Company: ASAN
Filing Date: 2025-09-03
Form Type: 10-Q
Source: 0001477720-25-000200
Chunk: 305

Company: Asana, Inc.
Filing Date: 2025-09-03
Form: 10-Q
Item: Part I, Item 1
Chunk 305
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$ Change% Change(dollars in thousands)Cost of revenues$20,221 $19,987 $234 1 %Gross margin90 %89 %

Cost of revenues increased $0.2 million, or 1%, during the three months ended July 31, 2025 compared to the three months ended July 31, 2024. The increase was primarily due to an increase of $0.6 million in amortization of capitalized software development costs and an increase of $0.4 million in professional services, partially offset by a decrease of $0.6 million in third-party hosting costs and a decrease of $0.2 million in credit card processing fees.

Our gross margin increased during the three months ended July 31, 2025 compared to the three 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.

Operating Expenses

Three Months Ended July 31,20252024$ Change% Change(dollars in thousands)Research and development$79,376 $91,151 $(11,775)(13)%Sales and marketing106,677 108,649 (1,972)(2)%General and administrative40,118 36,222 3,896 11 %Total operating expenses$226,171 $236,022 $(9,851)(4)%

Research and Development

Research and development expenses decreased $11.8 million, or 13%, during the three months ended July 31, 2025 compared to the three months ended July 31, 2024. The decrease was primarily due to a decrease of $9.1 million in personnel-related costs, an increase of $3.0 million in capitalized internal-use software, and a decrease of $0.4 million in cloud computing and related costs, partially offset by an increase of $0.6 million in allocated overhead costs and an increase of $0.3 million in subscription and software related expenses.

Sales and Marketing

Sales and marketing expenses decreased $2.0 million, or 2%, during the three months ended July 31, 2025 compared to the three months ended July 31, 2024. The decrease was primarily due to a decrease of $1.2 million in personnel-related costs, a decrease of $0.6 million in fees to marketing