NEWS RELEASE

# Smartsheet Inc. Announces Third Quarter Fiscal Year 2024 Results

12/7/2023

Third quarter total revenue grew 23% year over year to $245.9 million

Third quarter operating cash îow of $15.1 million and free cash îow of $11.4 million

Ended the quarter with cash, cash equivalents, and short-term investments of $568.7 million

BELLEVUE, Wash.--(BUSINESS WIRE)-- Smartsheet Inc. (NYSE: SMAR), the enterprise platform for modern work

management, today announced ínancial results for its third íscal quarter ended October 31, 2023.

“We exceeded expectations on the top and bottom lines this quarter,” said Mark Mader, CEO of Smartsheet. “Our

enterprise customers are operating more durable, more mission-critical solutions on the Smartsheet platform than

ever before. We remain focused on bringing our latest innovations to the market so new and existing customers

can fully capitalize on our enterprise leading platform.”

Third Quarter Fiscal 2024 Financial Highlights

Revenue: Total revenue was $245.9 million, an increase of 23% year over year. Subscription revenue was

$232.5 million, an increase of 25% year over year. Professional services revenue was $13.4 million, relatively

îat compared to the third quarter of íscal 2023.

Operating Income (Loss): GAAP operating loss was $(35.5) million, or (14)% of total revenue, compared to

$(42.6) million, or (21)% of total revenue, in the third quarter of íscal 2023. Non-GAAP operating income was

$19.4 million, or 8% of total revenue, compared to non-GAAP operating loss of $(4.3) million, or (2)% of total


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revenue, in the third quarter of íscal 2023.

Net Income (Loss): GAAP net loss was $(32.4) million, compared to GAAP net loss of $(40.1) million in the third

quarter of íscal 2023. GAAP net loss per share was $(0.24), compared to GAAP net loss per share of $(0.31) in

the third quarter of íscal 2023. Non-GAAP net income was $22.6 million, compared to non-GAAP net loss of

$(1.9) million in the third quarter of íscal 2023. Non-GAAP basic and diluted net income per share was $0.17

and $0.16, respectively, compared to non-GAAP basic and diluted net loss per share of $(0.01) in the third

quarter of íscal 2023.

Cash Flow: Netoperating cash îow was $15.1 million, compared to $(1.8) million in the third quarter of íscal

2023. Free cash îow was $11.4 million, or 5% of total revenue, compared to $(4.6) million, or (2)% of total

revenue, in the third quarter of íscal 2023.

Third Quarter Fiscal 2024 Operational Highlights

Calculated billings were $268.5 million, representing year-over-year growth of 22%

Dollar-based net retention rate was 118%

Number of all customers with annualized contract values ("ACV") of $100,000 or more grew to 1,779, an

increase of 32% year over year

Number of all customers with ACV of $50,000 or more grew to 3,719, an increase of 26% year over year

Number of all customers with ACV of $5,000 or more grew to 19,389, an increase of 11% year over year

Average ACV per domain-based customer increased to $9,225, an increase of 16% year over year

Third Quarter Fiscal 2024 Business Highlights

[Announced new platform features at the annual Smartsheet ENGAGE customer conference, including](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=53868113&newsitemid=20231207428664&lan=en-US&anchor=Announced&index=1&md5=2f7b72b6f9e733e1bddf7676ef2dd682)

unparalleled scale, AI-driven data insights and solution building, democratized resource management, and

modern simpliíed views

[Announced Australia-based data hosting to better serve our growing list of customers in the region](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=53868113&newsitemid=20231207428664&lan=en-US&anchor=Announced&index=2&md5=47c632593072bae20c89da271ccff2f7)

