- Surpassed $1 billion in annualized recurring revenue in the
fourth quarter
- Fourth quarter total revenue grew 21% year over year to $256.9
million
- Fourth quarter operating cash flow of $59.7 million and free
cash flow of $56.3 million
- Ended the year with cash, cash equivalents, and short-term
investments of $628.8 million
Smartsheet (NYSE: SMAR), the enterprise work management
platform, today announced financial results for its fourth fiscal
quarter and fiscal year ended January 31, 2024.
“Strong demand from our enterprise customers helped us achieve
the major milestone of $1 billion in annualized recurring revenue
in Q4,” said Mark Mader, CEO of Smartsheet. “Looking forward, we’re
setting the foundation for the next era of profitable growth with
proven, more efficient go-to-market motions paired with
enterprise-grade product innovation informed by decades of data,
work patterns, and customer use cases.”
Fourth Quarter Fiscal 2024 Financial Highlights
- Revenue: Total revenue was $256.9 million, an increase
of 21% year over year. Subscription revenue was $244.0 million, an
increase of 23% year over year. Professional services revenue was
$12.9 million, a decrease of 4% year over year.
- Operating Income (Loss): GAAP operating loss was $(16.6)
million, or (6)% of total revenue, compared to $(44.4) million, or
(21)% of total revenue, in the fourth quarter of fiscal 2023.
Non-GAAP operating income was $39.6 million, or 15% of total
revenue, compared to $7.5 million, or 4% of total revenue, in the
fourth quarter of fiscal 2023.
- Net Income (Loss): GAAP net loss was $(9.0) million,
compared to $(42.7) million in the fourth quarter of fiscal 2023.
GAAP net loss per share was $(0.07), compared to $(0.33) in the
fourth quarter of fiscal 2023. Non-GAAP net income was $47.1
million, compared to $9.9 million in the fourth quarter of fiscal
2023. Non-GAAP basic and diluted net income per share was $0.35 and
$0.34, respectively, compared to $0.08 and $0.07, respectively, in
the fourth quarter of fiscal 2023.
- Cash Flow: Net operating cash flow was $59.7 million,
compared to $20.2 million in the fourth quarter of fiscal 2023.
Free cash flow was $56.3 million, or 22% of total revenue, compared
to $16.4 million, or 8% of total revenue, in the fourth quarter of
fiscal 2023.
Fiscal Year 2024 Financial Highlights
- Revenue: Total revenue was $958.3 million, an increase
of 25% year over year. Subscription revenue was $904.0 million, an
increase of 27% year over year. Professional services revenue was
$54.3 million.
- Operating Income (Loss): GAAP operating loss was
$(120.3) million, or (13)% of total revenue, compared to $(221.6)
million, or (29)% of total revenue, in fiscal 2023. Non-GAAP
operating income was $100.9 million, or 11% of total revenue,
compared to non-GAAP operating loss of $(36.0) million, or (5)% of
total revenue, in fiscal 2023.
- Net Income (Loss): GAAP net loss was $(104.6) million,
compared to $(215.6) million in fiscal 2023. GAAP net loss per
share was $(0.78), compared to $(1.66) in fiscal 2023. Non-GAAP net
income was $116.8 million, compared to non-GAAP net loss of $(29.2)
million in fiscal 2023. Non-GAAP basic and diluted net income per
share was $0.87 and $0.85, respectively, compared non-GAAP basic
and diluted net loss per share of $(0.22) in fiscal 2023.
- Cash Flow: Net operating cash flow was $157.9 million,
compared to $23.6 million in fiscal 2023. Free cash flow was $144.5
million, or 15% of revenue, compared to $9.8 million or 1% of
revenue in fiscal 2023.
Fiscal Year 2024 Operational Highlights
- Annualized recurring revenue ("ARR") was $1.031 billion, an
increase of 21% year over year
- Calculated billings were $1.069 billion, an increase of 20%
year over year
- Average ARR per domain-based customer was $9,672, an increase
of 15% year over year
- Dollar-based net retention rate was 116%
- Number of all customers with ARR of $100,000 or more was 1,904,
an increase of 28% year over year
- Number of all customers with ARR of $50,000 or more was 3,924,
an increase of 22% year over year
- Number of all customers with ARR of $5,000 or more was 19,818,
an increase of 10% year over year
Fiscal Year 2024 Business Highlights
- Named a Leader in the December 2023 Gartner® Magic Quadrant™
for Collaborative Work Management.1
- Recognized as a 2023 Gartner Peer Insights™ Customers’ Choice
for the Collaborative Work Management market.1
- Released new generative AI capabilities that empower customers
to achieve their goals faster and more easily. The AI tools that
enable customers to generate formulas and create text and summaries
became generally available in Q4. More tools, including the
Smartsheet-trained AI assistant and analyze data capabilities, are
available to early adopters now and will be released to all
eligible users next quarter.
