Smartsheet(US:SMAR)2021-06-03 16:00Revenue Growth - Subscription revenue for the three months ended April 30, 2021, was $108,013,000, an increase from $77,163,000 in the same period of 2020, representing a growth of 40%[125] - Total revenue for the three months ended April 30, 2021, was $117,082,000, compared to $85,487,000 in the same period of 2020, reflecting a year-over-year increase of 37%[125] - Total revenue for the three months ended April 30, 2021, was $117.1 million, an increase of $31.6 million or 37% compared to $85.5 million in the same period of 2020[127] - Subscription revenue increased by $30.9 million, or 40%, driven by user-based subscription plans contributing $18.3 million and pre-configured capabilities contributing $12.6 million[127] - The calculated billings for the same period were $132.8 million, up 47% from $89.9 million year-over-year[154] Customer Metrics - The average annualized contract value (ACV) per domain-based customer increased to $5,461 in 2021 from $3,866 in 2020, indicating a growth of 41%[108] - The dollar-based net retention rate for all customers was 125% for the trailing 12 months, down from 132% in the previous year[108] - The number of customers with ACV of $50,000 or more increased to 1,674 in 2021 from 1,040 in 2020, representing a growth of 61%[108] Expenses - Research and development expenses for the three months ended April 30, 2021, were $36,474,000, up from $25,991,000 in 2020, marking an increase of 40%[125] - Sales and marketing expenses rose to $71,379,000 in 2021 from $54,783,000 in 2020, reflecting a growth of 30%[125] - Research and development expenses rose by $10.5 million, or 40%, totaling $26.0 million, primarily due to increased headcount and share-based compensation[133] - Sales and marketing expenses increased by $16.6 million, or 30%, totaling $54.8 million, mainly due to higher employee-related expenses and share-based compensation[134] - General and administrative expenses increased by $5.9 million, or 39%, totaling $21.0 million, driven by higher employee-related expenses and share-based compensation[135] Profitability and Loss - The net loss for the three months ended April 30, 2021, was $37,072,000, compared to a net loss of $27,784,000 in the same period of 2020[125] - Gross profit for the three months ended April 30, 2021, was $90.5 million, a 35% increase from $67.0 million in 2020[129] - Non-GAAP gross profit for the three months ended April 30, 2021, was $93.9 million, with a non-GAAP gross margin of 80%[143] - Non-GAAP operating loss for the same period was $12.0 million, with a non-GAAP operating margin of -10%[145] - The net loss for the three months ended April 30, 2021, was $37.1 million, compared to a net loss of $27.8 million in the prior year[150] Cash Flow and Financial Position - Free cash flow for the three months ended April 30, 2021, was $(8.2) million, an improvement from $(28.2) million in the same period of 2020[150] - As of April 30, 2021, the company had cash and cash equivalents totaling $439.7 million, primarily held in money market funds[155] - Net cash used in operating activities was $(3.0) million for the three months ended April 30, 2021, significantly improved from $(24.3) million in the same period of 2020[161] - The company expects to continue incurring operating losses and negative cash flows from operations for the foreseeable future[155] - The company may seek additional equity or debt financing in the future to support growth and operations[157] Deferred Revenue - Deferred revenue at the end of the period was $239.7 million, with $238.7 million expected to be recognized as revenue in the next 12 months[158] Interest and Other Income - Interest income decreased by $1.3 million, or 99%, to $1.3 million due to lower cash and cash equivalents held in interest-bearing accounts[136] - Other income (expense), net changed by $1.5 million, resulting in a net expense of $214, influenced by an acquisition-related gain contingency[138] Foreign Currency Risks - The company faces foreign currency exchange risks due to international operations, with sales contracts primarily in U.S. dollars[178] - Revenue denominated in currencies such as the British Pound Sterling, Euro, Australian dollar, and Canadian dollar may be negatively affected by changes in the U.S. dollar's value[178] - The company has not engaged in hedging foreign currency transactions to date[178] - An immediate 10% change in the U.S. dollar's value relative to other currencies is not expected to materially affect operating results[178]