[Brandfolder by Smartsheet was recognized as a top ten vendor in The Q3 2023 Constellation ShortList™:](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.constellationr.com%2Fresearch%2Fconstellation-shortlist-digital-asset-management-dam-high-volume-commerce-8&esheet=53868113&newsitemid=20231207428664&lan=en-US&anchor=The+Q3+2023+Constellation+ShortList%26%238482%3B%3A+Digital+Asset+Management+%28DAM%29+for+High-Volume+Commerce&index=3&md5=97211adf704bd3ecbe89f3e0905e3e0e)

[Digital Asset Management (DAM) for High-Volume Commerce report](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.constellationr.com%2Fresearch%2Fconstellation-shortlist-digital-asset-management-dam-high-volume-commerce-8&esheet=53868113&newsitemid=20231207428664&lan=en-US&anchor=The+Q3+2023+Constellation+ShortList%26%238482%3B%3A+Digital+Asset+Management+%28DAM%29+for+High-Volume+Commerce&index=3&md5=97211adf704bd3ecbe89f3e0905e3e0e)

[Named as a top brand in the enterprise category on Fast Company’s annual list of Brands That Matter](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.fastcompany.com%2F90953723%2Fenterprise-brands-that-matter-2023&esheet=53868113&newsitemid=20231207428664&lan=en-US&anchor=enterprise+category&index=4&md5=2986c38cee4e4a1895a70437595b6573)

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

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

Financial Outlook

For the fourth quarter of íscal year 2024, the Company currently expects:


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Total revenue of $254 million to $256 million, representing year-over-year growth of 20% to 21%

Non-GAAP operating income of $21 million to $23 million

Non-GAAP net income per share of $0.17 to $0.19, assuming diluted weighted-average shares outstanding of

approximately 140.0 million

For the full íscal year 2024, the Company currently expects:

Total revenue of $955 million to $957 million, representing year-over-year growth of 25%

Non-GAAP operating income of $82 million to $84 million

Non-GAAP net income per share of $0.68 to $0.69, assuming diluted weighted-average shares outstanding of

approximately 138.0 million

Calculated billings year-over-year growth of 20%

Free cash îow of $130 million

We have not reconciled free cash îow guidance to net cash from operating activities because we do not provide

guidance on the reconciling items between net cash from operating activities and free cash îow, due to the

uncertainty regarding, and the potential variability of, these items. The actual amount of such reconciling items will

have a signiícant impact on our free cash îow. Accordingly, a reconciliation of net cash from operating activities to

free cash îow guidance is not available without unreasonable eìort. We do not provide reconciliation of calculated

billings guidance as its components are solely revenue and deferred revenue, and guidance for revenue is already

provided.

Conference Call Information

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

December 7, 2023. A live webcast and accompanying presentation can be accessed on the Investor Relations

[section of the Company's website at: https://investors.smartsheet.com. The conference call can also be accessed](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.smartsheet.com%2Foverview%2Fdefault.aspx&esheet=53868113&newsitemid=20231207428664&lan=en-US&anchor=https%3A%2F%2Finvestors.smartsheet.com&index=5&md5=09f22d864c7747eace04575702d1f33b)

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

call will be available by dialing (800) 770-2030 or +1 (647) 362-9199 (outside of the U.S.). The dial-in replay will be

available until the end of day on December 14, 2023.

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 fourth íscal quarter and the full íscal year ending

January 31, 2024, and Smartsheet’s expectations regarding possible or assumed business strategies, potential


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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.

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 Quarterly Report on Form 10-Q for the quarter ended October 31, 2023 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 condensed 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


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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.

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 capital 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 Business Metrics


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Average ACV per domain-based customer

We deíne average ACV per domain-based customer as total outstanding ACV 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 ACV from the cohort of all

customers as of the 12 months prior to such period end, or prior period ACV. We then calculate the ACV from these

same customers as of the current period end, or current period ACV. Current period ACV 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 ACV by the total prior period ACV to arrive at the

dollar-based net retention rate. Any ACV 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.

About Smartsheet

Smartsheet (NYSE: SMAR) is the enterprise work management platform. The foundation for managing projects,

programs, and processes for millions of global customers, Smartsheet empowers everyone to work better, at scale.