- Significantly expanded platform scale and enhanced
enterprise-grade security so customers can manage their most
complicated and mission-critical work on Smartsheet securely and
reliably.
- Unveiled powerful new workload tracking features that enhance
team performance and streamline project execution.
- Announced new dashboard themes that enable customers to
generate stunning, data-rich dashboards with ease.
- Announced new ways for customers to visualize their work in
Smartsheet, including a new Timeline View, which gives teams a
big-picture look into date-based work.
- Recognized as a Leader in two IDC reports: IDC MarketScape:
Worldwide Collaborative Work Management 2023-2024 Vendor
Assessment2 and IDC MarketScape: Worldwide Cloud Project and
Portfolio Management 2023-2024 Vendor Assessment.3
- Invested in Australia-based data hosting to better serve the
company’s growing list of customers in the region.
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.
Financial Outlook
For the first quarter of fiscal year 2025, the Company currently
expects:
- Total revenue of $257 million to $259 million, representing
year-over-year growth of 17% to 18%
- Non-GAAP operating income of $32 million to $34 million
- Non-GAAP net income per share of $0.26 to $0.27, assuming
diluted weighted-average shares outstanding of approximately 141.0
million
For the full fiscal year 2025, the Company currently
expects:
- Total revenue of $1,113 million to $1,118 million, representing
year-over-year growth of 16% to 17%
- Non-GAAP operating income of $135 million to $145 million
- Non-GAAP net income per share of $1.06 to $1.13, assuming
diluted weighted-average shares outstanding of approximately 142.2
million
- ARR year-over-year growth of 14%
- Free cash flow of $200 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.
_________________
1Gartner® is a registered trademark and
service mark of Gartner, Inc. and Magic Quadrant™ and Gartner Peer
Insights™ are registered trademarks of Gartner, Inc. and/or its
affiliates in the U.S. and internationally and are used herein with
permission. All rights reserved.
Gartner Peer Insights content consists of
the opinions of individual end users based on their own
experiences, and should not be construed as statements of fact, nor
do they represent the views of Gartner or its affiliates. Gartner
does not endorse any vendor, product or service depicted in this
content nor makes any warranties, expressed or implied, with
respect to this content, about its accuracy or completeness,
including any warranties of merchantability or fitness for a
particular purpose.
Gartner does not endorse any vendor,
product or service depicted in its research publications, and does
not advise technology users to select only those vendors with the
highest ratings or other designation. Gartner research publications
consist of the opinions of Gartner’s research organization and
should not be construed as statements of fact. Gartner disclaims
all warranties, expressed or implied, with respect to this
research, including any warranties of merchantability or fitness
for a particular purpose.
2doc #US49434923, December 2023
3doc #US49434823, December 2023
Conference Call Information
Smartsheet will host a conference call and live webcast for
analysts and investors at 1:30 p.m. Pacific Time on March 14, 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 U.S.). The conference ID is 7672979. A
replay of the conference call will be available starting
approximately two hours after the conclusion of the live event and
will be available for seven days. The dial-in for the replay is
(800) 770-2030 or +1 (609) 800-9909 (outside of the U.S.).
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 first fiscal quarter ending April 30,
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 Annual Report on Form 10-K for
the fiscal year ended January 31, 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 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 (loss) 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 (loss) 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 (loss).
We define basic non-GAAP net income (loss) per share as non-GAAP
net income (loss) 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. If there
is a non-GAAP net loss, basic and diluted loss per share are the
same number as all potentially dilutive securities would have an
antidilutive impact. 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 and to make acquisitions. Free cash flow is useful to
investors as a liquidity measure because it measures our ability to
generate or use cash. 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.
We define calculated billings as total revenue plus the change
in deferred revenue in the period. Because we recognize
subscription revenue ratably over the subscription term, calculated
billings can be used to measure our subscription sales activity for
a particular period, to compare subscription sales activity across
particular periods, and as an indicator of future subscription
revenue.
