Smartsheet ( (SMAR) ) has released its Q3 earnings. Here is a breakdown of the information Smartsheet presented to its investors.
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Smartsheet Inc. is a leading enterprise work management platform, specializing in AI-enhanced solutions to drive organizational efficiency and innovation across various industries.
In its third quarter fiscal year 2025 earnings report, Smartsheet Inc. revealed a significant milestone by entering into a definitive agreement to be acquired by Blackstone and Vista Equity Partners in a transaction valued at approximately $8.4 billion. The company’s financial performance highlights include a 17% year-over-year revenue increase, reaching $286.9 million, alongside a robust annualized recurring revenue growth of 15%, totaling $1.133 billion.
Key financial metrics showcased in the report include a notable improvement in non-GAAP operating income, which rose to $56.4 million from $19.4 million in the previous year, and a shift from a GAAP net loss to a net income of $1.3 million. Additionally, Smartsheet’s free cash flow marked a significant increase to $61.8 million, compared to $11.4 million in the prior year. The company also highlighted strategic customer expansion, with a 20% increase in customers generating over $100,000 in annualized recurring revenue.
Operationally, Smartsheet highlighted its sold-out U.S. ENGAGE customer conference and the launch of new product features aimed at enhancing user experience and productivity. The introduction of a Smartsheet connector for Amazon Q Business represents a strategic step towards integrating AI and improving data visibility for its users.
Looking ahead, Smartsheet’s acquisition by Blackstone and Vista Equity Partners positions the company for potential growth and strategic evolution. The management’s focus remains on leveraging its platform’s capabilities to drive ongoing innovation and value creation for its customers.
