Smartsheet Inc. Announces Third Quarter Fiscal Year 2025 Results
Smartsheet reported strong Q3 FY2025 results, with total revenue reaching $286.9 million, up 17% year over year. The company announced a definitive agreement to be acquired by Blackstone and Vista Equity Partners in an all-cash transaction valued at $8.4 billion ($56.50 per share). Key financial highlights include subscription revenue of $273.7 million (+18% YoY), non-GAAP operating income of $56.4 million (20% of revenue), and free cash flow of $61.8 million (22% of revenue). The company's ARR grew to $1.133 billion, with a dollar-based net retention rate of 111%. Notable metrics include 2,137 customers with ARR over $100,000 (+20% YoY) and average ARR per domain-based customer of $10,708 (+16% YoY).
Smartsheet ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2025, con un fatturato totale che ha raggiunto 286,9 milioni di dollari, in aumento del 17% rispetto all'anno precedente. L'azienda ha annunciato un accordo definitivo per essere acquisita da Blackstone e Vista Equity Partners attraverso una transazione interamente in contante valutata a 8,4 miliardi di dollari (56,50 dollari per azione). I principali risultati finanziari comprendono un fatturato da abbonamenti di 273,7 milioni di dollari (+18% rispetto all'anno precedente), un reddito operativo non-GAAP di 56,4 milioni di dollari (20% del fatturato) e un flusso di cassa libero di 61,8 milioni di dollari (22% del fatturato). L'ARR dell'azienda è cresciuto a 1,133 miliardi di dollari, con un tasso di retention netto basato su dollari del 111%. Tra le metriche più significative ci sono 2.137 clienti con un ARR superiore a 100.000 dollari (+20% YoY) e un ARR medio per cliente basato su dominio di 10.708 dollari (+16% YoY).
Smartsheet informó resultados sólidos en el tercer trimestre del año fiscal 2025, con ingresos totales alcanzando 286.9 millones de dólares, un aumento del 17% en comparación con el año anterior. La compañía anunció un acuerdo definitivo para ser adquirida por Blackstone y Vista Equity Partners en una transacción en efectivo valorada en 8.4 mil millones de dólares (56.50 dólares por acción). Los aspectos destacados financieros incluyen ingresos por suscripción de 273.7 millones de dólares (+18% interanual), ingresos operativos no-GAAP de 56.4 millones de dólares (20% de los ingresos), y flujo de caja libre de 61.8 millones de dólares (22% de los ingresos). El ARR de la compañía creció a 1.133 mil millones de dólares, con una tasa de retención neta basada en dólares del 111%. Métricas notables incluyen 2,137 clientes con ARR superior a 100,000 dólares (+20% interanual) y un ARR promedio por cliente basado en dominio de 10,708 dólares (+16% interanual).
스마트시트는 2025 회계연도 3분기 실적이 강세를 보였으며, 총 수익이 2억 8,690만 달러에 도달하여 지난해 대비 17% 증가했다고 보고했습니다. 회사는 블랙스톤 및 비스타 에쿼티 파트너스에 의해 인수되는 내용의 최종 협정을 발표했으며, 현금 거래로 가치는 84억 달러(주당 56.50달러)입니다. 주요 재무 하이라이트에는 구독 수익 2억 7,370만 달러(+18% YoY), 비GAAP 운영 수익 5,640만 달러(수익의 20%), 자유 현금 흐름 6,180만 달러(수익의 22%)가 포함됩니다. 회사의 연간 반복 수익(ARR)은 11억 3,300만 달러로 증가했으며, 달러 기반 순 유지율은 111%입니다. 주목할 만한 메트릭으로는 ARR이 10만 달러를 초과하는 2,137명의 고객이 있으며 (+20% YoY), 도메인 기반 고객의 평균 ARR은 10,708달러(+16% YoY)입니다.
Smartsheet a annoncé de solides résultats pour le troisième trimestre de l'exercice 2025, avec un chiffre d'affaires total atteignant 286,9 millions de dollars, en hausse de 17 % par rapport à l'année précédente. L'entreprise a annoncé un accord définitif pour être acquise par Blackstone et Vista Equity Partners dans le cadre d'une transaction entièrement en espèces d'une valeur de 8,4 milliards de dollars (56,50 dollars par action). Les principaux points financiers incluent un chiffre d'affaires d'abonnement de 273,7 millions de dollars (+18 % en glissement annuel), un bénéfice opérationnel non-GAAP de 56,4 millions de dollars (20 % du chiffre d'affaires) et un flux de trésorerie disponible de 61,8 millions de dollars (22 % du chiffre d'affaires). L'ARR de l'entreprise a augmenté pour atteindre 1,133 milliard de dollars, avec un taux de fidélisation nette basé sur le dollar de 111 %. Des indicateurs notables incluent 2 137 clients avec un ARR supérieur à 100 000 dollars (+20 % en glissement annuel) et un ARR moyen par client basé sur un domaine de 10 708 dollars (+16 % en glissement annuel).
