A：AI teammates at Level Agency have been used as workflow accelerators saving script to script hours per content project. They also support triage, support, ticket, and operationalize new process ideas across the company. Internally at Asana, product design and engineering teams use a Figma and cursor teammate to convert prototypes into production-ready UI code. The 'brief body teammate' saves an hour from the start of marketing projects, and the marketing team's localization teammates achieve language parity at half the cost.

A：The trustworthiness of AI products in business operations is ensured by Level Agency through explicit data access controls, where teammates only see data they are granted access to. Admins control who can create or modify them, and customers have full visibility into usage and costs, with the ability to set limits for strong return on investment (ROI).

A：AI capabilities have had a meaningful impact in various industries, as seen in healthcare where major organizations have expanded their operations, standardized workflows, and created mission-critical plans using Asana. These wins demonstrate the AI's ability to adapt to industry-specific solutions with ease.

A：Improvements in go to market execution and value realization were noted, including enhanced focus on customer health initiatives contributing to stronger NRR (Net Retention Rate). This was evidenced by the strongest retention in over a year among monthly self-service customers.

A：The significance of Anne's departure was her major role in building an enterprise go to market motion and serving as a trusted customer voice. In her place, the vice presidents of customer and field teams now report directly to the CEO, which strengthens the company's ability to move with speed and focus, and positions it to accelerate long-term growth.

A：To address the evolving challenges in the SMB business segment, the company is building modern self-serve experiences to get users to value quickly, optimizing each stage of the buyer journey, and implementing smarter behavior-based personalization for high-potential accounts. These strategies are aimed at mitigating the impact of headwinds such as changes in search and paid media investments.

A：At the Work Innovation Summit event, notable achievements highlighted included the introduction of AI teammates to the world, over 1,200 customers, partners, and analysts in attendance, and sponsorships from industry leaders like Google, AWS, KPMG, and Deloitte. The event generated feedback affirming Asana's unique approach to human plus AI collaboration and validated the company's strategy as a leader in AI integration.

A：The company's overall dollar-based net retention rate was 100%, referred to as 'Ly'. The net retention rate among customers spending $100,000 or more was 90%.

A：The quarter-over-quarter (Qi) net revenue retention (NRR) improved across all cohorts, with the $100,000 plus cohort experiencing the largest improvement. This was attributed to the company's multi-product strategy and seat reach.

A：Profitability improvements were driven by operational leverage, reallocation of spend to high return on investment (ROI) growth motions, optimizing infrastructure and cloud costs, and exercising discipline across discretionary spend. The company also aligned its talent footprint with industry benchmarks, which contributed to a strong foundation for sustained efficiency and multi-year margin expansion.

A：The company continues to focus on capital allocation, given its strong balance sheet and positive free cash flow. It views share repurchases as an effective way to return value to shareholders and has bought back $30.8 million of its Class A Common stock, or 3.9 million shares in the quarter. As of October, the company had $390 million remaining for future repurchases.

A：The company expects revenues of $200 to $200 million, representing script to script growth year over year for the upcoming quarter. The non-GAAP operating income is expected to be between $12 million and $12 million, with a non-GAAP net income per share of scripts, assuming diluted weighted average shares outstanding of approximately 38 million. For the full year, the company is updating its guidance to $750 to $775 million, representing script year over year growth from the previously guided range. Non-GAAP full year operating income is expected to be $70 to $75, up from the prior guidance of $68, and the company is raising its guidance to incorporate its actual Q2 results.

A：AI Studio has been beneficial in renewal conversations, providing more to sell to customers and helping advise on their AI strategy. The company is focusing on customer adoption and consumption of AI Studio to ensure they see real value. The launch of AI Studio has also democratized access to AI tools and provided a signal to the sales team on where to focus. The company is particularly interested in monitoring the number of use cases implemented and the value received by customers.

A：The tech vertical is stabilizing, presenting an overall headwind but with some positive dynamics. There is a stabilization in tech customer downgrades, with those who have downgraded once less likely to do so again. This has led to expansions among several large tech customers and improvements in logo churn. Additionally, AI Studio and AI teammates have opened new budgets for the company, introduced a new consumption-based revenue stream, and are helping mitigate seat downgrades. These factors are expected to contribute to improved cross-functional workflows and make the company less reliant on employee count in tech companies.

A：The better-than-anticipated quarterly non-GAAP operating income was driven by consistent execution across core pillars, including a year-over-year increase in customers spending $100,000 or more and stable demand trends in the enterprise segment. There was also a notable performance in the international segment, particularly EMEA and Japan, where the number of $100,000+ customers increased and international revenues grew year over year, outpacing the overall corporate growth rate and improving NRR.

A：The NRR improvement was attributed to successfully renewing with several large tech companies and the work and investments made to strengthen customer satisfaction and improve the in-product experience.

A：Asana's competitive position was framed as not being a 'winner-takes-all' opportunity, suggesting it would operate alongside other AI agents. It is important for Asana to become the orchestration layer that coordinates AI workflows across the enterprise, with differentiation being key in providing richer context, governance, and preventing sprawl.

A：Asana's approach involves AI operating as true members of the team with context controls and checkpoints, addressing gaps in other approaches that result in agent sprawl, limited scope, siloed knowledge, and varying costs. Asana's platform aims to provide reliable automations for repeatable work and flexible agents for nuanced judgment-based tasks without the overhead of DIY solutions or the limitations of functional silos.

A：The company views its channel ecosystem as very promising and well-suited for growth, being in the early innings of development. Partners want to engage further and succeed, and the company sees it as a true ecosystem with a focus on partnership success rather than just a transactional channel.

A：The company acknowledges that work in cost optimization is not yet complete, with more margin upside available for the remainder of the year and beyond. The team continues to focus on headcount efficiency, vendor rationalization, productivity improvements, and sales and marketing to expand margins while investing in AI platforms for product leadership and growth acceleration.

A：The company is pleased with the improvements in downgrade and the expansions in large tech renewals. The multi strategy, mainly centered around product strategy, is driving flat or slightly up renewal take in, which is beneficial for future retention and expansion. The company is investing in both customer support and product experience to ensure healthy retention across the board.

A：Although the company is in the early stages of its new product strategy and acknowledges challenges, it remains committed to reaccelerating revenue and expanding margins. AI Studio and AI teammates are seen as key to driving growth and the team continues to aim for both objectives.