Smartsheet (SMAR) closed the last trading session at $44.28, gaining 0.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $55.56 indicates a 25.5% upside potential.The mean estimate comprises 16 short-term price targets with a standard deviation of $4.29. While the lowest estimate of $48 indicates an 8.4% increase from the current price level, the most optimistic analyst expects th ...

Smartsheet Inc. (NYSE:SMAR) Q3 2024 Earnings Conference Call December 7, 2023 4:30 PM ET Company Participants Aaron Turner - Head, Investor Relations Mark Mader - Chief Executive Officer Pete Godbole - Chief Financial Officer Conference Call Participants Scott Berg - Needham Michael Berg - Wells Fargo Securities Josh Baer - Morgan Stanley Jake Roberge - William Blair John DiFucci - Guggenheim Steve Enders - Citi Pinjalim Bora - JPMorgan Taylor McGinnis - UBS Taylor McGinnis - UBS Keith Bachman - Bank of Mon ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Securities registered pursuant to Section 12(b) of the Act: Commission File No. 001-38464 Smartsheet Inc. (Exact name of Registrant as specified in its charter) Was ...

Smartsheet Inc. (NYSE:SMAR) Q2 2024 Earnings Conference Call September 7, 2024 4:30 PM ET Company Participants Aaron Turner - Head, Investor Relations Mark Mader - Chief Executive Officer Pete Godbole - Chief Financial Officer Conference Call Participants Terry Tillman - Truist Securities Josh Baer - Morgan Stanley Jacob Roberge - William Blair Tamjid Chowdhury - Guggenheim Securities Pinjalim Bora - JPMorgan Ethan Bruck - Wolfe Research Brent Thill - Jefferies & Company Scott Berg - Needham Keith Bachman - ...

Financial Performance - Q2 FY24 - Services revenue reached $14.1 million, a 7% year-over-year increase[7] - Subscription revenue totaled $221.5 million, up 28% year-over-year[23] - GAAP Total Gross Margin was 80%[30] - Non-GAAP Operating Income was $19.2 million, representing 8% of revenue[36] - Free Cash Flow was $45.5 million, or 19% of revenue[36] Subscription Metrics - Average Domain ACV increased to $8,863[17] from $7,557 in Q2 FY23[18] - Dollar-Based Net Retention Rate was 125%[18] Calculated Billings - Q2 FY24 Subscription billings were primarily annual (94%), with 4% monthly and 2% other[15] - Calculated billings totaled $286.7 million[24] FY24 Guidance - The company expects FY24 billings growth of 20%[40] - The company anticipates services revenue to be 6% of total FY revenue[65] - The company projects FY24 Free Cash Flow to be $120 million, a 13% margin[56] - Full year revenue is projected between $950 million and $953 million, representing year-over-year growth between 23% and 24%[43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to FORM 10-Q Securities registered pursuant to Section 12(b) of the Act: Commission File No. 001-38464 Smartsheet Inc. (Exact name of Registrant as specified in its charter) Washin ...

