Company: ASAN
Filing Date: 2025-09-03
Form Type: 10-Q
Source: 0001477720-25-000200
Chunk: 359

Company: Asana, Inc.
Filing Date: 2025-09-03
Form: 10-Q
Item: Part I, Item 8
Chunk 359
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 subscription renewal activity, billing frequency, our dollar-based-net-retention rate, the timing and extent of spending to support our research and development efforts, particularly for the introduction of new and enhanced products and features, including the integration of AI in our products, the performance of sales and marketing activities, costs associated with international expansion, additional capital expenditures to invest in existing and new office spaces, as well as increased general and administrative expenses to support being a publicly traded company. We may, in the future, enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. We may seek to raise additional funds at any time through equity, equity-linked arrangements, and debt. If we are unable to raise additional capital when desired and at reasonable rates, our business, results of operations, and financial condition would be adversely affected. Additionally, cash from operations could also be affected by various risks and uncertainties in connection with the impact of an economic downturn or recession, significant market volatility in the global economy, timing and ability to collect payments from our customers and other risks detailed in Part II—Other Information, Item 1A. Risk Factors.

Cash Flows

The following table shows a summary of our cash flows for the periods presented:

Six Months Ended July 31,20252024(in thousands)Net cash provided by operating activities$46,599 $13,960 Net cash used in investing activities(14,742)(21,305)Net cash used in financing activities(36,079)(9,281)

Operating Activities

Our largest source of operating cash is cash collection from sales of subscriptions to our paying customers. Our primary uses of cash from operating activities are for personnel-related expenses, marketing expenses, and third-party hosting-related and software expenses. In prior years, we generated negative cash flows from operating activities and supplemented working capital requirements through net proceeds from the sale of equity and equity-linked securities. 

Net cash provided by operating activities of $46.6 million for the six months ended July 31, 2025 reflects our net loss of $88.4 million, adjusted by non-cash items such as stock-based compensation expense of $110.3 million, amortization of deferred contract acquisition costs of $13.8 million, depreciation and amortization of $10.1 million, non-cash lease expense of $9.1 million, and provision for expected credit losses of $1.2 million, partially offset by net accretion of discount on marketable securities of $1.3 million,