{"id":306606,"date":"2025-01-08T07:10:43","date_gmt":"2025-01-08T15:10:43","guid":{"rendered":"https:\/\/www.saastr.com\/?p=306606"},"modified":"2025-01-08T08:50:50","modified_gmt":"2025-01-08T16:50:50","slug":"5-interesting-learnings-from-asana-at-750000000-in-arr","status":"publish","type":"post","link":"https:\/\/www.saastr.com\/5-interesting-learnings-from-asana-at-750000000-in-arr\/","title":{"rendered":"5 Interesting Learnings from Asana at $750,000,000 in ARR"},"content":{"rendered":"

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So the overall “project management” space has seen widely disparate impacts from the SaaS partial downturn of 2022-2024.\u00a0 Asana, strong in B2B2B and selling to tech, was perhaps hit hardest, with growth slowing to 10%.\u00a0 Monday.com by contrast, selling mainly outside<\/em> of tech, saw growth remain strong at 34%.\u00a0 It’s been a tale of two worlds.\u00a0 SaaS that sells to B2B companies, and SaaS that sells to the Rest of the World.\u00a0 The former often had a tough time from 2022 to 2024.\u00a0 The latter?\u00a0 It was often close to the best of times.<\/p>\n

AI though is the tailwind.\u00a0 It’s given Asana a boost, albeit it’s still early for AI at Asana.\u00a0 And the stock ralied, and while down a bit recently, is still up a stunning 52% over the past 6 months!<\/h3>\n

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Today Asana is:<\/h3>\n
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  • At $750,000,000 ARR<\/li>\n
  • $4.75B market cap (so trading at 6x ARR or so)<\/li>\n
  • Growing 10%<\/li>\n
  • \u00a04% non-GAAP operating loss; not profitable or cash flow positive;<\/li>\n<\/ul>\n

    5 Interesting Learnings:<\/h3>\n

    #1.\u00a0 NRR Fallen to 98% Overall, 99% For $100k+ Customers — From 115% at $600m ARR<\/strong><\/h3>\n

    This is half the reason growth has slowed at Asana.\u00a0 At $600m ARR, NRR has 115%<\/a>.\u00a0 Today,\u00a0 it’s 98%-99%.\u00a0 While the root causes are multiple, from seat contractions in tech to budget scrutiny, at a higher level it’s a visceral remind of the importance of keeping NRR at 110%+.\u00a0 If Asana had the same NRR today it had even at $600m ARR, it would be growing twice as fast.\u00a0 And probably be worth 50% more.<\/p>\n

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    #2.\u00a0 150,000 Total Customers. 100k+ Customers Are The Fastest Growing.<\/strong><\/h3>\n

    This isn’t unqiue to Asana, it’s true of many SaaS leaders at scale, from Zoom to Shopify.\u00a0 The enterprise customers are growing the fastest.\u00a0 Just remember not to leave the smaller ones behind!<\/p>\n

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    #3.\u00a0 Getting More Efficient, But Not Profitable Yet<\/strong><\/h3>\n

    Asana has a PLG-SLG mix, but it’s a reminder PLG isn’t magically more efficient than SLG.\u00a0 Asana has gotten much more efficient,\u00a0 But it may not be non-GAAP “profitable” until $1B ARR.<\/p>\n

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