Financial Data and Key Metrics Changes - Smartsheet's revenue for Q1 exceeded guidance, growing by 31% year-over-year to $219.9 million, while billings grew 20% year-over-year to $215.5 million [91] - Non-GAAP operating margins reached 10%, more than double the high end of the guidance range, and free cash flow was $31.3 million [91] - The company ended the quarter with annual recurring revenue of $886 million and over 12.8 million users [91] Business Line Data and Key Metrics Changes - There was significant expansion among larger customers, with 59 customers increasing their investment by over $100,000 and 188 companies expanding by over $50,000 in Q1 [91] - The Advance offering saw traction, with 143 customers either purchasing or upgrading to Advance [92] - Data Shuttle executed over 53 million workflows, transferring tens of billions of rows of data, compared to 25 million workflows in the same quarter last year [98] Market Data and Key Metrics Changes - The company launched a Free plan worldwide, showing high engagement and conversion to paid plans across all customer segments [94] - The performance in international markets aligned with expectations, although there were noted headwinds [38] Company Strategy and Development Direction - Smartsheet is focusing on enhancing its platform's scalability and performance, particularly for portfolio managers using Control Center [97] - The company is investing in marketing programs targeting high-value customers, which are expected to contribute to bookings in the second half of the year [103] - Generative AI tools are being developed to enhance user experience and drive higher value work, with beta testing planned for select customers [101] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the back half of the year, citing elongated sales cycles but improved close rates due to enterprise budgets [60] - The company is maintaining a conservative approach to guidance, reflecting the dynamic macro environment [36] - There is no expectation of macro improvement, but management anticipates that close rates will improve as deals progress [61] Other Important Information - The company is seeing a significant increase in demand for its capabilities-based products and is on track to launch self-discovery features for popular capabilities [92][94] - The introduction of free offerings has not negatively impacted conversion rates from paid plans, and management has seen no significant downgrades to free from existing customers [74] Q&A Session Summary Question: Were there any deals that slipped out of Q1 and closed in Q2? - Management indicated that close rates on deals have remained consistent, and there are no unusual trends emerging [8] Question: How is sales productivity being affected by the macro environment? - Sales productivity has declined due to macro impacts, but the sales teams are generating opportunities at a brisk pace [12] Question: Can you provide perspective on margin guidance and hiring? - Margin guidance has been raised to $43 million to $53 million, reflecting confidence in operational efficiency, while hiring is being approached cautiously [17][19] Question: What is the confidence level in billings growth for the back half of the year? - Management is confident in billings growth due to the timing of enterprise budgets and the effectiveness of marketing investments [28][60] Question: How is the competitive environment evolving? - The company has seen an increase in win rates over the last two years, and there is a focus on unifying work dimensions to enhance customer value [47]

Part I. Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Smartsheet reported **$219.9 million** total revenue, a 31% increase, with net loss narrowing and operating cash flow turning positive [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue grew 31% to **$219.9 million**, with gross profit at **$174.0 million** and net loss narrowing to **$29.9 million** Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :--- | :--- | :--- | | **Total Revenue** | **$219,886** | **$168,310** | | Subscription Revenue | $206,001 | $155,276 | | Gross Profit | $174,005 | $131,152 | | Loss from Operations | $(32,115) | $(69,802) | | **Net Loss** | **$(29,870)** | **$(70,457)** | | Net Loss Per Share | $(0.23) | $(0.55) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets were **$1.11 billion**, with **$489.5 million** in cash and investments, and total liabilities decreased to **$602.0 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2023 | January 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $294,946 | $223,156 | | Short-term investments | $194,593 | $233,225 | | Total Assets | $1,109,950 | $1,110,209 | | Deferred Revenue (Current) | $453,831 | $457,534 | | Total Liabilities | $601,985 | $624,551 | | Total Shareholders' Equity | $507,965 | $485,658 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated **$34.6 million** in cash, leading to a **$71.8 million** net increase in cash during the quarter Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $34,571 | $(5,053) | | Net cash provided by (used in) investing activities | $31,641 | $(210,572) | | Net cash provided by financing activities | $5,694 | $6,808 | | **Net increase (decrease) in