SMAR - Earnings call transcript Q1 2020

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Operator

Good afternoon. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Smartsheet First Quarter Fiscal 2020 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. Instructions] [Operator

turn to now of Turner, call Relations. Investor the will Aaron over Head I

your conference. begin may You

Aaron Turner

Great. Mike. earnings first quarter Thank to of everyone, you, fiscal Good afternoon, year XXXX call. welcome, and Smartsheet's

results We will after market today. closed in press release the announced be issued our the discussing

are Mark With our Ceran. Mader; CFO, me today and Jennifer Smartsheet's CEO,

Product Chief will Farrell, available be Our also Gene Officer, Q&A. during the

presentation our will that Investor which viewed being is Investor available be call is remarks, also a Jennifer's Relations webcast There accompanies and slide website prepared can Relations in replay section Today's at the website. investors.smartsheet.com. on of for be Events our

call, we this the laws. statements within meaning of During make federal securities will the forward-looking

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

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

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

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

Mark Mader

us everyone, for joining good and And today. afternoon, Aaron. Thanks, thanks

XX%. with is million. we paid total 'XX The collaborators The and across year-over-year ended revenue number now of growth fiscal QX X.X more year momentum $XX.X all of users million, with Smartsheet representing reaching in continued which than

of enterprises excellence many markets. solutions deliver all that vertical drive Smartsheet's for platform differentiated to continues execution sizes work operational across

type are agility, digital organizations and unlocks that to the visibility meet increased of well delivering and by positioned collaboration their achievement. teams We help organizational transformation objectives empowers

our which than Expansion increasing ARR, of customers ARR companies during their by increased XX by and QX Arc'teryx, annual Notable revenue, Health their than such more XX expansions occurred $XX,XXX, DocuSign. American more within Power, recurring Seagate, $XXX,XXX. as Electric at Providence base included

and within from how automation customers We licensed fueled and enterprises is and by based previous Control often the is increasing View. reached capability hear Capabilities Accelerators offerings from the up percentage growth our workflows of user frequently Expansion digitization quarter. use driving these Smartsheet as as the such Dynamic of Center, X% all in of a of customers X% sizes. revenue and our in quarter, subscription

Most XX,XXXft, to and management reporting. announced of recently, acquisition SaaS acquisition. continue high real-time the organically platform offerings through a expand value planning, that resource and features We our we capacity

deliverables. customers and Our ability to set, into portfolio budgets and against gain skill the allocation projects, function real-time level their and time track or across resource plan optimize allocate resources will forecast by visibility benefit from

complements value our segments Slope in of asset our the acquisition added capabilities proposition strengthens for also in and professional via services technology we the XX,XXXft's and customers January. marketing mark-up and proofing digital

years. and project relations agency, campaigns to delivery world's a for a one They teams. in and years managing Ogilvy, of Smartsheet advertising, related largest assets by marketing across customer customer streamline numerous nearly leverage XX,XXXft the of public X Smartsheet thousands has global X creative been for

allowing effectively their investments staffing projects optimizes manage simultaneously. planning use multiple their by of XX,XXXft them allocation resource capacity and Ogilvy's to for

planning, while on improve work. decision-making range automating broad resource and and XX,XXXft effectively more Smartsheet of reporting Together, a tracking, to forecasting will and enable enterprises

work and processes being digitize and from their operationally of automate their means For important for fastest-growing and workflows, they tracking their high-value delight to by teams use a and individuals of Smartsheet evolved our has across valuable organization drive customers, by collaboration many a tool which customers.

sought For breadth of that the a students' way of better administrators example, unconnected Township, Metropolitan in systems. Lawrence lives but issues to at spanned New understand the Jersey, impact School school, and District success multiple data

of district and and information Smartsheet uses make the now teachers, to counselors to and The information in central reporting sensitive administrators. through academic management location available consolidate a behavioral specific and, View, capabilities Dynamic

our process In another Karyopharm capability, verify import to correlations. example, visibility By of researchers, to automation quickly more analysts global With full at instead in processes clinical workday two data and Data a Uploader improving identify data and streamline patient between data. leveraged a pharmaceutical minutes trends people important to Smartsheet's upload, enables it analysts XX Karyopharm, company, trials. takes Smartsheet now and

with driving flexibility Smartsheet frequently share excellence. the strength, me positions a breadth partner in operational our of Customers strategic that it's and as platform

