Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Asana's first quarter fiscal year 2022. With me on today's call are Dustin Moskovitz, Asana's Co-Founder and CEO; Tim Wan, the company's Chief Financial Officer; and Chris Farinacci, the company's Chief Operating Officer and Head of Business. Today's call will include forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including, but not limited to, statements regarding our financial outlook, market position and growth opportunities. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Forward-looking statements represent our management's beliefs and assumptions only as of the date made. Information on the factors that could affect the company's financial results is included in its filings with the SEC from time to time, including the section titled Risk Factors in the annual report on Form 10-K filed by the company for the year ended January 31, 2021. In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Reconciliation between GAAP and non-GAAP financial measures and a discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalents are available in our earnings release, which is posted on our Investor Relations web page at investors.asana.com. And with that, I'd like to turn the call over to Dustin.

Thanks, Catherine, and thank you to everyone for joining us today for our Q1 fiscal year 2022 earnings call. We had a remarkable first quarter and continue to see the business accelerate across revenues, paying customers and customer expansions. Revenues grew 61% year-over-year with growth accelerating for the second quarter in a row. We added over 7,000 net new paying customers in Q1, up from 4,000 added in the previous quarter. And growth in the number of paying customers accelerated for the third quarter in a row to 30% year-over-year. Also, dollar-based net retention rates continue to be strong. For customers overall, it was over 115%. For customers spending $5,000 and over, it was 123%. And for customers spending $50,000 or more, it was over 140%. Based on our outlook for the rest of the year, we're raising full year guidance by over 8% to $336 million to $340 million, representing a 48% to 50% year-over-year growth rate. This is based on several things. First and foremost, we continue to see momentum in enterprise. As the flywheel effect of Asana's Work Graph data model gains traction, we're closing larger deals and expanding in organizations. The number of customers spending $50,000 and over grew 92% year-over-year. We're clearly seeing more momentum in the market, and our investments in our product strategy are paying off. Second, we're seeing a record volume of interest at the top of the funnel, and the increasing demand is geographically broad-based, indicating that we're solving a universal problem. And third, both conversion rates and customer adoption metrics are going up. We're seeing customer satisfaction rates, NPS scores and retention rates at or better than pre-pandemic levels. This is translating into continued strong net new paying customer growth and strong seat expansion, affirmation that Asana is delivering the features and capabilities that users and organizations want. While the pandemic may have heightened the awareness of how difficult it is to achieve clarity at work, the problems themselves are not new. Even before the pandemic, 1.25 billion global knowledge workers largely relied on outdated tools—email, spreadsheets, and status meetings—to get clarity on who is doing what, by when. According to our annual survey called the Anatomy of Work, 60% of knowledge workers' time is spent on work about work rather than the work itself. Over the last year, people have expended more effort to have the same or even less impact. The average person is working later each day, 26% are still missing deadlines, and 7 out of 10 people experienced burnout last year. Asana provides a more productive and sustainable way to work. Going forward, there will be a spectrum of types of environments, from fully remote to fully back office and, in many cases, a hybrid of both. Whether teams are working from home or in offices coordinating work across departments and geographies, clarity on who is doing what, by when is essential. This persistent need for clarity will be a durable secular driver for our business. For those of you who may be new to Asana, we're accelerating our growth and expansion with the Asana Work Graph, our key differentiator. Like the social graph that my co-founder, JR, and I worked on, the Asana Work Graph is a flexible data model powering Asana. The Work Graph is a fully connected, up-to-date map of the work in an organization. It enables Asana to provide clarity at every level of an organization regardless of size, structure, and complexity. Customers like Japan Airlines, Sky, Under Armour, and thousands of others use Asana today to get products to market faster, budget resources better, and have a bird's eye view of the business. We are the solution that can provide clarity for the individuals, teams, and executives based on a shared source of truth enabled by our proprietary data model, the Asana Work Graph. First, for executives, we provide org-wide visibility and alignment with Goals and Portfolios. Just this week, we announced Universal Reporting, which gives leaders real-time visibility into work across their organizations. This real-time, graphical dashboard capability is built directly on top of our Asana Work Graph. Unlike other reporting tools, the Work Graph data model enables company and team leaders to create reports by selecting particular projects, teams, or portfolios across their entire organization and view their progress together in a single chart, not just across individual projects. Executives used to have to wait for their teams to manually prepare quarterly reviews for this level of insight. Universal Reporting makes that level of insight available instantly, dynamically, and automatically. For example, an executive can create single charts that track product road maps within or across product lines, track budgets within teams or across departments or track efficiency and attainment within their area of responsibility or across an entire company objective. They can then add them to a shareable dashboard in a few clicks, making progress reporting easy and ensuring that important decisions are made with up-to-date data. Second, we provide a single source of truth to power work across teams. Universal Reporting gives teams the progress and resourcing reports they need to move quickly. We also continue to enhance our workflow automation capabilities, and we're aiming to launch a new workflow gallery by the end of the year, our version of an app store. Lastly, we help individuals maximize their productivity. Next week, on Wednesday, June 9, we'll be hosting our Asana Focus & Flow Summit. We will be joined by some of the leading researchers on high performance, including Adam Grant, organizational psychologist and bestselling author; Dr. Sahar Yousef, cognitive neuroscientist at UC Berkeley; and Dr. Michael Gervais, a renowned psychologist on optimal performance for world-class athletes and Fortune 100 CEOs. We are unveiling a new suite of personal productivity features that help individuals prioritize their work, reduce distractions and improve focus. Some of the new features include: video messaging to reduce meetings; an upgraded My Tasks experience to enable more ways to prioritize and automate your work; a smart calendar assistant to create more time for focus; and an Asana desktop app, one of the top requests from our community. We will be featuring demos of capabilities that are based on the unique benefits of the Asana Work Graph. So please join us for this event on June 9, from 10 a.m. to 11 a.m. Pacific Time. Our product roadmap this year is stronger than ever. We're investing aggressively in our product strategy and making great progress towards our vision. We continue to ship capabilities at a rapid pace this year, including: the Asana Partners introduced in Q1, which featured over 200 technology partners including ServiceNow, Zendesk, and Adobe integrations. We launched Asana's Channel Partner network and expanded to 4 new languages. In Q2, we launched Universal Reporting, and we have a new suite of personal productivity features coming to market next Wednesday. We also have additional enterprise platform news in Q3, and we're on track to launch our entirely new take on workflows by the end of Q4. Before I hand it over to Chris, I want to conclude by highlighting that we continue to scale our company while evolving and developing our culture. We're expanding into 7 new languages this year for a total of 13 by the end of the year. We opened offices in Singapore and Paris, bringing us to 11 offices on 4 continents. And lastly, Asana has been named to Inc. Magazine's annual list of the Best Workplaces for 2021 for the fourth consecutive year. So as our company continues to scale rapidly, we also continue to focus on intentionally evolving a great culture built around ensuring everyone has real-time clarity about what's expected of them and how their work fits into our higher-level goals. As the company grows on top of the strong foundation, we get ever better and faster at delivering value for our customers. And now I'll hand it off to Chris.