Smartsheet meldete starke Ergebnisse im dritten Quartal des Geschäftsjahres 2025, mit einem Gesamtumsatz von 286,9 Millionen Dollar, was einem Anstieg von 17 % im Vergleich zum Vorjahr entspricht. Das Unternehmen gab eine endgültige Vereinbarung bekannt, von Blackstone und Vista Equity Partners in einer vollständig bargeldmäßigen Transaktion übernommen zu werden, die auf 8,4 Milliarden Dollar (56,50 Dollar pro Aktie) geschätzt wird. Zu den finanziellen Highlights gehören ein Abonnementeinnahmen von 273,7 Millionen Dollar (+18 % im Jahresvergleich), ein non-GAAP-Betriebsgewinn von 56,4 Millionen Dollar (20 % des Umsatzes) und ein Free Cashflow von 61,8 Millionen Dollar (22 % des Umsatzes). Der ARR des Unternehmens wuchs auf 1,133 Milliarden Dollar, mit einer dollarbasierten Netto-Retentionsrate von 111 %. Bemerkenswerte Kennzahlen sind 2.137 Kunden mit einem ARR von über 100.000 Dollar (+20 % YoY) und ein durchschnittlicher ARR pro domänenbasiertem Kunden von 10.708 Dollar (+16 % YoY).
- Total revenue increased 17% YoY to $286.9 million
- Subscription revenue grew 18% YoY to $273.7 million
- Non-GAAP operating income improved to $56.4 million (20% of revenue) from $19.4 million
- Free cash flow increased to $61.8 million from $11.4 million YoY
- Number of customers with ARR over $100,000 grew 20% YoY to 2,137
- Average ARR per domain-based customer increased 16% YoY to $10,708
- Announced $8.4 billion acquisition deal with Blackstone and Vista Equity Partners
- Professional services revenue decreased 2% YoY to $13.2 million
- Dollar-based net retention rate of 111% shows slowing growth momentum
Insights
The Q3 FY2025 results showcase strong financial performance with notable improvements across key metrics. Total revenue grew 17% YoY to
Most impressive is the improvement in non-GAAP operating income, which jumped to
Key business metrics indicate solid market penetration and customer value expansion. The
The dollar-based net retention rate of
- Entered into a definitive agreement to be acquired by Blackstone and Vista Equity Partners
-
Third quarter total revenue grew
17% year over year to$286.9 million -
Annualized recurring revenue grew
15% year over year to$1.13 3 billion -
Third quarter operating cash flow of
$63.5 million $61.8 million -
Ended the quarter with cash, cash equivalents, and short-term investments of
$760.9 million
Third Quarter Fiscal 2025 Financial Highlights
-
Revenue: Total revenue was
$286.9 million 17% year over year. Subscription revenue was$273.7 million 18% year over year. Professional services revenue was$13.2 million -
Operating loss: GAAP operating loss was
$(3.4) million $(35.5) million -
Non-GAAP operating income: Non-GAAP operating income was
$56.4 million 20% of total revenue, compared to$19.4 million 8% of total revenue, in the third quarter of fiscal 2024. -
Net income (loss): GAAP net income was
$1.3 million $(32.4) million $0.01 $(0.24) -
Non-GAAP net income: Non-GAAP net income was
$61.0 million $22.6 million $0.44 $0.43 $0.17 $0.16 -
Cash flow: Net operating cash flow was
$63.5 million $15.1 million $61.8 million 22% of total revenue, compared to$11.4 million 5% of total revenue, in the third quarter of fiscal 2024.