that challenges. Our business increasingly wide enterprises on address central solutions role all of in success based range sizes delivering the of a is of

and recent consulting in our adds with is firm set a address solution to example and technical identify, common, such of to global needs. required measures manage to an expanding with introduction enterprise comply Designed that this Accelerator. organizational regulations, GDPR the a One catalog partnership high-value of help accelerators GDPR

enable we easily and business that We automating workflows work. without approvals users digitize also team a organizational and help or line new build productivity. more automate recently to unlock launched by IT, paths, individual be automated from single of and requiring specify users multistep conditional effective code helping By workflows multiple

of was our all Smartsheet to see fast-growing, it important highly in public satisfaction. we independent team. employee world levels this the is As the type we the cloud from building with to retain I a a levels that critically we of That list of companies in are top Ventures, validation, the is XX a recently rank team talent attract to highest and lead and of Battery case dynamic continue of pleased culture company. market, class at at testament

late executive led and who who global Anna creative Smartsheet's marketing and CA large the is team at is among Marketing our senior help Griffin, our April. who Officer Anna, as to scale marketing us enterprise addition efforts leader branding kind profile recent innovative elevate most Networks, of buyers. joined The in will Juniper and Chief

we're is on event the X. global of hope impact and, and is Anna's doubled be September of at October ENGAGE year, for up X,XXX this customers a has The you being Seattle planning than Smartsheet We shaping XX be of inspired. two our event. through conference learn, welcome share customer see what to execution years track to and in already felt in first scheduled many size its more great to to to each

start pleased progress continued achievement FY priorities. against its every organization 'XX and and to strong person varied and empowering how to unlocking in every We're am improve In they closing, I to our work forms. to our with committed many our in

organizations, do our will continuing geographic services sales to great and to the presence and market and that increasing expand capabilities continuing as by enhancing footprint hire We our by a leader of talent. by our and product platform by develop offerings, and

I'm serving them. proud position and and more continued for Smartsheet in to is whose makes to of team customers and the grateful the commitment me work than passion members those with for support X,XXX our customers

financial results. I'll over hand review Jenny? to it that, Jenny With the to

Jennifer Ceran

you, Thank welcome, Mark, and everyone.

up million year quarter, versus Mark XX% XX% in a for $XX.X at up mentioned, came ago. a Billings As versus came ago. $XX.X in the revenue year million, at

was or contract rate per based grew and net annualized domain-based ACV XXX% XX% dollar retention our value Our average customer year-over-year.

added We the with customers. domain-based net new X,XXX quarter logos just end also over XX,XXX to

million non-GAAP $XXX loss First million. in platform investments we free was and quarter approximately net and non-GAAP capabilities, million. flow go-to-market million $X.X our And $XX.X operating per balance continued quarter as and with $X.XX. cash was cash was we ended $XX.X loss the Operating flow to a negative negative cash make of was share

ago. into at increase $XX.X bit Services versus up million, million of more a quarter. total revenue dive year total a XX% in and the subscription a our million, revenue revenue me came in versus ago represented XX% XX% revenue. was for $X.X a Let revenue, $XX.X Of year

success tempered an custom required growth solution. reduced create to solutions revenue to services Accelerators, deployment our time compared configuring by rate the pre-built uplift revenue. continued Accelerators and for the of subscription consulting The was

We fiscal revenue of of in services be XX% X% remainder total to the this of to expect the revenue year. range for

to Moving metrics. on

more see represent now $XXX,XXX X,XXX customers more now year. XX% $XX,XXX customer larger are ACV. total per to grew by or year-over-year paying XX%, XX%, approximately us XXX% per now are us customers. year are growth These now and $X,XXX and us XXX segments XXX%, respectively, paying of or year, XX% our XXX continue paying and We in and or strong more per

the capabilities This seat Accelerators, ACV to by $X,XXX being average growth expansion as quarter. contributed View our such driven is to per increasing for and our both and domain-based customer which newer Dynamic

prior the dollar-based And retention as year earlier, quarter percentage same quarter X above our XXX%, with the points net a was and rate ago. consistent mentioned

color posted sheet. Unless provide rest the and are balance in on release statement the and otherwise the that references expenses basis all of income our to our and before earnings non-GAAP our on stated, a are Next, results and highlights operating a to reconciled GAAP our results from I'll few call. presentation was