Definitions of Key Business Metrics
In the fourth quarter of fiscal year ended January 31, 2024,
management re-evaluated its key business metrics and as a result
annualized contract value (“ACV”) will now be referred to as
annualized recurring revenue (“ARR”). We believe the change will
result in key business metrics that more closely align with our
industry peers and with how management views growth in the business
and evaluates financial performance. The change from ACV to ARR did
not have a material impact to our key business metrics in the
current or any prior reporting period. The definition and
calculation of the key business metrics discussed below may differ
from other similarly titled metrics used by other companies.
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 is the modern enterprise work management platform
trusted by millions of people at companies across the globe,
including 85% of the 2023 Fortune 500 companies. The category
pioneer and market leader, Smartsheet delivers powerful solutions
fueling performance and driving the next wave of innovation. Visit
www.smartsheet.com to learn more.
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 January
31,
Year Ended January 31,
2024
2023
2024
2023
Revenue
Subscription
$
244,038
$
198,856
$
904,031
$
713,735
Professional services
12,911
13,481
54,307
53,180
Total revenue
256,949
212,337
958,338
766,915
Cost of revenue
Subscription
33,649
32,230
134,658
114,384
Professional services
12,842
12,483
51,790
50,901
Total cost of revenue
46,491
44,713
186,448
165,285
Gross profit
210,458
167,624
771,890
601,630
Operating expenses
Research and development
61,266
58,376
234,071
215,205
Sales and marketing
127,891
119,728
510,576
479,250
General and administrative
37,871
33,938
147,525
128,811
Total operating expenses
227,028
212,042
892,172
823,266
Loss from operations
(16,570
)
(44,418
)
(120,282
)
(221,636
)
Interest income
7,601
3,729
25,641
7,742
Other income (expense), net
(120
)
(285
)
(1,501
)
1,104
Loss before income tax provision
(benefit)
(9,089
)
(40,974
)
(96,142
)
(212,790
)
Income tax provision (benefit)
(113
)
1,758
8,489
2,849
Net loss
$
(8,976
)
$
(42,732
)
$
(104,631
)
$
(215,639
)
Net loss per share, basic and diluted
$
(0.07
)
$
(0.33
)
$
(0.78
)
$
(1.66
)
Weighted-average shares outstanding used
to compute net loss per share, basic and diluted
136,389
131,435
134,507
130,071
Share-based compensation expense included
in the condensed consolidated statements of operations was as
follows (in thousands, unaudited):
Three Months Ended January
31,
Year Ended January 31,
2024
2023
2024
2023
Cost of subscription revenue
$
3,089
$
3,271
$
13,069
$
11,248
Cost of professional services revenue
1,867
1,735
7,469
6,404
Research and development
19,078
17,259
71,341
62,165
Sales and marketing
18,040
17,704
73,545
63,224
General and administrative
10,683
9,128
40,782
33,514
Total share-based compensation expense
$
52,757
$
49,097
$
206,206
$
176,555
SMARTSHEET INC.
Condensed Consolidated Balance
Sheets
(in thousands, except share
data)
(unaudited)
January 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
282,094
$
223,156
Short-term investments
346,701
233,225
Accounts receivable, net of allowances of
$6,560 and $6,285, respectively
238,708
198,643
Prepaid expenses and other current
assets
64,366
55,063
Total current assets
931,869
710,087
Restricted cash
19
197
Deferred commissions
148,867
121,785
Property and equipment, net
42,362
39,395
Operating lease right-of-use assets
39,480
54,278
Intangible assets, net
27,960
39,069
Goodwill
141,477
142,415
Other long-term assets
5,445
2,983
Total assets
$
1,337,479
$
1,110,209
Liabilities and shareholders’
equity
Current liabilities:
Accounts payable
$
2,937
$
2,125
Accrued compensation and related
benefits
77,453
68,347
Other accrued liabilities
30,534
27,437
Operating lease liabilities, current
16,040
19,220
Finance lease liabilities, current
216
—
Deferred revenue
568,670
457,534
Total current liabilities
695,850
574,663
Operating lease liabilities,
non-current
33,100
47,564
Finance lease liabilities, non-current
455
—
Deferred revenue, non-current
1,785
2,195
Other long-term liabilities
434
129
Total liabilities
731,624
624,551
Shareholders’ equity:
Preferred stock, no par value; 10,000,000
shares authorized, no shares issued or outstanding as of January
31, 2024 and January 31, 2023
—
—
