SMAR - Earnings call transcript Q2 2025

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Operator

Good afternoon, and welcome to the Smartsheet Inc.

Second Quarter Fiscal 2025 Earnings Conference Call. Please note that this call is being recorded. [Operator Instructions]

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

your You may begin conference.

Aaron Turner

welcome, Thank XXXX Second Smartsheet's Good Earnings and you. afternoon, everyone, Quarter to Great. Call. of Fiscal Year

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

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

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

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

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

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

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

Mark Mader

good fiscal XXXX. quarter afternoon, and Welcome everyone. you, second for to year earnings call Thank our Aaron,

of transactions enterprise. expanded $X strong them have million, momentum those was of X in a Smartsheet by $XXX,XXX, QX one are from have over X and with And XX last million, of year. XX demonstrated our We ARR agencies. $X million. was ARR quarter further customers which up than more QX customers, over over XX customers now we $X their that XX% the government

with launched quarter we In billion the we June, including than SKECHERS others. among $X.XXX In ended recurring users. Bank, customers, our seen expanded we've Smartsheet Intuit, XX.X National with members annualized and plans. provisional the transact thousands of To which and QX, new many these to revenue and City packaging of model. more is We and pricing new million date, the on of leading high engagement model, addition across customers

positive our we have While results. only true-up a first early number their small reached by encouraged customers of the period, are

by system led nearly was with life scale aspects is them enabled the automate their quality we streamline Big and adopter last hours XX,XXX government. to their Smartsheet the they firm, cycle. model, solutions used the mentioned now Demand customer on large They in their solution EU expanding are project delivery success U.S. year, their consulting across costs estimate and also where of company and support expansion XXX% XX%. processes in that client other streamline standardized customers early project our by project to improved the They being global integrators the call, work last Smartsheet on their QX, to significant client engagement. to delivery This another with working at our the of Smartsheet Building of new signed Smartsheet an savings. federal building organization reducing which are through engagement team framework, delivery a X for at with a to the increasing pricing growing is year-over-year. in deploying Smartsheet new saved users

customers one with renewal. largest our expansion during of annual enterprise X-figure a their had also We

and Smartsheet. our part to the enabling With success any users, in adopt corporate-level been in feature and account across Smartsheet approval, this security driven by our XXX,XXX over company enterprise-grade has set of team administration. security Smartsheet the total IT our user has population and differentiated

self-discovery, they This As XXX% Data in workflows increased configurations has processes, capacity to over work improve have a on account. their a and establish of while year. Also scale thousands resulted this our result increase a capabilities of and this nearly will reporting. solution a premium satisfaction Shuttle expect we more increasingly the of seen partnering grow with ultimately with streamline and their with executing This delivery the onboards because projects. and of that closed management Dynamic per QX, In increasing that with to by demand project unified They other customer we financial in competitive boost a an View robust services past growing CWM employees solution hours and thousands our XXX% growth they their in customers, following solution clients process platform, to and collaboration with enterprise develop projects included year, they're in-house an them a needed Smartsheet work order their clients to readiness We're year, in chose of deal saving company to unlocking revenue. prominent and RFP customer complex replace vendors. integrated additional scale. new

we a our As modernization are hosting half ongoing. ENGAGE we'll Seattle. Smartsheet is a conference, few customer that the of just annual strategic weeks, move In be 'XX, the making comprehensive progress FY of good on investment second into we platform, the

conference, new this their to will projects, customers powerful larger During It integrated we'll ever our than and year's the more experience programs new and and showcasing processes even is that manage sophistication. empower before. beautiful, be a at more scale Smartsheet,

right getting It solutions quickly with all and initiate configuration processes projects streamlines create accessible experience users. highly and a for the home Smartsheet necessary and management, from tools to AI-driven all for started new will easier The and visual be simplifies experience.

enhancements or program. for also share, and a documentation campaign introducing We marketing they're building whether are for assets how service organize significant create, a users managing in delivery

as and feedback digital reviews easier such the collect One with stakeholders, on PDFs. of key drive to files simplifies collaboration and videos improvements it making images,

seen new collaboration personally Smartsheet substantial features, experience. I've months, along the needs. accurate, new going I more actionable common few benefits this more love believe are and management of user savings customers feedback The past the most our to premium time our teams. their new capabilities, for the self-service and subscription model as solve more access to as well customers complex and our work to enables improved their with Over

