NEWS RELEASE

# Smartsheet Inc. Announces Fourth Quarter and Fiscal Year 2024 Results

3/14/2024

[Surpassed $1 billion in annualized recurring revenue in the fourth quarter](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fcontent-center%2Fnews%2Fsmartsheet-reaches-1-billion-annualized-recurring-revenue&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=Surpassed&index=1&md5=1565dee5753259368ad9e96c1905b4a8)

Fourth quarter total revenue grew 21% year over year to $256.9 million

Fourth quarter operating cash îow of $59.7 million and free cash îow of $56.3 million

Ended the year with cash, cash equivalents, and short-term investments of $628.8 million

BELLEVUE, Wash.--(BUSINESS WIRE)-- Smartsheet (NYSE: SMAR), the enterprise work management platform, today

announced ínancial results for its fourth íscal quarter and íscal year ended January 31, 2024.

“Strong demand from our enterprise customers helped us achieve the major milestone of $1 billion in annualized

recurring revenue in Q4,” said Mark Mader, CEO of Smartsheet. “Looking forward, we’re setting the foundation for

the next era of proítable growth with proven, more eïcient go-to-market motions paired with enterprise-grade

product innovation informed by decades of data, work patterns, and customer use cases.”

Fourth Quarter Fiscal 2024 Financial Highlights

Revenue: Total revenue was $256.9 million, an increase of 21% year over year. Subscription revenue was

$244.0 million, an increase of 23% year over year. Professional services revenue was $12.9 million, a decrease

of 4% year over year.

Operating Income (Loss): GAAP operating loss was $(16.6) million, or (6)% of total revenue, compared to

$(44.4) million, or (21)% of total revenue, in the fourth quarter of íscal 2023. Non-GAAP operating income was

$39.6 million, or 15% of total revenue, compared to $7.5 million, or 4% of total revenue, in the fourth quarter

of íscal 2023.


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Net Income (Loss): GAAP net loss was $(9.0) million, compared to $(42.7) million in the fourth quarter of íscal

2023. GAAP net loss per share was $(0.07), compared to $(0.33) in the fourth quarter of íscal 2023. Non-GAAP

net income was $47.1 million, compared to $9.9 million in the fourth quarter of íscal 2023. Non-GAAP basic

and diluted net income per share was $0.35 and $0.34, respectively, compared to $0.08 and $0.07,

respectively, in the fourth quarter of íscal 2023.

Cash Flow: Net operating cash îow was $59.7 million, compared to $20.2 million in the fourth quarter of íscal

2023. Free cash îow was $56.3 million, or 22% of total revenue, compared to $16.4 million, or 8% of total

revenue, in the fourth quarter of íscal 2023.

Fiscal Year 2024 Financial Highlights

Revenue: Total revenue was $958.3 million, an increase of 25% year over year. Subscription revenue was

$904.0 million, an increase of 27% year over year. Professional services revenue was $54.3 million.

Operating Income (Loss): GAAP operating loss was $(120.3) million, or (13)% of total revenue, compared to

$(221.6) million, or (29)% of total revenue, in íscal 2023. Non-GAAP operating income was $100.9 million, or

11% of total revenue, compared to non-GAAP operating loss of $(36.0) million, or (5)% of total revenue, in

íscal 2023.

Net Income (Loss): GAAP net loss was $(104.6) million, compared to $(215.6) million in íscal 2023. GAAP net

loss per share was $(0.78), compared to $(1.66) in íscal 2023. Non-GAAP net income was $116.8 million,

compared to non-GAAP net loss of $(29.2) million in íscal 2023. Non-GAAP basic and diluted net income per

share was $0.87 and $0.85, respectively, compared non-GAAP basic and diluted net loss per share of $(0.22) in

íscal 2023.

Cash Flow: Net operating cash îow was $157.9 million, compared to $23.6 million in íscal 2023. Free cash

îow was $144.5 million, or 15% of revenue, compared to $9.8 million or 1% of revenue in íscal 2023.

