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Smartsheet (SMAR)

Smartsheet is the enterprise platform for dynamic work. By aligning people and technology so organizations can move faster and drive innovation, Smartsheet enables its millions of users to achieve more.

Company profile

Ticker
SMAR
Exchange
CEO
Mark Mader
Employees
Incorporated
Location
Fiscal year end
Former names
SMARTSHEET.COM INC
SEC CIK
Subsidiaries
Artefact Product Group, LLC • Brandfolder, Inc. • Smartsheet Australia Pty Ltd • Smartsheet Costa Rica Ltda. • Smartsheet Germany GmbH • Smartsheet UK Limited • TernPro Inc. ...
IRS number
202954357

SMAR stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

7 Sep 22
28 Sep 22
31 Jan 23
Quarter (USD) Jul 22 Apr 22 Jan 22 Oct 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 22 Jan 21 Jan 20 Jan 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 227.89M 227.89M 227.89M 227.89M 227.89M 227.89M
Cash burn (monthly) 4.05M 17.95M 21.62M 18.73M (no burn) (no burn)
Cash used (since last report) 7.78M 34.48M 41.54M 35.99M n/a n/a
Cash remaining 220.1M 193.4M 186.35M 191.9M n/a n/a
Runway (months of cash) 54.3 10.8 8.6 10.2 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
16 Sep 22 Pete Godbole Class A Common Stock Sell Dispose S No Yes 36.64 1,104 40.45K 15,874
15 Sep 22 Pete Godbole Class A Common Stock Payment of exercise Dispose F No No 37.81 831 31.42K 16,978
15 Sep 22 Pete Godbole Class A Common Stock Option exercise Acquire M No No 0 2,401 0 17,809
15 Sep 22 Pete Godbole RSU Class A Common Stock Option exercise Acquire M No No 0 2,401 0 21,609
15 Sep 22 Gomez Elena Class A Common Stock Sell Dispose S No Yes 37.17 6,250 232.31K 6,003
15 Sep 22 Gomez Elena Class A Common Stock Option exercise Acquire M No No 5.28 6,250 33K 12,253
15 Sep 22 Gomez Elena Stock Option (right to buy Class A Common Stock) Class A Common Stock Option exercise Acquire M No No 5.28 6,250 33K 64,250
14 Sep 22 Jolene Lau Marshall Class A Common Stock Sell Dispose S No Yes 38.04 578 21.99K 18,501
14 Sep 22 Megan Hansen Class A Common Stock Sell Dispose S No Yes 38.04 4,000 152.16K 4,155
1 Sep 22 Rowan M Trollope Class A Common Stock Option exercise Acquire M No No 0 1,733 0 5,925
8.4% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 299 316 -5.4%
Opened positions 44 40 +10.0%
Closed positions 61 76 -19.7%
Increased positions 123 127 -3.1%
Reduced positions 86 105 -18.1%
13F shares Current Prev Q Change
Total value 4.3B 6.28B -31.6%
Total shares 116.67M 113.77M +2.5%
Total puts 423.9K 583.3K -27.3%
Total calls 1.76M 507K +246.3%
Total put/call ratio 0.2 1.2 -79.0%
Largest owners Shares Value Change
Capital World Investors 15.18M $477.11M -0.9%
Vanguard 11.44M $359.56M +1.0%
Brown Capital Management 6.85M $215.23M +0.3%
BLK Blackrock 6.48M $203.73M +19.3%
North Peak Capital Management 3.93M $123.47M +3.8%
Alliancebernstein 3.5M $109.92M +23.7%
Dorsey Asset Management 3.44M $108.06M +14.3%
Millennium Management 3.08M $96.82M +89.4%
GS Goldman Sachs 2.81M $88.28M +81.6%
Dorsal Capital Management 2.7M $84.86M +42.1%
Largest transactions Shares Bought/sold Change
Champlain Investment Partners 0 -1.82M EXIT
Millennium Management 3.08M +1.45M +89.4%
Contour Asset Management 0 -1.39M EXIT
Sachem Head Capital Management 1.35M +1.35M NEW
Citadel Advisors 0 -1.34M EXIT
GS Goldman Sachs 2.81M +1.26M +81.6%
BLK Blackrock 6.48M +1.05M +19.3%
Alkeon Capital Management 2.18M -1.03M -32.0%
Schonfeld Strategic Advisors 932.97K +932.97K NEW
Duquesne Family Office 149.8K -811.92K -84.4%