Thanks, Dustin. Asana had a great first quarter to start off the year. We had another quarter of accelerating revenue growth, with revenues growing 61% year-over-year. We are firing on all cylinders, from the top of the funnel to large enterprise expansions. Some highlights from this quarter's business performance include the following. First, we accelerated new customer growth, adding over 7,000 net new customers this quarter and passing the 100,000 paying customer milestone. Top of funnel performance continues to be strong globally. Second, we're seeing strong expansion within our existing customer base, particularly with our larger customers. The net retention rate for customers spending $50,000 or more with us annually was again over 140%. Third, as Dustin mentioned, we're seeing our investments paying off with growing enterprise momentum. The number of our customers spending $50,000 or more annually grew 92% to 485 customers. While the numbers speak for themselves, our customer adoption trends tell the story best. Our largest customer deployment expanded to 50,000 seats this quarter. This highlights the scalability of the product and shows our value proposition is resonating with some of the biggest enterprises in the world. It's a credit to our Work Graph data model, which enables our vision and is a core competitive differentiator. Customers are realizing the benefits, especially our largest customers who have cross-functional teams with complex workflows. We saw traction in Q1 around the world and across a range of industries. We continue to see significant expansions within our current customer base. Here are just a couple more highlights. In Q1, Vice Media Group, the world's largest independent youth media company, upgraded its organization to our enterprise solution and added hundreds of new seats. They needed to improve visibility into work happening across the company and centralize it in one place to eliminate silos between departments and teams that are spread across the world. Now teams from marketing to video production to advertising operations will be using Asana to manage their work and track their strategic goals. With everything in one place, teams can now see how their individual work aligns with department-wide timelines. Additionally, leadership will have real-time reporting on progress and blockers to make informed business decisions. Duke Clinical Research Institute and the Center for Health Equity Research at the University of North Carolina at Chapel Hill selected Asana's solution to manage cross-functional workflows at scale for a large federally funded COVID-19 program targeting underserved populations. Asana Portfolios will help them monitor the program and provide reporting to the sponsor. As we look towards the rest of the year and beyond, I'm very excited. We continue to focus our business on 3 major growth drivers: acquiring new customers, existing customer expansion, and enterprise momentum. First, in new customer acquisition. We're continuing to expand our customer reach to make Asana accessible to a significantly larger portion of the world's teams by executing on one of our largest new market expansion initiatives to date. We've already made Asana available in 4 new languages this year: traditional Chinese, Russian, Dutch, and Polish, with 3 more on the way. We also launched our Channel Partner network to expand our reach. Second, we are focused on customer expansion. We continue to see a large and growing expansion opportunity in our existing base of now over 100,000 paying customers. I'm particularly excited about our new product launches this quarter, including the personal productivity suites we're launching at the Focus & Flow Summit next week and our recently announced new Universal Reporting capabilities. Our third major growth driver is enterprise. Not only are we seeing momentum in enterprises broadly, we are seeing rapid adoption and expansion of our product in some of the world's most valuable companies. The business imperative for real-time clarity and alignment across teams and organizations is accelerating. Our enterprise demand is building, and we're seeing organizations across industries choosing Asana. Examples include leaders in financial services, manufacturing, media and entertainment, technology, and retail in our most recent quarter. We're scaling our enterprise sales organization, growing our sales team as fast as we can to service this growing demand. We're also continuing to invest significantly in our enterprise platform and capabilities. Asana is uniquely suited to scale as a trusted partner and provider of real-time clarity and alignment for large enterprises. With that, I'll now turn it over to Tim to go through our financial results.