Fiscal Year 2024 Operational Highlights

Annualized recurring revenue ("ARR") was $1.031 billion, an increase of 21% year over year

Calculated billings were $1.069 billion, an increase of 20% year over year

Average ARR per domain-based customer was $9,672, an increase of 15% year over year

Dollar-based net retention rate was 116%

Number of all customers with ARR of $100,000 or more was 1,904, an increase of 28% year over year

Number of all customers with ARR of $50,000 or more was 3,924, an increase of 22% year over year

Number of all customers with ARR of $5,000 or more was 19,818, an increase of 10% year over year

Fiscal Year 2024 Business Highlights

[Named a Leader in the December 2023 Gartner® Magic Quadrant™ for Collaborative Work Management.[1]](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fcontent-center%2Fnews%2Fsmartsheet-named-leader-gartner-magic-quadrant-collaborative-work&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=Named&index=2&md5=7066cdbb8f0b45000332aba23fc119e8)


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[Recognized as a 2023 Gartner Peer Insights™ Customers’ Choice for the Collaborative Work Management](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fcontent-center%2Fnews%2Fsmartsheet-recognized-2023-gartnerr-peer-insightstm-customers-choice&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=Recognized&index=4&md5=0a5cb76951696e075cbafeb69dea60b8)

market.1

[Released new generative AI capabilities that empower customers to achieve their goals faster and more](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fai&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=new+generative+AI+capabilities&index=6&md5=04bea909d4040c42625c2ca9455241bc)

easily. The AI tools that enable customers to generate formulas and create text and summaries became

generally available in Q4. More tools, including the Smartsheet-trained AI assistant and analyze data

capabilities, are available to early adopters now and will be released to all eligible users next quarter.

[Signiícantly expanded platform scale and enhanced enterprise-grade security so customers can manage](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fcontent-center%2Fproduct-insights%2Fproduct-updates%2Fsmartsheet-focus-scale-reliability&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=expanded+platform+scale&index=7&md5=60caada1b548de0dbcb4f813d2af32d8)

their most complicated and mission-critical work on Smartsheet securely and reliably.

[Unveiled powerful new workload tracking features that enhance team performance and streamline project](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fcontent-center%2Fnews%2Fsmartsheet-unveils-next-generation-its-enterprise-work-management-platform&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=Unveiled&index=9&md5=219759eb0e58884837f5dd7bf5a5a741)

execution.

[Announced new dashboard themes that enable customers to generate stunning, data-rich dashboards with](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fcontent-center%2Fproduct-news%2Fproduct-releases%2Fsmartsheets-next-evolution-september-19&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=Announced&index=10&md5=d2511dd2fcbdac91ec55ff4a4f8953ce)

ease.

[Announced new ways for customers to visualize their work in Smartsheet, including a new Timeline View,](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fcontent-center%2Fproduct-news%2Fproduct-releases%2Fsmartsheets-next-evolution-september-19&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=Announced&index=11&md5=e8f23b7896bc45d69469e1bc3b706582)

which gives teams a big-picture look into date-based work.

[Recognized as a Leader in two IDC reports: IDC MarketScape: Worldwide Collaborative Work Management](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fidcdocserv.com%2FUS49434923e_Smartsheet&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=Collaborative+Work+Management&index=12&md5=1884669641ad084a206800e264ac8ce6)

2023-2024 Vendor Assessment and IDC MarketScape: Worldwide 2 [Cloud Project and Portfolio Management](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fidcdocserv.com%2FUS49434923e_Smartsheet&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=Cloud+Project+and+Portfolio+Management&index=13&md5=e3eaae3914b2b5837d4d83a49d27df20)

2023-2024 Vendor Assessment.3

[Invested in Australia-based data hosting to better serve the company’s growing list of customers in the](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fcontent-center%2Fnews%2Fsmartsheet-invests-australia-based-data-hosting-better-serve-global-customer&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=Invested+in&index=14&md5=9dbc914e41f1cad7de23f5358f9404cd)

region.

