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Oct 31, 2023
Smartsheet Q3 2024 Earnings Report
Smartsheet's Q3 2024 earnings exceeded expectations, with revenue growing 23% year-over-year and positive operating and free cash flow.
Key Takeaways
Smartsheet Inc. reported strong third-quarter fiscal year 2024 results, exceeding expectations for both revenue and earnings. Total revenue grew 23% year-over-year to $245.9 million. The company generated positive operating cash flow of $15.1 million and free cash flow of $11.4 million.
Total revenue increased by 23% year-over-year, reaching $245.9 million.
Subscription revenue grew 25% year-over-year to $232.5 million.
Operating cash flow was $15.1 million, and free cash flow was $11.4 million.
The number of customers with ACV of $100,000 or more grew by 32% year-over-year.
Smartsheet
Smartsheet
Smartsheet Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
For the fourth quarter of fiscal year 2024, Smartsheet expects total revenue of $254 million to $256 million, representing year-over-year growth of 20% to 21%. Non-GAAP operating income is projected to be between $21 million and $23 million, with non-GAAP net income per share of $0.17 to $0.19.
Positive Outlook
- Total revenue is expected to grow 20% to 21% year-over-year.
- Non-GAAP operating income is projected to be between $21 million and $23 million.
- Non-GAAP net income per share is expected to be $0.17 to $0.19.
- Full fiscal year 2024 total revenue expected to grow 25%.
- Full fiscal year 2024 free cash flow expected to be $130 million.
Challenges Ahead
- Guidance not provided for GAAP operating income.
- Guidance not provided for GAAP net income.
- Guidance not provided for net cash flow from operating activities.
- The actual amount of reconciling items will have a significant impact on free cash flow.
- Guidance for calculated billings growth is 20%, which is lower than the current quarter's growth of 22%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income