Class A common stock, no par value;
500,000,000 shares authorized, 136,884,011 shares issued and
outstanding as of January 31, 2024; 500,000,000 shares authorized,
131,845,028 shares issued and outstanding as of January 31,
2023
—
—
Class B common stock, no par value;
500,000,000 shares authorized, no shares issued and outstanding as
of January 31, 2024 and January 31, 2023
—
—
Additional paid-in capital
1,468,805
1,243,730
Accumulated other comprehensive income
(loss)
(146
)
101
Accumulated deficit
(862,804
)
(758,173
)
Total shareholders’ equity
605,855
485,658
Total liabilities and shareholders’
equity
$
1,337,479
$
1,110,209
SMARTSHEET INC.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Year Ended January 31,
2024
2023
Cash flows from operating
activities
Net loss
$
(104,631
)
$
(215,639
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Share-based compensation expense
206,206
176,555
Depreciation and amortization
27,012
24,856
Net amortization of discounts on
investments
(12,546
)
(2,768
)
Amortization of deferred commission
costs
53,587
47,093
Unrealized foreign currency (gain)
loss
670
(1,198
)
Non-cash operating lease costs
12,012
18,914
Impairment of long-lived assets
1,448
1,544
Other, net
4,042
(429
)
Changes in operating assets and
liabilities:
Accounts receivable
(43,910
)
(47,597
)
Prepaid expenses and other current
assets
(9,548
)
(21,437
)
Other long-term assets
(3,049
)
(590
)
Accounts payable
828
154
Other accrued liabilities
3,481
8,432
Accrued compensation and related
benefits
7,894
3,739
Deferred commissions
(80,668
)
(77,566
)
Deferred revenue
110,781
123,853
Other long-term liabilities
308
89
Operating lease liabilities
(16,039
)
(14,417
)
Net cash provided by operating
activities
157,878
23,588
Cash flows from investing
activities
Purchases of short-term investments
(513,490
)
(456,649
)
Maturities of short-term investments
413,100
226,048
Purchases of property and equipment
(2,563
)
(6,137
)
Proceeds from sale of property and
equipment
42
217
Proceeds from liquidation of a long-term
investment
—
622
Capitalized internal-use software
development costs
(10,775
)
(7,660
)
Payments for business acquisitions, net of
cash and restricted cash acquired
—
(20,342
)
Net cash used in investing activities
(113,686
)
(263,901
)
Cash flows from financing
activities
Proceeds from exercise of stock
options
1,653
5,633
Taxes paid related to net share settlement
of restricted stock units
(7,100
)
(4,177
)
Proceeds from contributions to Employee
Stock Purchase Plan
20,006
12,600
Payments on principal of finance
leases
(34
)
—
Net cash provided by financing
activities
14,525
14,056
Effects of changes in foreign currency
exchange rates on cash, cash equivalents, and restricted cash
(32
)
334
Net increase (decrease) in cash, cash
equivalents, and restricted cash
58,685
(225,923
)
Cash, cash equivalents, and restricted
cash at beginning of period
223,757
449,680
Cash, cash equivalents, and restricted
cash at end of period
$
282,442
$
223,757
Supplemental disclosures
Cash paid for interest
$
11
$
—
Cash paid for income tax
12,085
551
Accrued purchases of property and
equipment, including internal-use software
1,445
1,271
Share-based compensation capitalized in
internal-use software development costs
4,567
3,359
Right-of-use assets obtained in exchange
for new operating lease liabilities
1,666
7,230
Right-of-use assets reductions related to
operating leases
4,451
4,696
Purchases of fixed assets under finance
leases
693
—
SMARTSHEET INC.
Reconciliation from GAAP to
Non-GAAP Financial Measures
(unaudited)
Reconciliation from GAAP to non-GAAP
operating income (loss) and operating margin
Three Months Ended January
31,
Year Ended January 31,
2024
2023
2024
2023
(dollars in thousands)
Loss from operations
$
(16,570
)
$
(44,418
)
$
(120,282
)
$
(221,636
)
Add:
Share-based compensation expense(1)
53,379
49,473
208,298
177,966
Amortization of acquisition-related
intangible assets(2)
2,709
2,716
10,826
10,310
One-time acquisition costs
—
10
—
622
Litigation expenses and settlements(3)
—
(3,900
)
—
(8,400
)
Lease restructuring costs(4)
36
3,600
2,087
5,144
Non-GAAP operating income (loss)
$
39,554
$
7,481
$
100,929
$
(35,994
)
Operating margin
(6
)%
(21
)%
(13
)%
(29
)%
Non-GAAP operating margin
15
%
4
%
11
%
(5
)%
(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)
Relates to matters that are outside the
ordinary course of our business.
