Asana Q4 Revenue Up 9% to $205.6M as AI Studio ARR Jumps 50%
Asana delivered Q4 revenue of $205.6 million, a 9% year-over-year increase, with non-GAAP operating income of $18.2 million and free cash flow margin at 13%. AI Studio ARR exceeded $6 million, rising over 50% QoQ, and the company guided FY27 revenue of $850–858 million and expanded its share repurchase plan.
1. Q4 Financial Results
Asana delivered Q4 revenue of $205.6 million, up 9% year-over-year, with non-GAAP operating income of $18.2 million (9% margin) and adjusted free cash flow of $25.7 million (13% margin). Core customer count reached 25,928, driving 76% of revenue, while dollar-based net retention was 96% overall and 97% for core accounts.
2. AI Initiatives
AI Studio annual recurring revenue surpassed $6 million, marking a more than 50% quarter-over-quarter increase, with eight customers spending over $100,000 annually on the product. AI teammates entered beta with over 200 customers, targeting general availability for sales-led users by end of Q1 and self-serve rollout in H2.
3. Vertical Performance and PLG Headwinds
U.S. revenue accelerated and the technology vertical stabilized at flat growth after seven quarters of decline, reducing tech exposure to under 25% of revenue. International sales rose 11%, led by non-tech sectors, while product-led growth headwinds are expected to drag ARR by two points through fiscal 2027, prompting discovery and content strategy shifts.
4. Outlook and CFO Transition
For Q1 fiscal 2027, Asana forecasts $202.5M to $204.5M revenue and $15M to $17M non-GAAP operating income, and for full fiscal 2027, $850M to $858M revenue with at least 9.5% operating margin. The company repurchased $58M of stock and expanded buyback authorization by $160M, and appointed Aziz Megji as CFO successor.