Smartsheet(US:SMAR)2020-06-04 03:31Financial Data and Key Metrics Changes - Revenue for Q1 2021 was $85.5 million, representing a 52% year-over-year increase, while billings were $89.9 million, up 30% compared to the previous year [9][32] - Non-GAAP operating loss was $13.6 million, which was better than expected, and free cash flow was negative $28.2 million [31][45] - Annual recurring revenue (ARR) from Fortune 500 customers grew 48% year-over-year, with 79% of the Fortune 500 now being key customers [32] Business Line Data and Key Metrics Changes - Subscription revenue was $77.2 million, reflecting a 53% year-over-year growth, while services revenue was $8.3 million, growing 42% year-over-year [37] - The average annual contract value (ACV) grew 45% year-over-year to $3,866, indicating expansion in licenses and additional products [40] Market Data and Key Metrics Changes - The SMB segment represented approximately 28% of ARR at the end of the quarter, showing COVID-related softness, while sectors like life sciences, healthcare, and finance performed well [33][61] - Total users increased to over 6.75 million at the end of Q1, up from 6.3 million at the end of Q4 [14] Company Strategy and Development Direction - The company is focusing on international expansion, government initiatives, increasing sales and service capacity, brand marketing, and product innovation [28] - The management emphasized the importance of adapting to a hybrid work environment, balancing remote and in-office work [29][107] Management's Comments on Operating Environment and Future Outlook - Management noted that while there was a stabilization in pipeline development and sales performance in May, the overall demand environment remains uncertain due to COVID [19][46] - The company remains committed to investing in key initiatives despite the challenges posed by the pandemic [28][90] Other Important Information - The company provided guidance for Q2 2021, expecting revenue in the range of $86 million to $87 million and billings between $91 million and $93 million [48] - The company has $544 million in cash on the balance sheet and no debt, indicating financial strength [36] Q&A Session Summary Question: Stabilization trends in May - Management observed significant improvement in opportunity development in May, with the strongest pipeline in the company's history [53] Question: Impact of current environment on enterprise focus - The company is pleased with its decision to focus on enterprise, as it has led to meaningful transactions tied to business processes [55] Question: Specific impacts on growth use cases - The company noted that while micro transactions continue, larger transactions are experiencing delays due to economic uncertainty [59] Question: Guidance for billings and visibility - Management indicated that guidance is influenced by the macroeconomic environment and the pace of reopening in various regions [64] Question: International sales trends - Revenue growth rates accelerated in EMEA, while there was a slight deceleration in Asia [69] Question: Hiring strategy in the current environment - The company is being cautious with hiring, focusing on areas that matter while ensuring existing sales reps are well supported [104]