Fantastic. Why don't we go ahead and get started? We're just delighted to have Asana joining us. Sitting to my left is Aziz Megji, as of today, as of last night.
Yeah, last night.
As of the new CFO.
24 hours ago.
as of last night. Congratulations.
Thank you so much.
Yeah, yeah. You've been working towards this, right?
Yeah.
This was not a surprise to you.
Yeah, it wasn't a surprise, yeah. It, it's great to be CFO. It's an exciting time, so excited to be leading our, finance and finance strategy.
Yeah, it's great. What we'll do is we'll spend a good like, I don't know, 5 or 10 minutes going through your background since this is, this is the right day to do it for sure. Then we can talk what you guys just reported. We can talk about how business is going.
Yeah, absolutely.
... what you wanna highlight. Then we'll take some questions from our audience. You're from Southern California, I literally just learned. Right?
That's right.
Calabasas. Then you went to Bucknell, so you went to the East Coast.
Yeah, I went to East Coast, Bucknell, studied finance.
Was your first job Bear Stearns?
Yeah, first job was Bear Stearns.
What were you doing? This is 2004.
Yeah. I was in investment banking.
Yeah
... technology, so really active period leading up to the financial crisis. kind of-
What was that Google? What were the deal? What was going on 2004 to 2007 in tech?
Wow.
I don't even remember.
Yeah. Google was buying like Motorola's mobility assets.
Oh my god, that's right.
You know, Time Warner, you know, was buying, you know, cable assets. It was a pretty peak period for consolidation.
After three years of that, then you went to PE?
Yeah, I went to PE for a couple years. It wasn't the best time to be in PE in that 2007, 2008.
What was this Alta, oh, 2007, 2008, right?
It was, yeah, it was media focused.
Before the Great Financial Crisis, yeah.
Yeah. you know, exciting time, but you know, the capital and the liquidity environment kinda dried up, so it wasn't the best time.
You did that for a year, and then you went to Bedford for a year. What was Bedford Funding?
Yeah, it was a software consolidation, yeah.
It was software consolidation?
Yeah. We were basically a consolidator of human capital management platforms.
Next up, 2009-2014, what was Neovasc?
I started our own investment bank with some former colleagues from Goldman Sachs and Bear Stearns. Merchant banking, we'd invest in companies and then really get deep operationally and then advise them to more significant capital raising or, and exits. It was actually a pretty good model, just not extremely scalable. I wanted to get out of the advisory world, and so that's when I turned to tech. Yeah.
Okay. Then from there, how did you went to HP?
Yeah. HP was a client.
It was a client. Yeah.
It was a client. They were looking to build their corporate development group at a exciting time where they were splitting into two and had aspirations to further optimize the enterprise side. I came on at a really good time. Was part of a small crew, partnering with Meg to optimize that business. We took that business, split it into three, and then built back up, and really exciting six years there.
Yeah. In 2020, if you'd stayed at this place two years, if you'd stayed there longer, we wouldn't be having this conversation. You went to NVIDIA.
Yeah. My...
Why'd you do at NVIDIA?
Yeah, I went.
That's okay. I had a job offer, out of college to be the first product manager at Oracle.
Yeah.
I would have an island. Yeah, I turned it down.
Yeah.
I was like, "No, I'm gonna go into management consulting.
It was a good three-year run. I entered at a good point. Did not know when I exited what would happen over the next three years, you know, I was brought in to be part of the corporate development and strategy team. I led the acquisition of Arm.
No way. Did you really?
... did all the planning and integration work. Unfortunately, you know, the government had different ideas for that acquisition.
Yeah.
I had worked with Sonalee Parekh at HPE, and I wanted to get more into operational finance. NVIDIA was an incredible place, but it was big and harder to have an influence and a voice kinda cross-functionally. When she joined RingCentral, I came over to lead, really planning, treasury, partnering with her with on IR, really to just round out that skill set to be in the seat I am today.
three years basically at RingCentral, and then you joined Asana when in 2024?
Yeah. About a year and a half ago now.
A year and a half ago. Okay. How long have you and Sonalee Parekh been plotting and scheming this transition?
Not long. Not long.
She's not here, is she?
You know, it's been kind of...
No. Okay.
... you know, it's, you know, these things unfold in a matter of days.
Yeah
... you know, she wanted to get closer to her infrastructure roots, and work back in a founder environment.
Yeah.
Location also played in a part. The company she's going to is a lot more remote than we are.
Mm.
She has her family in Florida, and that played a part as well. You know, she informed Dan and the board of that and, you know, quickly, you know, they called me and said, "Would you wanna take over the role?" I said, "Absolutely. It's the right time." You know, we're at this exciting kind of inflection in where we wanna drive the business, and we're doing it-
We're gonna get to that in a sec.
... amidst of this agentic opportunity, so it's great.
