[Management View]
Total revenue for Q2 FY2026 was $196.9 million, up 10% YoY and 1% above guidance. Non-GAAP operating margin improved to 7%, a 1,600 basis point increase YoY. Core customer revenue grew 12% YoY, representing 76% of total GAAP revenue. The $100,000+ customer cohort increased by 19% YoY. International revenue rose 13% YoY, outpacing US growth of 8%. AI Studio ARR more than doubled QoQ, with strong adoption in new and existing customer workflows.

[Outlook]
Fiscal 2026 revenue guidance is now $780 million to $790 million, representing 8%-9% annual growth. Non-GAAP operating income is forecasted at $46-$50 million, or a 6% margin. Management expects continued growth in AI Studio adoption and international markets, with a focus on expanding AI capabilities and optimizing costs.

[Financial Performance]
- Total Revenue: $196.9 million, up 10% YoY
- Non-GAAP Operating Margin: 7%, up 1,600 basis points YoY
- Core Customer Revenue: Up 12% YoY
- $100,000+ Customer Cohort: Up 19% YoY
- International Revenue: Up 13% YoY
- Net Retention Rate (NRR): 96% overall and core customer, 95% for $100,000+ cohort

[Q&A Highlights]
Question 1: Dan, you have a diverse background with senior leadership roles at several marquee growth companies. Why Asana, Inc.? Why now? Any surprises since you joined in July?
Answer: AI is set to transform the modern enterprise, and Asana, Inc. is well-placed to deliver on this. My background in extending workflows, inflecting revenue, and self-service experience aligns well with Asana, Inc.'s mission. I've been externally focused, meeting customers and understanding their needs. Asana, Inc. is already deeply embedded in mission-critical workflows across various industries, and the goal is to enhance these experiences with AI Studio.

Question 2: Can you dive into the expansion of the AI Foundation Model company use case and its repeatability within other AI companies?
Answer: Customers deploying AI Studio across cross-functional use cases are discovering more opportunities for workflows, leading to expansion within accounts. The Smart Workflows gallery with prepackaged AI Studio workflows helps customers get started quickly and inspires more usage. The demand environment remains stable with increased buyer scrutiny and elongation in decisions, but we are seeing good activity in new business in both enterprise and SMB.

Question 3: How are you accounting for SEO pressures and top-of-funnel headwinds in your outlook?
Answer: We are investing in modern self-AI driven experiences, evolving our content strategy, and implementing smarter engagement and personalization to drive improvements in acquisition and expansion. Our Q3 and full-year revised outlook includes the potential impact of SMB and LLM disruption. While SMB grew double digits in Q2, AI search has disrupted low-intent traffic, and we have built continued risk into the second half guide.

Question 4: Can you provide visibility into the larger renewal deals in the tech vertical and how AI Studio can prevent down sell?
Answer: We have improved our operating discipline around renewal hygiene and utilization interventions. Tech renewals have been stable, and we are seeing improvements in logo churn and expansion. AI Studio and foundational service plan adoption are mitigating some of the headwinds, making accounts healthier and driving faster adoption and growth.

Question 5: How are partners contributing to AI Studio use cases and consolidation deals?
Answer: Partners are critical to our strategy and growth, with more partners certified on AI Studio. Partner-managed accounts have higher net retention rates, and partners are essential in many consolidation deals, particularly in EMEA and Japan.

[Sentiment Analysis]
Analysts and management maintained a positive tone, focusing on the strong performance and growth potential of AI Studio and international markets. Management emphasized disciplined spending and operational leverage as key drivers of profitability.

[Quarterly Comparison]
| Metric | Q2 FY2026 | Q2 FY2025 | YoY Change |
|-------------------------------|-----------------|-----------------|------------------|
| Total Revenue | $196.9 million | $179.0 million | +10% |
| Non-GAAP Operating Margin | 7% | -9% | +1,600 bps |
| Core Customer Revenue | +12% | +10% | +2% |
| $100,000+ Customer Cohort | +19% | +15% | +4% |
| International Revenue | +13% | +10% | +3% |
| Net Retention Rate (NRR) | 96% | 95% | +1% |

[Risks and Concerns]
Potential pressure from downgrade activity, particularly in the technology vertical, may impact net retention rate (NRR) in the second half of fiscal 2026. Top-of-funnel pressure from evolving search landscape could weigh on small business customer growth.

[Final Takeaway]
Asana, Inc. delivered strong Q2 FY2026 results, driven by AI Studio adoption and international growth. The company is well-positioned to capitalize on AI-driven productivity gains and expand its market presence. However, potential risks from downgrade activity and top-of-funnel pressures in the SMB segment warrant close monitoring. Management's focus on disciplined spending and operational leverage supports continued profitability and growth.