Thanks, Chris, and thank you, everyone, for joining us today. We are very excited to report another great quarter with strong results across the board. Q1 revenue growth accelerated from the last quarter to $76.7 million, up 61% year-over-year. We added over 7,000 net new paying customers and now have over 100,000 at the end of Q1. This represents a 30% year-over-year increase and our third consecutive quarter of accelerating customer growth. We have 11,272 customers spending $5,000 or more on an annualized basis, up 53% year-over-year. And growth in our larger customers is even stronger. We have 485 customers spending $50,000 or more on an annualized basis, which accelerated this quarter to 92% year-over-year. As a reminder, we define customers spending $5,000 or more and $50,000 or more based on annualized GAAP revenue in a given quarter. Revenue from customers spending $5,000 or more represented 64% of our revenue in Q1 compared to 56% in the year-ago quarter. This part of our business grew 82% year-over-year. Our overall dollar-based net retention rate was over 115%. As a reminder, our dollar-based net retention rate is a trailing 4-quarter average calculation. Among customers spending $5,000 or more, our dollar-based net retention rate was 123%. And among customers spending $50,000 or more, our dollar-based net retention rate was again over 140%. This further demonstrates our success with our land and expand strategy and how Asana is resonating particularly with our largest customers. Before turning to expense items and profitability, I would like to point out that I will be discussing non-GAAP results in the balance of my remarks. Gross margins came in at 89.8%, up from 87.1% in the year-ago quarter. Research and development was $30.5 million or 40% of revenue as we continue to invest heavily to fuel innovation at a high velocity. Sales and marketing were $52.5 million or 68% of revenue, reflecting the investments in both our self-serve and direct sales motion. G&A was $19.3 million or 25% of revenue. Operating loss was $33.3 million, and operating loss margin was 43%. Net loss was $33.8 million, and our loss per share was $0.21. Moving on to the balance sheet and cash flow. Cash and marketable securities, including long-term investments, at the end of Q1 were approximately $398 million. Our free cash flow is defined as net cash from operating activities less cash used in property and equipment and capitalized software costs, excluding nonrecurring items such as our direct listing fees and expenses and the build-out of our San Francisco office. In Q1, free cash flow was negative $7.7 million. We are very proud of our achievements and the business momentum. Now moving to our Q2 and fiscal year 2022 outlook. For Q2 fiscal 2022, we expect revenues of $81 million to $83 million, representing growth rates of 56% to 60% year-over-year. We expect non-GAAP loss from operations of $44 million to $42 million, and we expect loss per share of $0.27 to $0.26 assuming basic and diluted weighted average shares outstanding of approximately 163 million shares. Now looking up to the full fiscal year 2022, we are raising our previous guidance and now expect revenue to be $336 million to $340 million, representing a growth rate of 48% to 50% year-over-year. Given the large opportunity ahead, we will continue to invest for growth to maintain our leadership position. We expect full year non-GAAP operating margins to improve slightly from fiscal year 2021. Longer term, we believe that we can execute on our growth strategy and that our best-in-class gross margins and strong unit economics will provide the leverage and flexibility to invest into the enormous market opportunity. We believe this investment will provide durable and sustainable growth as we pursue this large market opportunity with the best-in-class product.

