Smartsheet(US:SMAR)2024-12-05 21:08Financial Performance - Total revenue for Q3 FY2025 was $286.9 million, a 17% increase year over year[2] - Annualized recurring revenue (ARR) grew 15% year over year to $1.133 billion[6] - Non-GAAP operating income was $56.4 million, representing 20% of total revenue, compared to 8% in Q3 FY2024[3] - GAAP net income was $1.3 million, a significant improvement from a net loss of $(32.4) million in Q3 FY2024[4] - Free cash flow was $61.8 million, or 22% of total revenue, compared to 5% in Q3 FY2024[5] - Total revenue for the three months ended October 31, 2024, was $286.9 million, a 16.6% increase from $245.9 million in the same period of 2023[22] - Subscription revenue reached $273.7 million for the three months ended October 31, 2024, compared to $232.5 million in the same period of 2023, reflecting a growth of 17.7%[22] - Gross profit for the nine months ended October 31, 2024, was $674.4 million, up from $561.4 million in the same period of 2023, representing a 20.1% increase[22] - Operating expenses totaled $236.5 million for the three months ended October 31, 2024, slightly up from $234.3 million in the same period of 2023[22] - Net income for the three months ended October 31, 2024, was $1.3 million, a significant improvement from a net loss of $32.4 million in the same period of 2023[22] Cash Flow and Assets - Cash and cash equivalents increased to $454.3 million as of October 31, 2024, compared to $282.1 million as of January 31, 2024[24] - Total assets reached $1.4 billion as of October 31, 2024, up from $1.3 billion as of January 31, 2024[24] - Deferred revenue was $556.3 million as of October 31, 2024, compared to $568.7 million as of January 31, 2024[24] - Net cash provided by operating activities for the nine months ended October 31, 2024, was $172.8 million, compared to $98.2 million in the same period of 2023[26] - Total net cash provided by operating activities was $63,528 for the three months ended October 31, 2024, compared to $15,146 in the same period of 2023[33] Customer Metrics - The dollar-based net retention rate was 111%[6] - The number of customers with ARR of $100,000 or more increased by 20% year over year to 2,137[6] - The average ARR per domain-based customer increased by 16% year over year to $10,708[6] Acquisition and Strategic Developments - Smartsheet entered into a definitive agreement to be acquired by Blackstone and Vista Equity Partners for approximately $8.4 billion[7] - Smartsheet unveiled a new user experience and features to enhance organizational performance[7] Non-GAAP Metrics - For the three months ended October 31, 2024, Smartsheet reported a non-GAAP operating income of $56,364, compared to $19,355 in the same period of 2023, reflecting a significant increase[30] - The non-GAAP operating margin improved to 20% for the three months ended October 31, 2024, up from 8% in the same period of 2023[30] - The company achieved a non-GAAP net income of $61,039 for the three months ended October 31, 2024, compared to a loss of $32,428 in the same period of 2023[31] - Non-GAAP net income per share, diluted, was $0.43 for the three months ended October 31, 2024, compared to $0.16 in the same period of 2023[31] - Smartsheet's free cash flow for the three months ended October 31, 2024, was $61,793, significantly up from $11,409 in the same period of 2023[33] Shareholder Information - The weighted-average shares outstanding, diluted, increased to 142,668 for the three months ended October 31, 2024, compared to 138,421 in the same period of 2023[33] Operational Costs - Share-based compensation expense for the nine months ended October 31, 2024, was $143.1 million, down from $153.4 million in the same period of 2023[26] - The company reported a loss from operations of $(3,351) for the three months ended October 31, 2024, an improvement from $(35,450) in the same period of 2023[30] - Smartsheet incurred one-time acquisition costs of $10,525 during the three months ended October 31, 2024[30] - The company’s amortization of acquisition-related intangible assets was $2,308 for the three months ended October 31, 2024, compared to $2,701 in the same period of 2023[31]