million and $1.0 million for the three months ended April 30, 2022 and 2021, respectively.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
April 30, 2022January 31, 2022
Prepaid expenses$28,683 $22,970 
Deferred contract acquisition costs, current12,292 10,797 
Other current assets7,645 6,511 
Total prepaid expenses and other current assets$48,620 $40,278 
13

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
April 30, 2022January 31, 2022
Accrued payroll liabilities$13,871 $16,906 
Accrued taxes for fringe benefits3,601 3,953 
Accrued advertising expenses6,838 9,359 
Accrued property and equipment1,046 465 
Accrued consulting expenses4,291 4,303 
Accrued sales and value-added taxes10,432 7,219 
Other liabilities20,483 18,710 
Total accrued expenses and other current liabilities$60,562 $60,915 
Note 6.    Convertible Notes—Related Party
The Company issued two 3.5% unsecured senior mandatory convertible promissory notes in January 2020 (“January 2020 Convertible Note”) and June 2020 (“June 2020 Convertible Note”) (collectively, the “Convertible Notes”) in principal amounts of $300.0 million and $150.0 million, respectively. The Convertible Notes were not transferable except to affiliates, contained no financial or restrictive covenants, and were expressly subordinated in right of payment to any of the Company’s existing or future secured indebtedness. Consistent with the terms of the Convertible Notes, in April and June 2020, the Dustin Moskovitz Trust entered into subordination agreements with Silicon Valley Bank to confirm the parties’ agreement that the Convertible Notes are subordinated to the five-year $40.0 million secured term loan facility.
On July 1, 2021, upon meeting the closing trading price criteria for optional conversion by the Company (based on the Company’s Class A common stock closing trading price during the last 30 trading days of the previous calendar quarter as stated in the original terms of the Convertible Notes), the Company elected to convert both of the Convertible Notes into an aggregate of 17,012,822 shares of the Company’s Class B Common Stock pursuant to the original terms of the embedded, substantive conversion features in the Convertible Notes. The Company accounted for the conversion by adjusting its additional paid-in capital for the net carrying amount of the Convertible Notes as of July 1, 2021 of $368.5 million (including accrued interest of $20.4 million and the unamortized debt discount of $101.9 million).
Interest expense related to the Convertible Notes recorded prior to the conversion was as follows (in thousands):
Three Months Ended April 30,
2021
Amortization of debt discount$6,246 
Contractual interest expense3,930 
Total interest expense$10,176 
Note 7.     Debt
In April 2020, the Company entered into a five-year $40.0 million term loan agreement with Silicon Valley Bank that matures in April 2025. As of April 30, 2022, $40.0 million was drawn and $37.7 million was outstanding under this term loan. As of April 30, 2022, the Company was in compliance with all financial covenants related to the term loan.
14

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
The net carrying amount of the term loan was as follows (in thousands):
April 30, 2022January 31, 2022
Principal$37,667 $38,333 
Accrued interest78 74 
Unamortized loan issuance costs(50)(54)
Net carrying amount$37,695 $38,353 
Term loan, current $4,245 $3,741 
Term loan, noncurrent$33,450 $34,612 
Note 8.     Commitments and Contingencies
Standby Letters of Credit
As of April 30, 2022, the Company had several letters of credit outstanding related to its operating leases totaling $20.1 million. The letters of credit expire at various dates between 2023 and 2034.
Purchase Commitments
In January 2021, the Company entered into a 60-month contract with Amazon Web Services for hosting-related services. Pursuant to the terms of the contract, the Company is required to spend a minimum of $103.5 million over the term of the agreement. The commitment may be offset by up to $7.3 million in additional credits subject to the Company meeting certain conditions of the agreement, of which $3.5 million have been earned as of April 30, 2022 and the remainder of which the Company has determined are probable to be earned. As of April 30, 2022, the Company had purchase commitments remaining of $75.8 million for hosting-related services and $20.7 million with various parties primarily for software-based services which are not reflected on the Company’s condensed consolidated balance sheet.
Indemnification Agreements
The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against any liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual.
Additionally, in the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which it agrees to indemnify customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. For the three months ended April 30, 2022 and 2021, no demands have been made upon the Company to provide indemnification under such agreements, and there are no claims that the Company is aware of that could have a material adverse effect on its financial position, results of operations, or cash flows.
Contingencies
From time to time in the normal course of business, the Company may be subject to various claims and other legal matters arising in the ordinary course of business. As of April 30, 2022, the Company believes that none of its current legal proceedings would have a material adverse effect on its financial position, results of operations, or cash flows.
Note 9.     Leases
The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal 2034. The Company has no lease agreements that are classified as finance leases.
15

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
The components of lease costs, lease term, and discount rate for operating leases are as follows:
Three Months Ended April 30,
20222021
Operating lease costs (in thousands)$8,668 $9,132 
Short-term lease costs (in thousands)717 728 
Variable lease costs (in thousands)593 189 
Total lease costs (in thousands)$9,978 $10,049 
Weighted-average remaining lease term (in years)11.112.0
Weighted-average discount rate9.6 %9.5 %
Supplemental cash flow information related to operating leases are as follows (in thousands):
Three Months Ended April 30,
20222021
Cash paid for amounts included in the measurement of operating lease liabilities$3,395 $2,532 
Right-of-use assets obtained in exchange for new operating lease liabilities$3,493 $2,710 
Future minimum lease payments (net of tenant improvement receivables) under non-cancelable operating leases with initial lease terms in excess of one year included in the Company’s lease liabilities as of April 30, 2022 are as follows (in thousands):
Fiscal year ending January 31,Operating Lease Payments (Net)
2023$25,772 
202430,550 
202528,325 
202628,873 
2027 and thereafter255,169 
Total undiscounted operating lease payments$368,689 
Less: imputed interest(147,875)
Total operating lease liabilities$220,814 
Note 10.     Net Loss per Share
The Company computes net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net income and losses.