Wanted to go back to kind of this reacceleration in revenue growth above 61%. It's the highest we've seen in a year. It looks like it was strong across both new customers as well as expands with a record number of net new $50,000 adds. What is resonating most with clients? Why now? And are you seeing any sort of material shifts in the partner channel tied to Teams or Slack or Atlassian? Just love to get a little more color on what's driving this reacceleration.

Yes. Well, I'd really point you at the fact that we saw strength across the board. So there's not really any one factor that's driving the growth. The 3 big drivers, so first of all, the enterprise momentum which you mentioned. So we saw a 92% growth with the customers spending $50,000 and over. We're also really excited about our largest deployment is now 50,000 active users. So a lot of momentum there, and Chris will probably add some color after me on that front. And then additionally, really strong top of funnel demand, and we're seeing that across all regions, variety of geographies and industries and scale of company. And that helped us achieve the new milestones of over 100,000 paying customers and 1.5 million paid users. And then we're also seeing funnel metrics improving. So we definitely saw a dip in adoption and retention rates during the pandemic, but now we're seeing levels that are even higher than before COVID started. So all of those are really contributing to the reacceleration and because of that, we feel more confident that there will be sort of durable growth drivers for us because it's not just a single fact that's driving the acceleration.

Yes, this is Chris. I would like to add a couple of points regarding the question about our channels and the competitive landscape. As Dustin mentioned, we are experiencing strong growth in acquiring new customers and expanding our existing base, particularly with momentum in the enterprise sector. In terms of our partner channel, we continue to see growth with over 200 technology partners, focusing especially on the needs of our enterprise customers. Key partners include Slack, Google, Microsoft, Salesforce, Zoom, Adobe, and Jira, and we recently announced a new partnership with ServiceNow. Our Channel Partner program is also growing rapidly, showing strong traction with enterprise-focused partners. I want to emphasize that while the channel is an important and strategically growing part of our business, it is still not a significant portion at this time. Regarding the competitive landscape, we aren't seeing anything particularly new. Overall, the market remains largely open, with our main competitor being the status quo. When we do compete, we do not observe any notable changes in the competitive mix or any specific competitors.

