Smartsheet’s financial performance, including Smartsheet net worth, continues to captivate attention in 2024.
As of October 2024, Smartsheet’s market cap stands at $7.79 billion, driven by its subscription revenue model.
Today, we’ll dive into the key drivers behind Smartsheet’s finances, offering readers of Ando Money an up-to-date, in-depth look.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Smartsheet Inc. |
| Full Name | Smartsheet Inc. |
| Website | www.smartsheet.com |
| Industry | Software, Collaborative Work Management |
| Traded as | NYSE: SMAR |
| ISIN | N/A |
| Founded | 2005 |
| Founders | Brent Frei, Maria Colacurcio, Eric Browne |
| Country/Territory | United States |
| Headquarters | Bellevue, Washington |
| Chief Executive Officer | Mark Mader |
| Number of Employees | 3,000+ |
| Market Cap | $7.79 billion (Oct 2024) |
| Total Assets | $1.36 billion (July 2024) |
| Total Equity | $670.9 million (July 2024) |
| Revenue | $276.4 million (Q2 Fiscal 2025) |
| Net Income | $7.9 million (Q2 Fiscal 2025) |
What is the Net Worth/Market Cap of Smartsheet in 2024?
As of October 2024, Smartsheet has a market cap of $7.79 billion. This impressive figure positions it as a significant player in the software and collaborative work management sectors.
Compared to other notable companies, Smartsheet continues to stand out, even if it’s not among the largest players in tech.
Here’s a quick look at some related companies in Smartsheet’s industry:
- Atlassian
- Monday.com
- Salesforce
- Microsoft
- Asana
- Trello
- Google Workspace
- Wrike
- Workday
- Dropbox
To explore where Smartsheet ranks among the biggest companies, check out this page on the wealthiest corporations.
Smartsheet Financial Performance Overview
Subscription Revenue Growth and Its Impact
Subscription revenue remains the backbone of Smartsheet’s financial structure, contributing $263.5 million in Q2 of Fiscal 2025.
This marks a 19% increase year-over-year, illustrating the company’s ability to attract and retain customers.
With over 70 enterprise customers increasing their annualized recurring revenue (ARR) by more than $100,000, Smartsheet’s subscription model is a significant driver of its financial health.
Contribution of Professional Services Revenue
While subscription revenue grew, Smartsheet’s professional services revenue saw a decline of 8% year-over-year, reaching $12.9 million in Q2 Fiscal 2025.
The dip in this segment, while notable, is less critical given the company’s overall focus on subscription-based services.
Still, professional services remain a useful auxiliary to the subscription model, providing specialized solutions to Smartsheet’s diverse customer base.
Free Cash Flow and Financial Stability
Free cash flow surged to a record $57.2 million in Q2 Fiscal 2025, representing 21% of total revenue.
This rise from $45.5 million in the same period last year indicates Smartsheet’s solid financial foundation.
Free cash flow is a strong indicator of financial stability, offering the company flexibility to invest in further growth opportunities or strategic acquisitions.
Operating Cash Flow and Its Role in Business Expansion
Smartsheet’s operating cash flow was $59.1 million in Q2 Fiscal 2025, up from $48.5 million the previous year.
This growth signifies the company’s ability to sustain operations while funding innovations.
It also underscores Smartsheet’s capability to expand its product offerings, scale its platform, and explore new revenue channels without over-reliance on external funding.
Subscription Model Changes
In June 2024, Smartsheet introduced a revised subscription model aimed at simplifying pricing for customers.
This change is expected to enhance the customer experience and, more importantly, drive long-term growth.
By offering a clearer value proposition and smoother administration, Smartsheet is positioned to further solidify its customer base and unlock future revenue potential.
Key Financial Metrics from Enterprise Customers
Enterprise clients continue to play a pivotal role in Smartsheet’s financial performance.
The company reported that it has 2,056 customers with annual recurring revenue (ARR) exceeding $100,000, a 23% year-over-year increase.
This substantial enterprise growth bolsters Smartsheet’s revenue and reflects the value these customers see in the platform’s scalability and productivity-enhancing capabilities.
Cost of Revenue and Its Effect on Profitability
Smartsheet’s cost of revenue amounted to $49.9 million in Q2 Fiscal 2025.
While this represents an increase from last year, it remains proportional to overall revenue growth.
Managing costs effectively has allowed Smartsheet to maintain a healthy gross profit of $226.6 million.
The company’s balanced approach to spending ensures profitability while investing in strategic growth areas like R&D and marketing.
Research and Development Spending
Smartsheet’s investment in R&D reached $63.6 million in Q2 Fiscal 2025, up from $58.4 million in the same period last year.
This commitment to innovation is crucial for maintaining the company’s competitive edge.
By continuing to develop new features and enhance platform functionality, Smartsheet ensures it remains at the forefront of collaborative work management tools.
Sales and Marketing Expenses Driving Growth
Sales and marketing expenditures reached $130.2 million in Q2 Fiscal 2025, aligned with Smartsheet’s focus on expanding its customer base.
These efforts are critical for scaling operations and driving long-term growth.
Marketing initiatives have proven effective, contributing to increased customer acquisition and higher average ARR per customer.
Financial Outlook and Projections for Future Growth
Looking ahead, Smartsheet projects total revenue between $1.116 billion and $1.121 billion for Fiscal Year 2025.
The company also expects ARR to reach $1.177 billion to $1.180 billion by year-end, demonstrating a confident outlook on future growth.
As Smartsheet continues to refine its subscription model and scale operations, these projections signal a bright future for the company.
FAQs About Smartsheet
How does Smartsheet generate revenue?
The company primarily generates revenue through its subscription-based services. Subscription revenue grew by 19% year-over-year, contributing $263.5 million in Q2 Fiscal 2025.
What is Smartsheet’s financial outlook for Fiscal Year 2025?
It has projected total revenue between $1.116 billion and $1.121 billion for Fiscal Year 2025.
How important are enterprise customers to Smartsheet?
Enterprise customers are a key driver of Smartsheet’s financial success. In Q2 Fiscal 2025, the number of enterprise customers with ARR exceeding $100,000 grew to 2,056, contributing significantly to the company’s overall revenue.
How does Smartsheet manage its costs?
Smartsheet maintains a balanced approach to managing costs, with total cost of revenue reaching $49.9 million in Q2 Fiscal 2025.
What are Smartsheet’s primary growth drivers?
Its growth is driven by its subscription revenue model, innovation through R&D, and its expanding enterprise customer base.
Conclusion
Smartsheet’s financial performance showcases its impressive growth trajectory and strategic focus on expanding its subscription model.
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