cash** | **$71,798** | **$(209,638)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, remaining performance obligations, deferred commissions, and share-based compensation expenses - As of April 30, 2023, the company had approximately **$525.8 million** in remaining performance obligations, with about **92%** expected to be recognized as revenue within the next 12 months[38](index=38&type=chunk) - Deferred commissions were **$129.1 million** as of April 30, 2023. The amortization period for these commissions was changed from three to four years, effective August 1, 2022[39](index=39&type=chunk)[40](index=40&type=chunk) - Total share-based compensation expense for the quarter was **$51.8 million**, an increase from **$43.9 million** in the prior-year period[85](index=85&type=chunk) Revenue by Geographic Area (in thousands) | Region | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :--- | :--- | :--- | | United States | $185,595 | $139,694 | | EMEA | $17,724 | $15,285 | | Asia Pacific | $8,207 | $6,534 | | Americas (other) | $8,360 | $6,797 | | **Total** | **$219,886** | **$168,310** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue grew 31% driven by strong subscription performance, achieving non-GAAP operating income and positive free cash flow [Key Business Metrics](index=25&type=section&id=Key%20Business%20Metrics) Average ACV per domain-based customer increased to **$8,520**, while the dollar-based net retention rate decreased to **123%** Key Business Metrics Comparison | Metric | April 30, 2023 | April 30, 2022 | | :--- | :--- | :--- | | Average ACV per domain-based customer | $8,520 | $7,210 | | Dollar-based net retention rate (trailing 12 months) | 123% | 133% | | Customers with ACV of $100k or more | 1,569 | 1,108 | | Customers with ACV of $50k or more | 3,343 | 2,516 | | Customers with ACV of $5k or more | 18,483 | 15,879 | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Total revenue increased 31% to **$219.9 million**, with improved gross margin and reduced operating expenses as a percentage of revenue - Subscription revenue increased by **$50.7 million** (**33%**) YoY, with **$25.1 million** from user-based plans and **$25.6 million** from capabilities-based products[129](index=129&type=chunk) - Sales and marketing expenses decreased as a percentage of revenue from **69% to 52%** YoY, primarily due to a **$5.2 million** reduction in brand awareness and demand generation costs[128](index=128&type=chunk)[137](index=137&type=chunk) - Research and development expenses increased by **$3.7 million** (**7%**) YoY, mainly due to higher employee-related costs[136](index=136&type=chunk) [Non-GAAP Financial Measures](index=32&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP operating income reached **$22.8 million** (10% margin), a significant turnaround, with free cash flow at **$31.3 million** Non-GAAP Operating Income (Loss) Reconciliation (in thousands) | Metric | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :--- | :--- | :--- | | Loss from operations (GAAP) | $(32,115) | $(69,802) | | Share-based compensation expense | $52,200 | $44,228 | | Amortization of acquisition-related intangible assets | $2,709 | $2,483 | | **Non-GAAP operating income (loss)** | **$22,800** | **$(23,091)** | Free Cash Flow (in thousands) | Metric | Three Months Ended April 30, 2023 | Three Months Ended April 30, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $34,571 | $(5,053) | | Less: Purchases of property and equipment | $(853) | $(1,691) | | Less: Capitalized internal-use software | $(2,397) | $(2,323) | | **Free cash flow** | **$31,321** | **$(9,067)** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Principal liquidity sources include **$294.9 million** in cash and investments, with **$455.4 million** in deferred revenue - Principal sources of liquidity as of April 30, 2023, were **$294.9 million** in cash and cash equivalents and **$194.6 million** in short-term investments[159](index=159&type=chunk) - A substantial source of cash is deferred revenue from customers paying in advance for annual subscriptions, which totaled **$455.4 million** as of April 30, 2023[161](index=161&type=chunk) - Material contractual obligations total **$135.0 million**, primarily for cloud-based hosting services, with **$56.4 million** due in the next 12 months[164](index=164&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk on **$489.5 million** in investments and foreign currency risk, without current hedging - The company holds **$489.5 million** in cash, cash equivalents, and short-term investments, which are subject to interest rate risk. A hypothetical **100-basis point** increase in interest rates is not expected to materially impact their value[180](index=180&type=chunk)[182](index=182&type=chunk) - The company has foreign currency risks related to revenue and expenses in currencies such as the British pound, euro, Australian dollar, and Canadian dollar, but does not currently hedge this exposure[183](index=183&type=chunk)[184](index=184&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of April 30, 2023[186](index=186&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter[187](index=187&type=chunk) Part II. Other Information [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal matters but does not expect a material impact on its financial condition or results - The company is subject to various legal matters from time to time but does not expect them to have a material impact on its financial condition[190](index=190&type=chunk) [Risk Factors](index=39&type=page&id=Item%201A.