prior overall first X credit better gross gross with and processing center by primarily the quarter and In card margin than year-ago was point quarter, percentage and costs. scale the margin driven XX%. quarter, data XX%, flat was the hosting Subscription

migrate our the co-location call, public begun our on As to last cloud. to mentioned I the we have services facilities from

pace to margin risk making reduce are services transition Professional XX%, We measured and operating with was at a costs. consistent prior quarters. this minimize

million, costs to percentage show operating and we quarter the administrative as expenses. XX% to first General scale. below total the point in revenue, year-ago Turning of representing begin prior quarters and X were $X.X

quarter. XX% points down prior was Research The from ago $XX.X X development by and additions headcount to year quarter of an the percentage points increase quarter total for driven was percentage of X versus the and increase and features. new million revenue, prior enhancements product from the or

The revenue percentage by was XX% expense and million revenue or marketing revenue quarter XX% sequential $XX.X and was prior primarily and sales the driven in in quarter. a hiring. of in sales Finally, XX% marketing the versus of year-ago as increase of

representing total was cash operating ended loss were expenses margin quarter Turning just headcount-related, the XX% and to a of operating and with free $XX.X Operating negative of X,XXX flow. Approximately we employees. XX%. loss over million,

CapEx and principal payments of on Free million, $XX.X internal-use includes software capitalized totaling which leases flow revenue. cash spend, negative X% was

our As a first quarter. the bonus paid also out reminder, we in annual

billings. to turning Now

up represented Approximately annual $XX.X total. ago. were the a about monthly. were Quarterly of billings and year multiyear million, X% quarter with first XX% billings X% XX% our Our subscription of versus billings

the year I second for provide the guidance will fiscal full now quarter our and XXXX.

As on in $XX.X for paying we X, May million Mark the cash approximately acquired mentioned, XX,XXXft, company.

second impacts half to million $X about the which as most of deferred of XX,XXXft acquisition, the considering recognize After this on acquired expect of of accounting revenue timing of be the revenue the as year, year. well anticipated the realized purchase will we in

adding are we our million Additionally, to fiscal guidance year for 'XX. billings approximately $X

Finally, operation, while been free on neutral impact year spend had positive and flow stand-alone XX,XXXft 'XX. fiscal integration cash we are generating net consolidated free in incremental a flow as cash a assuming

guidance the of updated acquisition. the Our full incorporates impact

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

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

also We million. into planned flow up second loss cash that first the cash been now $X deferred operating to Both quarter. to flow in free our quarter be reflects shifted and expect some has negative spend free QX our

million in of be $XXX For XX%. representing expect to full revenue year, the the range to $XXX growth of fiscal we XX% to total million,

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

purposes, historical be to last organic representing in for full for for billings million trends quarterly quarters basis. modeling $XXX year, And growth the of to assume of to year. XX% billings for expect We fiscal the million remaining XX% range an $XXX the on versus please

maintaining flow, to in to cash preserve free flexibility are $XX For full investments year business. to make our up negative million we the guidance of

With it to that, Operator? operator your now to turn take the we'll back questions.

Operator

DiFucci John from comes Jefferies. question first from Your Instructions] [Operator

John DiFucci

I'll off about you. start quarter. Thank just guess, I this talking

few it your here. strong or if Was really the is were little and look - coming talk I additions can of you new a of your like what market, quarters Accelerators core numbers relatively guess, strength seat things of you the Jenny, some still from. from much you of new? new. that seeing a of had but versus bit how it's actually sort Mark the relatively are about So knew some I for strength now, couple your

you attributed have. -- was up us GDPR on be adding new maybe and trends? these many could how bring business And how then seat Mark, you contribution And the to some How mentioned beyond to - in Accelerator. of seats Accelerators speed much

Mark Mader

speak Okay. the in market observing we're to Hey, I'll Gene strength let of speak to I'll and John. in what just terms portfolio. then Accelerator

the a core lot XX the say things years market category. as here are that to grow, the I as been things into to now someone of One are that what who's is fall coming continues encouraging engineering of that's for would team the

up we So and when enhancements getting types that core our people offering. you demand the the middle are and implementing, ago, to that workflows motion that continues are are from of provide automation of the be that I of these straight to second think spoke the really things we a traction, and see people majority

or they like capabilities, topic areas these mark-up And in see it things PPM been customers and Slope all speaking see us on and that have terms signal for automation whether of about years. content buying as advanced forecasting, customers incorporating are our improvements, be

continued expansion to the to people I are say driver So addition licensing. the the set as Smartsheet looking on should we straight would based offering the where being we go in signs for see primary believe of are seat what more business. add Accelerators

