Asana delivered a stronger-than-expected second quarter as improving customer retention, enterprise expansion and artificial intelligence products supported growth in a competitive software market. The results also mark an important transition for the work-management company as it shifts from traditional seat-based collaboration software toward a broader human-and-AI agent workflow platform.

Revenue Beats Guidance as Customer Retention Improves

Asana reported $216.4 million in Q2 FY27 revenue, representing 10% year-over-year growth and exceeding the upper end of its prior guidance of $213 million to $215 million. The result also came ahead of the approximately $214 million analyst estimate shown in the supplied earnings data.

The company’s customer base continued to expand, with 26,778 Core customers at the end of the quarter, up 7% from a year earlier. Customers generating at least $100,000 in annualized revenue increased 16% to 890, highlighting the company’s increasing focus on larger enterprise accounts.

Dollar-based net retention reached 97%, compared with 96% a year earlier. Core customers recorded a 98% retention rate, while customers generating more than $100,000 annually also reached 98%. These metrics indicate that existing customers are generally maintaining or expanding their spending, even as overall revenue growth remains in the low double digits.

Margin Expansion Becomes a More Important Part of the Story

Asana’s profitability metrics showed a more substantial improvement than its headline revenue growth. Non-GAAP operating income increased to $21.8 million, producing a 10% operating margin compared with 7% a year earlier. GAAP operating loss narrowed to $41.2 million from $49.5 million, while adjusted free cash flow increased to $42.3 million from $35.4 million.

The improvement suggests that Asana is beginning to capture greater operating leverage as it scales. At the same time, the company remains GAAP-loss-making, with a second-quarter net loss of $39.2 million. For investors assessing the business, the balance between continued investment in AI and the company’s ability to convert revenue growth into sustainable cash generation will therefore remain important.

AI Strategy Moves From Feature to Core Platform

The next phase of Asana’s strategy centers on Agentic Work Management, which is scheduled to launch in the third quarter. The platform will bring AI Teammates, AI Studio and Asana Dash to every paid tier, allowing organizations to combine human employees and AI agents within shared workflows and organizational context.

Asana said customers using AI Studio and AI Teammates across critical workflows are engaging more deeply, retaining better and expanding faster. The company is also developing Agentic Applications designed to extend its platform into additional workflows and buying centers. This could broaden the company’s addressable market while creating potential revenue streams based on consumption and business outcomes rather than relying exclusively on the number of software seats.

The strategy comes as enterprise software companies increasingly compete to integrate AI agents directly into business processes. Asana’s challenge will be demonstrating that its AI capabilities generate measurable productivity improvements rather than simply adding another layer of functionality to an established collaboration platform.

Asana now expects FY27 revenue of $858.5 million to $863.5 million, representing approximately 9% growth, while non-GAAP operating income is expected at $84.5 million to $86.5 million. For the third quarter, the company projects revenue of $217 million to $219 million and non-GAAP earnings per share of $0.08. The relatively modest Q3 revenue-growth outlook of 8% to 9% means execution will remain critical as Asana rolls out its agentic platform. The key indicators to monitor will be enterprise customer expansion, retention, AI adoption, margin progression and whether AI-driven consumption can accelerate growth beyond the current low-double-digit range.