SMAR - Earnings call transcript Q2 2019

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Operator

Good afternoon, my name is Shawntel, and I’ll be your conference operator today. At this time, I would like to welcome everyone to the Smartsheet Inc.

Second Quarter Fiscal 2019 Earnings Conference Call. [Operator Instructions]. Aaron Turner, Head of Investor Relations, you may begin your conference.

Aaron Turner

afternoon XXXX everyone earnings good quarter Smartsheet’s Shawntel, year fiscal call. you, and to welcome, second Thank

We will With be CFO press Smartsheet’s release discussing Mark Jennifer the results after CEO, market announced Ceran. the closed and today. Mader me are issued today our in our

presentation Q&A. also relations Our of slide be relations be remarks is replay our investor the available at prepared Farrell is investors.smartsheet.com. being a be available will website. events for accompanies SVP call also webcast website which There in Gene viewed investor during section Product, Jennifer’s Today’s that and will on our of can the

this During the Laws. within statements make we call, forward-looking Securities meaning of Federal will

and statements on statements and relations these forward-looking in current website and limited number based are on www.sec.gov. subject forward-looking the have filings to website described those investor We not risks our including largely but trends. SEC at factors financial available SEC and a to other These future our events of expectations projections on about our

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

me also Mark. call available certain the be we can the investor financials, U.S. discuss GAAP to non-GAAP measures; this is U.S. will directly over that, website. to With our accompanies on call presentation the in addition comparable let relations reconciliation financial In turn GAAP found measure that which to most

Mark Mader

continued call. XX%. everyone year-over-year QX joining and of in growth representing began Aaron. The with year the thanks today’s for Thanks, with reaching revenue million which Good $XX.X we momentum for us afternoon

Fortune rate, paid the customer lower management, than quarter combined teams revenue Our high to with customers the In this numerous Notable at with across Through commitment attrition and than million. strong within their customers marketing expansion and We our and XX% net all increased of base more reached increasing HP. finance. companies retention number is as to conversations now and collaborators annual heard Expansion workflow and Hurley rate dollar project and presence success. is to expansion as during consistency recurring XXX%. execute XX sales, driving XXX I by in continued $X.X users included total Smartsheet based Medical in companies a quarter, focus automation how Smartsheet areas $XX,XXX. our such repeatedly SAP, Dell, more Center customer value occurred such our

for is example, This automation and and to dashboards the customer process Fortune and to supply upgraded XXX drive five $XXX,XXX management years For features retailer as customer a over than quarter. more workflows advanced new openings, using management. in store chain Smartsheet across by marketing, plan enterprise our such expanded and meaningful alerts,

efficiency the throughout usage XX organization. increasing teams delivering the across an of customers top our Now, number broader of is Smartsheet their platform

the As our through sales other we sales efforts at year high discussed beginning digital our we’ve motion. the focus enabling prospects accounts previously of around while motion potential optimized our to

plan support in to expansion needs In far. this process. access for capabilities more fruitful The to the are sales the we meet will of stronger drive to of the these sales value and we We and to the assisted new relationships and features motions thus online to overtime. team still believe that there While our our June, and high international is in work first track, done offerings remains improve expansion that consistent results direct we addresses users. by We real account both increasingly QX, introducing challenges value performance regardless such organizations want by on team range rates, everyone better have needs on we zone in We and starting better seen and employees, be ground our teams plan in international our we’ve and an regard responded between account In pleased access customers of for capacity sales business and October automation, better better believe we of platforms evolved enterprise healthy the plan will high engagement who customers product strong level valuable our focused empowerment simplified by total plan to overtime value. customers, time connect, initiatives premier outcomes appropriate an dashboards drives grow customers’ the and with the discontinuing integrate on EMEA for their for messaging on drives messaging execute. is in That members as U.K. popular and empowers innovate outcomes. which a robust platform of creates remain work, for as world customers Smartsheet’s forward the deliver experiences engagement to over for the a to that to currently the our XX% deeper, they driven with we way to delivering position about turn Smartsheet’s standard. furthering overtime. our neutral business fabric continued look more a customers wide corporate portfolio delivering since