On the enterprise business, I'm curious, Dustin and team, if you could maybe just dive a little deeper into what you're seeing some pretty impressive metrics as you're moving upstream. What's kind of surprising you there? Any kind of key metrics that you would highlight that is showcasing this ongoing success upstream?

Thanks, Brent. It's Chris. So yes, I mean, the business imperative for real-time clarity and alignment across teams and enterprise organizations is accelerating. We saw the numbers. We mentioned the number of customers spending more than $50,000 with us annually growing 92% year-on-year. And revenues from customers spending $5,000 annually accelerated to 82%. And that cohort was 64% of Q1 revenues, so up from 56% in the same quarter a year before. Our enterprise demand is building, and we're seeing it build across industries, regions, and functions. We're also seeing rapid adoption and expansion of the product in some of the world's most valuable companies. Our largest customer is now 50,000 seats. And maybe to give you some more color, I could just give you a couple more examples than I gave in my prepared remarks. Let's see. One of the world's leading media properties chose our enterprise solution for its entire company, a couple of thousand users to manage 100-plus workflows and projects a quarter and provide leadership with visibility into the work happening across the company. Another example of an enterprise deal is a large bank in EMEA who's undergoing a digital transformation initiative and chose Asana to track its OKR, its objectives and key results, and connect that with the associated work happening in the organization. So yes, so the enterprise, I'd say, we believe Asana is differentiated and uniquely suited to scale as a trusted partner and provider of clarity for large orgs, and we're seeing demand driving.

And just to answer the surprise part of it, I think mostly this is going according to plan, and we're seeing enterprises adopt because of our differentiated product strategy and the ability to be a superior solution for cross-team work and the scale of the needs of large organizations. The part that's surprising is just quite how quickly it's going. And in particular, with some of these larger deployments, the one that is now 50,000 active seats, it's just been growing very, very quickly. And there are a couple of others, not quite at that scale but still very large, that have similar growth patterns. So we're just seeing a lot of enthusiasm and organic distribution within our existing customers that's helping us grow the deployments really quickly.

Tim, just a quick follow-up. You saw a 10-point margin improvement, but you're guiding to slight margin improvement for the year. Is seeing that, 'Hey, you're doing so well. Why take your foot off the gas and expense? We're just going to keep on it given the reacceleration.' Is that the overall theme? Or can you walk through?

Yes, that's exactly it. Yes. Brent, this is Tim. Yes, that's exactly it. I think we believe there's just a huge market opportunity that we're growing extremely fast, and we want to continue to grow and capture and continue to be the leader in this space.

Great. Pretty impressive billings growth and net new adds on the $50,000 customer line. But just want to get a better sense of what you think is resonating in the market. Is the prospect of distributed and hybrid work leading to more opportunities coming up? Or are there levers that you're pulling on in the top of funnel conversion rates that you think is helping drive that?

Well, I would say that remote work and the pandemic in general have really just tightened the awareness of the problems of the pain of trying to get clarity about who's doing what, by when with your team. But the problems themselves aren't new. And I think that if you think about the addressable market of about 1.25 billion knowledge workers globally, the vast, vast majority of them are still using that status quo of long email threads and shared spreadsheets and status update meetings. And the moving to remote work just made it this really clear how poorly those solutions were serving them. And so I think that, that helps drive some awareness and sort of urgency to adopt Asana, but the longer-term pains and the trends really go well beyond remote work. So post pandemic, we know that a lot of customers are going to continue to work with fully remote teams, some that are going to come back into the office. And we're going to see a variety of hybrid versions that represent the spectrum in between. In any of those situations, Asana is a critical need for helping you drive clarity at work.

Yes, this is Chris. I'll start. We've been developing a distinct vision for clarity by utilizing the Work Graph and differentiating our data model to provide insights at the individual, team, and enterprise levels. Last year, we introduced Goals, which connects executive and strategy levels with work execution. We've observed strong adoption, even though it's still early. There are several customer examples I've mentioned, including one where an innovative mobile phone carrier, associated with a leading telecom company, implemented their enterprise solution in Q1. This enabled them to have a single source of truth and transparency regarding how their actual work aligns with company goals. We're experiencing significant demand, not only for the Goals feature but also for the overarching need to create clarity from the top levels of companies down to everyday work.

