Smartsheet Inc. Announces First Quarter Fiscal Year 2025 Results
Smartsheet announced its Q1 fiscal 2025 results, highlighting a 20% YoY revenue increase to $263 million. Subscription revenue rose by 21% to $249.1 million, while professional services revenue remained flat at $13.9 million. The company's GAAP net loss narrowed to $8.9 million, with a non-GAAP net income of $44.4 million. Operating cash flow grew by 45% YoY to $50.1 million, and free cash flow increased to $45.7 million. Smartsheet ended the quarter with $669.5 million in cash. The company announced a $150 million share repurchase program and expects Q2 fiscal 2025 revenue between $273 million and $275 million. For the full fiscal year 2025, revenue is projected to grow by 16% to 17% YoY.
- Q1 fiscal 2025 total revenue up 20% YoY to $263 million.
- Subscription revenue increased by 21% to $249.1 million.
- Operating cash flow rose by 45% YoY to $50.1 million.
- Free cash flow up 47% YoY to $45.7 million.
- Non-GAAP net income of $44.4 million, up from $25 million YoY.
- Ended Q1 with $669.5 million in cash, cash equivalents, and short-term investments.
- Authorizing a $150 million share repurchase program.
- Smartsheet's annualized recurring revenue (ARR) grew by 19% to $1.056 billion.
- Non-GAAP operating income increased to $42.1 million, up from $22.8 million YoY.
- GAAP net loss of $8.9 million, compared to a loss of $29.9 million YoY.
- Flat professional services revenue at $13.9 million.
- GAAP operating loss of $11.1 million, or 4% of total revenue.
- Smartsheet did not make any repurchases under the share repurchase program during Q1.
The recent financial results from Smartsheet Inc. highlight a solid performance for Q1 fiscal 2025. The company's total revenue grew by 20% year-over-year, reaching
The non-GAAP operating income saw a substantial rise to
The announcement of a $150 million share repurchase program can be viewed positively by investors as it signals management's confidence in the company’s future prospects and a commitment to return value to shareholders. Overall, the financial outlook projects steady growth, with expected revenue of
Smartsheet Inc. has shown notable operational highlights that reflect a strong market position and ongoing customer demand. One key metric is the annualized recurring revenue (ARR), which increased by
Additionally, the new product innovations, such as the Timeline View and enhanced workload tracking features, aim to improve user experience and solidify customer retention. These innovations are likely to support the company's ARR expansion and customer satisfaction in the coming quarters.
Smartsheet's strategic move into the Japanese market via a distributor agreement with SB C&S suggests a proactive approach to international market expansion. This could potentially open new revenue streams and diversify the company's customer base beyond the North American market.
The introduction of a $150 million share repurchase program is a strategic initiative that can be interpreted as a positive signal of the company’s financial health and management's confidence in its stock value. Such repurchase programs typically aim to enhance shareholder value by reducing the number of shares outstanding, which can potentially increase earnings per share (EPS) and improve stock price performance.
It's important to note that the company has no minimum purchase commitment and can adjust the timing and amount of repurchases based on market conditions and its financial strategy. This provides flexibility and a tactical advantage, enabling the company to capitalize on favorable market conditions.
In summary, this move complements the company's broader financial strategy and demonstrates a commitment to returning value to shareholders while maintaining flexibility in capital allocation.