Yeah. We're gonna get to that in a sec. I mean, just in my limited interactions with you guys, it was clear that you were being groomed, right? Like, she was very sort of methodically, you know-
Yeah
... exposing you to all the different parts of business, right?
Yeah, absolutely.
Yeah.
I mean, I got deep into financial planning over the past year and a half.
Yeah.
Deep into IR engagement. I even had a stint where I was pretty deep in go-to-market and partnering with Dan on our go-to-market strategy, and how do we create better leverage with our go-to-market resources. Really kinda getting deep financially and deep operational so that I could rather seamlessly.
Yeah. It's fantastic, honestly. How's business?
So we just re-
Again, you guys just reported, right?
Yeah, we're just fresh off the Q4.
I'm not gonna lie to you. I, you know, I did these nonstop.
Yeah.
I did listen to your call this morning, but not with the level of detail I normally would.
It's all good.
Yeah.
Q4 was a solid quarter. We grew 9.2% year-over-year. That was above the midpoint of our guide. Another strong quarter on operating profits, so we delivered 9% operating margins, which was about 150 basis points above our guide. You know, we've now expanded operating margin 5 straight quarters. If you think about year-over-year on FY26, 7% operating margin re-represents about 1,300 basis point improvement, and that improvement is translating into free cash flow. We generated 13% free cash flow margin, which is about 700 basis points improvement year-over-year. Delivered on revenue, continued strong progress operating income side. On the business and the KPIs that we track so closely, we're seeing stabilization and inflection.
third straight quarter of improvements in NRR on in-quarter NRR. Our tech vertical, which for the past seven quarters.
The NRR was flat, but it's improved because of the in-quarter. Is that why or is it improved?
We don't show the decimal points.
Okay. Okay.
The decimal points are improving three quarters in a row. It's just rounded.
Okay.
Hopefully, it will round to the next number shortly.
Yeah. Soon. Yeah.
you know, tech business, first time in 7 quarters, it didn't decline. It was flat, that's on the back of that strong NRR performance. you know, our top 10 renewals in the quarter, we renewed at a greater than 100% NRR, most of those with tech, also some really important lands as well. Most importantly, our AI platform is accelerating. We grew 50%+ quarter-over-quarter in Q4 on AI Studio.
You're at $6 million, right?
$6 million.
It's basically gone 1 to 4, 6.
Yeah. Something like.
Is that right? Yeah.
Little more pronounced in the back half. You know, strong performance. It's really only been available for 3 full quarters. We're seeing strong sequential growth. We have 8 customers now spending over $100,000. We're finding better product market fit. We're expanding the use cases. The use of that product's going up. We introduced teammates into beta, and the reception there has been really strong. We have paying customers, and we're excited to go GA with that later this quarter.
Okay. Tell us more about the $6 million in AI revenue, and then we'll talk about teammates.
Yeah. $6 million thus far.
What are people doing there?
Yeah.
Yeah.
You know, we expanded importantly this past year into a multi-product company with AI Studio. AI Studio is really about inserting LLMs into the flow of a workflow. If you think about a workflow, a workflow has multiple handoffs. You know, traditionally human to human handoffs. AI Studio allows you to automate that workflow with AI, where you're handing off different steps in a workflow to an agent who's then coordinating, handing it back or moving forward with other agents. It really opens us up to different categories of work and use cases, personas, buying centers. We're seeing a lot of use cases in marketing, which has been our traditional strength.
Yeah.
Campaign management, content creation workflows, we're seeing also new use cases. We're seeing things in the IT realm around help desk and questions and answers there, ticket deflection, vendor onboarding, employee onboarding.
Mm.
Et cetera, et cetera. It's really increasing the surface area where we play, where we're executing and coordinating work and opening us up to new fronts. Yeah.
let's go deep on one of these examples.
Yeah.
You pick one.
Yeah. maybe,
You had marketing, IT help desk.
Marketing campaign management.
Yeah, go ahead. Okay.
Yeah. you know, human creates a marketing campaign.
Yeah.
Right? Hands it off to the agent. The agent goes back and checks it against, corporate brand guidelines to make sure that's aligned with corporate brand guidelines. there's a few things that are out of sync with the corporate brand guidelines.
Mm.
It sends it back to human to go either fix that or go sends it to maybe the legal department to go check that and confirm that. You know, it can be used to fill in the blanks on content creation in that process flow. It could coordinate the approvals. In these multi-step.
Mm.
Things where there's different humans in the loop, it takes the place of humans or multiple humans in driving that workflow.
Cool. What's going on with your pricing?
On Studio, it's a platform fee. Sized based on the number of credits that the company expects to use. It's kind of what we found from our beta testing and, you know, customers aren't ready for full consumption yet. They want the predictability and transparency on pricing. This allows them to have that transparency, but also has a consumption-like approach where they top up, they exceed the credits, we have top up packages that they buy. One, it mimics consumption-like pricing, and two, prepares us in the future for consumption.