I will discuss Universal Reporting. We launched this two days ago and are really excited about it. It builds on our project dashboards launched a few quarters back, but this is different as it enables reporting across multiple projects or even entire teams and departments. We focused on functionality that highlights the power of the Work Graph, allowing for flexible data aggregation. I'm eager to see how our customers utilize it. We've had it internally for a short time, and it particularly appeals to individuals managing portfolios or groups of programs by providing robust reporting capabilities across their entire scope. We're starting with this initial view and plan to enhance this functionality further. As we increase its power and integration with other layers in the Work Graph, we believe it will attract even more senior stakeholders within organizations, all the way up to executive leadership.

Given the strong top of the funnel activity that you're seeing, can you maybe give us a sense of the type of incremental leverage do you think you can get from all the Asana partners and channel initiatives that you're implementing?

Yes. I think Chris mentioned this earlier on the call. We are continuing to expand both our partner ecosystem and our channel ecosystem. We already have a number of technical integrations with different products. We see channels and partner opportunities as significant potential for growth since they currently represent a small portion of our revenue. I would like to emphasize the greenfield opportunity. A large majority of teams worldwide are not using any products in this category. We can reach some of those customers through performance marketing, but depending on the industry, scale, or region, other channels may be more suitable and effective for reaching them. It's really about extending our reach into all segments of the market.

Yes. And this is Chris. I'd add one thing because I think your question got to the connection between top of funnel and channel, which is ultimately about coverage in the market. And as we mentioned, we continue to expand our customer reach to make Asana accessible to a larger portion of the world's teams, right, by executing on this additional languages. We shipped 4 already this year, 3 more coming: Italian, Korean, and Swedish. And we're investing in our Channel Partner network to expand our reach in those markets as well. And so as we launch those new languages, they help us with reaching those new markets as does the channel.

All right. And just following up on kind of the enterprise strength. Tim, can you give us maybe an update on the success you're seeing with hiring and what your plans are for the rest of this year from a sales perspective?

Yes, I would say we have aggressive goals and we are hiring quite actively. We are satisfied with our current progress. We aim to complete most of our hiring early, but many of the people we have hired will start this quarter in Q2. This will help us build capacity for the significant opportunities ahead of us.

Tim, I'm wondering if you see potential for that net dollar retention to improve above this 115% plus level as the economy reopens. Just based on your commentary, it sounds like you might anniversary past some of the pandemic period churn, and then perhaps you'd have SMBs getting healthier and employment picking up and expansion rates improving.

Yes. I would point to 2 things. I would say, one, because of the calculation, it's lagging. Our NRR calculation is a lag indicator. So once we lap, I would say, Q2, Q3, we expect our NRR to pick back up to pre-pandemic levels. And then the other thing I would say is what we're seeing kind of in the cohorts and the customers that we've been acquiring that their adoption behavior is stronger than the kind of the pre-COVID one. So this whole acceleration in terms of customers needing clarity, needing a work management product to do their work, so we think all those things will help bolster the NRR on a go-forward basis.

Okay. As a quick follow-up, Dustin, I believe you mentioned a win that was federally funded relating to COVID-19. Could you remind us how you are approaching U.S. Federal government business? Are you in the FedRAMP process to target some of the larger agencies directly? Or are you perhaps focusing more on private industry?

Yes. So to just replay that, so the customers do clinical research. We're really proud of this deployment because of what they're doing. So they're the ones that are federally funded with their research Institute, and they're running a large program and using Asana to manage cross-functional work in reaching underserved populations. So it's not really a government entity in that example. I do think that that's in our future, but maybe a little further out.

I would like to start by asking Dustin about the recent increase in wall-to-wall deals. You've noticed a couple in the previous quarter and more this quarter. Can you share what the pivotal moment is for your customers that enables these wall-to-wall deals? Additionally, how would you describe the current state of your pipeline? Have your sales teams improved their selling skills, has awareness of the category increased due to COVID, or is there a better understanding of competitive differentiation? Please provide some insight into what's happening.

