Smartsheet Inc (NYSE:SMAR) Q3 2019 Earnings Conference Call - Final Transcript

Dec 03, 2018 • 04:30 pm ET


Smartsheet Inc (NYSE:SMAR) Q3 2019 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Scott, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Smartsheet Third Quarter Fiscal 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. (Operator Instructions). Thank you.

Aaron Turner, Head of Investor Relations, you may begin your conference.

Aaron Turner

Thank you, Scott. Good afternoon and welcome everyone to Smartsheet's third quarter fiscal year 2019 earnings call. We will be discussing the results announced in our press release issued after the market closed today. With me today are Smartsheet's CEO, Mark Mader; and our CFO, Jennifer Ceran. Our SVP of Product, Gene Farrell will also be available during the Q&A.

Today's call is being webcast and will also be available for replay on our investor relations website at There is a slide presentation that accompanies Jennifer's prepared remarks which can be viewed in the events section of our investor relations website.

(Forward-Looking Cautionary Statements)

In addition to US GAAP financials, we will discuss certain non-GAAP financial measures. A reconciliation to the most directly comparable US GAAP measure is available in the presentation that accompanies this call, which can also be found on our investor relations website.

With that, let me turn the call over to Mark.

Mark Mader

Thanks, Aaron. Good afternoon everyone and thanks for joining us for today's call. Q3 was a strong quarter for us in multiple dimensions and I'm very pleased with the results. Momentum from the first half of the year continued in Q3 with revenue growing 59% year-over-year to $46.9 million. Through customer expansion combined with a lower attrition rate, our dollar based net retention 132% and the total number of all Smartsheet users is now more than 4.5 million. We also reached a notable milestone this quarter as we surpassed a 1,000 employees. To all my colleagues in Bellevue, Boston, Edinburgh and many places in between, thanks for your passion and your commitment to serving our customers.

Expansion within our base during the quarter included 34 companies increasing their annual recurring revenues by more than $50,000. We now have 360 customers with ARR over 50,000 and 127 with a ARR over 100,000. Notable expansions occurred this quarter at customer such as Roche Diagnostics, Fox and Steelcase. Our customers are expanding faster with us at a rate never seen before as the product enhancements we've made over the past year enables Smartsheet to address increasingly high value workloads throughout our customer's organizations.

For many of our largest and fastest growing customers, their use of Smartsheet has evolved from being a valuable tool for collaboration and work tracking by individuals and teams, to also serving as a mission critical work execution platform that drives operationally important processes across their business. This evolution coincides with recognition by analysts and the broader market that our category, Collaborative Work Management, CWM, is no longer an emerging segment composed of