-
First quarter total revenue grew
20% year over year to$263.0 million -
Annualized recurring revenue grew
19% year over year to$1.05 6 billion -
First quarter operating cash flow of
and free cash flow of$50.1 million , up$45.7 million 47% year over year -
Ended the quarter with cash, cash equivalents, and short-term investments of
$669.5 million -
Announced inaugural
share repurchase program$150 million
“We delivered a strong finish to Q1, making steady progress throughout the quarter,” said Mark Mader, CEO of Smartsheet. “We continue to see significant demand from our enterprise customers and now have 72 customers with annualized recurring revenue over
First Quarter Fiscal 2025 Financial Highlights
-
Revenue: Total revenue was
, an increase of$263.0 million 20% year over year. Subscription revenue was , an increase of$249.1 million 21% year over year. Professional services revenue was , relatively flat year over year.$13.9 million -
Operating loss: GAAP operating loss was
, or (4)% of total revenue, compared to$(11.1) million , or (15)% of total revenue, in the first quarter of fiscal 2024.$(32.1) million -
Non-GAAP operating income: Non-GAAP operating income was
, or$42.1 million 16% of total revenue, compared to , or$22.8 million 10% of total revenue, in the first quarter of fiscal 2024. -
Net loss: GAAP net loss was
, compared to$(8.9) million in the first quarter of fiscal 2024. GAAP net loss per share was$(29.9) million , compared to$(0.06) in the first quarter of fiscal 2024.$(0.23) -
Non-GAAP net income: Non-GAAP net income was
, compared to$44.4 million in the first quarter of fiscal 2024. Non-GAAP basic and diluted net income per share was$25.0 million , compared to non-GAAP basic and diluted net income per share of$0.32 and$0.19 , respectively, in the first quarter of fiscal 2024.$0.18 -
Cash flow: Net operating cash flow was
, compared to$50.1 million in the first quarter of fiscal 2024. Free cash flow was$34.6 million , or$45.7 million 17% of total revenue, compared to , or$31.3 million 14% of total revenue, in the first quarter of fiscal 2024.
First Quarter Fiscal 2025 Operational Highlights
-
Annualized recurring revenue ("ARR") was
, an increase of$1.05 6 billion19% year over year -
Average ARR per domain-based customer was
, an increase of$9,906 16% year over year -
Dollar-based net retention rate was
114% -
Number of all customers with ARR of
or more grew to 1,970, an increase of$100,000 26% year over year -
Number of all customers with ARR of
or more grew to 4,028, an increase of$50,000 20% year over year -
Number of all customers with ARR of
or more grew to 19,977, an increase of$5,000 8% year over year
First Quarter Fiscal 2025 Business Highlights
- Released Timeline View, which gives customers a new way to visualize and plan their work in Smartsheet
- Released two new workload tracking features, Workload Heatmap and Workload Schedule, allowing managers to better understand who is working on what, identify and address over-allocations, and make informed staffing decisions
-
Announced a share repurchase program authorizing the repurchase of up to
of the Company’s outstanding Class A common stock$150.0 million -
Signed the Company’s first Japanese distributor agreement with SB C&S to accelerate market expansion for customers in
Japan
The section titled "Use of Non-GAAP Financial Measures" below contains a description of the non-GAAP financial measures with a reconciliation between GAAP and non-GAAP information. The section titled "Definitions of Key Business Metrics" contains definitions of certain non-financial metrics provided within this earnings release.
Share Repurchase Program
In April 2024, the Company’s Board of Directors authorized the repurchase of up to
Financial Outlook
For the second quarter of fiscal year 2025, the Company currently expects:
-
Total revenue of
to$273 million , representing year-over-year growth of$275 million 16% to17% -
Non-GAAP operating income of
to$38 million $40 million -
Non-GAAP net income per share of
to$0.28 , assuming diluted weighted-average shares outstanding of approximately 141.0 million$0.29
For the full fiscal year 2025, the Company currently expects:
-
Total revenue of
to$1,116 million , representing year-over-year growth of$1,121 million 16% to17% -
Non-GAAP operating income of
to$157 million $167 million -
Non-GAAP net income per share of
to$1.22 , assuming diluted weighted-average shares outstanding of approximately 141.0 million$1.29 -
ARR year-over-year growth of
14% to14.5% -
Free cash flow of
$220 million
We have not reconciled free cash flow or diluted weighted-average shares outstanding guidance to their most directly comparable GAAP measure due to the uncertainty regarding, and the potential variability of, the related reconciling items. For those reasons, we are also unable to address the probable significance of the unavailable information. Accordingly, a reconciliation for free cash flow and diluted weighted-average shares outstanding guidance is not available without unreasonable effort.