The section titled "Use of Non-GAAP Financial Measures" below contains a description of the non-GAAP ínancial

measures with a reconciliation between GAAP and non-GAAP information. The section titled "Deínitions of Key

Business Metrics" contains deínitions of certain non-ínancial metrics provided within this earnings release.

Financial Outlook

For the írst quarter of íscal year 2025, the Company currently expects:

Total revenue of $257 million to $259 million, representing year-over-year growth of 17% to 18%

Non-GAAP operating income of $32 million to $34 million

Non-GAAP net income per share of $0.26 to $0.27, assuming diluted weighted-average shares outstanding of

approximately 141.0 million

For the full íscal year 2025, the Company currently expects:

Total revenue of $1,113 million to $1,118 million, representing year-over-year growth of 16% to 17%

Non-GAAP operating income of $135 million to $145 million

Non-GAAP net income per share of $1.06 to $1.13, assuming diluted weighted-average shares outstanding of


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approximately 142.2 million

ARR year-over-year growth of 14%

Free cash îow of $200 million

We have not reconciled free cash îow or diluted weighted-average shares outstanding guidance to their most

directly comparable GAAP measure due to the uncertainty regarding, and the potential variability of, the related

reconciling items. For those reasons, we are also unable to address the probable signiícance of the unavailable

information. Accordingly, a reconciliation for free cash îow and diluted weighted-average shares outstanding

guidance is not available without unreasonable eìort.

_________________

1Gartner® is a registered trademark and service mark of Gartner, Inc. and Magic Quadrant™ and Gartner Peer Insights™ are registered trademarks of

Gartner, Inc. and/or its aïliates in the U.S. and internationally and are used herein with permission. All rights reserved.
Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and should not be construed as
statements of fact, nor do they represent the views of Gartner or its aïliates. Gartner does not endorse any vendor, product or service depicted in
this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any
warranties of merchantability or ítness for a particular purpose.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only
those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization
and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any
warranties of merchantability or ítness for a particular purpose.

2doc #US49434923, December 2023
3doc #US49434823, December 2023

Conference Call Information

Smartsheet will host a conference call and live webcast for analysts and investors at 1:30 p.m. Paciíc Time on

March 14, 2024. A live webcast and accompanying presentation can be accessed through the events section of the

[Smartsheet investor relations website at: https://investors.smartsheet.com. The conference call can also be](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.smartsheet.com%2Foverview%2Fdefault.aspx&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=https%3A%2F%2Finvestors.smartsheet.com&index=15&md5=a4f0b8363dcfe563ac090c81527e3ea6)

accessed by dialing (888) 440-6385, or +1 (646) 960-0180 (outside of the U.S.). The conference ID is 7672979. A

replay of the conference call will be available starting approximately two hours after the conclusion of the live event

and will be available for seven days. The dial-in for the replay is (800) 770-2030 or +1 (609) 800-9909 (outside of the

U.S.).

Forward-Looking Statements

This press release contains “forward-looking” statements that are based on our management’s beliefs and

assumptions and on information currently available to management. Forward-looking statements include, but are

not limited to, statements about Smartsheet’s outlook for the írst íscal quarter ending April 30, 2024 and the full

íscal year ending January 31, 2025, and Smartsheet’s expectations regarding possible or assumed business

strategies, potential growth and innovation opportunities, new products, and potential market opportunities.

Forward-looking statements generally relate to future events or our future ínancial or operating performance.


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Forward-looking statements include all statements that are not historical facts and can be identiíed by terms such

as “believe,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of

those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that

may cause our actual results, performance or achievements to be materially diìerent from any future results,

performance or achievements expressed or implied by the forward-looking statements. These risks include, but are

not limited to, risks and uncertainties related to: our ability to achieve future growth and sustain our growth rate;

our ability to attract and retain customers and increase sales to our customers; our ability to develop and release

new products and services and to scale our platform; our ability to increase adoption of our platform through our

self-service model; our ability to maintain and grow our relationships with strategic partners; the highly competitive

and rapidly evolving market in which we participate; our ability to identify targets for, execute on, or realize the

beneíts of, potential acquisitions; and our international expansion strategies. Further information on risks that

could cause actual results to diìer materially from forecasted results is included in our ílings with the SEC,

including our Annual Report on Form 10-K for the íscal year ended January 31, 2024 to be íled with the SEC. Any

forward-looking statements contained in this press release are based on assumptions that we believe to be

reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking

statements, or to update the reasons if actual results diìer materially from those anticipated in the forward-looking

statements.

