Company: ASAN
Filing Date: 2025-06-03
Form Type: 10-Q
Source: 0001477720-25-000107
Chunk: 227

Company: Asana, Inc.
Filing Date: 2025-06-03
Form: 10-Q
Item: Part I, Item 1
Chunk 227
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 our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. 

Free Cash Flow and Adjusted Free Cash Flow

We define free cash flow as net cash from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs. We define adjusted free cash flow as free cash flow plus 

30

restructuring costs paid. We believe that free cash flow and adjusted free cash flow are useful indicators of liquidity that provide information to management and investors, even if negative, about the amount of cash used in our operations other than that used for investments in property and equipment and capitalized internal-use software costs, adjusted for expenditures which are distinguishable from our ongoing operations.

Limitations and Reconciliations of Non-GAAP Financial Measures

Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. In addition, free cash flow does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business.

The following tables reconcile the most directly comparable GAAP financial measure to each of these non-GAAP financial measures.

Non-GAAP Income (Loss) From Operations 

Three Months Ended April 30,20252024(in thousands)Loss from operations$(43,904)$(66,169)Add:Stock-based compensation and related employer payroll tax associated with RSUs49,824 50,399 Restructuring costs2,217 — Non-GAAP income (loss) from operations$8,137 $(15,770)

Non-GAAP Net Income (Loss)

Three Months Ended April 30,20252024(in thousands)Net loss$(40,018)$(63,722)Add:Stock-based compensation and related employer payroll tax associated with RSUs49,824 50,399 Restructuring costs2,217 — Non-GAAP net income (