July. on our applications with integration Slack chat of Google to expect Facebook, launched we can and year. aspect the developments further through with an with Workplace front product we remains as an our roadmap and previously integrations addition important you leading In Integrating this the in Hangouts move announced by messaging

practices, distinct deploy Accelerators at scale. By Accelerators M&A. our This are used quarter and insights we and and leveraging able to also cases; our rapidly, with PMO, launched IT prepackaged called, customers best a confidence three set of solutions services Professional for

that less to of workloads were and to our For visibility Accelerator, and using combination example, status gained equipment their With a biomedical deployment in process. managed customer email Coulter spreadsheets. on less previously our a Beckman accelerator boarding Coulter deployed real-time improve Beckman manufacturer, weeks professional equipment than three and quickly updates services efficient

for both early days interest products, encouraging. from still it's and accelerator our customers current prospective is Although

the early roll out signal this quarters. Accelerators Given plan we additional to coming in

mobile our contextually to in are mobile QX, touch capabilities optimized enhancements can through a significant editing including added be executing device. workers they knowledge wherever also work This from experience. We their experience productive more aware

capabilities management. scanning, new We only customers which inventory mobile like are our tracking a used also including barcode high-value chain cases introduced deploying of and for supply number

ENGAGE the to customer we over second From to ENGAGE XX with customers, These are we are X be and We through to expect and attendees conference offerings platform X. regardless is mobile better. look add and on, you we to with are device annual set time. registered working to of well-suited our unveil or additional to of Smartsheets initiatives location. at forward we’ve been a just value believe continue we even seeing for year, year, bigger workloads and choice our to their to engagement ENGAGE with work First Last year’s hosted desktop over smartphone, tablet XXXX increase product conference excited our this there. attendance global We outpacing conference, of October last many handful

future. another. I and in continued provide and Jenny and dedicated excitement over on and your Jenny? for in continued our to thanks one in commitment I'm with to the progress future to you I Thank team priorities. XXXX our far strategic and for the your of our for our customers more we to Smartsheet very quarter, Fiscal thus the Before details passion it performance to my pleased our want confidence making also service year shareholders financial And against our the to share our to customers Smartsheet turn are business. in

Jennifer Ceran

came at $XX.X year XX% delivered the we for the for Overall, Billings versus million, quarter, up a everyone. driven year million platform. welcome same strong and demand ago, in quarter XX% Mark, $XX.X a versus up Thanks revenue ago. by our in

net contract quarter domain of year-over-year XXX%, retention was Our customer last group, $XXX,XXX. value per XX% ACV versus average point an and based percentage dollar or annualized to our rate one increase

Second-quarter balance driven flow platform investments non-GAAP by share business was go-to-market quarter to continued ended million, loss the we capabilities cash cash of continued $XXX with non-GAAP and $X.XX. we net in operating Free investments a and was loss negative million. our was $X.X per the $X.X million, in make and as

remainder represented expect it to remainder $X.X at of in between of our second million, our total metrics. a provide now XX% be and $XX.X revenue of Services will I quarter was you third ago $XX.X million the details the versus Of revenue. subscription outlook revenue and to total came this Services in million, the total year, XX% with now up XX% our I XX% year fiscal on the starting let our the business for we a year. more turn year the me Before quarter revenue and provide increase ago. quarterly of for revenue versus revenue revenue, quarter. XX%

grew quarter total the XX,XXX. Our to very approximately individuals total domain small which and end teams These customers per XX% customer customers XX% now XXX%, and represent XX% with or now customers and and by $XXXX XXX us paying segments at and domain the based of represent respectively, account total was growth represented the positive year per X,XXX this These largest based We ISP more of year-over-year $XX,XXX our other and IFP very year. in saw quarter paying ACV of continue customers an customer approximately using our represent more ACV. second customers us X%. XX% or now