AI a Generative helpful be to for proving is Smartsheet. differentiator

expanding generation and our to Our AI-powered like time summaries simplify customers capabilities committed to help complex work these saving more formula tools errors. and are designed text reducing to We're efficiently. tasks,

we to users a estimated nearly already saw automations performance is and with AI XX,XXX of tools. in number our the users from having customers improvements. an QX, million utilizing In hours approximately already Adoption sequential XX% X saved significant benefits our growth AI showing

support We our costs. that contact are acting also first and customer saw point formulas of and with effectively AI-generated suggesting customer positive conversational as our support platform support, lowering reducing for early results, the friction

of expect as with customer impact AI grow the portfolio expand cross-sheet see and tools support co-build we users. We them solutions to to provide meaningfully insights formulas,

push to XX, all Starting impact benefit XXXX. of and enable to of feel access the will tools users AI plan, AI limited customers mid-September, to time our through to Smartsheet grant to our December in a enterprise experience one

Max Long well underway. investments experiences respective nearly closing, hiring our their and our the roles, Praerit next-gen and in the Garg since are go-to-market of In to X of appointment of deployment licensing quarters will scale, combination new model, Through of a platform. customers, framework, a 'XX our FY and a for and transformative value case-oriented a simplified experiences our the user class-leading be company Smartsheet use year product

We for the the are laying foundation years ahead.

to turn call Pete. Now over let the me

Pete Godbole

Mark. Thank you,

company's in at considerable our see As NDRR strength we largest and our history large deals, remains enterprise in continue Mark our to expansion XXX%. mentioned, enterprise highlighted by that an segment quarterly

Additionally, we million of XXX,XXX repurchased and the quarter. QX, for launched program a buyback in total in our share $XX shares

all our and posted quarter. July call. remaining references a are results XX. I and our on in million earnings authorization now presentation the existing $XXX basis GAAP the to will are was buyback through otherwise of for our to have our expenses Unless the and reconciled on second results financial before that release share operating non-GAAP We go results as stated,

quarterly Turning now to our results.

million. at in or $XXX.X year-over-year. up second the XX% billion. quarter XX% in grew million, revenue $X.XXX of to XX%. year-over-year was $XXX.X revenue, up subscription $XX.X XX% representing ARR, Annualized from made growth Second revenue was Subscription year-over-year Revenue revenue. quarter of Services recurring revenue came million, capabilities

XX% Moving reported total ARR metrics. $X,XXX our to ARR with at on from X,XXX. grew percentage number customers the and XX%. The ARR customer ARR. coming of respectively, to over X,XXX. year-over-year with year-over-year of now And XX%, The number grew $XX,XXX of to segments of XX% with represent XX% ARR is customers These $XXX,XXX our over customers over

full smaller retention all churn with rate elevated now year-over-year average Next, $XX,XXX. our and churn customer to of XX% increased XXX%. is customers in The ARR dollar-based our our due We a slightly domain segments of rates inclusive net to ended the rate quarter around X.X%. grew

financials. to back Now turning the

gross margin was total Our XX%.

gross Our Free income margin of flow or XX%. XX% cash $XX.X quarter revenue. operating million QX subscription was the the in million. quarter in Overall, was $XX.X was

revenue On XX% to our 'XX previous guidance, FY guidance of maintaining we are XX%.

we guidance delivered our of assumption to expect total our be X% the Absent increased. revenue revenue, lowered We revenue revenue of we by percentage a services beat full now FY from shift, for While guidance, have this partners. QX have 'XX. for services year full services our revenue X.X% due for higher year down to would

also into change. this takes guidance Our QX account revenue

expect we to be of million. to For the in non-GAAP the to $XXX range of the third million 'XX, of be in million revenue and $XXX income operating to FY $XX quarter range million $XX