Third Quarter Fiscal 2025 Operational Highlights
-
Annualized recurring revenue ("ARR") was
$1.13 3 billion15% year over year -
Average ARR per domain-based customer was
$10,708 16% year over year -
Dollar-based net retention rate was
111% -
Number of all customers with ARR of
$100,000 20% year over year -
Number of all customers with ARR of
$50,000 15% year over year -
Number of all customers with ARR of
$5,000 5% year over year
Third Quarter Fiscal 2025 Business Highlights
-
Announced that Smartsheet entered into a definitive agreement to be acquired by Blackstone and Vista Equity Partners in an all-cash transaction valued at approximately
$8.4 billion $56.50 -
Sold out our
U.S. ENGAGE customer conference for the second consecutive year, welcoming over 4,000 attendees toSeattle to participate in more than 60 breakout sessions - Unveiled the most comprehensive transformation of our offerings to date, debuting a new user experience and a range of first-of-a-kind features to empower organizations to operate at their peak
- Introduced a Smartsheet connector for Amazon Q Business, which will give Amazon Q Business customers the power to ask an intelligent assistant for information about their work in Smartsheet, eliminating data silos and enhancing visibility
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 press release.
Transaction with Blackstone and Vista Equity Partners
In a separate press release issued on September 24, 2024, we announced that we have entered into a definitive agreement ("Merger Agreement"), to be acquired by Blackstone and Vista Equity Partners. A copy of the press release and supplemental materials can be found on the "Investors" page of our website at www.investors.smartsheet.com and on the Securities and Exchange Commission, or the SEC, website at www.sec.gov. Additional details and information about the terms and conditions of the Merger Agreement and the transactions contemplated by the Merger Agreement are available in the Current Report on Form 8-K filed with the SEC on September 24, 2024.
Given the announced transaction, we will not be hosting an earnings conference call nor providing financial guidance in conjunction with this press release. For further detail and discussion of our financial performance, please refer to our third quarter 2025 Form 10-Q for the quarter ended October 31, 2024, filed today with the SEC.
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 income (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 income (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 12. 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.
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 over
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 www.investors.smartsheet.com.
SMARTSHEET INC. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) |
|||||||||||||||
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Subscription |
$ |
273,703 |
|
|
$ |
232,470 |
|
|
$ |
786,328 |
|
|
$ |
659,993 |
|
Professional services |
|
13,168 |
|
|
|
13,448 |
|
|
|
39,939 |
|
|
|
41,396 |
|
Total revenue |
|
286,871 |
|
|
|
245,918 |
|
|
|
826,267 |
|
|
|
701,389 |
|
Cost of revenue |
|
|
|
|
|
|
|
||||||||
Subscription |
|
41,445 |
|
|
|
34,258 |
|
|
|
115,216 |
|
|
|
101,009 |
|
Professional services |
|
12,291 |
|
|
|
12,780 |
|
|
|
36,693 |
|
|
|
38,948 |
|
Total cost of revenue |
|
53,736 |
|
|
|
47,038 |
|
|
|
151,909 |
|
|
|
139,957 |
|
Gross profit |
|
233,135 |
|
|
|
198,880 |
|
|
|
674,358 |
|
|
|
561,432 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
63,477 |
|
|
|
58,257 |
|
|
|
189,514 |
|
|
|
172,805 |
|
Sales and marketing |
|
127,854 |
|
|
|
137,920 |
|
|
|
383,315 |
|
|
|
382,685 |
|
General and administrative |
|
45,155 |
|
|
|
38,153 |
|
|
|
124,489 |
