Team collaboration software provider Asana Inc. beat expectations as it reported its second-quarter financial results today, driven by a growing customer base that’s spending more money on its products.

The company reported a second-quarter loss before certain costs such as stock compensation of 23 cents per share on sales of $89.5 million, up 72% from a year ago. Wall Street had been looking for a slightly larger loss of 26 cents per share on revenue of $82.26 million.

Asana’s stock was down more than 3% at one point, before rebounding to a 1% gain after-hours.

Asana Chief Executive Dustin Moskovitz (pictured) highlighted the company’s customer growth, saying it now has more than 107,000 paying users. He noted that the number of customers spending $5,000 or more on an annualized basis rose to 12,806, up 61% from a year ago. Revenue from those customers grew 97% year over year, he added.

“Customers are adopting Asana everywhere: across our major geographies and across all sizes of teams,” Moskovitz continued. “We saw particular strength in the enterprise, with the number of customers spending over $50,000 up 111%.”

Asana sells a popular work management platform that’s used by teams to organize tasks in a centralized visual dashboard to improve coordination among workers. Toward the end of last year, Asana emerged as a darling of the COVID-19 pandemic as workforces around the globe shifted to a work-from-home environment. The software is available as a freemium service, wherein the most basic features are free to use, but more advanced tools must be paid for.

Asana’s software notably now integrates with Zoom, allowing distributed teams to drive meeting workflows and collaborate.

Besides the results today, Asana also announced it’s hiring Anne Raimondi as its new chief operating officer. Raimondi had served on Asana’s board of directors since 2019 and takes over from Chris Faranacci, who is retiring at the end of the fiscal year but will hang around for the time being to ensure a smooth transition.

Prior to her role at Asana, Raimondi served as the chief customer officer at Websoft, Inc., owner of Guru.com, senior vice president of operations at Zendesk Inc. and chief revenue officer at TaskRabbit Inc. Moskovitz noted that Raimondi brings decades of experience in enterprise software, serving customers, scaling up businesses and fostering inclusive environments for employees to grow and thrive. “Anne has been an instrumental voice on our board for the past two years and knows our business and culture well, which will enable her to seamlessly transition into the organization and start co-creating with our teams,” he said.

For the third quarter, Asana is eying a loss of 26 to 27 cents per share on revenue of $93 million to $94 million. Wall Street is looking for a loss of 28 cents per share on revenue of $86.72 million. For its full fiscal year 2022, Asana said it sees revenue of $357 million to $359 million.

Photo: Asana