Smartsheet Inc. (SMAR): history, ownership, mission, how it works & makes money

A Brief History of Smartsheet Inc.

Company Overview

Smartsheet Inc. is a leading platform for work management and automation solutions, catering to organizations of all sizes. As of July 31, 2024, Smartsheet reported a total revenue of $276.4 million, marking an increase of 17% compared to the previous year.

Financial Performance

For the three months ended July 31, 2024, Smartsheet's subscription revenue reached $263.5 million, reflecting a growth of 19% year-over-year. The professional services revenue was $12.9 million, down 8% from the prior year.

Operating Expenses

Operating expenses for Q2 2024 totaled $235.0 million, with significant contributions from research and development at $63.6 million, sales and marketing at $130.2 million, and general and administrative expenses at $41.2 million. This reflects a total operating expenses increase of 5% from the same period in 2023.

Cash Flow and Liquidity

As of July 31, 2024, Smartsheet's cash and cash equivalents stood at $393.5 million, with short-term investments at $313.1 million. The net cash provided by operating activities for the six months ended July 31, 2024, was $109.2 million, compared to $83.0 million in the same period last year.

Stock Performance and Share Repurchase Program

In April 2024, Smartsheet's Board of Directors authorized a stock repurchase program of up to $150 million. For the three months ended July 31, 2024, the company repurchased approximately 0.9 million shares at an average price of $43.95 per share, totaling $40.3 million.

A Who Owns Smartsheet Inc. (SMAR)

Major Shareholders

As of July 31, 2024, Smartsheet Inc. has the following major shareholders:

Stock Performance

As of July 31, 2024, Smartsheet Inc.'s stock performance metrics include:

• Current Stock Price: $43.95
• Market Capitalization: $6.1 billion
• 52-Week Range: $35.00 - $60.00
• Volume: 1,200,000 average shares traded per day

Financial Overview

For the six months ended July 31, 2024:

• Total Revenue: $539.4 million
• Subscription Revenue: $512.6 million
• Net Income (Loss): $(1.0) million
• Operating Expenses: $460.8 million

Recent Developments

In April 2024, Smartsheet's Board of Directors authorized a share repurchase program of up to $150 million. As of July 31, 2024, the company had repurchased approximately 0.9 million shares at an average price of $43.95, totaling $40.3 million.

Ownership Changes

Smartsheet has seen fluctuations in ownership due to stock repurchases and stock option exercises. The following table outlines changes in shares over recent periods:

Future Outlook

Smartsheet Inc. anticipates continued growth in revenue, driven by increased subscription sales and expansion into new markets. The company projects annual recurring revenue (ARR) to reach approximately $1.1 billion by the end of the fiscal year, up from $933 million in the previous year.

Smartsheet Inc. (SMAR) Mission Statement

Overview of Mission Statement

Smartsheet Inc. aims to empower teams to work collaboratively and efficiently using its cloud-based platform designed for work management. As of 2024, the company emphasizes innovation, user-centric design, and integration capabilities to enhance productivity across various industries.

Financial Performance

For the three months ended July 31, 2024, Smartsheet reported total revenue of $276.4 million, which reflects an increase from $235.6 million in the same period of 2023. The subscription revenue specifically was $263.5 million, up from $221.5 million year-over-year.

Key Financial Metrics

Customer Metrics

As of July 31, 2024, Smartsheet reported significant growth in its customer base:

• Customers with Annual Recurring Revenue (ARR) of $100,000 or more: 2,056
• Customers with ARR of $50,000 or more: 4,140
• Customers with ARR of $5,000 or more: 20,198

Annualized Recurring Revenue (ARR)

The company achieved an ARR of $1.093 billion as of July 31, 2024, compared to $933 million in 2023. The average ARR per domain-based customer also increased to $10,291 from $8,863.

Market Position and Strategy

Smartsheet's mission reflects its commitment to providing a flexible platform that integrates with various tools and systems, enhancing the productivity of teams worldwide. The company continues to innovate its offerings to meet diverse customer needs and adapt to changing market conditions.

Research and Development Investment

For the fiscal quarter ending July 31, 2024, Smartsheet invested $63.6 million in research and development, compared to $58.4 million in the prior year. This investment underscores the company's focus on enhancing its platform capabilities.

Shareholder Information

As of July 31, 2024, Smartsheet repurchased 0.9 million shares of its Class A common stock at an average price of $43.95 per share, totaling $40.3 million as part of its $150 million repurchase program initiated in April 2024.

Conclusion of Financial Overview

Smartsheet's mission statement is reinforced by its strong financial performance and strategic initiatives aimed at enhancing customer collaboration and productivity through innovative solutions.

How Smartsheet Inc. (SMAR) Works

Company Overview

Smartsheet Inc. (SMAR) operates as a platform for work management and automation solutions. The company offers a collaborative work management platform that enables organizations to plan, track, automate, and report on work in real time.

Financial Performance

For the three months ended July 31, 2024, Smartsheet reported the following financial results:

For the six months ended July 31, 2024, the financial results were as follows:

Cost Structure and Gross Margin

Smartsheet's cost of revenue for the three months ended July 31, 2024 was as follows:

Operating Expenses

For the three months ended July 31, 2024, the operating expenses were:

Cash Flows and Liquidity

For the six months ended July 31, 2024, cash flow results were:

Future Outlook

As of July 31, 2024, Smartsheet expects to recognize approximately $765.1 million in revenue from remaining performance obligations, with about 82% anticipated to be recognized in the next 12 months.

How Smartsheet Inc. (SMAR) Makes Money

Revenue Model

Smartsheet Inc. primarily generates revenue through the sale of subscriptions to its cloud-based work management platform. The company offers various subscription plans tailored to different customer needs, including Pro, Business, and Enterprise tiers. In addition to these, customers can purchase specific capabilities a la carte or through the Smartsheet Advance package options.

Financial Performance Overview

For the three months ended July 31, 2024, Smartsheet reported:

For the six months ended July 31, 2024, the figures were:

Cost Structure and Gross Margin

The cost of revenue for the three months ended July 31, 2024 was:

The gross profit for the same period was:

Key Business Metrics

As of July 31, 2024, Smartsheet reported the following key business metrics:

Deferred Revenue

As of July 31, 2024, Smartsheet reported:

Net Income and Earnings Per Share

For the three months ended July 31, 2024, Smartsheet reported a net income of:

For the six months ended July 31, 2024, the figures were:

Cash Flows and Liquidity

As of July 31, 2024, Smartsheet's cash position was:

Smartsheet finances its operations primarily through payments received from customers for subscriptions and professional services, along with interest income from short-term investments. A significant majority of customers pay in advance for annual subscriptions, contributing to deferred revenue, which was $549.9 million as of July 31, 2024.