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Jul 31, 2020
Smartsheet Q2 2021 Earnings Report
Smartsheet's Q2 2021 earnings were announced, revealing a 41% year-over-year increase in total revenue.
Key Takeaways
Smartsheet Inc. reported a strong second quarter for fiscal year 2021, with total revenue reaching $91.2 million, a 41% increase year-over-year. Subscription revenue grew by 43% to $83.6 million, while professional services revenue increased by 20% to $7.6 million. The company's operating and net losses were $26.7 million and $26.6 million, respectively. Smartsheet is confident in its offerings and investments for future growth.
Total revenue increased by 41% year-over-year to $91.2 million.
Subscription revenue grew by 43% year-over-year to $83.6 million.
GAAP operating loss was $26.7 million, representing 29% of total revenue.
Net free cash flow was negative $4.4 million.
Smartsheet
Smartsheet
Smartsheet Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
For the third quarter of fiscal 2021, Smartsheet expects total revenue of $94.0 million to $95.0 million, representing year-over-year growth of 31% to 33%. They also anticipate a non-GAAP operating loss of $28.0 million to $26.0 million and a non-GAAP net loss per share of $0.23 to $0.22. For the full fiscal year 2021, the company projects total revenue of $367.0 million to $373.0 million, representing year-over-year growth of 35% to 38%.
Positive Outlook
- Total revenue is expected to grow 31% to 33% year-over-year, reaching $94.0 million to $95.0 million.
- Calculated billings are projected to increase by 25% to 27% year-over-year, amounting to $104.0 million to $106.0 million.
- Full fiscal year revenue is expected to grow 35% to 38% year-over-year, reaching $367.0 million to $373.0 million.
- Brandfolder acquisition expected to close in September 2020 and contribute to the remainder of fiscal 2021 results.
- The company assumes the Brandfolder transaction will close as expected in September 2020.
Challenges Ahead
- Non-GAAP operating loss is expected to be between $28.0 million and $26.0 million.
- Non-GAAP net loss per share is projected to be $0.23 to $0.22.
- Net free cash flow is expected to be negative $10 million to negative $8 million.
- Non-GAAP operating loss is expected to be between $66.0 million and $60.0 million for the full fiscal year.
- Net free cash flow is expected to be at least negative $30 million for the full fiscal year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income