Conference Call Information
Smartsheet will host a conference call and live webcast for analysts and investors at 1:30 p.m. Pacific Time on June 5, 2024. A live webcast and accompanying presentation can be accessed through the events section of the Smartsheet investor relations website at: https://investors.smartsheet.com. The conference call can also be accessed by dialing (888) 440-6385, or +1 (646) 960-0180 (outside of the
Forward-Looking Statements
This press release contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, statements about Smartsheet’s outlook for the second fiscal quarter ending July 31, 2024, and the full fiscal year ending January 31, 2025, and Smartsheet’s expectations regarding possible or assumed business strategies, potential growth and innovation opportunities, new products, and potential market opportunities.
Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “believe,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: our ability to achieve future growth and sustain our growth rate; our ability to attract and retain customers and increase sales to our customers; our ability to develop and release new products and services and to scale our platform; our ability to increase adoption of our platform through our self-service model; our ability to maintain and grow our relationships with strategic partners; the highly competitive and rapidly evolving market in which we participate; our ability to identify targets for, execute on, or realize the benefits of, potential acquisitions; and our international expansion strategies. Further information on risks that could cause actual results to differ materially from forecasted results is included in our filings with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended April 30, 2024 to be filed with the SEC. Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found in the accompanying financial statements included with this press release.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP financial metrics to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
We define non-GAAP operating income as GAAP operating loss excluding share-based compensation expense, amortization of acquisition-related intangible assets, one-time costs associated with mergers and acquisitions, lease restructuring costs, and litigation expenses and settlements related to matters that are outside the ordinary course of our business, as applicable. We define non-GAAP net income as GAAP net loss excluding non-recurring income tax adjustments associated with mergers and acquisitions and the same exclusions that are used to derive non-GAAP operating income.
We define basic non-GAAP net income per share as non-GAAP net income divided by weighted-average shares outstanding ("WASO"). We define diluted non-GAAP net income per share as non-GAAP net income divided by diluted WASO. Diluted WASO includes the impact of potentially dilutive securities, which include stock options, restricted share units, performance share units, and shares subject to our 2018 employee stock purchase plan. There are a number of limitations related to the use of these non-GAAP measures as compared to GAAP operating loss and net loss, including that the non-GAAP measures exclude share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy.
We use the non-GAAP financial measure of free cash flow, which is defined as GAAP net cash flows from operating activities, reduced by cash used for purchases of property and equipment (inclusive of spend on internal-use software) and principal payments on finance lease obligations. We believe free cash flow is an important liquidity measure of the cash that is available, after capital expenditures and operational expenses, for investment in our business, share repurchases, and potential acquisitions. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate excess cash beyond what is required for our operations. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. There are a number of limitations related to the use of free cash flow as compared to net cash from operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.
Definitions of Key Business Metrics
Annualized recurring revenue
We define annualized recurring revenue, or ARR, as the annualized recurring value of all active subscription contracts at the end of a reporting period. We exclude the value of non-recurring revenue streams, such as our professional services revenue, that are recognized at a point in time. We use ARR as one of our operating measures to assess the strength of the Company’s subscription services. ARR is a performance metric and should be viewed independently of revenue and deferred revenue, and is not intended to be a substitute for, or combined with, any of these items. Both multi-year contracts and contracts with terms less than one year are annualized by dividing the total committed contract value by the number of months in the subscription term and then multiplying by twelve. Annualizing contracts with terms less than one year results in amounts being included in our ARR calculation that are in excess of the total contract value for those contracts at the end of the reporting period. The value of subscription contracts that are sold through third-party resellers, wherein we do not have visibility into the pricing provided, is based on the list price. ARR growth is calculated by dividing the ARR as of a period end by the ARR for the corresponding period end of the prior fiscal year.
Average ARR per domain-based customer
We use average ARR per domain-based customer to measure customer commitment to our platform and sales force productivity. We define average ARR per domain-based customer as total outstanding ARR for domain-based subscriptions as of the end of the reporting period divided by the number of domain-based customers as of the same date. We define domain-based customers as organizations with a unique email domain name.
