The call highlighted significant growth in enterprise momentum, ARR, and AI adoption, alongside a successful share buyback program and strong financial results. However, challenges included an increased churn rate, reduced services revenue expectations, and a decline in the net retention rate.

Company Guidance

In the recent earnings call for Smartsheet's Q2 2025, the company provided several key metrics and forward-looking guidance. The annualized recurring revenue (ARR) reached $1.093 billion, with subscription revenue growing 19% year-over-year to $263.5 million. The company reported an enterprise net dollar retention rate (NDRR) of 120% and increased the number of customers with ARR over $1 million by 50% compared to the previous year. The number of customers with ARR over $50,000 grew 17% year-over-year, while those with ARR over $100,000 grew 23%. Smartsheet launched a new pricing and packaging model, which drove high engagement with thousands of new customers, although only a few have reached their first true-up period. The company is on track to migrate existing customers to this new model starting in January 2025. Looking ahead, Smartsheet maintained its full fiscal year 2025 revenue growth guidance of 16% to 17% and updated its ARR guidance to between $1.177 billion and $1.180 billion. The company also highlighted ongoing strategic investments in platform modernization and announced a push to enable access to AI tools for all users until December 31, 2024, to enhance customer experience and drive further adoption.

Strong Enterprise Momentum

75 customers expanded their ARR by more than $100,000, with 3 transactions over $1 million. Total customers with ARR over $1 million increased by 50% year-over-year.

Annualized Recurring Revenue

ARR grew to $1.093 billion, a 17% year-over-year increase, with more than 15.3 million Smartsheet users.

AI Adoption and Efficiency

AI tools saw nearly 50% sequential growth in users, with approximately 47,000 users saving an estimated 1 million hours.

Share Buyback Program

Repurchased 918,000 shares for a total of $40 million, with $110 million remaining on the authorization.

Record Revenue and Profitability

Q2 revenue of $276.4 million, up 17% year-over-year, with a non-GAAP operating income of $45.3 million and a free cash flow of $57.2 million.

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Smartsheet (SMAR) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

SMAR Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 04, 2018	2019 (Q2)	- / -0.08	-0.227	64.76% (+0.15)	―	―
Dec 03, 2018	2019 (Q3)	- / -0.09	-0.103	12.62% (+0.01)	―	―
Mar 19, 2019	2019 (Q4)	- / -0.07	-0.08	12.50% (<+0.01)	―	―
Jun 05, 2019	2020 (Q1)	- / -0.12	-0.121	0.83% (<+0.01)	―	―
Sep 04, 2019	2020 (Q2)	- / -0.08	-0.08	0.00% (0.00)	―	―
Dec 04, 2019	2020 (Q3)	- / -0.15	-0.09	-66.67% (-0.06)	―	―
Mar 17, 2020	2020 (Q4)	- / -0.13	-0.07	-85.71% (-0.06)	―	―
Jun 03, 2020	2021 (Q1)	- / -0.11	-0.12	8.33% (<+0.01)	―	―
Sep 02, 2020	2021 (Q2)	- / -0.06	-0.08	25.00% (+0.02)	―	―
Dec 07, 2020	2021 (Q3)	- / -0.12	-0.15	20.00% (+0.03)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SMAR Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 05, 2024	$56.12	$56.07	-0.09%
Sep 05, 2024	$49.35	$52.27	+5.92%
Jun 05, 2024	$37.78	$44.27	+17.18%
Mar 14, 2024	$40.30	$37.52	-6.90%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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