retention organizations. XX% compared the net quarter, XXX%. our for We domain net more to per as dollar across our same earlier, above as rate year period average As I increased of of ago the now areas this was the rate the mentioned deploy end continued expect customer be fiscal to ACV customers their year. based retention of Smartsheet into XXX% And remainder based dollar to a

highlights the and gross statement driven are of margin more In GAAP XX%, I’ll was and by stated, cost hosting year our Subscription a to sheet. results and all point posted color was in before was and on overall balance earnings results prior margin non-GAAP release from operating ago related the the a The our call. the references improvement a second versus and and one basis XX% our gross to Next, quarter, expenses primarily efficiencies quarter. provide few quarter. the XX% otherwise percentage the that was than prior reconciled services. XX% Unless are rest on income our

our reflect serve in industries, to XX% our we in up XX% gross expect As public to Professional XX%, cloud, government support long-term from the margin by and margin more training. services XX% sector we of of strength to our and services margin migrate QX, international driven staff overtime. closely utilization continued was continued higher the expansion to consulting

As XX% year. fiscal in professional services closer to support growth, to target be headcount annual of the we our expect this to half margin add we of the second

development XX% from expenses, operating operating million, up $X.X ago same as in and administrative year was more company. compares of our product representing we We cost capabilities. quarter. $XX of line revenue Research in was substantial public prior cost the to to to revenue plan in revenue XX% million a appetite in the expanding quarter of incremental our as continue make or to Turning and and prior a This and of general with total XX% investments total continue XX% to of the of to of our in quarter enterprise the second quarter, XX% the a absorb for the revenue, year ago support revenue. customers

revenue $XX.X prior million of or marketing versus revenue, year quarter. XX% XX% XX% and ago sales the and of expense in was of revenue Finally, a

incur the business marketing conference categories our we expect marketing growth Overtime, our and product we ENGAGE leverage sales of to as but third we revenue focus be expect increase market near-term continues enhancing in to percent and the quarter cost as driving scale customer as all across and/or adoption. We of to initiative. our and spend realize incremental a operating for

total free Turning XX% quarter. cash headcount XX representing operating the to Approximately related related margin is software Free negative loss internal across employees cash loss $X.X leases CapEx Boston and flow primarily during our prior of operating of totaling was principal organization expense operating quarter our and the to a XX%. million we payments the added flow, expansion spend was the revenue. negative office. use CapEx The on of X% capitalized in is spend, which and $X.X increase includes million to relative of

renewal quarter, total. remainders were the Now Approximately $XX.X versus turning third we were build monthly and year quarterly customer. number a the billings of quarter, of the were subscription annual X% second billings our ago. we fewer for enterprise multiyear and to renewals. billings with quarter about second large In XX% including representing up have the a of largest In large our billings, million, renewals enterprise XX% the our

fiscal lower capabilities our majority be the marketing reflects the quarter sales guidance which consistent in is As into third second expect quarter billings full our such year provide specifically to to and earlier. trend. upside reinvest year which our third will absolute business, and ago now guidance marketing and for our in our increased includes the quarter, I back dollars the we This the XXXX. than the of plan effort, costs our product mentioned with

For million $XX.X XX% expect to growth the million, year-over-year revenue third we XX%. of of to quarter, $XX.X total representing

the non-GAAP to and We $XX expect between be million million of loss shares and average $X.XX operating between non-GAAP outstanding million. weighted in per loss to based and net come on $XX $X.XX $XXX.X share

million. to range $XX between be growth the fiscal million, of to For full of operating to is be million Non-GAAP expected revenue representing in XX% total million XX%. the $XX $XXX $XXX expect and to year, we loss

