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Jul 31, 2024
Smartsheet Q2 2025 Earnings Report
Smartsheet's Q2 2025 financial results were announced, featuring revenue growth and increased customer engagement.
Key Takeaways
Smartsheet reported a strong second quarter with a 17% year-over-year increase in total revenue, reaching $276.4 million. The company saw growth in annualized recurring revenue (ARR) and free cash flow, alongside an expansion in the number of customers with significant ARR contributions.
Total revenue increased by 17% year-over-year to $276.4 million.
Annualized recurring revenue (ARR) grew by 17% year-over-year to $1.093 billion.
Operating cash flow was $59.1 million, with a record free cash flow of $57.2 million.
GAAP net income was $7.9 million, a significant improvement from the previous year's net loss.
Smartsheet
Smartsheet
Smartsheet Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Smartsheet provided financial outlook for the third quarter and full fiscal year 2025, including revenue and non-GAAP operating income guidance.
Positive Outlook
- Total revenue for Q3 is expected to be $282 million to $285 million, representing a 15% to 16% year-over-year growth.
- Non-GAAP operating income for Q3 is projected to be between $42 million and $44 million.
- Non-GAAP net income per share for Q3 is expected to be $0.29 to $0.31.
- Full fiscal year 2025 ARR is projected to be $1,177 million to $1,180 million, representing a 14.2% to 14.5% year-over-year growth.
- Full fiscal year 2025 total revenue is expected to be $1,116 million to $1,121 million, representing a 16% to 17% year-over-year growth.
Challenges Ahead
- Non-GAAP operating income for the full fiscal year 2025 is expected to be $177 million to $182 million.
- Non-GAAP net income per share for the full fiscal year 2025 is expected to be $1.36 to $1.39.
- Free cash flow for the full fiscal year 2025 is projected to be $240 million.
- Guidance assumes approximately 142.5 million diluted weighted-average shares outstanding for Q3.
- Guidance assumes approximately 141.9 million diluted weighted-average shares outstanding for the full fiscal year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income