I will ensure I address your question. The first part was about the transition to wall-to-wall engagement and how that is progressing. Yes, this is a natural part of the customer journey over time. Our self-serve business tends to grow organically within companies of all sizes. From there, our sales team engages, leading to growth and expansion. Ultimately, we aim for wall-to-wall adoption. The strength of our data model and Work Graph lies in the fact that as more users adopt the platform, customers derive greater value and see more power from it. We typically start in a key workflow that spans different functions, sometimes across an entire department or multiple departments, and then expand from there. Regarding our current position in this journey, we're still in the early stages with only about 3% to 4% penetration in our paying customer base, indicating significant expansion opportunities ahead. We're beginning to see wall-to-wall maturity among mid-sized companies and some departments within larger enterprises, and we expect this to grow as our customers and our business continue to develop. The second question pertained to what is driving our success. We are witnessing record levels of interest at the top of the funnel, and our conversion rate from free to paid users is at an all-time high. Metrics such as conversion rates, pipeline growth, annual contract value, and customer adoption are all increasing. Our churn rates, customer satisfaction levels, and Net Promoter Scores are at or above pre-pandemic levels, indicating overall growth across the board. Additionally, we are aggressively expanding our sales team to ensure we have global coverage to capitalize on this demand.

And if I may add on to that as well. In terms of the aha moment, what we hear playback from customers is the 3 differentiators. So first, Asana is easy to adopt, and it's designed to maximize personal productivity. And so in practice, that means it's easy to deploy. And if they sort of give the green light to their teams or allow teams to self-serve, then we often see that sort of organic viral adoption. The second is Asana is the best platform for cross-team work. And so when we do end up sort of in consolidation conversations, we're often the favored choice by those cross-functional teams or just by the most teams because we're able to field all those different constituents and allow them to work really well together. And then the third is we're the platform that connects goals and strategy to the execution and underlying work. So that helps provide clarity for everyone, but it's also creating these powerful overviews for the senior leaders and executives that are going to be the decision makers. And so when they get a chance to experience that power, they want more of it and they want it in more of their organization.

Understood. And then maybe just one more question for you, Dustin. The innovation engine seems to be running at full speed: the number of products you're introducing from the new suite of productivity tools, the new video messaging, work automation capabilities, and smart calendar is significant. What I wanted to ask you is about your approach or thought process going forward regarding organic versus inorganic product innovation for the company as you aim to continue scaling up. Also, which of these new capabilities or features do you believe could be the most impactful for upselling to your customer base?

Yes. The first question, a couple of ways of answering that. So one, it's really important to us to have a single holistic product experience. I think sometimes the feature sets that Asana is advancing actually present as a suite of sort of unrelated products that integrate. And we think we can deliver a much better customer experience by having them be all part of a single product. So that means we have a pretty strong bias towards what I think you described as organic product innovation, so building in-house. That said, we often have great opportunities to partner with other organizations. So the video messaging capability that you mentioned is basically a white-label technology. So somebody else actually built the video part of it, and we're just integrating it into our UI. The calendar integration we're talking about next week is also of that nature, and we're enabling more partners to have more powerful experiences within our products, so allowing them to customize the UI and build it to be a really great experience. So I think that's the way we get more of the inorganic leverage that you mentioned.

Understood.

Yes. You asked about what's most exciting in terms of additional leverage for the business. Yes, it's hard to choose my children. But I think the ones that will drive the most especially in the enterprise part of the business, so in Q3, we have a set of new announcements around our enterprise platform. And then in Q4, we're unveiling the workflow galleries for businesses. And that's sort of like an app store, but it's for team workflows. And a lot of our product investment this year is really going towards that particular launch, and we think that it's going to do a lot to help with driving adoption within our existing customers as well as enticing new customers to the platform because of better support for the use cases.

This is Melissa Dunn on for Stan. The first one I wanted to ask was going back to the question on your net retention rate. So hoping to put a bit of a finer point on the trends and expansion that you saw in the quarter. And curious if the reason that the momentum seen in the quarter didn't necessarily translate to that 115% net retention rate was purely just the 12-month nature of that calculation. Or is there a dynamic where maybe the net retention or the expansion lags the new business momentum in any way?

