Smartsheet Inc. recently released its 10-Q report, providing an in-depth look at the company's financial condition and results of operations. Smartsheet is an enterprise platform that offers a wide range of tools and solutions for work management, including Dashboards, Cardview, Grid, Reports, Projects, Calendar, Forms, Automations, and Integrations. The company caters to various sectors such as aerospace, automotive, biotechnology, consumer, e-commerce, education, finance, government, healthcare, IT and professional services, marketing, media, non-profit, publishing, software, technology, and travel.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, Smartsheet reported a significant increase in its Annualized Recurring Revenue (ARR) from $933 million in 2023 to $1.093 billion in 2024. The average ARR per domain-based customer also saw a rise from $8,863 in 2023 to $10,291 in 2024. Additionally, the dollar-based net retention rate for all customers decreased from 121% in 2023 to 113% in 2024.
The company generates its revenue primarily from the sale of subscriptions to its cloud-based platform for work management. For the three months ended July 31, 2024, Smartsheet reported a total revenue of $276.4 million, with subscription revenue accounting for 95% of the total revenue. The subscription revenue increased by 19% from the same period in 2023, amounting to $263.5 million. However, professional services revenue decreased by 8% to $12.9 million for the same period.
In terms of operating expenses, Smartsheet reported total operating expenses of $235.0 million for the three months ended July 31, 2024, with research and development expenses totaling $63.6 million, sales and marketing expenses totaling $130.2 million, and general and administrative expenses totaling $41.2 million.
Following these announcements, the company's shares moved 5.9%, and are now trading at a price of $52.27. If you want to know more, read the company's complete 10-Q report here.