They pay a flat amount that is a certain number of credits.
That's right.
Yeah. It's interesting that I hear you're like the third company that said customers aren't ready for it, right? I totally believe that your customers aren't ready for it. At the same time, we had on the same stage, you know, like Decagon and Sierra, and they're like, "Oh yeah, we're all in on outcome-based pricing." Once you explain it to them, it starts to really click-
Yeah.
People get really excited about it. Why is there this disconnect?
You know, we're early.
Yeah.
We're learning. You know, our customers are mostly for AI Studio enterprises, large enterprises.
Yeah.
That's the way they procure. You're still going through IT and procurement cycles where that transparency, not being surprised on billing is really important to them. The deployments are larger, so it may just vary based on the size of the customer and the size of deployment.
All right, now tell us about Teammates.
Teammates is the next evolution in our AI platform. Teammates can operate within the workflow, we're talking about human to AI handoffs. Teammates can be that human in those handoffs. They can operate within the structure of the workflow or outside of a workflow in executing tasks on your behalf or projects on your behalf. Like, I have an IR Teammate. The IR Teammate goes and references our Work Graph, which is our data store model. That's the context of work, the who, the what, the when, the why, the how of work. I can ask the IR Teammate, saying, "Hey, I'm preparing for this conversation with Pat. I know he's gonna ask us about our AI differentiation.
He might ask how's business.
Yeah. He may ask how's business. I have my Work Graph within Asana is my data store.
Yeah.
It has all my projects where I'm conversing with our CMO and our CRO about business trends, right? It can access that content to come back and tailor it to my specific audience, right? It knows that this is an investor context. It knows how I speak, and my tonality and what are the do's and don'ts within investors to come back. That's just one example. We have HR onboarding Teammates. We have vendor onboarding Teammates. We have compliance and risk management Teammates.
Mm-hmm.
We have about 15 out-of-the-box Teammates right now.
Let's stick with your AI Teammate for a minute.
Yeah.
What do you guys use for email?
We use Gmail.
You use Gmail. Do you have some kind of messaging solution?
Slack.
Yeah. Where else were the answers maybe buried? What would be other systems you're in?
Yeah. Google Drive.
Oh yeah, for sure. Yeah.
... and Docs. Those integrations are super important, and it has access to that information.
It does have access to all of them.
Yeah.
Yeah. We had ClickUp on the stage too, right? How would you differentiate Asana with your new AI products from ClickUp?
One of the things that differentiates Asana from our competitors, including ClickUp and Monday and others, is the architecture we employ with the Work Graph.
Yeah
... and how it's constructed. That true connection and intersection of workers in an organization, from the top level goals down to the bottom level tasks.
Mm-hmm
... the who, what, the when, the why, the how. That context and the flow of work is so important as a differentiator. It also enables kind of this persistent memory layer where we're kind of continuing learning. It's inherently multiplayer, which is what AI for teams and organizations needs to be differentiated. The thing, you know, when Dustin started the company, from day one, governance and security has been the number one kind of focus for him. Our role-based access controls, our ability to show ROI and costing, our permissions and governance. My AI Teammate, now I have a lot of purview, but if someone else, you know, lower in the organization had an AI Teammate, it wouldn't be going into certain projects that it shouldn't have access to reference that.
Yeah.
That's super important for enterprises to have that data security, that data governance that they can control and permission. Those 4 factors are real differentiators. We don't view ourselves in this AI world as CWM. We view ourselves as a system of action for AI, for coordination and execution, and it really complements what the labs are doing really well.
Then you landed one of the labs as a customer, right? Did I hear that part right?
Yeah. Both of, you know, I think there's maybe 4 major labs. 2 of the major labs are our customers, long-standing customers. They both expanded with Asana in FY26. 1 of the labs expanded again with us in Q4. They're using Asana to coordinate and execute their work. 1 of them is on AI Studio.
Are any of these names out there or no?
They're not out there.
Okay
You can probably guess.
Yeah. Yeah.
... and you know, one of them, actually, if you have an interaction with them as a vendor or a customer, the first thing they'll say to you is, "Are you on Asana?" Because that's how we interact with our vendors.
Come on. Really?
... is on Asana. Like, it's so core to how they do work.
Wow.
They've standardized us on us as a-
What do they do... how does that work? What do they do with their vendors when they interact with them on Asana?
That's how they're coordinating the process.
Explain to us how the process works?
... so if they're using the vendor, if it's an RFP, if the conversation's about an RFP,
Yeah
we're running the RFP through Asana. That's how we'll manage the RFP. That's how you'll respond to questions. That's how we'll interact back to you.
Mm.