Dollar-based net retention rate
We calculate dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of the 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these same customers as of the current period end ("Current Period ARR"). Current period ARR includes any upsells and is net of contraction or attrition over the trailing 12 months, but excludes subscription revenue from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate. Any ARR obtained through merger and acquisition transactions does not affect the dollar-based net retention rate until one year from the date on which the transaction closed.
The dollar-based net retention rate is used by us to evaluate the long-term value of our customer relationships and is driven by our ability to retain and expand the subscription revenue generated from our existing customers.
About Smartsheet
Smartsheet (NYSE: SMAR) is the modern enterprise work management platform trusted by millions of people at companies across the globe, including
Disclosure of Material Information
Smartsheet announces material information to its investors using SEC filings, press releases, public conference calls, and on its investor relations page of the company’s website at https://investors.smartsheet.com.
SMARTSHEET INC. |
|||||||
Condensed Consolidated Statements of Operations |
|||||||
(in thousands, except per share data) |
|||||||
(unaudited) |
|||||||
|
Three Months Ended April 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
|
|
||||
Subscription |
$ |
249,095 |
|
|
$ |
206,001 |
|
Professional services |
|
13,889 |
|
|
|
13,885 |
|
Total revenue |
|
262,984 |
|
|
|
219,886 |
|
Cost of revenue |
|
|
|
||||
Subscription |
|
35,772 |
|
|
|
33,167 |
|
Professional services |
|
12,550 |
|
|
|
12,714 |
|
Total cost of revenue |
|
48,322 |
|
|
|
45,881 |
|
Gross profit |
|
214,662 |
|
|
|
174,005 |
|
Operating expenses |
|
|
|
||||
Research and development |
|
62,437 |
|
|
|
56,190 |
|
Sales and marketing |
|
125,239 |
|
|
|
114,952 |
|
General and administrative |
|
38,115 |
|
|
|
34,978 |
|
Total operating expenses |
|
225,791 |
|
|
|
206,120 |
|
Loss from operations |
|
(11,129 |
) |
|
|
(32,115 |
) |
Interest income |
|
7,826 |
|
|
|
5,217 |
|
Other income (expense), net |
|
(377 |
) |
|
|
(536 |
) |
Loss before income tax provision |
|
(3,680 |
) |
|
|
(27,434 |
) |
Income tax provision |
|
5,178 |
|
|
|
2,436 |
|
Net loss |
$ |
(8,858 |
) |
|
$ |
(29,870 |
) |
Net loss per share, basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.23 |
) |
Weighted-average shares outstanding used to compute net loss per share, basic and diluted |
|
137,428 |
|
|
|
132,542 |
|
Share-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands, unaudited): |
|||||||
|
Three Months Ended April 30, |
||||||
|
|
2024 |
|
|
2023 |
||
Cost of subscription revenue |
$ |
3,052 |
|
$ |
3,459 |
||
Cost of professional services revenue |
|
1,738 |
|
|
1,910 |
||
Research and development |
|
18,056 |
|
|
17,432 |
||
Sales and marketing |
|
16,595 |
|
|
19,054 |
||
General and administrative |
|
10,479 |
|
|
9,924 |
||
Total share-based compensation expense |
$ |
49,920 |
|
$ |
51,779 |
SMARTSHEET INC. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands, except share data) |
|||||||
(unaudited) |
|||||||
|
April 30, 2024 |
|
January 31, 2024 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
333,502 |
|
|
$ |
282,094 |
|
Short-term investments |
|
336,015 |
|
|
|
346,701 |
|
Accounts receivable, net of allowances of |