GDPR And good Accelerator is a example. the

to offering While than is value it's niche market and sort affect just to we're in - fewer we that going be a our really this TAM, to to this gone far overall on. have think addressable market with with market catering offering total we of the going higher the partner this

looks? talk offerings, are some them broad-based, I some many to how are little Gene, very we think and in their of sort of diversity targeted. of makeup them want those bit - now a the have about you The how

Eugene Farrell

Yeah.

X started IT So Rep with including PMO, the Accelerators, Onboarding Services, an Engagements. Sales John, Customer we and M&A Professional quarter integration,

Forecasting GDPR - Accelerator launched Sales the literally we just Accelerator. just we the During quarter, a we introduced and

In - the be of fact, is some marketing following shortly. will

an of incorporate is And we've with learnings where key so can industry the compliance. best we're working in there is have make area that continuing in. they're companies Accelerator to areas And in of invest. are one practices customers is spectrum experts partnering And really had are hard one an where GDPR across to interest that there sure we the a lot really that

I an higher a was help real last them they to we opportunity to solution experience. this bring market that a think And meet there's critical learning think And really year a value is where regulation. and ensure

John DiFucci

Okay…

Mark Mader

me let I add. think, John,

while that who I these of think we've to off play a at to spoke gains previous I as business, for a creates strategic it platform customer mainline each and contributes a decisions revenue you making offering, and also very a call, introducing with it of people one on the nicely. benefits the sites. having absolutely other those offerings bookings think very, it are also access is And relationship

Eugene Farrell

Yes, for sure.

For sure.

John DiFucci

Okay.

the integral a could clarification, launch just part workflows, you get about an could automated of what that's you're talking I if there? Mark. new offering, with core them you If - When that's

Mark Mader

Yes.

John DiFucci

That's had take... in not addition to you that something

Mark Mader

we and an that's offering introduced to more No, that cases. our We part the to manual of requests and much this build customers launched update integral use really of Smartsheet eliminate multistep allow in complex spectrum Yes. effort workflows a automations across quarter. multistep build approvals core

John DiFucci

Okay, great. Thank Well, guys. job nice you.

Mark Mader

John. Thanks,

Operator

from comes Stanley. next from Zlotsky question Morgan Your Stan

Stan Zlotsky

there the to wanted the a start just about hired and organization. hiring follow-up. as the changes how for far maybe sales year? so rest year. quick you the you is as on sales inside question. you sales last as a sales you. as the guys And And obviously of plans give what I much your productivity, the as any off Thank for my organization quarter for been us update I guys. And quick think taking Thank both Hey, as with saw well sales you outbound have for if then far your reps, reps a lot

Jennifer Ceran

Hey, Stan. Jenny. This is

quarter. versus goals. we Every sales their the year. that better digital for front, last seen productivity had Also team what some outperformed sales we momentum started on seeing So good we by the the saw team on

digital on things the respect working We're some we've So been actually some helping. yield. with of seeing to is

about bunch quarter. U.K. we've to added the XX, we XX to this total the and approaching added of respect of With XXX We're a now, reps reps office. headcount, a reps,

for improvement team well. the They the is seeing rates, strategy closer customer our international right so having retention And ground, U.K. ramping. the We're is in getting doing on really dollar are to net showing is I think that us. which people

Stan Zlotsky

outside since basis it outlook you, an million billings of Thank That's your the Jenny, second already light the in And compares especially the the Perfect. year? we we on $X the what confidence coming you in for up year organic that contribution of of half giving even from in and have is full up have tougher you. bumping me. acquisition, the

Jennifer Ceran

mentioned, acquisition. part Yeah. was Well, of it, you our as from the benefit

the outperformance increase saw and could the also felt We that quarter versus overall first guidance. of We we the that business. strength just

Stan Zlotsky

it. Got you. Thank

Operator

from Mark Murphy next comes Your from JPMorgan. question

Unidentified Analyst

for And scale doing rapidly guys. on Thank of sitting This and overall pretty and well. some Airtable the they're that But question landscape since on like I'll you. [ph], it out some is well Mark. competitive on the a seems growing hear we're there, talking as Pinjalim private Asana, in to has we quarter, good ask the pretty congrats players everybody.

