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, 2022 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 ...

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $199.6 million, representing a 38% year-over-year increase [11][25] - Annual recurring revenue (ARR) increased by $56 million, totaling over $792 million [11] - Non-GAAP operating loss was negative $4.3 million, showing a 7 percentage point sequential margin improvement from Q2 [12][28] - Total gross margin was 81%, with subscription gross margin at 87% [28] Business Line Data and Key Metrics Changes - Subscription revenue reached $186.1 million, a 40% year-over-year growth [25] - Services revenue was $13.5 million, reflecting a 12% year-over-year increase [25] - The number of customers with ARR over $50,000 grew 43% year-over-year to 2,962 [27] - Customers with ARR over $100,000 increased by 55% year-over-year to 1,346 [27] Market Data and Key Metrics Changes - Billings for Q3 were $219.6 million, a 36% year-over-year growth [26] - The dollar-based net retention rate was 129%, with a full churn rate below 4% [27] - The company expects the overall dollar-based net retention rate to be in the mid-120s by year-end [27] Company Strategy and Development Direction - The company is focused on improving operational efficiency and delivering measurable ROI for customers [10][22] - Investments in project and portfolio management (PPM) capabilities are being deepened, including new resource management features [19] - The launch of new capabilities and experiences at the ENGAGE conference is aimed at enhancing customer engagement and satisfaction [17][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term durable growth despite macroeconomic challenges [22] - The current macro environment is impacting customer budget spending, leading to a prudent outlook for future guidance [51] - The company is seeing improvements in pipeline conversion and sales rep productivity, which are expected to positively influence future performance [34][94] Other Important Information - The desktop application launch received positive feedback, indicating a strong demand for easier access to the platform [63] - The integration of Brandfolder and Outfit is providing significant value to customers, enhancing digital asset management capabilities [21][82] Q&A Session Summary Question: Pipeline conversion and future expectations - Management noted improvements in pipeline conversion and sales rep productivity, with a strong month in October [34][94] Question: Go-to-market messaging evolution - The company is emphasizing ROI-driven discussions and helping customers achieve cost savings and revenue growth [37] Question: Competitive environment and performance - Management highlighted the strength of their offerings and customer relationships as key factors driving business success compared to competitors [58] Question: Stock-based compensation trends - Management expects stock-based compensation to decline as a percentage of revenue due to moderated hiring plans [76] Question: Demand trends in different market segments - The enterprise segment has shown strength, while mid-market and certain verticals like technology have faced challenges [75]

