Negative Points

• The PLG (product-led growth) headwind is building, with an estimated 100 basis points of revenue growth pressure in Q3 and 150 basis points in Q4, as lower bookings from the sub-$5,000 cohort compound.

• The transition to consumption-based AI pricing and AWM packaging is expected to create a $1.2 million revenue timing headwind in the second half of fiscal 2027, split between Q3 and Q4.

• Gross margin declined to 87%, down 120 basis points sequentially, due to higher AI infrastructure costs, the Stack AI acquisition, and mix shift to AI products, with further pressure expected in Q3 and Q4.

• The company expects gross margin to be in the mid-80s exiting the year, reflecting ongoing investment in AI product delivery costs ahead of consumption revenue recognition.

• Revenue growth guidance for Q3 is only 8-9% year-over-year, down from 10% in Q2, due to the PLG headwind and packaging transition, indicating near-term growth deceleration.

• The company assumes minimal FY27 revenue contribution from new products like Asana Client Management, Service Management, and Command, with meaningful impact not expected until FY28.

• The sub-$5,000 customer cohort continues to drag down company-wide NRR, and improvements in this segment are not expected to contribute to NRR until FY28.

Q & A Highlights

Q: Can you elaborate on the factors included in the revenue guidance outlook, specifically the PLG headwind dynamics and the impact of the packaging transition to AWM, and how these factors might continue beyond Q4 into next year? A: Dan Rogers (CEO) noted that while the upmarket business is strong, the PLG (product-led growth) segment remains a work in progress. The company is focusing marketing efforts on attracting ideal customer profile (ICP) customers to improve the top of the funnel. Aziz Megji (CFO) added that the PLG headwind has widened slightly since March, creating a ~100 basis point pressure on revenue growth in Q3 and ~150 basis points in Q4. The $1.2 million impact from the AWM packaging transition is a timing issue that will normalize in Q4 and FY28. Excluding this transition impact, the company would have rolled the full Q2 beat into guidance.

Q: With AI Studio and AI Teammates driving about 25% of net new ARR, can you provide more color on how outcome-based pricing plays into your expectations for AWM as it ramps and how that influences your ability to forecast? A: Dan Rogers (CEO) explained that the hybrid pricing model combines a predictable subscription component with a consumption-based component tied to "requests," which is a customer-friendly unit representing an interaction with Asana. This approach ties pricing to value while maintaining predictability. Aziz Megji (CFO) acknowledged that forecasting will improve over time and that the company has taken a prudent approach by raising its AI product net new ARR target from 15% to 20% for the full year, factoring in the potential for seeding to delay incremental paid consumption.

Q: Asana is launching several new products (Command, Service Management, Client Management) that expand TAM but compete with new vendors. What is Asana's right to win in these spaces, and what is needed from a go-to-market standpoint? A: Dan Rogers (CEO) stated that these are not point solutions but part of a platform built on the enterprise work graph, which provides instant productivity for agents, increased velocity through fewer handoffs, and enterprise risk control with auditability. Asana already has deep data on these workflows (IT, R&D, HR, client delivery), allowing it to bring identified solutions to them. Aziz Megji (CFO) confirmed that if adoption of these new products is better than expected, it could be a source of upside in the back half of the year, though no contribution is factored into FY27 guidance.

Q: Can you elaborate on how Asana's ability to select and optimize appropriate AI models impacts efficiency and margins? Will savings be passed through to drive more usage or retained to benefit margins? A: Dan Rogers (CEO) explained that Asana has become skilled at routing tasks to the most appropriate models to optimize for both quality and cost. This will lead to a better gross margin profile over time. Aziz Megji (CFO) added that progress in reducing AI delivery costs gave the company confidence to roll out AWM broadly while keeping costs manageable. The 150 basis points gross margin impact in the second half is an investment ahead of benefits, but the company has rationalized other costs to still deliver margin expansion.

Q: What friction are you hoping to alleviate by embedding AI products into every AWM package tier? Was price a hurdle, or is it about discovery and noise from other vendors? A: Dan Rogers (CEO) explained that the goal is to embed AI more deeply into core workflows, addressing the productivity gap where individual AI use hasn't translated to enterprise-level gains. By making AI teammates discoverable and embedded in team contexts, Asana aims to reduce discovery costs and enable multi-player improvement. The work graph provides compounding benefits, making each subsequent workflow run better, which is often missing in single-player chat interactions.

Q: Given the strength upmarket and weakness in PLG, are demand trends in the top-of-funnel stable or becoming more challenging? Will the 150 basis points Q4 revenue impact persist into FY28? A: Aziz Megji (CFO) stated that the PLG headwind has worsened slightly (by about 50 basis points) but is not expected to deteriorate further in Q3 and Q4. The revenue impact is from compounding prior quarters. The company is focusing on driving the right ICP mix, which leads to better LTV, and new products (ACM, AWM) provide more expansion opportunities. The real inhibitor to reaching 100%+ NRR is the sub-$5,000 self-serve cohort, but the company does not expect the headwind to persist at the same level in FY28.

Q: How are you balancing product development to appeal to a broad audience while also specializing through verticalization, particularly for the sub-$5,000 customer base? A: Dan Rogers (CEO) explained that all five new products serve every segment well, with adoption depth varying by workflow needs. Pre-built AI teammates (e.g., campaign orchestration, launch processes, reporting) are relevant regardless of company size. Products like Asana Service Management provide more value to larger service departments. Asana's strength lies in digital discovery and trial, which benefits both small and large businesses.

Q: Can you explain how AI teammates will surface based on what a customer is trying to accomplish, and share a simple example of this in action? A: Dan Rogers (CEO) described three innovations in AWM: (1) Dash, the AI Chief of Staff, will suggest relevant teammates based on user questions; (2) input nudges will recognize task types and suggest pre-built, pre-skilled teammates; and (3) a work graph analyzer allows admins to see which teammates would be most useful. This addresses the biggest hurdle in the agentic enterpriseagent discoveryby leveraging Asana's work graph history to match customers with the right pre-built teammates.

Q: Can you provide more detail on the gross margin decline and the factors driving it, as well as expectations going forward? A: Aziz Megji (CFO) attributed the ~120 basis points gross margin decline to three factors: (1) higher AI infrastructure and compute costs for new products (~80 bps), (2) the addition of Stack AI with a lower gross margin profile (~30 bps), and (3) mix shift from seats to AI products. The company expects gross margin to be in the mid-80s exiting the year, with ongoing cost optimizations in AI delivery expected to improve the profile over time.

QFor the complete transcript of the earnings call, please refer to the full earnings call transcript .