Do budget other it's in each mean, none do those into some you I of you? you'd are after guys guys actually do - seems it bump at that you a And going different like. much, think that point are more of Or essentially that other? seeing you each think time you versus

Mark Mader

who the coming a is worldwide, you billion your on brands, And cases, is say do but established. I have when X individuals would market preferences is some some there field think, is up I cases, in. lot or what's in different of groups certain to is play getting I addressable -- this think, category for in have Mark, personas happening

multiple players claiming all to have You be successful.

very as very And now player in some the literally thousands of we expansions. And it's what thousands. competitive at said - have be strategy on for we closely business of new competitive right look only our and years, don't every customers closely subscriptions, opportunities, mentions mentions to consistently try see SaaS I've think the on I because

would seeing value the I the has and job biggest is with biggest, two changed So pursuits others our in which the footprint, are frequency your not be to meaningfully we to but that the most -- the have deliver quarters. last say in

Unidentified Analyst

for And Got retention, it. the net that. Thanks pretty despite the Jenny, increasing obviously on dollar stable scale.

think I any there metric. churn lending that are But improvement or there retention international you reduced… improvement is was mentioned on in -- your as gross on [ph]

Jennifer Ceran

Yeah, there was.

last So loss basis a quarter saw XX rate improvement point that. We to our XX%. rounded in up

loss now our to So is -- rate down rounds X%.

an So And stickier. we product trend. customer, to existing the we into get the continue see deeper becomes as

Unidentified Analyst

Great. Thanks a lot.

Operator

Your Canaccord. next Davis from question from comes Richard

Richard Davis

to It Quick that Hey, obviously numbers me is of but teams. successful happy customer your thanks. our question. is doing you you're getting have to good and validate training, need seems -- And your that. good only not seems a customers success to techs and kind to indicate key well field

how of do about better, obviously, a I But question, think more - kind broad just but as mean, effort. you how that do you is

have for free. like gave day back training firms their Soccer I Some in - Ultimate away remember the

cost? think Thanks. just how do You you titrating success whatever free and about but kind stuff, out, that have of balancing some

Mark Mader

that through I a themselves, success, what is clients is to The obviously want a the on schedule, Mark. that also they where depends at guide it's mechanisms play customer hearing and that but It's preference. from community, in can really get the multidimensional mechanisms sense we're role online look where in it - really it Richard. huge Hi, set training client's the that they whether whether they be people

by who us, some You side, not customers with we'd got say without strategic those work have we step any won't significant have take it. by you who you rather their

by of by think mindful vertical, preferences functional does by being industry, it those -- I So and group. differ

tooling serving. So that people having both -- appropriate and then for a is I portfolio sort of who you're it's think having a of

on would I customers. our would In empower fastest-growing, self-directed I really say, what basis. a we consider cases, have for in And we glove service someone some highest value biggest, other white cases,

it's with So I - in there's think I one three plays think it. playbook don't

a it's very thick with I think many plays. playbook many,

Richard Davis

That's you helpful. Got super much. it. Thank very

Operator

from Your Blair. William next question comes from Bhavan Suri

Arjun Bhatia

It's on Hi Bhatia actually guys, Bhavan. for Arjun

your touch sub Your right? it's wanted domain still ACV on Just customers, X,XXX is - per to year.

you And upselling, think So like number to low-hanging to the customers? there's at fruit either it grow really increase kind over geared as of to continue that penetration do a of levels cetera? are this do lot room or seems you what this. et existing see time between seats Where

Jennifer Ceran

I We've XX the up. mean, I the is see over imagine. every I feel Yeah. customers of up been trend to large now that that don't going you of got confident as XX% going Like, it's a Fortune can in in We're quarter. changing number We're XX%. XX% materially. XXX.