|
|
|
109,654 |
|
Total operating expenses |
|
236,486 |
|
|
|
234,330 |
|
|
|
697,318 |
|
|
|
665,144 |
|
Loss from operations |
|
(3,351 |
) |
|
|
(35,450 |
) |
|
|
(22,960 |
) |
|
|
(103,712 |
) |
Interest income |
|
8,272 |
|
|
|
6,976 |
|
|
|
24,934 |
|
|
|
18,040 |
|
Other income (expense), net |
|
47 |
|
|
|
(790 |
) |
|
|
(593 |
) |
|
|
(1,381 |
) |
Income (loss) before income tax provision |
|
4,968 |
|
|
|
(29,264 |
) |
|
|
1,381 |
|
|
|
(87,053 |
) |
Income tax provision |
|
3,644 |
|
|
|
3,164 |
|
|
|
1,057 |
|
|
|
8,602 |
|
Net income (loss) |
$ |
1,324 |
|
|
$ |
(32,428 |
) |
|
$ |
324 |
|
|
$ |
(95,655 |
) |
Net income (loss) per share, basic |
$ |
0.01 |
|
|
$ |
(0.24 |
) |
|
$ |
0.00 |
|
|
$ |
(0.71 |
) |
Net income (loss) per share, diluted |
$ |
0.01 |
|
|
$ |
(0.24 |
) |
|
$ |
0.00 |
|
|
$ |
(0.71 |
) |
Weighted-average shares outstanding used to compute net income (loss) per share, basic |
|
139,007 |
|
|
|
135,189 |
|
|
|
138,287 |
|
|
|
133,868 |
|
Weighted-average shares outstanding used to compute net income (loss) per share, diluted |
|
142,668 |
|
|
|
135,189 |
|
|
|
141,306 |
|
|
|
133,868 |
|
Share-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands, unaudited): |
|||||||||||||||
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cost of subscription revenue |
$ |
2,983 |
|
|
$ |
3,164 |
|
|
$ |
9,055 |
|
|
$ |
9,980 |
|
Cost of professional services revenue |
|
1,485 |
|
|
1,777 |
|
|
4,734 |
|
|
5,602 |
||||
Research and development |
|
17,763 |
|
|
|
17,220 |
|
|
|
54,036 |
|
|
|
52,263 |
|
Sales and marketing |
|
14,453 |
|
|
|
17,462 |
|
|
|
45,472 |
|
|
|
55,505 |
|
General and administrative |
|
9,151 |
|
|
|
10,024 |
|
|
|
29,827 |
|
|
|
30,099 |
|
Total share-based compensation expense |
$ |
45,835 |
|
|
$ |
49,647 |
|
|
$ |
143,124 |
|
|
$ |
153,449 |
|
SMARTSHEET INC. Condensed Consolidated Balance Sheets (in thousands, except share data) (unaudited) |
|||||||
|
October 31,
|
|
January 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
454,281 |
|
|
$ |
282,094 |
|
Short-term investments |
|
306,640 |
|
|
|
346,701 |
|
Accounts receivable, net of allowances of |
|
200,436 |
|
|
|
238,708 |
|
Prepaid expenses and other current assets |
|
69,840 |
|
|
|
64,366 |
|
Total current assets |
|
1,031,197 |
|
|
|
931,869 |
|
Restricted cash |
|
18 |
|
|
|
19 |
|
Deferred commissions |
|
156,724 |
|
|
|
148,867 |
|
Property and equipment, net |
|
39,139 |
|
|
|
42,362 |
|
Operating lease right-of-use assets |
|
29,693 |
|
|
|
39,480 |
|
Intangible assets, net |
|
20,635 |
|
|
|
27,960 |
|
Goodwill |
|
141,477 |
|
|
|
141,477 |
|
Other long-term assets |
|
4,408 |
|
|
|
5,445 |
|
Total assets |
$ |
1,423,291 |
|
|
$ |
1,337,479 |
|
Liabilities and shareholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,128 |
|
|
$ |
2,937 |
|
Accrued compensation and related benefits |
|
74,840 |
|
|
|
77,453 |
|
Other accrued liabilities |
|
37,309 |
|
|
|
30,534 |
|
Operating lease liabilities, current |
|
15,288 |
|
|
|
16,040 |
|
Finance lease liabilities, current |
|
255 |
|
|
|
216 |
|
Deferred revenue |
|
556,320 |
|
|
|
568,670 |
|
Total current liabilities |
|
685,140 |
|
|
|
695,850 |
|
Operating lease liabilities, non-current |
|
23,936 |
|
|
|
33,100 |
|
Finance lease liabilities, non-current |
|
279 |
|
|
|
455 |
|
Deferred revenue, non-current |
|
4,095 |
|
|
|
1,785 |
|
Other long-term liabilities |
|
696 |
|
|
|
434 |
|
Total liabilities |
|
714,146 |
|
|
|
731,624 |
|
Shareholders’ equity: |
|
|
|
||||
Preferred stock, no par value; 10,000,000 shares authorized, no shares issued or outstanding as of October 31, 2024 and January 31, 2024 |
|
— |
|
|
|
— |
|