$X.XX shares million. XXX.X share of to average expect net diluted We outstanding based be non-GAAP per on to weighted income $X.XX

we XX%. $X.XXX For billion of growth billion, to 'XX, the of $X.XXX full representing fiscal year revenue to expect XX%

expect revenue. revenue X.X% to total around be We of services

in non-GAAP to the our an million, and based for to of operating raising $X.XX weighted outstanding. XX%, be diluted share on operating million income XXX.X are to $XXX non-GAAP margin We average year representing of net to income be million per shares raising $XXX the our $X.XX range

XX.X% FY our updating billion growth 'XX to are XX.X%. between guidance representing billion, $X.XXX to to between We ARR $X.XXX be

QX year our ARR our we growth ARR expect rate rate be growth growth seasonality, Regarding to ARR our between guidance. rate and QX full

raising cash cash a free margin are flow FY flow 'XX We be $XXX of free representing to our million, XX%.

and model was the on the to migrate on key new June our launched initiatives. conclude, highlighted starting progress to are packaging our new track January. a enterprise pricing customers and in continuation model performance our existing We and new our To in over customers in strong QX by to of

a conference well to growth year beyond. ENGAGE forward unveiling and comprehensive looking durable drive platform transformation our at our remain profitable are of in and this We to October. upcoming We positioned

let Now to Operator? the operator. the me over turn call

Operator

first with Terry comes [Operator Instructions] Tillman Our Truist Securities. question from

Terrell Tillman

when progress this first -- for you've of the relates new new got it's side to Aaron, enterprise terms the pricing but I going My customers, and a Pete packaging 'XX to be is Mark, it's lot business. know that good and the just on the of of innovation. see to FY ongoing in instituted question existing

experience, to capabilities? that the sales cetera. that them turn to see less reasons leverage ahead pricing this administrators, themselves? to thought some really of and existing lot on leverage to at this can of a of et the announce provisioning they and you're some question of model kind And is, drive of potentially talking got kind You've ENGAGE, have with given new one you to could long-winded for second new about about enterprise going first Have upside potentially ARR? And a time customers ahead than as lot going new the these do the then you starting you be just

Pete Godbole

customers, that it an contributing larger in expect in -- from our potential bookings And out Terry, this majority to and customers of increased our we fiscal interest do that that that in year. expect as early could existing could your of first to and interest to for a -- some So into expressing customers, question, dollars number rolled us moving of increase see translate percent we've terms we that extent. terms

of it. the So that's first part

going the model done, that The of Clearly, capabilities, and discover be be capabilities and as second as will model. and of process those will your of think about part efficiency our be because 'XX motion people to selling as efficiency there the part question much isn't we sales improving there the FY self-directed forward. was a in around

Operator

Our from Baer comes Morgan Stanley. next with Josh question

Josh Baer

Wanted to pricing topic model. stick new of on this the

paid just both here? seat would Any Any is bit initial you on price update And for assumptions some provide the just benefit the how wondering longer could new little customer expect much pricing initial you monetized? context usage users on hoping term model. now this behavior thumb of or around the more free the of Just the from are new these this the around rule of changes evolving what how per model. from year be typically a under

Mark Mader

week the Last hit pleased all those saw see was our the with data week period. We're first to of Josh. of first Yes, come thousands new really we on who were we model bated true-up to breath where And are happen. confirming what that. see waiting out customers of would their

value greater of and high level, number more ARR. people, realized So more more by users, these clients a being

data. P of whopping a higher approach we have is that conforming our playing X So lower a out expectations. Q or week again, Q, to with of that a And

of a out trend card shoe of the that first durable really good. make, So does pleased not week to X data look but see

Operator

KeyBanc Our next Capital from Jackson Markets. with question comes Ader

Jackson Ader

just I'm those first. can out So curious play possibly about get in we on thoughts if acquisition. an some the company reports reports your being for

Mark Mader

that comment outlook. quarter happy to today, Yes. We're going other on not or but take to any the on questions

Jackson Ader

fair. ask. I that's had to Yes,

Okay.

guess company the program. the market in repurchasing in follow-up fiscal is the quarter? a the third this share the I shares guess acquire Is So -- that question is -- now still I repurchase

