Smartsheet Inc. Announces Second Quarter Fiscal Year 2019 Results

▤ Summary

BELLEVUE, Wash.--( BUSINESS WIRE )--Smartsheet Inc. (NYSE: SMAR), a leading cloud-based platform for work execution, today announced financial results for its second fiscal quarter ended July 31, 2018.“Q2 was a strong quarter with revenue growing 59% year-over-year and net dollar retention rate reaching a record 131%,” said Mark Mader, CEO of Smartsheet.$ 116,604 SMARTSHEET INC.Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited)Six Months Ended July 31,20182017Cash flows from operating activities Net loss $ (26,631 ) $ (30,034 ) Adjustments to reconcile net loss to net cash used in operating activities: Share-based compensation expense 5,940 16,536 Remeasurement of convertible preferred stock warrant liability 1,326 211 Depreciation of property and equipment 3,173 1,623 Amortization of deferred commission costs 4,452 1,925 Unrealized foreign currency (gain) loss 66 — Gain/loss on disposal of assets — 2 Amortization of intangible assets 255 6 Amortization of premiums, accretion of discounts, and gain on investments2,639 789 Accrued purchases of property and equipment 362 257 Deemed dividends on convertible preferred stock — (4,558 ) Deferred offering costs, accrued but not yet paid 340 — SMARTSHEET INC.Reconciliation from GAAP to Non-GAAP Financial Measures(unaudited)Reconciliation from GAAP to non-GAAP gross profit and gross marginThree Months Ended July 31,Six Months Ended July 31,2018201720182017(dollars in thousands) Gross profit $ 34,229 $ 21,290 $ 63,225 $ 39,029 Add: Share-based compensation expense 234 82 315 103 Amortization of acquisition-related intangible assets 114 — 228 — Non-GAAP gross profit $ 34,577 $ 21,372 $ 63,768 $ 39,132 Gross margin 81 % 80 % 80 % 80 % Non-GAAP gross margin 82 % 80 % 81 % 80 % Reconciliation from GAAP to non-GAAP operating loss and operating marginThree Months Ended July 31,Six Months Ended July 31,2018201720182017(dollars in thousands) Loss from operations $ (12,962 ) $ (22,711 ) $ (25,993 ) $ (29,908 ) Add: Share-based compensation expense 4,098 15,991 5,940 16,536 Amortization of acquisition-related intangible assets 120 — 240 — One-time costs of acquisition 10 — 57 — Non-GAAP operating loss $ (8,734 ) $ (6,720 ) $ (19,756 ) $ (13,372 ) Operating margin (31 )% (85 )% (33 )% (61 )% Non-GAAP operating margin (21 )% (25 )% (25 )% (27 )% Reconciliation from GAAP to non-GAAP net lossThree Months Ended July 31,Six Months Ended July 31,2018201720182017(in thousands) Net loss $ (12,301 ) $ (22,850 ) $ (26,631 ) $ (30,034 ) Add: Share-based compensation expense 4,098 15,991 5,940 16,536 Amortization of acquisition-related intangible assets 120 — 240 — One-time costs of acquisition 10 — 57 — Remeasurement of convertible preferred stock warrant liability — 211 1,326 211 Non-GAAP net loss $ (8,073 ) $ (6,648 ) $ (19,068 ) $ (13,287 ) SMARTSHEET INC.Reconciliation from GAAP to Non-GAAP Financial Measures(unaudited)Reconciliation from GAAP to non-GAAP weighted average shares outstanding (basic and diluted)Three Months Ended July 31,Six Months Ended July 31,2018201720182017(in thousands) GAAP weighted-average shares outstanding used in computing net loss per share attributable to common shareholders, basic and diluted 102,569 18,013 62,464 17,258 Add: common shares that would have resulted from conversion of convertible preferred stock at the beginning of the period, or when granted (if later), on a weighted average basis — 67,192 33,673 64,710 Non-GAAP weighted-average shares outstanding used in computing net loss per share attributable to common shareholders, basic and diluted 102,569 85,205 96,137 81,968 Anti-dilutive sharesThree Months Ended July 31,Six Months Ended July 31,2018201720182017(in thousands) Net cash provided by (used in) operating activities $ (1,119 ) $ 652 $ (9,273 ) $ (4,599 ) Less: Purchases of property and equipment (1) (2,253 ) (2,562 ) (3,063 ) (4,576 ) Payments on capital lease obligations (825 ) (491 ) (1,584 ) (976 ) Free cash flow $ (4,197 ) $ (2,401 ) $ (13,920 ) $ (10,151 ) (1) Includes amounts related to capitalized internal-use software development costs.

▦ Linked Companies

Smartsheet

$500M to $1B