Use of Non-GAAP Financial Measures

To supplement our consolidated ínancial statements, which are prepared and presented in accordance with GAAP,

we use certain non-GAAP ínancial measures, as described below, to understand and evaluate our core operating

performance. These non-GAAP ínancial measures, which may be diìerent than similarly titled measures used by

other companies, are presented to enhance investors’ overall understanding of our ínancial performance and

should not be considered a substitute for, or superior to, the ínancial information prepared and presented in

accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their

most directly comparable GAAP ínancial measures. A reconciliation of the non-GAAP ínancial measures to such

GAAP measures can be found in the accompanying ínancial statements included with this press release.

We believe that these non-GAAP ínancial measures provide useful information about our ínancial performance,

enhance the overall understanding of our past performance and future prospects, and allow for greater

transparency with respect to important metrics used by our management for ínancial and operational decision
making. We are presenting these non-GAAP ínancial metrics to assist investors in seeing our ínancial performance

through the eyes of management, and because we believe that these measures provide an additional tool for

investors to use in comparing our core ínancial performance over multiple periods with other companies in our

industry.


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We deíne non-GAAP operating income (loss) as GAAP operating loss excluding share-based compensation expense,

amortization of acquisition-related intangible assets, one-time costs associated with mergers and acquisitions,

lease restructuring costs, and litigation expenses and settlements related to matters that are outside the ordinary

course of our business, as applicable. We deíne non-GAAP net income (loss) as GAAP net loss excluding non
recurring income tax adjustments associated with mergers and acquisitions and the same exclusions that are used

to derive non-GAAP operating income (loss).

We deíne basic non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by weighted-average

shares outstanding ("WASO"). We deíne diluted non-GAAP net income per share as non-GAAP net income divided

by diluted WASO. Diluted WASO includes the impact of potentially dilutive securities, which include stock options,

restricted share units, performance share units, and shares subject to our 2018 employee stock purchase plan. If

there is a non-GAAP net loss, basic and diluted loss per share are the same number as all potentially dilutive

securities would have an antidilutive impact. There are a number of limitations related to the use of these non
GAAP measures as compared to GAAP operating loss and net loss, including that the non-GAAP measures exclude

share-based compensation expense, which has been, and will continue to be for the foreseeable future, a

signiícant recurring expense in our business and an important part of our compensation strategy.

We use the non-GAAP ínancial measure of free cash îow, which is deíned as GAAP net cash îows from operating

activities, reduced by cash used for purchases of property and equipment (inclusive of spend on internal-use

software) and principal payments on ínance lease obligations. We believe free cash îow is an important liquidity

measure of the cash that is available, after capital expenditures and operational expenses, for investment in our

business and to make acquisitions. Free cash îow is useful to investors as a liquidity measure because it measures

our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain

a strong balance sheet and invest in future growth. There are a number of limitations related to the use of free cash

îow as compared to net cash from operating activities, including that free cash îow includes capital expenditures,

the beneíts of which are realized in periods subsequent to those when expenditures are made.

We deíne calculated billings as total revenue plus the change in deferred revenue in the period. Because we

recognize subscription revenue ratably over the subscription term, calculated billings can be used to measure our

subscription sales activity for a particular period, to compare subscription sales activity across particular periods,

and as an indicator of future subscription revenue.