%20Risk%20Factors) The company faces risks including intense competition, dependence on a single offering, historical losses, and security threats [Risks Related to Our Industry, Platform, and Infrastructure](index=43&type=section&id=Risks%20Related%20to%20Our%20Industry%2C%20Platform%2C%20and%20Infrastructure) Risks include intense competition, security threats, reliance on cloud providers, and the need to adapt to technological changes - The market for collaborative work management software is highly competitive, with rivals including Airtable, Asana, Atlassian, Google, and Microsoft[199](index=199&type=chunk)[200](index=200&type=chunk) - The business is vulnerable to security threats and attacks, which could lead to unauthorized access to customer data, significant liabilities, and reputational harm[207](index=207&type=chunk)[211](index=211&type=chunk) - The company depends on public cloud service providers, and any service outages or disruptions from these third parties could significantly harm the business[217](index=217&type=chunk) [Risks Related to Our Commercial and Financial Operations](index=50&type=section&id=Risks%20Related%20to%20Our%20Commercial%20and%20Financial%20Operations) Financial risks include a history of cumulative losses, dependence on a single offering, and revenue recognition over subscription terms - The company has a history of cumulative losses, with an accumulated deficit of **$788.0 million** as of April 30, 2023, and cannot guarantee future profitability[237](index=237&type=chunk) - The company derives substantially all of its revenue from its cloud-based collaborative work management platform, making it vulnerable to shifts in demand for this single offering[244](index=244&type=chunk) - Because revenue is recognized ratably over the subscription term, downturns in new sales or renewals may not be immediately reflected in financial results[245](index=245&type=chunk) [Risks Related to Our General Operations](index=54&type=section&id=Risks%20Related%20to%20Our%20General%20Operations) Operational risks stem from managing rapid growth, expanding sales, attracting personnel, and international expansion challenges - The company has experienced rapid growth, with employee headcount rising to **3,176** as of April 30, 2023, which places a significant strain on management and infrastructure[254](index=254&type=chunk) - Long-term growth depends on successful international expansion, which carries risks related to currency fluctuations, regulatory compliance, and cultural differences[267](index=267&type=chunk) - Failure to protect intellectual property rights or being sued by third parties for infringement could impair the company's ability to protect its technology and brand[272](index=272&type=chunk)[275](index=275&type=chunk) [Risks Related to Ownership of Our Common Stock](index=60&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) Stock ownership risks include high stock price volatility and charter provisions that could hinder acquisitions - The market price of the company's Class A common stock has been and is expected to remain volatile[283](index=283&type=chunk) - Provisions in the company's charter and under Washington law could discourage or prevent a merger or acquisition, potentially limiting shareholder value[290](index=290&type=chunk) [Risks Related to Governmental Regulation](index=64&type=section&id=Risks%20Related%20to%20Governmental%20Regulation) The company is subject to complex global regulations, including data privacy, tax, export control, and anti-corruption laws - The company is subject to numerous laws and regulations regarding privacy, data protection, and information security, such as GDPR and CCPA, with non-compliance posing risks of significant fines and penalties[296](index=296&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk) - The applicability of sales and other taxes to the company's platform is unclear in various jurisdictions, potentially leading to future tax liabilities[308](index=308&type=chunk) - As an international business dealing with government customers, the company is subject to anti-corruption laws like the FCPA and export control regulations, violations of which could lead to severe penalties[315](index=315&type=chunk)[319](index=319&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period covered by this report - None[341](index=341&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications and iXBRL financial data - The report includes filed exhibits such as CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and iXBRL financial data (101, 104)[343](index=343&type=chunk)