Pete Godbole

We all way continues That's it the to -- the up set program for continues, the purchasing. has been us repurchase year. the the way be and have program share through

Jackson Ader

And one in. right. sorry, All I squeeze then can I'm just if more

of AI in that like like next where months, any going resources access uplift really compute I the revenue. couple recognizing to impact giving assume capabilities? some providing there but that's these On any capabilities be the on gross not you're for draw people margin to will

Mark Mader

engineering lot don't No. expect a be kudos that more efficient. They product really have a significantly topic. moved model, to is a workload and Huge which to major to teams. that our actually We of over new

side. feel our minimis So ability de in change impact a we the confident cost on much with to serve really population very larger

Operator

with Research. next Our Alex Zukin from question Wolfe comes

Aleksandr Zukin

Curious it X just kind on me. then a just any quarter. And it up quarter, a and Congrats competition management couple trends in made ended as of a compares the any to about wanted here. progressed, ask trends Maybe to against deeper comments, through the for prior work just winning some there vendors. thoughts if NRR other how second linearity about and well. solid about quarter of I -- bookings you bake-offs dive that how half little you how comments the the could

Pete Godbole

Yes.

on -- So question implied your Alex. first the was bookings,

came quarters. bookings previous quarter There and implied the So they quarter. a big the not for quarter, sort difference between very of how similar was how out in this the looked versus

that was So your question. first

repeat what question, you second was? Your your second can question

Aleksandr Zukin

second for stable expanding? it trends NRR Just Do you the expect half. further or decline, to be

Pete Godbole

with in what overall There's So down, change we so if in will. said that track -- guidance, that you that that before NRR will has think expect we've in no follow the consistent our how been about we respect. to suit, ARR

Aleksandr Zukin

both in competition Okay. And that just the what question. market competition saw and quarter, you end of on lower end. the a and Double bit the little the in then yes, a -- [indiscernible] clicking higher

Mark Mader

mean our haven't really I along we're our We new in crank any change, meaningful ever expansion of continue winning. that we largest seen at We opportunities accounts. $X Yes. of million-plus to terms one had Alex.

to So that go. continues

to starting with resonate I think with second with compared quite think out. our forward who looking really and experiences -- as model, that's the hit as what is, pricing I'm I people new going to the our we half well are change/improve

to expect nicely. So we team I continues that -- again, point. to bit enterprise, high should the perform better of at really see the at a But end the conversion -- entry I should little continue

Operator

with Our from DiFucci comes Securities. next Guggenheim question John

John DiFucci

could they'd eager pricing. works for head, But I'm expect really least simple do to moving frankly, math new users in out, you've think of that customers that which Mark paying of paid true? And nicely. I a first all question Pete, to I we even perhaps to industry get and also said math sure is and at even of think resist P threaten to this number times pricing. I a it And both like math like not you're why on have they be if Mark, I Well, Q And And be would you. maybe or increase, not is standards the switch, or more. works my leave. the the But all, then logical. double. that

this is this. wonder of sort I So question? be -- a just think be logical we should And should how about I thinking

Mark Mader

Yes.

to our base. So double I confident, still ability our John, user feel in very paid

when and prices change, -- what when is too. value I change, think think I to that customers' has change models expectation

them are change. clearly like of people can change value, to not -- our moving news doesn't is with have how and software clients you now on working it is to listening. more good participate, who prices conforming to that's what and they do if when So for. we're we're choice. The People actually enrolling part a is model a we're which gets absolutely to as open other demonstrate And value charged

you aren't get there cities where the of, can go So can lot them, a I'll that opportunity. call to really you sanctuary free

we're we're only out. resonate the indicative think, does people people. example customers will I not how The early platform on, had So respond, the too. And the in with value that thousands we've starting of have metrics existing who layering base the the was signed into confident with of

our largest seeing new very this the so that expanding mentioned remarks, we -- global experiencing rapidly. on again, the largest being being they're model. one the value As And with value our realized. doing in They're SIs -- backdrop. of new They're they're, is

we're So seeing far. with indications again, really it's so the we're pleased very But early.