Deínitions of Key Business Metrics

In the fourth quarter of íscal year ended January 31, 2024, management re-evaluated its key business metrics and

as a result annualized contract value (“ACV”) will now be referred to as annualized recurring revenue (“ARR”). We


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believe the change will result in key business metrics that more closely align with our industry peers and with how

management views growth in the business and evaluates ínancial performance. The change from ACV to ARR did

not have a material impact to our key business metrics in the current or any prior reporting period. The deínition

and calculation of the key business metrics discussed below may diìer from other similarly titled metrics used by

other companies.

Annualized recurring revenue

We deíne annualized recurring revenue, or ARR, as the annualized recurring value of all active subscription

contracts at the end of a reporting period. We exclude the value of non-recurring revenue streams, such as our

professional services revenue, that are recognized at a point in time. We use ARR as one of our operating measures

to assess the strength of the Company’s subscription services. ARR is a performance metric and should be viewed

independently of revenue and deferred revenue, and is not intended to be a substitute for, or combined with, any

of these items. Both multi-year contracts and contracts with terms less than one year are annualized by dividing the

total committed contract value by the number of months in the subscription term and then multiplying by twelve.

Annualizing contracts with terms less than one year results in amounts being included in our ARR calculation that

are in excess of the total contract value for those contracts at the end of the reporting period. The value of

subscription contracts that are sold through third-party resellers, wherein we do not have visibility into the pricing

provided, is based on the list price. ARR growth is calculated by dividing the ARR as of a period end by the ARR for

the corresponding period end of the prior íscal year.

Average ARR per domain-based customer

We use average ARR per domain-based customer to measure customer commitment to our platform and sales

force productivity. We deíne average ARR per domain-based customer as total outstanding ARR for domain-based

subscriptions as of the end of the reporting period divided by the number of domain-based customers as of the

same date. We deíne domain-based customers as organizations with a unique email domain name.

Dollar-based net retention rate

We calculate dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all

customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these

same customers as of the current period end (“Current Period ARR”). Current Period ARR includes any upsells and is

net of contraction or attrition over the trailing 12 months, but excludes subscription revenue from new customers

in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the

dollar-based net retention rate. Any ARR obtained through merger and acquisition transactions does not aìect the

dollar-based net retention rate until one year from the date on which the transaction closed.


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The dollar-based net retention rate is used by us to evaluate the long-term value of our customer relationships and

is driven by our ability to retain and expand the subscription revenue generated from our existing customers.

About Smartsheet

Smartsheet is the modern enterprise work management platform trusted by millions of people at companies

across the globe, including 85% of the 2023 Fortune 500 companies. The category pioneer and market leader,

Smartsheet delivers powerful solutions fueling performance and driving the next wave of innovation. Visit

[www.smartsheet.com to learn more.](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.smartsheet.com%2Fcustomers-home&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=www.smartsheet.com&index=16&md5=fea181a54aedba74dfef5b637ae80966)

Disclosure of Material Information

Smartsheet announces material information to its investors using SEC ílings, press releases, public conference

[calls, and on its investor relations page of the company’s website at https://investors.smartsheet.com.](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.smartsheet.com%2Foverview%2Fdefault.aspx&esheet=53910329&newsitemid=20240314815926&lan=en-US&anchor=https%3A%2F%2Finvestors.smartsheet.com&index=17&md5=3fad491ca463e72f395e930ea9de7029)

SMARTSHEET INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)


Three Months Ended

January 31,


Year Ended January

31,


2024 2023 2024 2023

Revenue

Subscription $ 244,038 $ 198,856 $ 904,031 $ 713,735

Professional services 12,911 13,481 54,307 53,180

Total revenue 256,949 212,337 958,338 766,915

Cost of revenue

Subscription 33,649 32,230 134,658 114,384

Professional services 12,842 12,483 51,790 50,901

Total cost of revenue 46,491 44,713 186,448 165,285

Gross proít 210,458 167,624 771,890 601,630

Operating expenses

Research and development 61,266 58,376 234,071 215,205

Sales and marketing 127,891 119,728 510,576 479,250

General and administrative 37,871 33,938 147,525 128,811

Total operating expenses 227,028 212,042 892,172 823,266

Loss from operations (16,570) (44,418) (120,282) (221,636)