Part I. Financial Information [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) Unaudited financial statements show **42%** revenue growth to **$186.7 million** but a widened net loss of **$62.3 million**, with total assets at **$994.2 million** and positive operating cash flow [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue grew **42%** to **$186.7 million** for the quarter, but operating loss expanded to **$64.9 million** and net loss to **$62.3 million** due to higher operating expenses Condensed Consolidated Statements of Operations (Three Months Ended July 31) | Metric | 2022 (in thousands) | 2021 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$186,691** | **$131,736** | **+41.7%** | | Subscription Revenue | $173,533 | $121,110 | +43.3% | | Gross Profit | $146,140 | $104,270 | +40.2% | | Total Operating Expenses | $210,999 | $147,820 | +42.7% | | Loss from Operations | $(64,859) | $(43,550) | +48.9% | | **Net Loss** | **$(62,313)** | **$(44,168)** | **+41.1%** | | Net Loss Per Share | $(0.48) | $(0.35) | +37.1% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2022, total assets were **$994.2 million**, with **$455.7 million** in cash and short-term investments, while total liabilities increased to **$519.5 million** Condensed Consolidated Balance Sheet Highlights | Metric | July 31, 2022 (in thousands) | January 31, 2022 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $227,370 | $449,074 | | Short-term investments | $228,294 | $0 | | Total Assets | $994,249 | $1,002,832 | | Deferred Revenue (Current) | $363,967 | $332,285 | | Total Liabilities | $519,546 | $498,053 | | Total Shareholders' Equity | $474,703 | $504,779 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$5.2 million** for the six months ended July 31, 2022, while investing activities used **$234.7 million**, primarily for short-term investments Cash Flow Summary (Six Months Ended July 31) | Metric | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $5,168 | $(1,199) | | Net cash used in investing activities | $(234,708) | $(10,531) | | Net cash provided by financing activities | $8,972 | $12,809 | | Change in cash, cash equivalents, and restricted cash | $(221,793) | $894 | [Notes to Condensed Consolidated Financial Statements (unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) Notes detail accounting policies, with **$415.5 million** in remaining performance obligations and **$89.4 million** in share-based compensation for the six-month period - As of July 31, 2022, the company had approximately **$415.5 million** in remaining performance obligations, with **93%** expected to be recognized as revenue within the next 12 months[51](index=51&type=chunk) Share-Based Compensation Expense (Six Months Ended July 31) | Department | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Cost of revenue | $8,693 | $4,711 | | Research and development | $31,589 | $18,331 | | Sales and marketing | $31,452 | $18,971 | | General and administrative | $17,654 | $10,479 | | **Total** | **$89,388** | **$52,492** | - Subsequent to the quarter end, on August 26, 2022, the company entered into an agreement to acquire Outfit for approximately **$20.6 million**, with the acquisition closing on September 1, 2022[98](index=98&type=chunk) Revenue by Geographic Area (Six Months Ended July 31) | Region | 2022 (in thousands) | 2021 (in thousands) | YoY Growth | | :--- | :--- | :--- | :--- | | United States | $295,606 | $204,552 | 44.5% | | EMEA | $31,465 | $23,624 | 33.2% | | Asia Pacific | $13,566 | $9,642 | 40.7% | | Americas (ex-US) | $14,364 | $11,000 | 30.6% | | **Total** | **$355,001** | **$248,818** | **42.7%** | [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) Management attributes **42%** revenue growth to subscription plans, with key metrics showing **131%** net retention and strong customer growth, while operating expenses increased due to investments [Key Business Metrics](index=25&type=section&id=Key%20Business%20Metrics) Key business metrics show strong customer growth, with average ACV per customer increasing **27.8%** to **$7,557** and dollar-based net retention rate at **131%** Key Business Metrics as of July 31 | Metric | 2022 | 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Average ACV per domain-based customer | $7,557 | $5,915 | +27.8% | | Dollar-based net retention rate | 131% | 128% | +3 p.p. | | Customers with ACV > $100k | 1,220 | 748 | +63.1% | | Customers with ACV > $50k | 2,738 | 1,856 | +47.5% | | Customers with ACV > $5k | 16,682 | 13,420 | +24.3% | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Revenue increased **42%** YoY for the quarter, driven by subscription growth, while operating expenses, especially sales and marketing, significantly increased due to investments - For the three months ended July 31, 2022, the **$52.4 million** increase in subscription revenue was driven by a **$30.4 million** increase from user-based subscription plans and a **$22.0 million** increase from pre-configured capabilities[126](index=126&type=chunk) - Sales and marketing expenses for the quarter increased by **$46.9 million** (**61%** YoY), primarily due to a **$33.6 million** increase in employee-related costs from higher headcount and a **$6.0 million** increase in brand awareness and demand generation costs[136](index=136&type=chunk) - Professional services gross margin decreased to **3%** for the quarter from **14%** in the prior year, driven by higher personnel expenses and costs of outside services that outpaced revenue growth[132](index=132&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP operating loss was **$16.1 million** for the quarter, while free cash flow was positive at **$7.1 million**, and calculated billings grew **44%** to **$205.6 million** Non-GAAP Operating Loss Reconciliation (Three Months Ended July 31) | Metric | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Loss from operations (GAAP) | $(64,859) | $(43,550) | | Share-based compensation | $45,836 | $28,633 | | Amortization of acquisition-related intangibles | $2,484 | $2,517 | | One-time acquisition costs | $461 | $0 | | Litigation expenses and settlements | $0 | $7,250 | | **Non-GAAP operating loss** | **$(16,078)** | **$(5,150)** | Free Cash Flow (Three Months Ended July 31) | Metric | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,221 | $1,762 | | Less: Purchases of property and equipment | $(1,316) | $(3,755) | | Less: Capitalized internal-use software | $(1,798) | $(1,539) | | **Free cash flow** | **$7,107** | **$(3,532)** | - Calculated billings for the three months ended July 31, 2022, were **$205.6 million**, a **44%** increase from **$142.9 million** in the prior-year period[171](index=171&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is strong with **$455.7 million** in cash and short-term investments, supported by **$365.3 million** in deferred revenue, covering material contractual obligations - Principal sources of liquidity as of July 31, 2022, were cash and cash equivalents of **$227.4 million** and short-term investments of **$228.3 million**[172](index=172&type=chunk) - Material cash requirements include fixed minimum lease payments of **$79.1 million** and other contractual obligations of **$158.7 million**, primarily for cloud-based hosting services[175](index=175&type=chunk)[176](index=176&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from interest rates on **$455.7 million** in investments and foreign currency fluctuations, though no material impact is currently anticipated - The company had cash, cash equivalents, and short-term investments totaling **$455.7 million** as of July 31, 2022, which are subject to interest rate risk[193](index=193&type=chunk) - The company has foreign currency risks related to revenue and expenses denominated in currencies such as the British Pound Sterling, Euro, and Australian dollar, but has not engaged in hedging[196](index=196&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of July 31, 2022, with no material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of July 31, 2022[198](index=198&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[200](index=200&type=chunk) Part II. Other Information [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company may be subject to various legal matters in the normal course of business, with details on a settled indemnification claim in Note 12 - Information regarding legal proceedings can be found in Note 12, Commitments and Contingencies, of the condensed consolidated financial statements[203](index=203&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including intense competition, reliance on a single platform, a history of net losses, security threats, and challenges in managing rapid growth - **Competition:** The market for work execution software is highly competitive, with rivals including Airtable, Asana, Atlassian, Monday.com, as well as larger players like Google and Microsoft who could bundle competing features[212](index=212&type=chunk)[213](index=213&type=chunk) - **Security:** The company faces significant risks from cyber threats, and any failure to secure its platform could result in unauthorized access to customer data, leading to significant liabilities and reputational harm[220](index=220&type=chunk)[224](index=224&type=chunk) - **Financial Performance:** The company has a history of cumulative losses (**$675.3 million** accumulated deficit as of July 31, 2022) and expects losses to continue as it invests in growth[252](index=252&type=chunk) - **Infrastructure:** The business depends on public cloud service providers (Cloud Providers), making it vulnerable to service interruptions, outages, or unfavorable renewal terms that could harm operations[230](index=230&type=chunk) - **International Operations:** Expansion abroad presents risks including currency fluctuations, regulatory compliance (e.g., GDPR), staffing challenges, and geopolitical instability[280](index=280&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk)