John DiFucci

pricing? the come exactly these model, And there Are it's the pricing relative not makes functionality? that sense, to Are But I mean on Mark. features new right? is old the value? Or just that things what and

Mark Mader

as and something old on collaborator the could is on free comment world, like In edit do you John, Yes. a all something.

AI. use couldn't You

You couldn't construct anything.

create dashboard. couldn't You a

You do pretty reporting. you're any It's couldn't like handcuffed.

that of So and a haves the customers heard our friction from of what have-nots. was didn't like the we lot they

this early XXX,XXX-plus a reaction to unlock to longer is people And huge navigate the need this So fortunately, yes, populations, difference. net uncomfortable this some cases, for in has they where these no been positive. again,

John DiFucci

Got it.

Okay.

actual usage Got So a gone level up it. sophisticated has more the in of way.

Okay.

Operator

with from Wells Our comes Berg next Securities. Michael question Fargo

Michael Berg

a on in had just churn. quick I the increase one

the but any market, in from in clarity enterprise some mid-market, if smaller to it's I of other customers, want there's particular? mentioned to to whether You segments any other or dynamics verticals get point

Pete Godbole

particular. didn't tick-up in as That's some smaller our churn. saw It's anything we called segments. We we see exactly We what said in slight in out.

Michael Berg

And to then Anything math one paid model? of in with point quick to new Q terms pricing on the follow-up. the new P users times

Mark Mader

at Pleased further any No but week out to between up. not time. we're details we're past through X group on and dip first week old this reporting new. the truing a Again, our -- see, the model

Operator

question next from comes JPMorgan. Bora Our with Pinjalim

Jaiden Patel

Pinjalim. you lock thing the if be we for noted to last This customers something broad-based limited similar. to or giving customers. were time? of pricing may to is Are of in this the And is One renew partners your on Jaiden earlier wondering a XXXX prior than small one subset ability model a

Pete Godbole

the durations. the ability not the new them to model model preference the early customers finding of long new experience renew old model Jim with to The provides. in is we're the giving with we're sort an (sic) an option [ know Jaiden to for to what ], them is -- convert value you conversations under

renewal old the the So model early the We're approach. not on trend. of been that's

Operator

next comes question of Bank Funk from Our with Michael America.

Michael Funk

versus customer you seeing but previous new under the like-for-like the model? model I mentioned spend you're what reiterate earlier, it can you think

Mark Mader

seeing giving phase as the -- it. and we first first from that P first the maturity, reached higher say true-up I of that people look specifics have at the Q, who will ARR that not of step contributions motion. of that -- are We're we

in confirmatory. resulting indications the the positive people So value, benefit. connect and are net down thesis, in early bring P, more -- which was have X connect people The a week to

Michael Funk

to the the monetization with with engage AI How helpful. you then customers plan through move December, after AI functionality, plan Very will, of there? end you And do plan the is the trial, forward Okay. to free them if what of that?

Mark Mader

Yes.

Our engineering people's of a team getting capabilities hands job of has trial into basis. great more in done our a

don't which would for that all capabilities, do our I be have could future up a AI, yet So AI. including discoverable you We trial. of expect and that something in wired

for But So would months. that we part these of to in do the decided expect activation entire the someone's population number trial future. of for to a I be experience full

Operator

comes question from next Citi. Our Steve Enders with

George Michael Kurosawa

Steve. for on George is This

on by the point to Pete, $X in one services there, you revenue gave X.X helpful my First quick to guidance. a of the math, change over $X partners, like shifting headwind. color is which, about revenue some million million

to somewhere guide, right think it been up ballpark? have that, excluding is revenue would about that your So in

Pete Godbole

it up done. for Our been revenue part we've what guide would have some by of

So probably we implies by. I for then for up what been amount, but would booked up have would describe it the have raised in of our amount it we've confidence wouldn't And whole been the by it rest the as some business that it to date.