Interest income 7,601 3,729 25,641 7,742

Other income (expense), net (120) (285) (1,501) 1,104

Loss before income tax provision (beneít) (9,089) (40,974) (96,142) (212,790)

Income tax provision (beneít) (113) 1,758 8,489 2,849

$ (215,639)
Net loss (8,976) $ (42,732) $ (104,631) $

Net loss per share, basic and diluted $ (0.07) $ (0.33) $ (0.78) $ (1.66)

Weighted-average shares outstanding used to compute net loss per share, basic and
diluted 136,389 131,435 134,507 130,071


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Share-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands, unaudited):


Three Months Ended

January 31,


Year Ended January

31,


2024 2023 2024 2023

Cost of subscription revenue $ 3,089 $ 3,271 $ 13,069 $ 11,248

Cost of professional services revenue 1,867 1,735 7,469 6,404

Research and development 19,078 17,259 71,341 62,165

Sales and marketing 18,040 17,704 73,545 63,224

General and administrative 10,683 9,128 40,782 33,514

$ 176,555
Total share-based compensation expense 52,757 $ 49,097 $ 206,206 $

SMARTSHEET INC.

Condensed Consolidated Balance Sheets

(in thousands, except share data)

(unaudited)

January 31,

2024 2023

Assets

Current assets:

Cash and cash equivalents $ 282,094 $ 223,156

Short-term investments 346,701 233,225

Accounts receivable, net of allowances of $6,560 and $6,285, respectively 238,708 198,643

Prepaid expenses and other current assets 64,366 55,063

Total current assets 931,869 710,087

Restricted cash 19 197

Deferred commissions 148,867 121,785

Property and equipment, net 42,362 39,395

Operating lease right-of-use assets 39,480 54,278

Intangible assets, net 27,960 39,069

Goodwill 141,477 142,415

Other long-term assets 5,445 2,983

Total assets $ 1,337,479 $ 1,110,209

Liabilities and shareholders’ equity

Current liabilities:

Accounts payable $ 2,937 $ 2,125

Accrued compensation and related beneíts 77,453 68,347

Other accrued liabilities 30,534 27,437

Operating lease liabilities, current 16,040 19,220

Finance lease liabilities, current 216 —

Deferred revenue 568,670 457,534

Total current liabilities 695,850 574,663

Operating lease liabilities, non-current 33,100 47,564

Finance lease liabilities, non-current 455 —

Deferred revenue, non-current 1,785 2,195

Other long-term liabilities 434 129

Total liabilities 731,624 624,551

Shareholders’ equity:

Preferred stock, no par value; 10,000,000 shares authorized, no shares issued or outstanding as of January 31, 2024
and January 31, 2023 — —

Class A common stock, no par value; 500,000,000 shares authorized, 136,884,011 shares issued and outstanding as of
January 31, 2024; 500,000,000 shares authorized, 131,845,028 shares issued and outstanding as of January 31, 2023 — —

Class B common stock, no par value; 500,000,000 shares authorized, no shares issued and outstanding as of January
31, 2024 and January 31, 2023 — —

Additional paid-in capital 1,468,805 1,243,730

Accumulated other comprehensive income (loss) (146) 101

Accumulated deícit (862,804) (758,173)

Total shareholders’ equity 605,855 485,658

Total liabilities and shareholders’ equity $ 1,337,479 $ 1,110,209


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SMARTSHEET INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Cash îows from operating activities


Year Ended January

31,

2024 2023


Net loss $ (104,631) $ (215,639)

Adjustments to reconcile net loss to net cash provided by operating activities:

Share-based compensation expense 206,206 176,555

Depreciation and amortization 27,012 24,856

Net amortization of discounts on investments (12,546) (2,768)

Amortization of deferred commission costs 53,587 47,093

Unrealized foreign currency (gain) loss 670 (1,198)

Non-cash operating lease costs 12,012 18,914

Impairment of long-lived assets 1,448 1,544

Other, net 4,042 (429)

Changes in operating assets and liabilities:

Accounts receivable (43,910) (47,597)

Prepaid expenses and other current assets (9,548) (21,437)

Other long-term assets (3,049) (590)

Accounts payable 828 154

Other accrued liabilities 3,481 8,432

Accrued compensation and related beneíts 7,894 3,739

Deferred commissions (80,668) (77,566)

Deferred revenue 110,781 123,853

Other long-term liabilities 308 89

Operating lease liabilities (16,039) (14,417)

Net cash provided by operating activities 157,878 23,588

Cash îows from investing activities

Purchases of short-term investments (513,490) (456,649)

Maturities of short-term investments 413,100 226,048

Purchases of property and equipment (2,563) (6,137)

Proceeds from sale of property and equipment 42 217

Proceeds from liquidation of a long-term investment — 622

Capitalized internal-use software development costs (10,775) (7,660)

Payments for business acquisitions, net of cash and restricted cash acquired — (20,342)

Net cash used in investing activities (113,686) (263,901)

Cash îows from ínancing activities

Proceeds from exercise of stock options 1,653 5,633

Taxes paid related to net share settlement of restricted stock units (7,100) (4,177)

Proceeds from contributions to Employee Stock Purchase Plan 20,006 12,600

Payments on principal of ínance leases (34) —

Net cash provided by ínancing activities 14,525 14,056

Eìects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash (32) 334

Net increase (decrease) in cash, cash equivalents, and restricted cash 58,685 (225,923)

Cash, cash equivalents, and restricted cash at beginning of period 223,757 449,680

$ 223,757
Cash, cash equivalents, and restricted cash at end of period 282,442 $

Supplemental disclosures

Cash paid for interest $ 11 $ —

Cash paid for income tax 12,085 551

Accrued purchases of property and equipment, including internal-use software 1,445 1,271

Share-based compensation capitalized in internal-use software development costs 4,567 3,359

Right-of-use assets obtained in exchange for new operating lease liabilities 1,666 7,230

Right-of-use assets reductions related to operating leases 4,451 4,696

Purchases of íxed assets under ínance leases 693 —

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SMARTSHEET INC.

Reconciliation from GAAP to Non-GAAP Financial Measures

(unaudited)

Reconciliation from GAAP to non-GAAP operating income (loss) and operating margin

Three Months Ended January

31, Year Ended January 31,

2024 2023 2024 2023

(dollars in thousands)

Loss from operations $ (16,570) $ (44,418) $ (120,282) $ (221,636)

Add:

Share-based compensation expense(1) 53,379 49,473 208,298 177,966

Amortization of acquisition-related intangible assets(2) 2,709 2,716 10,826 10,310

One-time acquisition costs — 10 — 622

Litigation expenses and settlements(3) — (3,900) — (8,400)

Lease restructuring costs(4) 36 3,600 2,087 5,144

$ 39,554 $ 7,481 $ 100,929 $ (35,994)
Non-GAAP operating income (loss)

Operating margin (6)% (21)% (13)% (29)%

Non-GAAP operating margin 15% 4% 11% (5)%

(1)Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods.
(2)Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting. The amortization of intangible assets

related to acquisitions will recur in future periods until such intangible assets have been fully amortized.

(3)Relates to matters that are outside the ordinary course of our business.
(4)Includes charges related to the reassessment of our real estate lease portfolio.

Reconciliation from GAAP to non-GAAP net income (loss) and per share data

Three Months Ended January

31, Year Ended January 31,

2024 2023 2024 2023

(in thousands, except per share data)

Net loss $ (8,976) $ (42,732) $ (104,631) $ (215,639)

Add:

Share-based compensation expense(1) 53,379 49,473 208,298 177,966

Amortization of acquisition-related intangible assets(2) 2,709 2,716 10,826 10,310

One-time acquisition costs — 10 — 622

Litigation expenses and settlements(3) — (3,900) — (8,400)

Lease restructuring costs(4) 36 4,355 2,294 5,899

$ 47,148 $ 9,922 $ 116,787 $ (29,242)
Non-GAAP net income (loss)

Non-GAAP net income (loss) per share, basic $ 0.35 $ 0.08 $ 0.87 $ (0.22)

Non-GAAP net income (loss) per share, diluted $ 0.34 $ 0.07 $ 0.85 $ (0.22)

(1)Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods.
(2)Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting. The amortization of intangible assets

related to acquisitions will recur in future periods until such intangible assets have been fully amortized.