Financial report summary

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Competition
MicrosoftAsanaAtlassian
Risks
  • Risks Related to Our Industry, Platform, and Infrastructure
  • The market in which we participate is highly competitive, and if we do not compete effectively, our operating results could be harmed.
  • If we do not keep pace with technological changes, our platform may become less competitive and our business may suffer.
  • Our business depends on a strong brand, and if we are not able to develop, maintain, and enhance our brand, our business and operating results may be harmed.
  • Our forecasts of market growth may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, we cannot assure you that our business will grow at similar rates, if at all.
  • Security threats and attacks are common, increasing globally, and may result in significant liabilities.
  • Our failure to sufficiently secure our platform and services may result in unauthorized access to customer data, a negative impact on our customer attraction and retention, and significant liabilities.
  • We depend on public cloud service providers and computing infrastructure operated by third parties, and any service outages, delays, or disruptions in these operations could harm our business and operating results.
  • If our platform fails to perform properly, or if we are unable to scale our platform to meet the needs of our customers, our reputation could be harmed, our market share could decline, and we could be subject to liability claims.
  • If we fail to manage our services infrastructure at the levels expected by our customers, including due to factors such as service outages, interruptions, or delays in updates to our platform to meet customers’ needs, then we may be subject to liabilities and our operating results may be harmed.
  • Failure to establish and maintain relationships with partners that can provide complementary technology offerings and software integrations could limit our ability to grow our business.
  • Our platform and internal business operations use third-party software and services that may be difficult to replace or may cause errors or failures that could lead to a loss of customers or harm to our reputation and our operating results.
  • Our use of open source software could negatively affect our ability to offer and sell our products and subject us to possible litigation.
  • Risks Related to Our Commercial and Financial Operations
  • It is difficult to predict our future operating results.
  • We have a history of cumulative losses and we cannot assure you that we will achieve profitability in the foreseeable future.
  • If we are unable to attract new customers and maintain and expand sales to existing customers, our growth could be slower than we expect and our business may be harmed.
  • Our quarterly operating results may fluctuate significantly and may not fully reflect the underlying performance of our business.
  • We derive substantially all of our revenue from a single offering.
  • Because we recognize revenue from subscriptions and support services over the term of the relevant service period, downturns or upturns in new sales or renewals may not be immediately reflected in our operating results and may be difficult to discern.
  • We may need additional capital, and we cannot be certain that additional financing will be available on favorable terms, or at all.
  • We may face exposure to foreign currency exchange rate fluctuations.
  • Our sales are generally more heavily weighted toward the end of each fiscal quarter, which could have an impact on the timing of our billings, revenue, and collections, and on the reporting of such metrics for any given quarter and subsequent quarters.
  • Risks Related to Our General Operations
  • We have recently experienced rapid growth and expect our growth to continue. If we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service and operational controls, or adequately address competitive challenges.
  • As a substantial portion of our sales efforts are targeted at enterprise and government customers, our sales cycles may become longer and more expensive, we may encounter implementation and configuration challenges, and we may have to delay revenue recognition for more complicated transactions, all of which could harm our business and operating results.
  • Our growth depends on the expansion and effectiveness of our sales force, domestically and internationally.
  • Our failure to attract, integrate, and retain highly qualified personnel could harm our business.
  • If we cannot maintain our corporate culture as we grow and work in a hybrid working environment, we could lose the innovation, teamwork, and passion that we believe contribute to our success, and our business may be harmed.
  • We may not receive significant revenue from our current development efforts for several years, if at all.
  • We may experience difficulties in accurately predicting optimal pricing necessary to attract new customers and retain existing customers.
  • The loss of one or more of our key customers, or a failure to renew our subscription agreements with one or more of our key customers, could negatively affect our ability to market our platform.
  • If we fail to offer high-quality customer support, our business and reputation may be harmed.
  • Our long-term growth depends in part on being able to expand internationally on a profitable basis.
  • Any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand.
  • We may be sued by third parties for alleged infringement of their proprietary rights.
  • The requirements of being a public company, including maintaining adequate internal control over our financial and management systems, may strain our resources, divert management’s attention, and affect our ability to attract and retain executive management and qualified board members.