Class A common stock, no par value; 500,000,000 shares authorized, 139,302,943 shares issued and outstanding as of October 31, 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 October 31, 2024 and January 31, 2024 |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
1,621,429 |
|
|
|
1,468,805 |
|
Accumulated other comprehensive income (loss) |
|
196 |
|
|
|
(146 |
) |
Accumulated deficit |
|
(912,480 |
) |
|
|
(862,804 |
) |
Total shareholders’ equity |
|
709,145 |
|
|
|
605,855 |
|
Total liabilities and shareholders’ equity |
$ |
1,423,291 |
|
|
$ |
1,337,479 |
|
SMARTSHEET INC. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||||
|
Nine Months Ended October 31, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities |
|
|
|
||||
Net income (loss) |
$ |
324 |
|
|
$ |
(95,655 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Share-based compensation expense |
|
143,124 |
|
|
|
153,449 |
|
Depreciation and amortization |
|
21,121 |
|
|
|
20,008 |
|
Net amortization of premiums (discounts) on investments |
|
(6,059 |
) |
|
|
(8,746 |
) |
Amortization of deferred commission costs |
|
50,328 |
|
|
|
38,439 |
|
Unrealized foreign currency (gain) loss |
|
(577 |
) |
|
|
684 |
|
Non-cash operating lease costs |
|
7,513 |
|
|
|
9,450 |
|
Impairment of long-lived assets |
|
3,237 |
|
|
|
1,448 |
|
Other, net |
|
5,495 |
|
|
|
3,089 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
33,770 |
|
|
|
16,541 |
|
Prepaid expenses and other current assets |
|
(5,576 |
) |
|
|
1,060 |
|
Other long-term assets |
|
(1,039 |
) |
|
|
(1,401 |
) |
Accounts payable |
|
(1,665 |
) |
|
|
(997 |
) |
Other accrued liabilities |
|
6,656 |
|
|
|
4,100 |
|
Accrued compensation and related benefits |
|
(5,483 |
) |
|
|
2,021 |
|
Deferred commissions |
|
(58,185 |
) |
|
|
(58,705 |
) |
Deferred revenue |
|
(9,952 |
) |
|
|
25,439 |
|
Other long-term liabilities |
|
262 |
|
|
|
278 |
|
Operating lease liabilities |
|
(10,544 |
) |
|
|
(12,326 |
) |
Net cash provided by operating activities |
|
172,750 |
|
|
|
98,176 |
|
Cash flows from investing activities |
|
|
|
||||
Purchases of short-term investments |
|
(235,421 |
) |
|
|
(375,387 |
) |
Maturities of short-term investments |
|
281,965 |
|
|
|
281,900 |
|
Purchases of property and equipment |
|
(1,437 |
) |
|
|
(2,097 |
) |
Proceeds from sale of property and equipment |
|
53 |
|
|
|
28 |
|
Capitalized internal-use software development costs |
|
(6,549 |
) |
|
|
(7,850 |
) |
Net cash provided by (used in) investing activities |
|
38,611 |
|
|
|
(103,406 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercise of stock options |
|
10,957 |
|
|
|
1,330 |
|
Taxes paid related to net share settlement of restricted stock units |
|
(14,896 |
) |
|
|
(1,644 |
) |
Proceeds from contributions to Employee Stock Purchase Plan |
|
14,403 |
|
|
|
15,664 |
|
Principal payments of finance leases |
|
(141 |
) |
|
|
— |
|
Repurchases of Class A Common Stock and related costs |
|
(50,000 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
(39,677 |
) |
|
|
15,350 |
|
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash |
|
379 |
|
|
|
(248 |
) |
|
|
|
|
||||
Net increase in cash, cash equivalents, and restricted cash |
|
172,063 |
|
|
|
9,872 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
282,442 |
|
|
|
223,757 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
454,505 |
|
|
$ |
233,629 |
|
Supplemental disclosures |
|
|
|
||||
Cash paid for interest |
$ |
43 |
|
|
$ |
— |
|
Cash paid for income tax |
|
7,655 |
|
|
9,471 |
||
Accrued purchases of property and equipment, including internal-use software |
|
1,081 |
|
|
|
1,264 |
|
Share-based compensation expense capitalized in internal-use software development costs |
|
2,355 |
|
|
|
3,283 |
|
Right-of-use assets obtained in exchange for new operating lease liabilities |
|
558 |
|
|
|
1,684 |
|
Right-of-use asset reductions related to operating leases |