(4)
Includes charges related to the
reassessment of our real estate lease portfolio.
Reconciliation from GAAP to non-GAAP
net income (loss) and per share data
Three Months Ended January
31,
Year Ended January 31,
2024
2023
2024
2023
(in thousands, except per
share data)
Net loss
$
(8,976
)
$
(42,732
)
$
(104,631
)
$
(215,639
)
Add:
Share-based compensation expense(1)
53,379
49,473
208,298
177,966
Amortization of acquisition-related
intangible assets(2)
2,709
2,716
10,826
10,310
One-time acquisition costs
—
10
—
622
Litigation expenses and settlements(3)
—
(3,900
)
—
(8,400
)
Lease restructuring costs(4)
36
4,355
2,294
5,899
Non-GAAP net income (loss)
$
47,148
$
9,922
$
116,787
$
(29,242
)
Non-GAAP net income (loss) per share,
basic
$
0.35
$
0.08
$
0.87
$
(0.22
)
Non-GAAP net income (loss) per share,
diluted
$
0.34
$
0.07
$
0.85
$
(0.22
)
(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)
Relates to matters that are outside the
ordinary course of our business.
(4)
Includes charges related to the
reassessment of our real estate lease portfolio.
Non-GAAP reconciliation from basic to
diluted weighted-average shares outstanding
Three Months Ended January
31,
Year Ended January 31,
2024
2023
2024
2023
(in thousands)
Weighted-average shares outstanding;
basic
136,389
131,435
134,507
130,071
Effect of dilutive securities:
Shares subject to outstanding common stock
awards
3,282
2,646
3,560
—
Non-GAAP weighted-average shares
outstanding; diluted
139,671
134,081
138,067
130,071
Reconciliation from net operating cash
flow to free cash flow
Three Months Ended January
31,
Year Ended January 31,
2024
2023
2024
2023
(in thousands)
Net cash provided by operating
activities
$
59,702
$
20,193
$
157,878
$
23,588
Less:
Purchases of property and equipment
(466
)
(1,962
)
(2,563
)
(6,137
)
Capitalized internal-use software
development costs
(2,925
)
(1,834
)
(10,775
)
(7,660
)
Payments on principal of finance
leases
(34
)
—
(34
)
—
Free cash flow
$
56,277
$
16,397
$
144,506
$
9,791
Reconciliation from revenue to
calculated billings
Three Months Ended January
31,
Year Ended January 31,
2024
2023
2024
2023
(in thousands)
Total revenue
$
256,949
$
212,337
$
958,338
$
766,915
Add:
Deferred revenue (end of period)
570,455
459,729
570,455
459,729
Less:
Deferred revenue (beginning of period)
485,469
385,351
459,729
334,662
Calculated billings
$
341,935
$
286,715
$
1,069,064
$
891,982
Reconciliation from GAAP operating loss
to non-GAAP operating income guidance
Q1 FY 2025
FY 2025
Low
High
Low
High
(in millions)
Loss from operations
$
(25.7
)
$
(23.7
)
$
(98.6
)
$
(88.6
)
Add:
Share-based compensation expense(1)
55.0
55.0
222.0
222.0
Amortization of acquisition-related
intangible assets(2)
2.7
2.7
9.6
9.6
Lease restructuring costs(3)
—
—
2.0
2.0
Non-GAAP operating income
$
32.0
$
34.0
$
135.0
$
145.0
(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
Q1 FY 2025
FY 2025
Low
High
Low
High
(in millions)
Net loss
$
(21.1
)
$
(19.1
)
$
(82.6
)
$
(72.6
)
Add:
Share-based compensation expense(1)
55.0
55.0
222.0
222.0
Amortization of acquisition-related
intangible assets(2)
2.7
2.7
9.6
9.6
Lease restructuring costs(3)
—
—
2.0
2.0
Non-GAAP net income
$
36.6
$
38.6
$
151.0
$
161.0
(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/20240314815926/en/
Smartsheet Inc. Investor Relations Contact Aaron
Turner investorrelations@smartsheet.com
Media Contact Chrissy Vaughn pr@smartsheet.com
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