Smartsheet Inc. (NYSE:SMAR) Q2 2023 Earnings Conference Call September 1, 2022 4:30 PM ET Company Participants Aaron Turner - Head of IR Mark Mader - CEO Pete Godbole - CFO Conference Call Participants John Difucci - Guggenheim Partners Robert Dion - Truist Securities Michael Turrin - Wells Fargo Securities Brent Thill - Jefferies George Iwanyc - Oppenheimer Rishi Jaluria - RBC Scott Berg - Needham Jacob Roberge - William Blair Keith Bachman - BMO Pinjalim Bora - JPMorgan Steve Enders - Citi Josh Baer - Mor ...

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Smartsheet Inc. (NYSE:SMAR) Q1 2023 Earnings Conference Call June 7, 2022 4:30 AM ET Company Participants Aaron Turner - Head of Investor Relations Mark Mader - Chief Executive Officer Pete Godbole - Chief Financial Officer Conference Call Participants Brent Thill - Jefferies Terry Tillman - Truist Securities Michael Turrin - Wells Fargo Securities Keith Bachman - BMO Scott Berg - Needham George Iwanyc - Oppenheimer Alex Zukin - Wolfe Research Robert Simmons - DA Davidson Pinjalim Bora - JPMorgan Jake Rober ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------|-------|-------|-------|-------|--------------------------|-------|-------|-----------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Earnings | | | | | | | | | | | | | | | | | | | gaz . | & | | | | | | | | | | | | | Conference | | | | | | | | | | | | | | | | | | | | | | Call | | | | | Strategic Plan Dashboard | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q1 Fiscal Year 20 ...

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 April 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-38464 Smartsheet Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-38464 Smartsheet Inc. (Exact name of Registrant as specified in its charter) Washington 20-2954357 (State or other jurisdiction of incorporation or ...

Smartsheet Inc. (NYSE:SMAR) Q4 2022 Earnings Conference Call March 15, 2022 4:30 PM ET Company Participants Aaron Turner - Head of Investor Relations Mark Mader - President and Chief Executive Officer Pete Godbole - Chief Financial Officer Conference Call Participants Michael Turrin - Wells Fargo Securities LLC George Iwanyc - Oppenheimer & Co. Inc. Terrell Tillman - Truist Securities, Inc. Steven Enders - KeyBanc Capital Markets Inc. Mark Murphy - JPMorgan Chase & Co. Aleksandr Zukin - Wolfe Research, LLC ...