|
156,818 |
|
|
|
238,708 |
|
Prepaid expenses and other current assets |
|
83,423 |
|
|
|
64,366 |
|
Total current assets |
|
909,758 |
|
|
|
931,869 |
|
Restricted cash |
|
18 |
|
|
|
19 |
|
Deferred commissions |
|
152,833 |
|
|
|
148,867 |
|
Property and equipment, net |
|
43,533 |
|
|
|
42,362 |
|
Operating lease right-of-use assets |
|
36,882 |
|
|
|
39,480 |
|
Intangible assets, net |
|
25,251 |
|
|
|
27,960 |
|
Goodwill |
|
141,477 |
|
|
|
141,477 |
|
Other long-term assets |
|
5,979 |
|
|
|
5,445 |
|
Total assets |
$ |
1,315,731 |
|
|
$ |
1,337,479 |
|
Liabilities and shareholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
862 |
|
|
$ |
2,937 |
|
Accrued compensation and related benefits |
|
59,288 |
|
|
|
77,453 |
|
Other accrued liabilities |
|
30,552 |
|
|
|
30,534 |
|
Operating lease liabilities, current |
|
15,711 |
|
|
|
16,040 |
|
Finance lease liabilities, current |
|
239 |
|
|
|
216 |
|
Deferred revenue |
|
541,734 |
|
|
|
568,670 |
|
Total current liabilities |
|
648,386 |
|
|
|
695,850 |
|
Operating lease liabilities, non-current |
|
29,692 |
|
|
|
33,100 |
|
Finance lease liabilities, non-current |
|
398 |
|
|
|
455 |
|
Deferred revenue, non-current |
|
2,023 |
|
|
|
1,785 |
|
Other long-term liabilities |
|
424 |
|
|
|
434 |
|
Total liabilities |
|
680,923 |
|
|
|
731,624 |
|
Shareholders’ equity: |
|
|
|
||||
Preferred stock, no par value; 10,000,000 shares authorized, no shares issued or outstanding as of April 30, 2024 and January 31, 2024 |
|
— |
|
|
|
— |
|
Class A common stock, no par value; 500,000,000 shares authorized, 137,665,227 shares issued and outstanding as of April 30, 2024; 500,000,000 shares authorized, 136,884,011 shares issued and outstanding as of January 31, 2024 |
|
— |
|
|
|
— |
|
Class B common stock, no par value; 500,000,000 shares authorized, no shares issued and outstanding as of April 30, 2024 and January 31, 2024 |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
1,507,602 |
|
|
|
1,468,805 |
|
Accumulated other comprehensive income (loss) |
|
(1,132 |
) |
|
|
(146 |
) |
Accumulated deficit |
|
(871,662 |
) |
|
|
(862,804 |
) |
Total shareholders’ equity |
|
634,808 |
|
|
|
605,855 |
|
Total liabilities and shareholders’ equity |
$ |
1,315,731 |
|
|
$ |
1,337,479 |
|
SMARTSHEET INC. |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
Three Months Ended April 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(8,858 |
) |
|
$ |
(29,870 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Share-based compensation expense |
|
49,920 |
|
|
|
51,779 |
|
Depreciation and amortization |
|
6,618 |
|
|
|
6,410 |
|
Net amortization of premiums (discounts) on investments |
|
(3,034 |
) |
|
|
(2,028 |
) |
Amortization of deferred commission costs |
|
15,661 |
|
|
|
11,429 |
|
Unrealized foreign currency loss |
|
55 |
|
|
|
381 |
|
Non-cash operating lease costs |
|
2,598 |
|
|
|
3,155 |
|
Other, net |
|
2,106 |
|
|
|
872 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
80,028 |
|
|
|
45,746 |
|
Prepaid expenses and other current assets |
|
(19,099 |
) |
|
|
(6,981 |
) |
Other long-term assets |
|
(754 |
) |
|
|
(267 |
) |
Accounts payable |
|
(1,939 |
) |
|
|
(246 |
) |
Other accrued liabilities |
|
(89 |
) |
|
|
1,581 |
|
Accrued compensation and related benefits |
|
(22,896 |
) |
|
|
(20,552 |
) |
Deferred commissions |
|
(19,627 |
) |
|
|
(18,701 |
) |
Deferred revenue |
|
(26,898 |
) |
|
|
(4,452 |
) |
Other long-term liabilities |
|
(10 |