[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=53868113&newsitemid=20231207428664&lan=en-US&anchor=www.smartsheet.com&index=6&md5=181f90af90ae3f33ff865b7a35c29b5d)

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=53868113&newsitemid=20231207428664&lan=en-US&anchor=https%3A%2F%2Finvestors.smartsheet.com&index=7&md5=39eea6ba34dcc026e98e4ef5651c55c3)

SMARTSHEET INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)


Three Months Ended

October 31,


Nine Months Ended

October 31,


2023 2022 2023 2022

Revenue

Subscription $ 232,470 $ 186,070 $ 659,993 $ 514,879

Professional services 13,448 13,507 41,396 39,699

Total revenue 245,918 199,577 701,389 554,578

Cost of revenue

Subscription 34,258 29,294 101,009 82,154

Professional services 12,780 13,569 38,948 38,418

T l f 47 038 42 863 139 957 120 5726


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Total cost of revenue 47,038 42,863 139,957 120,572

Gross proít 198,880 156,714 561,432 434,006

Operating expenses

Research and development 58,257 50,526 172,805 156,829

Sales and marketing 137,920 120,116 382,685 359,522

General and administrative 38,153 28,629 109,654 94,873

Total operating expenses 234,330 199,271 665,144 611,224

Loss from operations (35,450) (42,557) (103,712) (177,218)

Interest income 6,976 2,344 18,040 4,013

Other income (expense), net (790) 593 (1,381) 1,389

Loss before income tax provision (29,264) (39,620) (87,053) (171,816)

Income tax provision 3,164 517 8,602 1,091

Net loss $ (32,428) $ (40,137) $ (95,655) $ (172,907)

Net loss per share, basic and diluted $ (0.24) $ (0.31) $ (0.71) $ (1.33)

Weighted-average shares outstanding used to compute net loss per share,
basic and diluted 135,189 130,634 133,868 129,611

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


Three Months Ended

October 31,


Nine Months Ended

October 31,


2023 2022 2023 2022

Cost of subscription revenue $ 3,164 $ 2,517 $ 9,980 $ 7,977

Cost of professional services revenue 1,777 1,436 5,602 4,669

Research and development 17,220 13,317 52,263 44,906

Sales and marketing 17,462 14,068 55,505 45,520

General and administrative 10,024 6,732 30,099 24,386

Total share-based compensation expense $ 49,647 $ 38,070 $ 153,449 $ 127,458

SMARTSHEET INC.

Condensed Consolidated Balance Sheets

(in thousands, except share data)

(unaudited)

October 31, January 31,

2023 2023

Assets

Current assets

Cash and cash equivalents $ 233,247 $ 223,156

Short-term investments 335,492 233,225

Accounts receivable, net of allowances of $6,121 and $6,285, respectively 179,475 198,643

Prepaid expenses and other current assets 53,625 55,063

Total current assets 801,839 710,087

Restricted cash 184 197

Deferred commissions 142,051 121,785

Property and equipment, net 41,701 39,395

Operating lease right-of-use assets 42,060 54,278

Intangible assets, net 30,531 39,069

Goodwill 140,928 142,415

Other long-term assets 3,939 2,983

Total assets $ 1,203,233 $ 1,110,209

Liabilities and shareholders’ equity

Current liabilities

Accounts payable $ 1,005 $ 2,125

Accrued compensation and related beneíts 75,155 68,347

Other accrued liabilities 31,258 27,437

Operating lease liabilities, current 16,263 19,220

Finance lease liabilities, current 194 —

Deferred revenue 482,898 457,534

Total current liabilities 606,773 574,663

Operating lease liabilities, non-current 36,174 47,564

Finance lease liabilities, non-current 505 —

Deferred revenue, non-current 2,572 2,195

Other long-term liabilities 404 129

Total liabilities 646,428 624,551

Shareholders’ equity

P f d t k l 10 000 000 h th i d h i d t t di f O t b 31


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

Class A common stock, no par value; 500,000,000 shares authorized, 135,538,368 shares issued and
outstanding as of October 31, 2023; 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
October 31, 2023; 500,000,000 shares authorized, no shares issued and outstanding as of January 31, 2023 — —

