Smartsheet Q1 FY2025 – Revenue Up 20%, ARR Up 19%

Smartsheet Inc. has reported a 20% year-over-year increase in total revenue for the first quarter of fiscal year 2025, reaching $263.0 million. The company's annualized recurring revenue (ARR) also saw a 19% increase, reaching $1.056 billion.

Operating cash flow for the quarter was $50.1 million, showing a significant 47% increase from the previous year. Free cash flow also rose by 3 percentage points year-over-year to 17% of total revenue, reaching $45.7 million.

Non-GAAP operating income demonstrated a notable improvement, reaching $42.1 million, representing 16% of total revenue, compared to $22.8 million, or 10% of total revenue, in the first quarter of fiscal 2024. This reflects a substantial increase in operational efficiency.

The company's customer base also showed robust growth, with 72 customers with annualized recurring revenue over $1 million, marking a 50% increase year over year. Furthermore, the number of all customers with ARR of $100,000 or more grew to 1,970, representing a 26% increase from the previous year.

Looking ahead, the company has provided guidance for the second quarter of fiscal year 2025, expecting total revenue of $273 million to $275 million, representing year-over-year growth of 16% to 17%. For the full fiscal year 2025, Smartsheet anticipates total revenue of $1,116 million to $1,121 million, representing year-over-year growth of 16% to 17%. Additionally, the company expects non-GAAP net income per share to range from $1.22 to $1.29, assuming diluted weighted-average shares outstanding of approximately 141.0 million.

Smartsheet also announced its inaugural $150 million share repurchase program, reflecting the company's confidence in its long-term prospects. The company's CEO, Mark Mader, expressed optimism about the future, citing new product innovations and a reinvigorated go-to-market strategy as key drivers for long-term growth.

The market has reacted to these announcements by moving the company's shares 0.5% to a price of $37.78. If you want to know more, read the company's complete 8-K report here.

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