) |
|
|
210 |
|
Operating lease liabilities |
|
(3,704 |
) |
|
|
(3,895 |
) |
Net cash provided by operating activities |
|
50,078 |
|
|
|
34,571 |
|
Cash flows from investing activities |
|
|
|
||||
Purchases of short-term investments |
|
(112,913 |
) |
|
|
(62,010 |
) |
Maturities of short-term investments |
|
125,647 |
|
|
|
96,885 |
|
Purchases of property and equipment |
|
(613 |
) |
|
|
(853 |
) |
Proceeds from sale of property and equipment |
|
7 |
|
|
|
16 |
|
Capitalized internal-use software development costs |
|
(3,751 |
) |
|
|
(2,397 |
) |
Net cash provided by investing activities |
|
8,377 |
|
|
|
31,641 |
|
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercise of stock options |
|
693 |
|
|
|
532 |
|
Taxes paid related to net share settlement of restricted stock units |
|
(13,055 |
) |
|
|
(621 |
) |
Proceeds from contributions to Employee Stock Purchase Plan |
|
5,494 |
|
|
|
5,783 |
|
Principal payments of finance leases |
|
(34 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
(6,902 |
) |
|
|
5,694 |
|
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash |
|
(196 |
) |
|
|
(108 |
) |
Net increase in cash, cash equivalents, and restricted cash |
|
51,357 |
|
|
|
71,798 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
282,442 |
|
|
|
223,757 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
333,799 |
|
|
$ |
295,555 |
|
Supplemental disclosures |
|
|
|
||||
Cash paid for interest |
$ |
11 |
|
$ |
— |
||
Cash paid for income tax |
|
984 |
|
|
69 |
||
Accrued purchases of property and equipment, including internal-use software |
|
825 |
|
|
503 |
||
Share-based compensation expense capitalized in internal-use software development costs |
|
1,212 |
|
|
803 |
SMARTSHEET INC. |
|||||||
Reconciliation from GAAP to Non-GAAP Financial Measures |
|||||||
(unaudited) |
|||||||
|
|||||||
Reconciliation from GAAP operating loss to non-GAAP operating income and operating margin |
|||||||
|
Three Months Ended April 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
|
(dollars in thousands) |
||||||
Loss from operations |
$ |
(11,129 |
) |
|
$ |
(32,115 |
) |
Add: |
|
|
|
||||
Share-based compensation expense(1) |
|
50,475 |
|
|
|
52,200 |
|
Amortization of acquisition-related intangible assets(2) |
|
2,707 |
|
|
|
2,709 |
|
Lease restructuring costs(3) |
|
40 |
|
|
|
6 |
|
Non-GAAP operating income |
$ |
42,093 |
|
|
$ |
22,800 |
|
|
|
|
|
||||
Operating margin |
|
(4 |
)% |
|
|
(15 |
)% |
Non-GAAP operating margin |
|
16 |
% |
|
|
10 |
% |
(1) |
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods. |
|
(2) |
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized. |
|
(3) |
Includes charges related to the reassessment of our real estate lease portfolio. |
Reconciliation from GAAP net loss to non-GAAP net income and per share data |
|||||||
|
Three Months Ended April 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
|
(in thousands, except per share data) |
||||||
Net loss |
$ |
(8,858 |
) |
|
$ |
(29,870 |
) |
Add: |
|
|
|
||||
Share-based compensation expense(1) |
|
50,475 |
|
|
|
52,200 |
|
Amortization of acquisition-related intangible assets(2) |
|
2,707 |
|
|
|
2,709 |
|
Lease restructuring costs(3) |
|
40 |
|
|
|
6 |
|
Non-GAAP net income |
$ |
44,364 |
|
|
$ |
25,045 |
|
|
|
|
|
||||
Non-GAAP net income per share, basic |
$ |
0.32 |
|
|
$ |
0.19 |
|
Non-GAAP net income per share, diluted |
$ |
0.32 |
|
|
$ |
0.18 |
|
(1) |
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods. |
