Smartsheet Inc (SMAR) Q2 2024 Earnings: Exceeds Guidance with 26% YoY Revenue Growth
Smartsheet Inc (NYSE:SMAR) has reported a strong performance for the second quarter of the fiscal year 2024, exceeding its guidance with a 26% year-over-year (YoY) revenue growth. The company's billings also grew by 18% YoY, and it ended the quarter with an annual recurring revenue of $933 million. The company's non-GAAP operating margins stood at 8%, and free cash flow was $45.5 million. The company now boasts over 13.4 million users, with 75 customers expanding their Smartsheet investment by more than $100,000 in Q2.
Financial Highlights
Smartsheet's revenue for the quarter exceeded its guidance, growing by 26% YoY to $235.6 million. The company's billings also grew by 18% YoY to $243.1 million. The company generated non-GAAP operating margins of 8% and a free cash flow of $45.5 million. Smartsheet ended the quarter with an annual recurring revenue of $933 million and more than 13.4 million users. Seventy-five customers expanded their Smartsheet investment by more than $100,000 in Q2, and 232 companies expanded by over $50,000. The company also closed three transactions over $1 million and now has 51 customers with ARR over $1 million.
Enterprise Expansions and New Customer Wins
Enterprise expansions for the quarter included Airbus U.S., Hewlett Packard Enterprise, Iron Mountain, and Pacific Life Insurance Company, among others. New customer wins were recorded at organizations such as Breville, Equity Group Holdings, and New York University. The company now has over 9,400 enterprise customers, which make up over 50% of its ARR and are posting NRRs well above the overall rate.
Recognition and Portfolio of Capabilities
Smartsheet's execution within the enterprise continues to be recognized by industry analysts and peer review sites. The company was named the leader in Forrester's Collaborative Work Management Tools Wave and was recognized by IDC as a vendor who shaped the year in 2022. Smartsheet also received the distinction of being a Customer's Choice in the 2023 Gartner Peer Insights Voice of the Customer in the Collaborative Work Management market segment in Q2.
Outlook
For the third quarter of FY '24, Smartsheet expects revenue to be in the range of $240 million to $242 million and non-GAAP operating income to be in the range of $8 million to $10 million. For the full fiscal year '24, the company now expects revenue of $950 million to $953 million, representing growth of 24%. The company expects non-GAAP operating income to be in the range of $62 million to $67 million, representing an operating margin of 7%, and non-GAAP net income per share to be $0.53 to $0.57 for the year.
This article first appeared on GuruFocus.