|
2,832 |
|
|
|
4,451 |
|
Purchases of fixed assets under finance leases |
|
— |
|
|
|
693 |
|
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 October 31, |
|
Nine Months Ended October 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(dollars in thousands) |
||||||||||||||
Loss from operations |
$ |
(3,351 |
) |
|
$ |
(35,450 |
) |
|
$ |
(22,960 |
) |
|
$ |
(103,712 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense(1) |
|
46,842 |
|
|
|
50,170 |
|
|
|
145,511 |
|
|
|
154,919 |
|
Amortization of acquisition-related intangible assets(2) |
|
2,308 |
|
|
|
2,701 |
|
|
|
7,320 |
|
|
|
8,117 |
|
Lease restructuring costs(3) |
|
40 |
|
|
|
1,934 |
|
|
|
3,359 |
|
|
|
2,051 |
|
One-time acquisition costs |
|
10,525 |
|
|
|
— |
|
|
|
10,525 |
|
|
|
— |
|
Non-GAAP operating income |
$ |
56,364 |
|
|
$ |
19,355 |
|
|
$ |
143,755 |
|
|
$ |
61,375 |
|
|
|
|
|
|
|
|
|
||||||||
Operating margin |
|
(1 |
)% |
|
|
(14 |
)% |
|
|
(3 |
)% |
|
|
(15 |
)% |
Non-GAAP operating margin |
|
20 |
% |
|
|
8 |
% |
|
|
17 |
% |
|
|
9 |
% |
(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 income (loss) to non-GAAP net income and per share data |
|||||||||||||||
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(in thousands, except per share data) |
||||||||||||||
Net income (loss) |
$ |
1,324 |
|
|
$ |
(32,428 |
) |
|
$ |
324 |
|
|
$ |
(95,655 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense(1) |
|
46,842 |
|
|
50,170 |
|
|
|
145,511 |
|
|
154,919 |
|
||
Amortization of acquisition-related intangible assets(2) |
|
2,308 |
|
|
|
2,701 |
|
|
|
7,320 |
|
|
|
8,117 |
|
Lease restructuring costs(3) |
|
40 |
|
|
|
2,142 |
|
|
|
3,359 |
|
|
|
2,258 |
|
One-time acquisition costs |
|
10,525 |
|
|
|
— |
|
|
|
10,525 |
|
|
|
— |
|
Non-GAAP net income |
$ |
61,039 |
|
|
$ |
22,585 |
|
|
$ |
167,039 |
|
|
$ |
69,639 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP net income per share, basic |
$ |
0.44 |
|
|
$ |
0.17 |
|
|
$ |
1.21 |
|
|
$ |
0.52 |
|
Non-GAAP net income per share, diluted |
$ |
0.43 |
|
|
$ |
0.16 |
|
|
$ |
1.18 |
|
|
$ |
0.51 |
|
(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 October 31, |
|
Nine Months Ended October 31, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
|
||||
|
(in thousands) |
||||||||||
Weighted-average shares outstanding; basic |
139,007 |
|
135,189 |
|
138,287 |
|
133,868 |
||||
Effect of dilutive securities: |
|
|
|
|
|
|
|
||||
Shares subject to outstanding common stock awards |
3,661 |
|
|
3,232 |
|
|
3,019 |
|
|
3,653 |
|
Weighted-average common shares outstanding; diluted |
142,668 |
|
|
138,421 |
|
|
141,306 |
|
|
137,521 |
|
Reconciliation from net operating cash flow to free cash flow |
|||||||||||||||
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(in thousands) |
||||||||||||||
Net cash provided by operating activities |
$ |
63,528 |
|
|
$ |
15,146 |
|
|
$ |
172,750 |
|
|
$ |
98,176 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(414 |
) |
|
|
(702 |
) |
|
|
(1,437 |
) |
|
|
(2,097 |
) |
Capitalized internal-use software development costs |
|
(1,232 |
) |
|
|
(3,035 |
) |
|
|
(6,549 |
) |
|
|
(7,850 |
) |
Principal payments of finance leases |
|
(89 |
) |
|
|
— |
|
|
|
(141 |
) |
|
|
— |
|
Free cash flow |
$ |
61,793 |
|
|
$ |
11,409 |
|
|
$ |
164,623 |
|
|
$ |
88,229 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241205301940/en/
Smartsheet Inc.
Investor Relations Contact
Aaron Turner
investorrelations@smartsheet.com
Media Contact
Lisa Henthorn
pr@smartsheet.com
Source: Smartsheet
FAQ
What was Smartsheet's (SMAR) Q3 FY2025 revenue?
What is the acquisition price for Smartsheet (SMAR)?
What was Smartsheet's (SMAR) Q3 FY2025 free cash flow?
How many customers does Smartsheet (SMAR) have with ARR over $100,000?