$X.XX per million shares approximately the average outstanding. expect non-GAAP loss net $X.XX of based year between weighted on We and for share $XX.X

fiscal to representing of billings to versus of to expect XX% range year. $XXX million, be last XX% the $XXX XXXX, we in For year growth million

As in I than timing enterprise absolute mentioned of billings dollars, to earlier, be the in second due we larger third quarter the the lower quarter expect renewals. to

continued cash to also business be to for we do the on second year flow are the to in based our to $XX flexibility million, more up our updating the half We in strategic negative and make free priorities. investments guidance as

platform our between our to results remained equally We quarter. quarter we execution be expect demand pleased very were robust. third cast and for recap, fourth To burn work as distributed the with second

your it solution, operator the And develop new the we’ll to to features and even products help platform. our as our continued look to that, such that our forward continue we investments customers with plan the mobile benefits accelerators turn making Operator? enhancements as from to and questions. and reap of to we We now remainder take our more year, back to

Operator

Instructions]. [Operator

Stan Your first question comes from Morgan Stanley. with Zlotsky

Your line is open.

Stan Zlotsky

the and first done on the it’s Thank you just which building a half force half strategic function quarter. ACV the is presume the the particularly qualitative customers, so with of which our the into XXK much heavy within broader sales, start enterprise out. of the in of enterprise especially scale some larger team – tend is and Maybe XXXX, just of in seen quick the then that sales especially Maybe you for year follow-up. really the one on a sales well looking performed the half [ph] first comments – we strategic the second fiscal have guys that you've is year that I momentum force and great to customers, the greater how has how see year, the a back the the been

Mark Murphy

to I to the Stan. would then is And people of I Mark market. things. and company that their selling think the offerings is the people platform people say this a more One, go in made different can were with enable it’s those that licenses use that able to Yes, combination having advantage solutions really people. that to two distinctly has the bring strategic reps or few horizontal and than to from tools a that progress now

counsel rep X% of in strategic take on are call advantage, team how them the with pretty how combination some really they So they people, would larger one of and visited in well. We their strategic team our when year is and buildings, customers it’s and total we’re you a last if -- base. I responding other. able see team and people say the best being the that X% of I with to growing to helping exited sales it market be our know quota-carrying I helping can small respond

the team we we're stays show than then that looking now has having response it’s doubled look them. to and type market trebling of size type I say, changing place. able in make to to sure But and balance a customers that We're that in As that of that. and that more in would between in people balance, were offering behavior

Stan Zlotsky

very portfolio of which have portion Perfect. think, the you on interesting into accelerators the well I plus that my product then actually I use in your already is second XXXX think is a And cases which segues considering especially the question system.

announced, these the be think already how us for me. great that Accelerators are you've some just are maybe So you would a remind into price cases other that Accelerators? That's what Thank just these accelerators to walk opportunity use you And from a customer? when it you.

Gene Farrell

Farrell. Gene Thanks, Dan. This is

then of start Accelerators talk we structured Let and about me cases. how use first kind with I'll

So Accelerators for a that's customization reoccurring typically usually itself. of then then solution on-boarding some actual services with services. combination so sold revenue and are package a they for And -- software a solutions, the they're package have

idea of use can pricing, five varies to then get today get our vertical And started get the every and processes. going. to this you quickly, them becomes figures. Accelerators is the a customer doesn't of and on specific going solutions. to we solution, I our see engagement most plan but is balance priced the on are more vertical the you'll we're around Accelerators coming then focus launching, we'll into of months. sorry, exact sales horizontal the are that with We And we for the wave type demand be announce the ask all third pricing Accelerators, demand. the is first And something next in can't And our And in specifics case a actually by the announcements of the pricing. around almost three that but over So require consulting additional heavy higher And really seeing where of really the that it based customers across saw kind year. on chose value Accelerators of

Stan Zlotsky

so Got much. it. you Thank

Operator

John comes Jefferies. from question with next DiFucci You

line open. Your is

John DiFucci

I just I'll so but one questions there's this Thank question, think my three ask you. in I have question, one.

