Asana, Inc.ASAN

Asana, Inc. Revenue Disclosure

10-KFiled Mar 18, 20252 min read
Revenue
Deferred Revenue and Remaining Performance Obligations
The Company recognized $266.4 million, $227.5 million, and $170.1 million of revenues during the years ended January 31, 2025, 2024, and 2023, respectively, that were included in the deferred revenue balance at the beginning of the respective period.
Deferred revenue that will be recognized within the next twelve months is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent. As of January 31, 2025, the Company’s remaining performance obligations from contracts with customers was $430.8 million, of which the Company expects to recognize approximately 81% as revenues over the next 12 months and the remainder thereafter.
Deferred Contract Acquisition Costs
Deferred contract acquisition costs represent gross deferred contract acquisition costs less accumulated amortization. Sales commissions earned by the Company’s sales force, as well as related payroll taxes, are considered to be incremental and recoverable costs of obtaining a contract with a customer.
Deferred contract acquisition costs are amortized over a period of benefit of three years. The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in the software-as-a-service industry.
The following table summarizes the activity of deferred contract acquisition costs (in thousands):
Year Ended January 31,
202520242023
Beginning balance$39,381 $36,583 $22,771 
Capitalization of contract acquisition costs27,044 24,770 28,910 
Amortization of deferred contract acquisition costs(25,907)(21,972)(15,098)
Ending balance$40,518 $39,381 $36,583 
The following tables summarizes the outstanding balances of deferred contract acquisition costs (in thousands):
As of January 31,
20252024
Deferred contract acquisition costs, current$22,414 $21,594 
Deferred contract acquisition costs, noncurrent18,104 17,787 
Total deferred contract acquisition costs$40,518 $39,381 
Deferred contract acquisition costs, current is presented within prepaid expenses and other current assets in the consolidated balance sheets. Deferred contract acquisition costs, noncurrent is presented within other assets in the consolidated balance sheets.
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About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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