Company: ASAN
Filing Date: 2025-09-03
Form Type: 10-Q
Source: 0001477720-25-000200
Chunk: 307

Company: Asana, Inc.
Filing Date: 2025-09-03
Form: 10-Q
Item: Part I, Item 1
Chunk 307
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 2024. The increase in revenues was primarily due to the addition of new paying customers and a continued shift in our sales mix toward our higher priced subscription plans, such as Enterprise and Enterprise+ plans.

Cost of Revenues and Gross Margin

Six Months Ended July 31,20252024$ Change% Change(dollars in thousands)Cost of revenues$39,448 $37,791 $1,657 4 %Gross margin90 %89 %

Cost of revenues increased $1.7 million, or 4%, during the six months ended July 31, 2025 compared to the six months ended July 31, 2024. The increase was primarily due to an increase of $1.2 million in amortization of capitalized software development costs, an increase of $1.0 million in professional services, and an increase of $0.6 million in personnel-related costs, partially offset by a decrease of $0.5 million in third-party hosting costs, a decrease of $0.4 million in credit card processing fees, and a decrease of $0.2 million in subscription and software related expenses.

Our gross margin increased during the six months ended July 31, 2025 compared to the six months ended July 31, 2024 primarily due to increased revenue from new paying customers and the shift toward higher priced subscription plans, offset by the costs of revenue detailed above.

33

Operating Expenses

Six Months Ended July 31,20252024$ Change% Change(dollars in thousands)Research and development$154,503 $173,942 $(19,439)(11)%Sales and marketing206,518 212,981 (6,463)(3)%General and administrative77,094 69,912 7,182 10 %Total operating expenses$438,115 $456,835 $(18,720)(4)%

Research and Development

Research and development expenses decreased $19.4 million, or 11%, during the six months ended July 31, 2025 compared to the six months ended July 31, 2024. The decrease was primarily due to a decrease of $13.9 million in personnel-related costs, an increase of $4.3 million in capitalized internal-use software, and a decrease of $1.2 million in allocated overhead costs.

Sales and Marketing

Sales and marketing expenses decreased $6.5 million, or 3