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):
Three Months Ended April 30,
20222021
Numerator:
Net loss$(98,868)$(60,658)
Denominator:
Weighted-average shares used in calculating net loss per share, basic and diluted189,590162,079 
Net loss per share, basic and diluted$(0.52)$(0.37)
16

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
The potential shares of common stock that were excluded from the computation of diluted net loss per share for the period presented because including them would have been anti-dilutive are as follows (in thousands):
Three Months Ended April 30,
20222021
Stock options13,410 20,691 
Restricted stock units8,757 8,185 
Early exercised stock options141 548 
Shares issuable pursuant to the 2020 Employee Stock Purchase Plan125 81 
Total22,433 29,505 
As noted in Note 6. Convertible Notes—Related Party, the Convertible Notes were converted into 17,012,822 shares of the Company’s Class B Common Stock in July 2021. The shares underlying the Convertible Notes were previously excluded from diluted EPS because the effect would have been anti-dilutive.
Note 11. Stockholders’ Deficit
Common Stock
There are two classes of common stock that total 1,500,000,000 authorized shares: 1,000,000,000 authorized shares of Class A common stock and 500,000,000 authorized shares of Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share and is convertible into one share of Class A common stock. There were 104,619,843 shares of Class A common stock and 85,489,359 shares of Class B common stock issued and outstanding as of April 30, 2022.
Stock Plans
The Company has a 2009 Stock Plan (the “2009 Plan”), a 2012 Amended and Restated Stock Plan (the “2012 Plan”), and a 2020 Equity Incentive Plan (the “2020 Plan”). Each plan was initially established to grant equity awards to employees and consultants of the Company to assist in attracting, retaining, and motivating employees and consultants and to provide incentives to promote the success of the Company’s business. The number of shares reserved for issuance under the 2020 Plan increased by 9,414,923 shares of Class A common stock on February 1, 2022 pursuant to the evergreen provisions of the 2020 Plan.
Options granted under each of the plans may be either incentive stock options (“ISOs”) or nonqualified stock options (“NSOs”). ISOs may be granted only to Company employees (including officers and directors who are also employees). NSOs may be granted to Company employees and consultants. Restricted stock units may also be granted under the 2012 Plan and the 2020 Plan. Options under the 2012 and 2020 Plans may be granted for periods of up to 10 years. The exercise price of ISOs and NSOs shall not be less than 100% of the estimated fair value of the shares on the date of grant as determined by the Company’s board of directors (the “Board of Directors”). Options granted generally vest over four years and vest at a rate of 25% upon the first anniversary of the vesting commencement date and 1/48 per month thereafter.
The Company has also issued RSUs pursuant to the 2012 Plan and 2020 Plan. RSUs granted generally vest on a predefined rate over a period of four years contingent upon continuous service.
Shares of common stock purchased under the 2012 Plan or the 2020 Plan are subject to certain restrictions and repurchase rights.
17

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Stock Options
Option activity under the Company’s combined stock plans is set forth below (in thousands, except years and per share data):
Number of
Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual Term
(in years)
Aggregate
Intrinsic Value
Balances at January 31, 202214,383 $3.02 6.1$711,455 
Options granted 
Options exercised (825)2.70 
Options cancelled (148)5.44 
Balances at April 30, 202213,410 $3.01 5.9$319,039 
Vested and exercisable at April 30, 20229,970 $2.51 5.5$242,152 
Vested and expected to vest at April 30, 202213,551 $3.02 5.9$322,298 
The total intrinsic value of options exercised during the periods presented was as follows:
Three Months Ended April 30,
20222021
Aggregate intrinsic value of options exercised (in thousands)$33,213 $42,175 
Early Exercise of Employee Options
The 2009 Plan and 2012 Plan allow for the early exercise of stock options. The consideration received for an early exercise of an option is considered to be a deposit of the exercise price, and the related dollar amount is recorded as a liability and reflected in accrued expenses and other current liabilities and other liabilities in the condensed consolidated balance sheets. This liability is reclassified to additional paid-in capital as the awards vest. If a stock option is early exercised, the unvested shares may be repurchased by the Company in case of employment termination at the price paid by the purchaser for such shares. Shares that were subject to repurchase totaled 140,507 and 548,299 at April 30, 2022 and 2021, respectively.
18

ASANA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Restricted Stock Units
The Company’s RSU activity is set forth below (in thousands, except per share data):
Number of
Shares
Weighted-
Average
Grant Date Fair Value
Aggregate
Intrinsic Value
Unvested RSUs at January 31, 20228,812 $47.07 $462,426 
RSUs granted 959 38.01 
RSUs vested(687)31.67 
RSUs cancelled/forfeited(327)30.82 
Unvested RSUs at April 30, 20228,757 47.89 $234,652 
RSUs vested, not yet released at April 30, 2022558 $20.66 
Stock-Based Compensation Expense
Stock-based compensation for stock-based awards to employees and non-employees in the Company’s condensed consolidated statements of operations for the periods below were as follows (in thousands):
Three Months Ended April 30,
20222021
Cost of revenues$321 $120 
Research and development21,129 9,140 
Sales and marketing12,489 4,153 
General and administrative5,970 2,618 
Total stock-based compensation expense$39,909 $16,031 
The stock-based compensation expense related to options granted to non-employees for the three months ended April 30, 2022 and 2021 were not material.
Total unrecognized compensation costs related to unvested awards not yet recognized under all equity compensation plans was as follows:
April 30, 2022
Unrecognized Expense
(in thousands)
Weighted-Average Expected Recognition Period
(in years)
Stock options$