the in strong. look all, of that calculate And accelerated subscription First rate growth increased. contract the value quarter, new results we really year-over-year the annual

and traction do a that detail, the a more land guess capturing really not accurate? about more and something model to but And I with expand, we second, customers in your that's working talk like And like you're is Like sounds result Firstly, new if longer term period is from sounds meaningful expand know then other software perhaps that's – do I that's in really. more it that businesses. to is over, it's expand. can seen case the that going to directionally with

could little customers? a how on you're new So that talk going if about bit you efforts when on focusing

Jennifer Ceran

All right. I'll Hi, take John. Jenny. the first. This is

John DiFucci

Jenny. Hi,

Jennifer Ceran

the growth about the mentioned, as same subscription way the same. On growth the you QX. calculated rates were Well, that we they the were

So bookings. quarters with are our three – With respect performance. we're the we of happy to about doing

time. one expansion Our it's small talk part then grow of where new. Do play over trending important people Expansions quarter that that for strategy now. land you definitely about an That's want here pretty the new? is given a little to and

Mark Mader

Yes.

across On dimensions. side couple the a new John, it's really of

the sales have still have would we The opportunity indicative shaped going of sales, we – really motion are that's cater be year is its low And perform in to that optimizing of the of interesting, first on was year, balanced think rest high velocity to of assisted I and company say really more digital platform there invest really digital then that And or last was against buyers. and is this year front, motion, what stack to it very quarter. a can this and rest commence We year and potential into deep the other high kind that this sales very terms touch. higher of maybe next And investments which extended it's is servicing is which with potential Fortune this emphasis motion. that deployed digital because larger around, really generate on on so considerable the both. and time, like making sales dollars across the we X entities for solutions, motion value XX there's and our potential the work the think great over of year been a then and that the for next acquiring added we continuing to

John DiFucci

but Great. you're little you That's of helpful. If I Mark, I really can tell know about when could Can talking thought follow-up, just early, it I us -- you a that? just talk -- just Or international are seeing just but started I put too international is regions, for about there in bit traction? know salespeople yet? it any to that? uptick of early you it sort just

Mark Mader

see -- we to there covering territories about confidence in what dedicated We're team Yes. the us is give region. already quarter last over had starting getting

success And positive. thousand Boston. and were reaching dedicated people found was coverage to having customer those customer individuals Europe the couple away very over even So reaction sales miles we from from

is able to the guess, So evidence of see needs And and what to really we're have what expansion I U.S. be if starting nothing cater you they way, globally, in territories the should that starting to and -- people in -- see a rates produce there's here evidences remote comprehensive we now, to should belief the to those of respond. in have international needs

on we there. evidence year, had that of positive of at get territories the quarter saw Boston continuing on forth with and the international was we us direct people which to give beginning ground So in a to confidence the over the that set plan lot last

John DiFucci

a lot. thanks great, Great,

Operator

Your with comes next question Blair. from Bhavan William Suri

open. Your is line

Bhavan Suri

connectors which of product accelerators, new to you Accelerators just think whatever functionality guys. and at specifically think we of is. do of I'll how Thanks should How of sort it think about here. feature about obviously and growth taking expansion or just about you R&D, that? are great two about driving product sort that guys keep outside try enhancements, you R&D on as for sort questions. spend, first, the it Hey, how between spreading But my think

Gene Farrell

start first I combination we're trying lot by weeks feature, and actually roadmap our ago how Gene really driven we a can and feedback a say had you of do by around pain can that us, I we've product roadmap would we our or and XX customers engaging couple would this our this saying XX% just balance to known with had say, would is tell Bhavan, been of capability. investing. the I about And our that improvements from time points we Farrell. is of I a of for you and input love our that We committee deeply get spending advisory customers customers. certainly areas address we're make had do in really to that just but customers you our just or if hey, offerings can this it existing have this that