Additional paid-in capital 1,411,594 1,243,730

Accumulated other comprehensive income (loss) (961) 101

Accumulated deícit (853,828) (758,173)

Total shareholders’ equity 556,805 485,658

Total liabilities and shareholders’ equity $ 1,203,233 $ 1,110,209

SMARTSHEET INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Nine Months Ended

October 31,

2023 2022

Cash îows from operating activities

Net loss $ (95,655) $ (172,907)

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

Share-based compensation expense 153,449 127,458

Depreciation and amortization 20,008 18,476

Net amortization of premiums (discounts) on investments (8,746) (1,198)

Amortization of deferred commission costs 38,439 36,712

Unrealized foreign currency (gain) loss 684 (760)

Non-cash operating lease costs 9,450 11,631

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

Other, net 3,089 (1,636)

Changes in operating assets and liabilities:

Accounts receivable 16,541 2,739

Prepaid expenses and other current assets 1,060 (894)

Other long-term assets (1,401) (336)

Accounts payable (997) 1,356

Other accrued liabilities 4,100 8,494

Accrued compensation and related beneíts 2,021 (10,975)

Deferred commissions (58,705) (55,438)

Deferred revenue 25,439 49,673

Other long-term liabilities 278 37

Operating lease liabilities (12,326) (10,581)

Net cash provided by operating activities 98,176 3,395

Cash îows from investing activities

Purchases of short-term investments (375,387) (384,363)

Maturities of short-term investments 281,900 144,548

Proceeds from liquidation of a long-term investment — 622

Purchases of property and equipment (2,097) (4,175)

Proceeds from sale of property and equipment 28 94

Capitalized internal-use software development costs (7,850) (5,826)

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

Net cash used in investing activities (103,406) (269,442)

Cash îows from ínancing activities

Proceeds from exercise of stock options 1,330 4,499

Taxes paid related to net share settlement of restricted stock units (1,644) (3,082)

Proceeds from contributions to Employee Stock Purchase Plan 15,664 9,959

Net cash provided by ínancing activities 15,350 11,376

Eìects of changes in foreign currency exchange rates on cash, cash equivalents, and
restricted cash (248) (131)

Net increase (decrease) in cash, cash equivalents, and restricted cash 9,872 (254,802)

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

Cash, cash equivalents, and restricted cash at end of period $ 233,629 $ 194,878

Supplemental disclosures

Cash paid for income tax $ 9,471 $ 224

A d h f t d i t i l di i t l ft 1 264 1 727


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Accrued purchases of property and equipment, including internal-use software 1,264 1,727

Share-based compensation expense capitalized in internal-use software development costs 3,283 2,452

Right-of-use assets obtained in exchange for new operating lease liabilities 1,684 7,230

Right-of-use asset reductions related to operating leases 4,451 1,535

Purchases of íxed assets under ínance leases 693 —

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

October 31,


Nine Months Ended

October 31,


2023 2022 2023 2022

(dollars in thousands)

Loss from operations $ (35,450) $ (42,557) $ (103,712) $ (177,218)

Add:

Share-based compensation expense(1) 50,170 38,429 154,919 128,493

Amortization of acquisition-related intangible assets(2) 2,701 2,627 8,117 7,594

One-time acquisition costs — 151 — 612

Litigation expenses and settlements(3) — (4,500) — (4,500)

Lease restructuring costs(4) 1,934 1,544 2,051 1,544

Non-GAAP operating income (loss) $ 19,355 $ (4,306) $ 61,375 $ (43,475)

