Smartsheet Inc (NYSE:SMAR) Q2 2021 Earnings Conference Call - Final Transcript

Sep 02, 2020 • 04:30 pm ET

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Smartsheet Inc (NYSE:SMAR) Q2 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Smartsheet Second Quarter Fiscal 2021 Earnings Conference Call.

[Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Aaron Turner, Investor Relations. Thank you, please go ahead, sir.

Executive
Aaron Turner

Thank you, Christine. Good afternoon and welcome everyone to Smartsheet's second quarter of fiscal year 2021 earnings call. We will be discussing the results announced in our press release issued after the market close today.

With me today are Smartsheet's CEO, Mark Mader; and our CFO, Jennifer Ceran. Our Chief Product Officer, Gene Farrell will be 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 investors.smartsheet.com. There is a slide presentation that accompanies Jennifer's prepared remarks, which can be viewed in the Events section of our Investor Relations website.

During this call we will make forward-looking statements within the meaning of the federal securities laws. We have based these forward-looking statements largely on our current expectations and projections about future events, financial trends and our expectations around the impact of COVID-19 on our business. These forward-looking statements are subject to a number of risks and other factors, including but not limited to those described in our SEC filings available on our Investor Relations website and on the SEC website at www.sec.gov.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, our actual results may differ materially and adversely. All forward-looking statements made during this call are based on information available to us as of today and we do not assume any obligation to update these statements as a result of new information or future events except as required by law.

In addition to the U.S. GAAP financials, we will be discussing certain non-GAAP financial measures. A reconciliation to the most directly comparable U.S. GAAP measures 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.

Executive
Mark Mader

Thanks, Aaron. And welcome to our second quarter 2021 earnings call.

Q2 results exceeded the guidance we provided on our Q1 earnings call. Revenue was $91.2 million, up 41% year-over-year and billings were $97.3 million, up 22% year-over-year. These results are a reflection of the stabilization we're seeing in the market and the green shoot signals we're seeing from customers. We're confident in the value of our offerings, the investments we're making in our future and our opportunity to help enterprises adapt to a reality that demands rapid transformation.

We added 500,000 new users in Q2, the largest sequential increase we've seen in the last eight quarters, that brings our total number of both paid users and collaborators to over 7 million. This reflects the fact that our value proposition is resonating with customers. The expansion within our base included 235 companies increasing their annual recurring revenue or ARR by more than