And so we'll for really core. then That's higher continue I investments with investing here, And able but support we making complex to and want more the these use more seeing automation that's doing have customers really to with more invest said, being you're support workflow like really support to seeing the complicated what in where able workflows I move you're or value, we're in and be complex do customers. And Accelerators. how what and cases what you to workflows.

area really see us engage the third platform. so to you'll build say to solutions our between our is want then then there. continue driving platform partners investing that engagement And on existing top of and customers and our both with around And I'd the try and overall

us. enable on build do features be be that and so solutions to that And of top more both able we're partners to end-users building to to able

Bhavan Suri

I are the question, you think a about to And what's Thanks to about conversion maybe the rates the Thank collaborators. work free do conversion of that Gene. the how paid, priority you I of we we've I sort look at think And the in market? the seen ton and for about free side, funnel, if you saying, I you of got congrats piece but have more so huge expansion what's its guys sort out obviously when guess, ton how there. for I that fees you're the but obviously been the free of well, of had there, accelerate? you. strategy a little technical deployed so sales so deploying, sort strategies increase tackling just that's love pipeline understand to think the team one

Gene Farrell

Yes.

the because about way introduce We Smartsheet. the the our sharing, responsibility platform, collaboration onboard those free experience think we to to we're really of allow the And and they think it's individuals and then Smartsheet. our can plays of one how the of best more engaging, suggest -- that think collaborators intuitive I it's is that we sure see ways of really they to to make is running can and power power and that that to more collaborators they by license. a importantly see power do collaborators that having collaboration

licensed are experience power through continue of plays Smartsheet a suggest both we with And by do different more where they run so there and process that in-app that number and can them the more collaborative And being we user. to time. refine from get we'll to that over

Mark Mader

offering are increase also add gets the you saying, were our capabilities ago. in bigger opportunities assigned what extraneous those. everybody a [ph]. had they exists, we we to have had give to as other it lot there, think not to year and thing is capabilities one what there's years today as So offer and the right? I Gene, are all some cases, of to value access everything to Collaborators versus compare historically two cases have in number In or

So provide we get to exercise we choice long-term population. huge to that that what on

get to one there other people to, will to plus think to said, introduced. on what as opportunities shift based I we from Gene be be the able

Bhavan Suri

That's congrats, you Yes. and really Thanks. just job. Thank guys nice helpful.

Operator

with Terry SunTrust. comes next Your Tillman from question

open. Your line is

Terry Tillman

congratulations. and Gene I'll Hi, echo my Yes. Jenny. And afternoon. Mark, Good

coming of we have third for some that's reasons conference expense fourth call it's words billing, quarter. for it. in see there for missed sales I the sort the the you quarter I user seasonal in you either sell and until question, out the relates is First a secondly or quarter? potential the don't to, of could that third Jenny But some in conference. actual opportunity I one to if other And And then to had the In follow-up. quantification an we then late Jenny of know in see lift for the just said earlier increase. you it I the know could benefit

Jennifer Ceran

Hi, Terry.

Okay.

one your couple in lift First And to question? for give it’s but that I guidance year. into put user the we model. expense didn't that a the potential on into factored mean in of conference, billion sales out your I sales our third of lift, What's dollars the terms

Terry Tillman

that. for Thanks

all update just what and I'll The ACV of And who for, able if sure the other again on platform connectors. look out on with relates with to correlation nice connectors kind but team, you. customers this but customers? Thank the getting Maybe being use some does just at of start not or on the you to more And bigger an been quantification question job. I'm bigger uplift connectors. you're just revenue from going the sort

Jennifer Ceran

you repeat that Terry, question. Hey, can Terry? just

Terry Tillman

Jenny, hear me? can you

Jennifer Ceran

repeat Yes. Can quick? that you real

Terry Tillman

Yes.

