Financial Data and Key Metrics Changes - For the full fiscal year 2024, total revenue reached $958.3 million, representing a 25% year-over-year growth, while billings were $1.069 billion, up 20% year-over-year [14] - Non-GAAP operating income was $100.9 million, with an operating margin of 11%, and free cash flow was $144.5 million, reflecting a free cash flow margin of 15% [14] - In Q4, revenue was $256.9 million, a 21% increase year-over-year, with subscription revenue at $244 million, growing 23% year-over-year [37] Business Line Data and Key Metrics Changes - The number of customers with ARR over $50,000 grew 22% year-over-year to 3,924, while those with ARR over $100,000 increased by 28% year-over-year to 1,904 [16] - The dollar-based net retention rate was 116%, with a full churn rate of 4% [16] - Revenue from capabilities constituted 34% of subscription revenue in Q4 [37] Market Data and Key Metrics Changes - The enterprise segment showed strong performance, with 98 customers expanding their Smartsheet ARR by over $100,000 [26] - The company ended Q4 with 65 customers having ARR over $1 million, up from 45 a year ago [26] - The SMB segment faced challenges, with expectations of continued pressure in FY 2025 due to tighter domestic spending [34][91] Company Strategy and Development Direction - The company aims to refine and expand its go-to-market strategy and product innovation as it enters the post-$1 billion ARR growth phase [11] - There is a significant opportunity to capture market share by delivering AI-enhanced collaborative workflow solutions [12] - The company plans to unify go-to-market operations and product innovation under new leadership to drive growth [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment has negatively impacted expansion, particularly in the SMB segment, which is expected to continue in FY 2025 [34][91] - The company is focused on reducing stock-based compensation as a percentage of revenue and expects this trend to continue [35] - Management expressed optimism about the potential of AI capabilities to enhance user productivity and drive adoption [113] Other Important Information - The company launched a free plan and self-discovery capabilities, which have shown steady growth and contributed to Q4 results [30] - The Chief Revenue Officer announced retirement, with plans for a smooth transition to a successor [31] - The company will standardize on ARR for non-financial metrics moving forward [36] Q&A Session Summary Question: Update on scalability/infrastructure enhancements - Management highlighted the importance of scale and administration in serving large companies, emphasizing the need for robust tooling [20] Question: Capital allocation and potential M&A - The company is considering capital allocation strategies, including buybacks and potential M&A opportunities [65] Question: Trends in SMB and enterprise demand - Management indicated that the SMB segment is expected to continue facing challenges, while enterprise growth remains strong [46][91] Question: AI product utilization by customers - Management noted strong interest in AI capabilities, with a significant portion of enterprise customers already leveraging these tools [48] Question: Areas for new leadership to address - The new leadership is expected to enhance go-to-market strategies and improve sales efficiency [50] Question: Factors stabilizing NRR - Management discussed initiatives aimed at improving NRR, including enhancing enterprise-grade features and AI capabilities [80] Question: Demand trends going into Q1 - February showed continued pressure on SMBs, which informed the company's guidance for the year [91]

Smartsheet (SMAR) reported $256.95 million in revenue for the quarter ended January 2024, representing a year-over-year increase of 21%. EPS of $0.34 for the same period compares to $0.07 a year ago.The reported revenue represents a surprise of +0.77% over the Zacks Consensus Estimate of $254.99 million. With the consensus EPS estimate being $0.18, the EPS surprise was +88.89%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

Smartsheet (SMAR) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 88.89%. A quarter ago, it was expected that this maker of a cloud-based work-management platform would post earnings of $0.08 per share when it actually produced earnings of $0.16, delivering a surprise of 100%.Over the ...

BELLEVUE, Wash.--(BUSINESS WIRE)--Smartsheet Inc. (NYSE: SMAR), the enterprise work management platform, today announced a series of strategic changes to its executive team as the company enters its post–$1 billion annualized recurring revenue (ARR) growth phase. Executive Leadership Updates for Next Phase of Growth Smartsheet today announced key changes to its executive leadership team focused on refining and expanding the strategy that underpins its Go-to-Market (GTM) and Product & Innovation efforts. ...

Smartsheet Inc. Announces Fourth Quarter and Fiscal Year 2024 Results BELLEVUE, Wash. - March 14, 2024 - 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 ...

BELLEVUE, Wash.--(BUSINESS WIRE)--Smartsheet Inc. (NYSE: SMAR), the enterprise work management platform, today announced that it will release its financial results for its fourth quarter and full fiscal year 2024, which ended January 31, 2024, after the close of U.S. financial markets on March 14, 2024. Smartsheet executives will host a conference call and webcast that day at 4:30 p.m. ET (1:30 p.m. PT) to discuss the results. The dial-in number to access the call will be (888) 440-6385 or (646) 960-0180 (o ...

Liudmila Chernetska Introduction and Investment Thesis Smartsheet Inc. (NYSE:SMAR) shares have been one of those holdings in my high-growth tech portfolio, whose 2023 performance has been somewhat unsatisfying to me, although they increased more than 20% in value. Last time I covered the company was in June 2023, where I argued that the post-earnings sell-off resulting from a soft billings guidance is overdone. Newly emerging growth drivers, like GenAI-based solutions, improvement in margins and undervaluat ...

SOPA Images/LightRocket via Getty Images Summary Readers may find my previous coverage here. My previous rating was a buy, as I believed Smartsheet (NYSE:SMAR) would see growth revert back to 30%, driven by continuous market share gains from existing Excel users and the conversion of free to paid users. As growth recovers, valuation should revert back to peers' levels. I am reiterating my buy rating for SMAR as the business continues to show that its growth runway is still long and sustainable. SMAR continu ...

SOPA Images/LightRocket via Getty Images Thesis Smartsheet Inc. (NYSE:SMAR) is a leader in the Collaborative Work Management (CWM) market, providing solutions that enable teams to plan, execute, and manage their work collectively. The company has been growing rapidly in the past few years, reaching $1 billion in annualized revenue last week. However, despite its impressive performance and strong competitive position, Smartsheet is undervalued by the market, trading at a lower valuation relative to its peers ...

BELLEVUE, Wash.--(BUSINESS WIRE)--Smartsheet (NYSE:SMAR), the enterprise work management platform, announced today that it reached $1 billion in annualized recurring revenue (ARR) earlier in Q4, a significant milestone in the company’s history that comes on the heels of being named a Leader in the December 2023 Gartner® Magic Quadrant™ for Collaborative Work Management. Smartsheet was also recently recognized as a Leader in two IDC reports - IDC MarketScape: Worldwide Collaborative Work Management 2023-2024 ...