  • We intend to evaluate acquisitions or investments in third-party technologies and businesses, but we may not realize the anticipated benefits from, and may have to pay substantial costs related to, any acquisitions, mergers, joint ventures, or investments that we undertake.
  • Risks Related to Ownership of Our Common Stock
  • The market price of our Class A common stock has been and will likely continue to be volatile, and you could lose all or part of your investment.
  • Sales of a substantial amount of our Class A common stock in the public markets, particularly sales by our directors, executive officers, and significant shareholders, or the perception that these sales may occur, may cause the market price of our Class A common stock to decline.
  • If securities or industry analysts do not publish research, or publish inaccurate or unfavorable research, about our company, the price and trading volume of our Class A common stock could decline.
  • Provisions in our corporate charter documents and under Washington law could make an acquisition of our company, which may be beneficial to our shareholders, more difficult and may prevent attempts by our shareholders to replace or remove our current management.
  • Our amended and restated articles of incorporation designate the federal and state courts located within the State of Washington as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareholders, which could limit our shareholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees, or agents.
  • Risks Related to Governmental Regulation including Taxation
  • We are subject to laws and regulations affecting our business, including those related to marketing, advertising, privacy, data protection and information security. Our actual or perceived failure to comply with laws or regulations could harm our business. Complying with laws and regulations, in particular those related to privacy and data protection, could also result in additional costs and liabilities to us or inhibit sales of our platform and services.
  • Changes in laws and regulations related to the Internet or changes in the Internet infrastructure itself may diminish the demand for our platform and services and could harm our business.
  • We could be subject to additional sales tax or other tax liabilities.
  • Our ability to use our net operating loss to offset future taxable income may be subject to certain limitations.
  • Changes in tax laws or regulations could be enacted or existing tax laws or regulations could be applied to us or our customers in a manner that could increase the costs of our platform and services and harm our business.
  • Failure to comply with Federal Acquisition Regulation clauses or anti-corruption and anti-money laundering laws, including the FCPA and similar laws associated with our activities outside of the United States, could subject us to penalties and other adverse consequences.
  • Governmental export or import controls could limit our ability to compete in foreign markets and subject us to liability if we violate them.
  • The loss of one or more of our key personnel could harm our business.
  • Contractual disputes or commitments, including indemnity obligations, may be costly, time-consuming, may result in contract or relationship terminations, and could harm our reputation.
  • We may be subject to litigation or regulatory proceedings for a variety of claims, which could adversely affect our operating results, harm our reputation, or otherwise negatively impact our business.
  • Our reported financial results may be harmed by changes in the accounting principles generally accepted in the United States.
  • Adverse economic and market conditions and reductions in productivity spending may harm our business.
  • Political developments, including wars and conflicts, and their associated effects may harm our business.
  • Investors’ expectations of our performance relating to environmental, social, and governance factors may impose additional costs and expose us to new risks.
  • Catastrophic events may disrupt our business.
Management Discussion
  • During the three months ended July 31, 2022, as compared to the three months ended July 31, 2021, total subscription revenue increased by $52.4 million, or 43%. The increase in revenue between periods was driven by an increase in sales of user-based subscription plans, which contributed $30.4 million of the increase, followed by an increase in sales of pre-configured capabilities, which contributed $22.0 million of the increase.
  • The increase in professional services revenue was primarily driven by an increase in demand for our consulting and training services.
  • Cost of subscription revenue increased $9.4 million, or 51%, for the three months ended July 31, 2022 compared to the three months ended July 31, 2021. The increase was primarily due to an increase of $4.7 million in employee-related expenses due to increased headcount, of which $1.4 million was related to share-based compensation expense, an increase of $2.6 million in hosting fees, an increase of $0.9 million in amortization of capitalized software, an increase of $0.8 million in software-related costs, an increase of $0.3 million in credit card processing fees, an increase of $0.2 million in costs of Connectors with third-party applications, and an increase of $0.1 million in both travel-related costs and allocated overhead. This was partially offset by a decrease of $0.2 million in costs related to technical support services and a decrease of $0.1 million in costs of outside services to supplement our internal staff.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Good
New words: Commissioner, compensatory, customary, excise, exit, IRA, Outfit, reimpose, sharp, sudden
Removed: Brexit, contingency, delivering, recovered, referenced, resolved, utilization, vaccine