We XXX. presence Fortune in have a the

on the the Fortune $XXX,XXX yet, the average just - is ACV in $XX,XXX it's above XXX XXX. And and still Fortune above for

So still go. way just a have to we long

just we're enterprise. now not we're - the think right I end-to-end in not

grow We opportunity continue to have that. an to

Arjun Bhatia

Great. And quick maybe That's helpful. one. another then

reducing for You've talked process customers. the in about the buying friction

investments past result wondering few you've quarters? you Just you've and some the seen made the as a initiatives self-service are of over these whether of more where on

Eugene Farrell

on digital process. we've as Yeah. as sales side, trial we Well, fruits well both from the some as sign-up Jenny the seeing made improving mentioned are customer earlier, investments in onboarding the the

invest And think And got We've there. of are a list but that think started. I returns just to getting positive, continue we're long really initiatives. we'll I so early

Arjun Bhatia

helpful. taking my questions. That's Great. Thanks for

Operator

Terry from SunTrust. Tillman comes question from next Your

Terry Tillman

they I'm curious, just customers, quarter. use a taking when of as this or you are the in to What mean, for questions work cases? is customers X,XXX buyer up, capabilities, for lots maybe, continues with landing size you. are are sophistication still maybe the as picking mature Hey land, a market first well. thanks of this seeing adding like interested well guess, I more Mark, in and of guys - question, over starts you bigger I is terms more is the initially I'm execution my change customers or

in the question. are seeing then the That's some to because of the maturation you those just change of dynamics speed And first any of multipart that the first purchase, market?

Mark Mader

Yes.

- Terry. think hey, I

- can solve I helpful of think it's the something right you when gate. out the

we're I you come hey, got I'd to we're for this Terry. set to to if LEGOs. talking to I built going build? some you I to come to and thing were you be I we're time quite here about what and say, build. out amazing spaceship say, What and going to But minutes. of say going is get hey, do set, if in think I this and got instruction the hanging want XX this

You're great, do it. like, let's

to connect when think problem, and quickly. Accelerators to mature and you a of or more So Centers with I a can you lead capabilities automation or to set close come Control real someone it

problem So and very I things attack mean XX would that say at though success. get that, but that that quickly once, doesn't they start necessarily they solving they

XX our things Terry enterprise of to again, the So whole out solve approach for isn't let's gate.

still things a position high-value time. Let's over growth and then ourselves few for solve

Terry Tillman

opening billings the is on curious you. visibility percentage the visibility it's of $X appreciated that. of Okay. balance. and a But around any, opening already this million, billings, a lot revenue activity into million or in not kind on balance but Thank Do and the and Just the they late-stage the maybe, risk, sheet? have of Jenny, if the And the on I know total from XX,XXXft. the $X big color confidence contribution

Jennifer Ceran

selling were of there's May like two - them a customers seen of things. really lot we for from good mean, It's acquired product. they're our is on when I product we also they product. We've existing clearly, a Yeah. where theirs. demand And X. One kind a

think based we also into on base. customer we where can sell it's So our

Terry Tillman

Okay. Thank you.

Operator

Kidron comes Ittai question next Your from from Oppenheimer.

Ittai Kidron

are for Hi Accelerators. where others? give well nice to to Are in quarter. conversation where Accelerators a than that started start there I this was with success It than the popular specific Mark, on what you. - see more us you seeing guess, it's bit color nice guys, little can wanted verticals more more is I going not?

see typically I Accelerators, about do offerings they some start you - with start to Accelerators? do and I or do with sometimes then core mean, think move customers your how percent And happening what that of

Mark Mader

Hi, Ittai.

customers our think to of lot is with evidence. bookings Smartsheet. who did out-of-the-gate a people had who already I know of a expansion, many Accelerators these from with their We as of are coming move. start concepts presented There couple

was see, encouraging see, it's are of So - new to bookings. but that great our overall to a those again, bookings minority

today. – are they it's So those in mostly expansion relevant settings

bit I value, Gene, to about can she activity capability, delivering do way, we're that seeing of to about a you talking we're market you right? on wise? comes talk more and certain about onboard popularity, with a a these take go-to-market, Anna think And offerings it opportunity on little excited If in to as we what the you're offering the things certain you gives a declarative intentional dimension. market that way. It's one in want of terms teaming

Eugene Farrell

Many interestingly, want the customers customers and has I actually to "Well, to contributor see that we IT. places got been And I've largest Yeah. against I than our that where deploy IT IT Accelerator sales would say say, PMO go the just have Accelerator. deploy more that." seen beyond

actually really also to your I wow, services to I customer team got important a as a It's engage doesn't solution. though rather with will Accelerator, and say, love Many remember would up professional you when capability, times, bespoke Accelerator deal. I've closing start but end build unique into conversation get an needs. some with always this it that it the

Accelerators, in so driving really a customers. and And broader we see actually Accelerators but selling both catalyst a also discussion growth for as with