Part I [Business](index=6&type=section&id=Item%201.%20Business) Smartsheet provides a cloud-based, no-code enterprise platform for work management, serving over 80% of Fortune 500 companies - Smartsheet is an enterprise platform for modern work management, offering a no-code software solution for planning, capturing, managing, automating, and reporting on work[19](index=19&type=chunk) - The company serves customers in approximately **190 countries**, including **90 of the Fortune 100** and over **80% of the Fortune 500 companies** as of January 31, 2023[22](index=22&type=chunk) - Growth strategies include new customer acquisition, existing customer expansion, international growth (**16% of FY2023 revenue** from outside the U.S.), government sector targeting, and strategic acquisitions[35](index=35&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Primary competition includes manual processes with Google and Microsoft tools, and collaborative work management platforms like Airtable, Asana, Atlassian, ClickUp, and Monday.com[97](index=97&type=chunk) Key Business Metrics | Metric | Value | | :--- | :--- | | Total Employees (as of Jan 31, 2023) | 3,191 | | U.S. Employees | 2,676 | | International Employees | 515 | | Backlog (as of Jan 31, 2023) | $69.1 million | | Backlog (as of Jan 31, 2022) | $53.9 million | [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including intense competition, cloud provider dependency, security breaches, cumulative losses, and customer retention challenges - The market for collaborative work management software is highly competitive, with rivals including Google, Microsoft, Airtable, Asana, Atlassian, ClickUp, Monday.com, and others[112](index=112&type=chunk)[113](index=113&type=chunk) - The business is dependent on public cloud service providers, and any service interruptions or outages could significantly harm operations and reputation[130](index=130&type=chunk) - The company has a history of cumulative losses, with a net loss of **$215.6 million** in fiscal 2023 and an accumulated deficit of **$758.2 million** as of January 31, 2023, with future profitability not assured[151](index=151&type=chunk) - The business is subject to a wide range of laws and regulations, including those related to data privacy (GDPR, CCPA), export controls, and anti-corruption (FCPA), which could impose significant costs and liabilities[209](index=209&type=chunk)[213](index=213&type=chunk)[228](index=228&type=chunk) - Adverse economic conditions, such as inflation, rising interest rates, and potential financial institution instability, may harm the business by causing customers to delay or reduce spending[245](index=245&type=chunk)[246](index=246&type=chunk) [Unresolved Staff Comments](index=50&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[256](index=256&type=chunk) [Properties](index=50&type=section&id=Item%202.%20Properties) Smartsheet's corporate headquarters are located in Bellevue, Washington, with additional long-term leases in Boston, London, and Sydney - Corporate headquarters are in Bellevue, Washington, with approximately **123,000 square feet** under lease agreements expiring between 2026 and 2029[257](index=257&type=chunk) - Other major leased facilities are located in Boston, Massachusetts; London, England; and Sydney, Australia[257](index=257&type=chunk) [Legal Proceedings](index=50&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various legal matters in the normal course of business, with details provided in the consolidated financial statements - For details on legal proceedings, refer to Note 14, Commitments and Contingencies, in the notes to the consolidated financial statements[258](index=258&type=chunk) [Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[259](index=259&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=51&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Smartsheet's Class A common stock trades on the NYSE under "SMAR", with no current intention to pay cash dividends - Class A common stock is listed on the New York Stock Exchange under the symbol "**SMAR**"[260](index=260&type=chunk) - The company does not intend to declare or pay cash dividends in the foreseeable future[262](index=262&type=chunk) - As of March 15, 2023, there were **110 holders of record** of Class A common stock[261](index=261&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses fiscal 2023 financial performance, including revenue growth, increased net loss, improved free cash flow, and changes in critical accounting policies Key Business Metrics (as of Jan 31) | Metric (as of Jan 31) | 2023 | 2022 | | :--- | :--- | :--- | | Average ACV per domain-based customer | $8,377 | $6,977 | | Dollar-based net retention rate | 125% | 134% | | Customers with ACV > $100k | 1,484 | 1,026 | | Customers with ACV > $50k | 3,206 | 2,354 | Financial Performance (Year Ended Jan 31) | Financial Item (Year Ended Jan 31) | 2023 (in millions) | 2022 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $766.9 | $550.8 | 39% | | Subscription Revenue | $713.7 | $507.4 | 41% | | Gross Profit | $601.6 | $434.4 | 39% | | Loss from Operations | $(221.6) | $(170.0) | 30% | | Net Loss | $(215.6) | $(171.1) | 26% | - The company changed its accounting estimate for the amortization period of deferred sales commissions from three years to four years, effective August 1, 2022, resulting in a benefit to net loss of approximately **$0.09 per share** for fiscal 2023[356](index=356&type=chunk) - Free cash flow was positive at **$9.8 million** for fiscal 2023, a significant improvement from a negative free cash flow of **$(20.8) million** in