|
(2) |
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized. |
|
(3) |
Includes charges related to the reassessment of our real estate lease portfolio. |
SMARTSHEET INC. |
|||||||
Reconciliation from GAAP to Non-GAAP Financial Measures |
|||||||
(unaudited) |
|||||||
Non-GAAP reconciliation from basic to diluted weighted-average shares outstanding |
|||||||
|
Three Months Ended April 30, |
||||||
|
2024 |
|
2023 |
||||
|
|
|
|
||||
|
(in thousands) |
||||||
Weighted-average shares outstanding; basic |
137,428 |
|
132,542 |
||||
Effect of dilutive securities: |
|
|
|
||||
Shares subject to outstanding common stock awards |
2,682 |
|
4,186 |
||||
Non-GAAP weighted-average shares outstanding; diluted |
140,110 |
|
136,728 |
Reconciliation from net operating cash flow to free cash flow |
|||||||
|
Three Months Ended April 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
|
(in thousands) |
||||||
Net cash provided by operating activities |
$ |
50,078 |
|
|
$ |
34,571 |
|
Less: |
|
|
|
||||
Purchases of property and equipment |
|
(613 |
) |
|
|
(853 |
) |
Capitalized internal-use software development costs |
|
(3,751 |
) |
|
|
(2,397 |
) |
Payments on principal of finance leases |
|
(34 |
) |
|
|
— |
|
Free cash flow |
$ |
45,680 |
|
|
$ |
31,321 |
|
SMARTSHEET INC. |
|||||||||||||||
Reconciliation from GAAP to Non-GAAP Financial Measures |
|||||||||||||||
(unaudited) |
|||||||||||||||
Reconciliation from GAAP operating loss to non-GAAP operating income guidance |
|||||||||||||||
|
Q2 FY 2025 |
|
FY 2025 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(in millions) |
||||||||||||||
Loss from operations |
$ |
(19.4 |
) |
|
$ |
(17.4 |
) |
|
$ |
(66.8 |
) |
|
$ |
(56.8 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense(1) |
|
52.0 |
|
|
|
52.0 |
|
|
|
210.0 |
|
|
|
210.0 |
|
Amortization of acquisition-related intangible assets(2) |
|
2.3 |
|
|
|
2.3 |
|
|
|
9.6 |
|
|
|
9.6 |
|
Lease restructuring costs(3) |
|
3.1 |
|
|
|
3.1 |
|
|
|
4.2 |
|
|
|
4.2 |
|
Non-GAAP operating income |
$ |
38.0 |
|
|
$ |
40.0 |
|
|
$ |
157.0 |
|
|
$ |
167.0 |
|
(1) |
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods. |
|
(2) |
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized. |
|
(3) |
Includes charges related to the reassessment of our real estate lease portfolio. |
Reconciliation from GAAP net loss to non-GAAP net income guidance |
|||||||||||||||
|
Q2 FY 2025 |
|
FY 2025 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(in millions) |
||||||||||||||
Net loss |
$ |
(18.4 |
) |
|
$ |
(16.4 |
) |
|
$ |
(51.8 |
) |
|
$ |
(41.8 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense(1) |
|
52.0 |
|
|
|
52.0 |
|
|
|
210.0 |
|
|
|
210.0 |
|
Amortization of acquisition-related intangible assets(2) |
|
2.3 |
|
|
|
2.3 |
|
|
|
9.6 |
|
|
|
9.6 |
|
Lease restructuring costs(3) |
|
3.1 |
|
|
|
3.1 |
|
|
|
4.2 |
|
|
|
4.2 |
|
Non-GAAP net income |
$ |
39.0 |
|
|
$ |
41.0 |
|
|
$ |
172.0 |
|
|
$ |
182.0 |
|
(1) |
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods. |
|
(2) |
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized. |
|
(3) |
Includes charges related to the reassessment of our real estate lease portfolio. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240605007954/en/
Smartsheet Inc.
Investor Relations Contact
Aaron Turner
investorrelations@smartsheet.com
Media Contact
Jennifer Henderson
pr@smartsheet.com
Source: Smartsheet
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