Ittai Kidron

just about international on follow-up XXX% your me Jenny, expansion a as declining. want number. to don't I to you sure But And a want loss I wrong, great think nitpick. expansion, just talk understand then, here. Got and it. the Don't get net I improving I rates did commentary is make

So quarter-over-quarter am basis? I in declined gathering the expansion from on U.S. rate this that a

Jennifer Ceran

same the - year-over-year. net No, of It XXX%. quarter-to-quarter. was dollar not and comment QX no. It's No. was were our QX our rate My retention our

ago improved. the international looking US So of rate and versus QX a QX year, both at rate this year

Ittai Kidron

good. of you think the for us How rate to remainder Very would the like fiscal about year? this

Jennifer Ceran

Yeah.

typically quarter's we of high the modeling by on so XXs what now, we'll kind mid right XX. what we of now but number that to number, every is are get as we right -- is to the do we quarter, we're next the mid of by would year, we January modeling that And XXXs. do achieve the high So -- update that's well, XXXs, end a and rate,

Ittai Kidron

luck All guys. right, good

Mark Mader

Thanks.

Operator

next question from comes Your Davidson. Jaluria D.A. from Rishi

Rishi Jaluria

some Hey, for market wanted Smartsheet taking making wanted of obviously, terms numbers at it out maybe start awareness. to product market for of seems guys. unknown. my that, Thanks awareness I your driving perspective to off investments relative least in a the greater but is a are because I opportunity, questions. from my in the to well, get you're relative really bearing And still of sense

take software in of with see I virality little but or not And that what in think virality a a Dropbox? get or bit what would that even product, adjacent alongside Thanks. lot we you already happen other the of that, to need would areas like see your we within maybe collaboration to Atlassian don't it Slack to of -- have level

Mark Mader

straight a one much I this take also mean, then think teamed with just here and up they huge the is expansion And in US awareness addition motion one Anna awareness. And is the call think the in to globally. was reasons we broadly I I to so more what of aspect better into years. I here the over that marketing viral around would the other been to marketing, sharing of important good years. It's and part using product people our product, it's where performance others. why we build engage up been over love really marketing build with beneficiaries have helpful though

to the it natively when whether what that product and I about and how things -- Gene vision on But all think around is that be the that, it we've our our our doing integrate about on talked to whether talked some side, of propel we hand roadshow, tying Slope front. in way communication I with teams content be about the innovation, on back of improving leading we our is things think the Slack us and terms we're

of very what product very our about happening a map. coming how spaces adjacent most up and trying group fold shared with and of engineering product be terms with some closely as we team of look catalysts concepts years probably plans, that to we those And the been see Aaron in thoughtful with offering. an excited a couple is yesterday, in road I've as in ever-growing good into to in I So we're

Rishi Jaluria

really helpful. That's Thanks. Great.

Operator

Your Simmons question from next Robert RBC. from comes

Robert Simmons

do it Thanks big us taking on for show quickly Can results? in color an think that some the give question. how you And see you you Hi. possibly of being? opportunity up FedRAMP? as How will

Mark Mader

are deciding call, said reached year. the this Again, the I Officially, we heading They in that control fully, the we as status QX. achieve full last that we're time to next process. but authorization. in FedRAMP in are step going So the feds to that that it's now we're Ready move reported out And -- confident line. that within we

we to opportunity, demand. continue the of see terms In

been DC, waiting accounts working have beta based setup. for hard we full been a authorization, in which getting is While team, our has

conversations with We're agencies. We're So today. we're having Smartsheet deploying them. in

huge of happening has the not looking what showing a right? it us the are the not the agencies activated, there's outside, in works, but sense in seen commercial to there been realm, And agencies surprise Again, been that and have showing fully demand, interest. have seeing really what's they signs

the emerging messaging, they're whether categories, They see to category and in participate. or our wanting it's

get actually be we're the get the to ice. puck start and we excited going but forecasting, muted until in we're to terms transacting, So on somewhat of really authorization deals

Robert Simmons

Thanks. Great.

Operator

over time, our question. will And this At that I turn back call the the last to was presenters.

Aaron Turner

Great. you again next quarter. look for today. Thanks. all Thank joining us forward you with to speaking We

Operator

This conference concludes call. today's

now may disconnect. You

Smartsheet (SMAR) 5 Jun 192020 Q1 Earnings call transcript