fiscal 2022[324](index=324&type=chunk) - Calculated billings increased to **$892.0 million** in fiscal 2023, up from **$661.5 million** in fiscal 2022[327](index=327&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate fluctuations on its cash and investments, and foreign currency exchange risk from international operations - The company is exposed to interest rate risk on its cash, cash equivalents, and short-term investments totaling **$456.4 million** as of January 31, 2023[367](index=367&type=chunk) - Foreign currency risk exists due to operations and transactions in currencies such as the British Pound Sterling, Euro, Australian dollar, Canadian dollar, and Costa Rican Colón[370](index=370&type=chunk) - The company has not engaged in hedging foreign currency transactions to date but may do so in the future if exposure becomes more significant[371](index=371&type=chunk) [Financial Statements and Supplementary Data](index=73&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements, an unqualified auditor's opinion, and detailed notes on accounting policies and commitments - The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion on the financial statements and internal controls, highlighting Subscription Revenue as a Critical Audit Matter due to its significant transaction volume[378](index=378&type=chunk)[386](index=386&type=chunk) Consolidated Operations (in thousands) | Consolidated Operations (in thousands) | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | Total Revenue | $766,915 | $550,832 | $385,513 | | Gross Profit | $601,630 | $434,359 | $299,974 | | Loss from Operations | $(221,636) | $(170,036) | $(120,472) | | Net Loss | $(215,639) | $(171,097) | $(114,979) | | Net Loss Per Share | $(1.66) | $(1.36) | $(0.95) | Consolidated Balance Sheet (in thousands) | Consolidated Balance Sheet (in thousands) | Jan 31, 2023 | Jan 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $710,087 | $634,602 | | Total Assets | $1,110,209 | $1,002,832 | | Total Current Liabilities | $574,663 | $437,439 | | Total Liabilities | $624,551 | $498,053 | | Total Shareholders' Equity | $485,658 | $504,779 | - On September 1, 2022, the Company acquired Outfit for a total purchase consideration of **$20.6 million** in cash, enhancing its Brandfolder templating and creative automation solutions[470](index=470&type=chunk) - As of January 31, 2023, the company had U.S. federal net operating loss carryforwards (NOLs) of approximately **$473.8 million** and state NOLs of **$307.8 million** to offset future taxable income[517](index=517&type=chunk) - The company has non-cancelable purchase commitments, primarily for cloud-based hosting services, totaling **$160.1 million** as of January 31, 2023[534](index=534&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=110&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting or financial disclosure matters - None[543](index=543&type=chunk) [Controls and Procedures](index=110&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of January 31, 2023 - Management concluded that disclosure controls and procedures were effective as of January 31, 2023[546](index=546&type=chunk) - Management concluded that internal control over financial reporting was effective as of January 31, 2023, based on the COSO framework[548](index=548&type=chunk) - No material changes were made to the company's internal control over financial reporting during the fourth quarter of fiscal 2023[550](index=550&type=chunk) [Other Information](index=112&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[553](index=553&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=113&type=section&id=Items%2010-14) Information for directors, executive officers, corporate governance, executive compensation, and security ownership is incorporated by reference from the 2023 Proxy Statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's Proxy Statement for the 2023 Annual Meeting of Shareholders[556](index=556&type=chunk)[557](index=557&type=chunk)[558](index=558&type=chunk)[559](index=559&type=chunk)[560](index=560&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=114&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, including financial statements and corporate governance documents - All required financial statement schedules have been omitted because the information is not applicable or is included in the financial statements in Item 8[562](index=562&type=chunk) - A detailed list of exhibits filed with the annual report is provided, including corporate governance documents, material contracts, and certifications[563](index=563&type=chunk) [Form 10-K Summary](index=115&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no information for this item - None[566](index=566&type=chunk)

Smartsheet Inc. (NYSE:SMAR) Q4 2023 Earnings Conference Call March 14, 2023 4:30 PM ET Company Participants Aaron Turner - Head, IR Mark Mader - CEO Pete Godbole - CFO Conference Call Participants John DiFucci - Guggenheim Securities Brent Thill - Jefferies Sophie Lee - Morgan Stanley Alex Zukin - Wolfe Research Terry Tillman - Truist Securities Michael Turrin - Wells Fargo Securities Pinjalim Bora - JPMorgan Rishi Jaluria - RBC Capital Markets Jackson Ader - MoffettNathanson DJ Hynes - Canaccord Scott Berg ...