They have the collaboration layer, they have the data store layer, and then if that vendor is picked, it's so easy to onboard them through Asana, and then you have the context as you go forward with your relationship.
It's a great example. Are you guys using that one a lot? That's a really good example.
Yeah, I mean, it.
Yeah
... you know, we're very close to the labs. Like, if you actually look at, like, for example, Anthropic, if you look at their marketing material when they came to Claude Cowork, they're in the videos using Asana.
Yeah.
It's a really tight relationship, not only as a customer...
Dustin has a relationship with Anthropic, right?
Yeah. He's a observer-
Like a board observer.
... board observer.
Yeah.
He's gonna be there for day one, so it's an important relationship.
Yeah. Yeah. Yeah. Okay, cool. What else? How do you get the stock to go up?
Buy rating. It's all about growth and growth acceleration.
You think so? Yeah.
I think positioning. Like, I think people view us as just projects and tasks. That's not very exciting for us. We're a system of action, coordination of execution of work. We are getting into so many more diverse use cases with Teammates and with AI Studio and what that enables out of the box, and the diversity of how people are using us is very exciting. Now it's translating that into growth acceleration. You know, we've talked about we have some headwinds in the business. PLG, we called out on our earnings call as about a 2-point headwind to ARR. You know, customers are discovering us differently. We need to adapt. We're gonna turn that headwind into a tailwind, but it's gonna take some time, and that headwind will push us through FY27.
We're encouraged by what we're seeing with AI Studio. Teammates goes full GA late in Q2, so we see the sequential ramp that we'll drive in our AI portfolio more significantly in Q3, Q4. We've disclosed that 15% of our net new ARR will come from our AI platform, so it's becoming a more material part of our business. As that grows and becomes material, you'll see the NRR inflect.
Do the math for us.
Yeah.
What does that mean?
On-
Well, do we know how much your net new ARR is?
No. I think some analysts have kinda speculated, but it's somewhere greater than tripling where we are today.
Okay
on ARR.
Okay
... on that product. Yeah.
That $6 million number.
Goes to closer to 20. Yeah.
Okay, great. Let me set your headphone.
That's with Teammates coming out in the second half, and we really view Teammates as a key driver because the Studio started with you're well deployed, you've got workflows, you've built rules, let's go automate and turbocharge that. We're helping people build workflows, and when they build workflows, they're more sticky. Teammates operates within workflows, outside of workflows, so it's a lot more democratic to the base. Small customers, large customers can benefit from Teammates. We're excited about the attach opportunity there. With it coming out later in the year, you know, we'll see the sequential ramp and more material contributions to revenue in Q4 and certainly next year.
Yeah. Why is it taking a while to get it out?
Betas are really important, Mike.
Oh, it's 'cause you're doing it, yeah.
We wanna make sure that the customer is set. We don't wanna put something out and have them churn. We have the, some of the most.
Yeah
... sophisticated customers. Learning about the pricing, learning how they use it really informs...
It's not the R&D so much as it is.
Not the R&D.
Yeah.
It's more the go-to-market and the experience and refining along the way.
Okay. Awesome. Any questions from our audience? Sure, Kincaid, why don't you go first?
Yeah, alongside that expansion within one of those big AI labs, you mentioned that two of the five largest companies expanded their seats in Q4. How are you guys looking at the seat-based model going forward? Is this a short-term success, or is this a sign that there's longevity with that model?
Yeah, the two that expanded, one was in FY26, the second was in Q4. We're seeing improving trends in our model. We were very exposed to tech when we started. Tech are first movers, and we were a new player in a new category. In tech, we were really concentrated. Now it's about 25% of our business, so less concentration in tech. We were really exposed to our monthly and annual business. We've had this real strong push on multiyear. You see that with the RPO going up. CRPO grew 17% last quarter, two-point acceleration. We have less concentration of what's gonna come up to renew in the next two years because of that. The risk that we saw with large renewals in the last two years is not as prominent the next year.
We're more diversified than we've ever been in terms of the workflows. When you're building workflows, you're inherently more sticky. The seat-based model we're now attaching to consumption-like products, you know, we'd love for every customer to have a Teammate. If that's the model, you've now reduced the reliance on seats and have more of this consumption expansion path that we haven't had in the past. As these new products come out, it reduces the reliance on seats and increases the value of the underlying seat. You know, if you let go of people, you can still derive value from Asana through AI Studio and Teammates 'cause they're not as dependent as the human behind it.
We feel good about where we are versus where we were last year or two years ago. More work to do, but really being multiproduct and have those products not really hinging on seats is a key lever to insulate that.
All right. Awesome. Congratulations, Aziz.
Thank you.
It's really nice having you here, and I'm looking forward to seeing you-
Yeah, absolutely. Thank you.
along the future. Come on back.
Absolutely. Thanks for having us.