about that. Sorry

it’s Just connectors, question a revenue relates the to the opportunity. monetization

about So customers And what those average? leveraged connectors? getting with been on able data from you’ve kind correlate connectors workflows, Thank of uplift to integrated are bigger more like you. talk all the look that you at terms being of in

Jennifer Ceran

Yes.

value of number seeing larger point, it right than So, but a a of the X%. X%, and about small adds are I connectors in ton terms percentage think now, bookings are a the of total revenue we our to your

Gene Farrell

Yes.

is in to organization. have the on I Smartsheet other thing use typically to also add solutions more I deploying that customers cases that use are – the value think tend would and typically across higher connectors general

personally that create they across strategic we primary driver, I over as think flywheel app support much to be use enterprise. a a as think cases much spinning more are connectors as And don't an as so customers way and for our as revenue faster broader a of I time a

Operator

with Murphy comes question from JPMorgan. Your Mark next

Your line is open.

Unidentified Analyst

that you, most of as the characterize quarter in a say next at high Congratulations Mark. this like positively me as point the point thank asked, from questions this years, in the time could you of Mark, [Indiscernible] sitting impact areas are maybe is betting in three what you're you been say well. some on for growth that real future? at that that in and you'd wildcards time Oh this to Seems the but the forward, have level, look on

Mark Mader

one we of not during that been fully their I have tools very of users to really business was the to road deploy untapped think the population empowered advantage. highlighted significant this who things show

what think build what we enable population. horizontals, solutions in we in about that built really catering to it when terms we is So

in what thing. last and its for like pretty an year, So the scale in the which ourselves we big enable of and with people secure combination is we said is how to upside position consistent conforming manner terms that IT those

do Now on us with building our capabilities solutions, it Gene not just features, parties enabling building to its platforms. is third of, as combined discrete with combined that spoke discrete us

way So when it velocity. not of our think in about is us sales we putting the vision,

horizon. So who how asked horizon. is on three-year you So do you productive three-year absolutely platform? the your get other It IT, have of ideas have people who part the

year, offerings of big financial see third-party not is our very very driven composite enablement be over that driven third-party The of portion time. but plan a to do this we significant and Smartsheet

Unidentified Analyst

pretty solid. obviously, based the dollar if Thank can retention Interesting. And quickly, net you. Jenny, I

and Did I think correctly I is that I retention the improved. heard hear that? driving that what gross

Jennifer Ceran

I it the we've to now. would was say the to but Yes. rounds talked the you closer and still down. last XX.X% rate it's guys loss on to time XX% coming that XX% It's

then retention if our you improved. gross take that has So

Unidentified Analyst

Yes. Got Thank you. it.

Operator

Your next Robert with Simmons RBC. from comes question

is open. line Your

Robert Simmons

this us acceleration your Could color you drove what give quarter? little the in on billings growth

Jennifer Ceran

growth? what In

Robert Simmons

nice in billings. a your in growth pickup year-over-year there's Billings,

Jennifer Ceran

Yes.

very very some and that have large were we transactions above quarter, XXk very this So, helpful. so that mark strong, was

and tends Just a and renewal be from upsell seasonality so what's stronger from enterprise drove QX. generally QX improvement that to for quarter the

Robert Simmons

Okay, talking that notable recent you beyond then purchasing? can other product were that are great. us integrations in-app updates give any there And things like about the you like

Mark Mader

coming we about are in tell that, conference for you and going can that customer time. tuned a that weeks at should stay because I you of out that a capabilities announcing four new have be product we have to Well, we lot

Robert Simmons

Got it.

Thanks Okay. the for That makes taking questions. sense.

Operator

time. no [Operator will the further over Instructions] There the to call are at back questions this I presenters. now turn

Mark Mader

today second us with quarter call. to joining thank Well, speaking forward for you conference for again We you quarter. next our Great. look

Operator

today's conference concludes This call.

disconnect. now may You

Smartsheet (SMAR) 4 Sep 182019 Q2 Earnings call transcript