(3)Relates to matters that are outside the ordinary course of our business.
(4)Includes charges related to the reassessment of our real estate lease portfolio.

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Non-GAAP reconciliation from basic to diluted weighted-average shares outstanding

Three Months Ended January

31, Year Ended January 31,

2024 2023 2024 2023

(in thousands)

Weighted-average shares outstanding; basic 136,389 131,435 134,507 130,071

Eìect of dilutive securities:

Shares subject to outstanding common stock awards 3,282 2,646 3,560 —

139,671 134,081 138,067 130,071
Non-GAAP weighted-average shares outstanding; diluted

Reconciliation from net operating cash îow to free cash îow

Three Months Ended January

31, Year Ended January 31,

2024 2023 2024 2023

(in thousands)

Net cash provided by operating activities $ 59,702 $ 20,193 $ 157,878 $ 23,588

Less:

Purchases of property and equipment (466) (1,962) (2,563) (6,137)

Capitalized internal-use software development costs (2,925) (1,834) (10,775) (7,660)

Payments on principal of ínance leases (34) — (34) —

$ 56,277 $ 16,397 $ 144,506 $ 9,791
Free cash îow

Reconciliation from revenue to calculated billings

Three Months Ended January

31, Year Ended January 31,

2024 2023 2024 2023

(in thousands)

Total revenue $ 256,949 $ 212,337 $ 958,338 $ 766,915

Add:

Deferred revenue (end of period) 570,455 459,729 570,455 459,729

Less:

Deferred revenue (beginning of period) 485,469 385,351 459,729 334,662

$ 341,935 $ 286,715 $ 1,069,064 $ 891,982
Calculated billings

Reconciliation from GAAP operating loss to non-GAAP operating income guidance

Q1 FY 2025 FY 2025

Low High Low High

(in millions)

Loss from operations $ (25.7) $ (23.7) $ (98.6) $ (88.6)

Add:

Share-based compensation expense(1) 55.0 55.0 222.0 222.0

A ti ti f i iti l t d i t ibl t (2) 2 7 2 7 9 6 9 612


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Amortization of acquisition-related intangible assets(2) 2.7 2.7 9.6 9.6

Lease restructuring costs(3) — — 2.0 2.0

$ 32.0 $ 34.0 $ 135.0 $ 145.0
Non-GAAP operating income

(1)Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods.
(2)Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting. The amortization of intangible assets

related to acquisitions will recur in future periods until such intangible assets have been fully amortized.

(3)Includes charges related to the reassessment of our real estate lease portfolio.

Reconciliation from GAAP net loss to non-GAAP net income guidance

Q1 FY 2025 FY 2025

Low High Low High

(in millions)

Net loss $ (21.1) $ (19.1) $ (82.6) $ (72.6)

Add:

Share-based compensation expense(1) 55.0 55.0 222.0 222.0

Amortization of acquisition-related intangible assets(2) 2.7 2.7 9.6 9.6

Lease restructuring costs(3) — — 2.0 2.0

$ 36.6 $ 38.6 $ 151.0 $ 161.0
Non-GAAP net income

(1)Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods.
(2)Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting. The amortization of intangible assets

related to acquisitions will recur in future periods until such intangible assets have been fully amortized.

(3)Includes charges related to the reassessment of our real estate lease portfolio.

Smartsheet Inc.

Investor Relations Contact

Aaron Turner

[investorrelations@smartsheet.com](mailto:investorrelations@smartsheet.com)

Media Contact

Chrissy Vaughn


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[pr@smartsheet.com](mailto:pr@smartsheet.com)

Source: Smartsheet


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