Yes. It's a combination of both, Melissa. One, it's the calculation. And then the second is some of the larger expansions that we talked about or highlighted on the call, they generally happen towards the end of the quarter. So you don't see the same effect over that short period within the quarter. So we would essentially pick up that benefit kind of in the subsequent quarter.

Okay. That makes sense. And a quick clarification on your commentary around the more positive adoption trends that you've been seeing, I think, for the 2020 more recent cohort of customers. Were you referencing greater lands or greater expands when you talked about the better adoption?

Yes, it's really both. We're seeing strength across our entire funnel. We're noticing that customers in their first 30 and 100 days are adopting more successfully. This positive trend tends to lead to continued adoption and expansion later in their lifecycle, as well as improved retention. So, it's truly a complete picture.

Yes, this is Chris. As we mentioned in the last call when we formally launched the Channel Partner network, we have been building it for two years and placed a greater strategic focus on it at the beginning of this year. The channel network now spans 75 countries, and we are starting to see significant traction from an enterprise-focused channel partner perspective. Our geographic focus is targeted in two ways. We are expanding into new markets and focusing our coverage strategically. In Europe, we have a hub in Dublin and field offices in London, Munich, and Paris, specifically targeting those markets for growth over time. In Asia, we have hubs in Japan and Sydney, along with a rapidly growing field office in Singapore, which is also focusing on those markets and expanding from there. Our channel partners generally help us cover new markets, such as those where we do not yet have representatives, and they also augment our services and support by selling in existing markets, especially in specific segments where we require additional coverage.

I had one on the Channel Partner program that was recently launched. Just curious to know if maybe you can elaborate a bit in terms of what partners exactly do they consist of? What's the international breadth that they have? And I have a follow-up on that.

Yes, this is Chris. As we mentioned in the last call, we have been developing the Channel Partner network for two years, with a more strategic focus since the beginning of the year. The channel network now spans 75 countries, and we are beginning to see traction specifically from enterprise-focused channel partners. Our geographic strategy involves two main approaches: first, establishing coverage in new markets, and second, targeting specific geographical areas. In Europe, we have a hub in Dublin, with field offices in London, Munich, and Paris, concentrating on those markets and gradually expanding. In Asia, we have hubs in Japan and Sydney, along with a rapidly growing field office in Singapore, aimed at those markets and scaling from there. The channel partners typically either target new markets, including some of the new languages we discussed where we do not yet have representatives, or enhance our services, support, and sales in existing markets, particularly in segments where we require additional coverage.

Not in the short term. I think it's still early stages right now for us.

Great. Dustin, can I ask you? With so many things going right here, what are your top 3 strategic imperatives for this year, not for all time, but for this year?

Yes, absolutely. It's a great question. The first strategic imperative is to deliver our differentiated product vision to customers. This includes the Universal Reporting launch this week, the Focus & Flow personal productivity features next week, the enterprise platform news in Q3, and the workflow gallery in Q4. This comprehensive package is crucial for us. The second imperative is to enhance our service to enterprise customers, where we've seen significant strength. This involves implications from our product roadmap, including the Q3 launch, investing in scaling our sales and customer success teams, and developing our partner ecosystem. A key part of this also focuses on global expansion; for example, we're translating Asana into 13 languages this year and have opened new offices in Paris and Singapore to help us achieve a broader global presence. The third imperative pertains to hiring within the team, which further relates to the first two. We aim to scale our sales and R&D efforts, ensuring that we can thoughtfully evolve our culture to accommodate a larger workforce. In summary, our priorities are delivering the product, reaching customers—especially larger ones—and executing on and scaling our internal team.

Great. Thank you, everyone, for joining us today. We really appreciate your time. And of course, as always, if you have any follow-up questions, you can reach out and call me and the team, and we look forward to seeing you on the road this summer. Thank you.

This concludes today's conference call. Thank you for participating. You may now disconnect.