Operating margin (14)% (21)% (15)% (32)%

Non-GAAP operating margin 8% (2)% 9% (8)%

(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

October 31,


Nine Months Ended

October 31,


2023 2022 2023 2022

(in thousands, except per share data)

Net loss $ (32,428) $ (40,137) $ (95,655) $ (172,907)

Add:

Share-based compensation expense(1) 50,170 38,429 154,919 128,493

Amortization of acquisition-related intangible assets(2) 2,701 2,627 8,117 7,594

One-time acquisition costs — 151 — 612

Litigation expenses and settlements(3) — (4,500) — (4,500)

Lease restructuring costs(4) 2,142 1,544 2,258 1,544

Non-GAAP net income (loss) $ 22,585 $ (1,886) $ 69,639 $ (39,164)

Non-GAAP net income (loss) per share, basic $ 0.17 $ (0.01) $ 0.52 $ (0.30)

Non-GAAP net income (loss) per share, diluted $ 0.16 $ (0.01) $ 0.51 $ (0.30)

(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.

SMARTSHEET INC.

Reconciliation from GAAP to Non-GAAP Financial Measures

( dit d)


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(unaudited)

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

Three Months Ended

October 31,


Nine Months Ended

October 31,


2023 2022 2023 2022

(in thousands)

Weighted-average shares outstanding; basic 135,189 130,634 133,868 129,611

Eìect of dilutive securities:

Shares subject to outstanding common stock awards 3,232 — 3,653 —

Non-GAAP weighted-average shares outstanding; diluted 138,421 130,634 137,521 129,611

Reconciliation from net operating cash îow to free cash îow

Three Months Ended Nine Months Ended

October 31, October 31,

2023 2022 2023 2022

(in thousands)

Net cash provided by (used in) operating activities $ 15,146 $ (1,773) $ 98,176 $ 3,395

Less:

Purchases of property and equipment (702) (1,168) (2,097) (4,175)

Capitalized internal-use software development costs (3,035) (1,705) (7,850) (5,826)

Free cash îow $ 11,409 $ (4,646) $ 88,229 $ (6,606)

Reconciliation from revenue to calculated billings


Three Months Ended

October 31,


Nine Months Ended

October 31,


2023 2022 2023 2022

(in thousands)

Total revenue $ 245,918 $ 199,577 $ 701,389 $ 554,578

Add:

Deferred revenue (end of period) 485,469 385,351 485,469 385,351

Less:

Deferred revenue (beginning of period) 462,918 365,346 459,729 334,662

Calculated billings $ 268,469 $ 219,582 $ 727,129 $ 605,267

SMARTSHEET INC.

Reconciliation from GAAP to Non-GAAP Financial Measures

(unaudited)

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

Q4 FY 2024 FY 2024

Low High Low High

(in millions)

Loss from operations $ (38.7) $ (36.7) $ (142.4) $ (140.4)

Add:

Share-based compensation expense(1) 57.0 57.0 211.9 211.9

Amortization of acquisition-related intangible assets(2) 2.7 2.7 10.8 10.8

Lease restructuring costs(3) — — 2.1 2.1

Non-GAAP operating income $ 21.0 $ 23.0 $ 82.4 $ 84.4

(1) I l d ti ti l t d t h b d ti th t it li d i i t l ft d th t i i i d 10


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(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

Q4 FY 2024 FY 2024

Low High Low High

(in millions)

Net loss $ (35.5) $ (33.5) $ (131.0) $ (129.0)

Add:

Share-based compensation expense(1) 57.0 57.0 211.9 211.9

Amortization of acquisition-related intangible assets(2) 2.7 2.7 10.8 10.8

Lease restructuring costs(3) — — 2.3 2.3

Non-GAAP net income $ 24.2 $ 26.2 $ 94.0 $ 96.0

(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.

I nvestor Relations Contact

Aaron Turner

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

Media Contact

Chrissy Vaughn

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

Source: Smartsheet

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