George Michael Kurosawa

going guys continue how great a Maybe from color And margin Okay. and about forward? helpful. finding generation. efficiencies? you there cash OpEx you're like where then any should in of on Are we leverage middle areas back the more kind think to and find pulling just you're those That's little really

Pete Godbole

Yes.

locations, to I processes. operational layers on And think in that and but with streamlining been organization, head leveraging an nearshore additions, reducing driving spans in always with invest to absolute count continue pair the plan starts our has that high-growth efficiency. focus areas scrutinizing

found in part We in of it functions. it many it roles but place that estate. sort it All We sales, the support those functions. we support are been found And in G&A. not functions in in the real has it. of found We found sales of quota-carrying

a hit it. And question finding your this this journey. view as I part and areas is, the those So destination. of last don't we've a view all as I

efficient. we which done It those of more and what to are and you continuing operational as completely more different elements, efficiently could continue years of by do today. we've So than marketing be self-discovery ways future and should sorts efficiencies to strive sales think more finding to in be

Operator

Our next & Scott with comes question from Needham Company. Berg

Robert Morelli

on This quarter. linear is and of sort the are pretty on outlook in stable the Congrats Did change throughout? past bit Morelli has you throughout the a of Berg. on as things any behaviors dampened economy the couple quarter Rob buying though over months. Scott the notice for where It feels

Pete Godbole

our buying we think third. behavior, We I to progression essentially as we we the went and month the up through second went quarter. saw momentum through saw the the through build first the as good quarter, a

saw we was that we So build the behavior. happen quite only nicely That for us. the in trend saw

Robert Morelli

then to get more Got the it. and experiences I updates was views new at in on board And conference. customer excited released believe view the mid-July.

feedbacks early, bit from insight a you've helpful. or got anecdotes any any of but So customers, be would sort

Mark Mader

Customers are come that excited the feedback beyond are giving new it's in, the see and Yes. they experiences overwhelming views. to

right? So the that new prompting a days list we with It's release, think people never software ago, shipped we on few every is the had new our moved want And batch interfaces, customers love much a feedback. have and software traditional those ideas, of and And are door we more much ones visual, like made to home curiosity And think just our I company, and the as there's view. you a I ideas. home just more that. experience. just as I oriented new much about welcome old with shut from what visual, fresh feedback, a away And we much more experience easier. of

ENGAGE month. we to at very next will think I see be what show people pleased

really neat out. Some coming stuff

Operator

with Our next Jefferies. from question Thill comes Brent

Brent Thill

inflection, Mark, seeing between curious like questions you're slowly there's you from lot the health I that if give know a growth environment. enterprise massive of doesn't been is of could there's decelerating. spend about us SMB, enterprise, you view. notable It a I'm what the look your could XX,XXX-foot a anything but view. highlight

Mark Mader

they're consistent, investment. larger. think the scale is what want And to at difference much simply the I their people Brent, is the enterprise is getting for what's understand

working So an mega when customer, everyone you're SMB that you're to a know return is. investment, a lift that multimillion-dollar about or talking wants doing serving what at whether and you're

the really think years we ago, And about which you key there where we really plays in company getting starting in this us transact. is the that present we think, a growing. framework, that degree use have articulate things where this enables software number So to offerings And I of its I expectation dialed value. a can started to talking helping that really that's, well are can light perform case-oriented of one

I think that people willing on in to of articulation, are if you struggle hope. sort less invest

So really continue high, camp. has But in that pressure pleased very the with progressed how Brent. team remain that I to will think

Brent Thill

And a did there Or or enterprise? was Was difference any growth differences and have SMB adoption? between you sense in what upstream? versus the downstream

Mark Mader

enterprise performance and out of continues the business. the strength And at of packaging some to experience. probably we and of of as interfaces a coming down Well, huge offer lower the more be think end that think I market, I -- there's more

product are do customer a low lead think engage, the I you done a the of where I and can to SMB packaging suitor. -- be get that. the not a need whose value, but I at number more articulate think if And higher of that's deals there's you engage in that when grounded that So does think end

So the involves takeaway end as there this. And the down, not XXX%. deal high is almost at I you every would it's go say

Operator

[Operator comes Capital BMO next Bachman Markets. with Instructions] question from Keith Our

Keith Bachman

a we, how mean word do introductory transformative. you be you And what shareholders, next as little Mark, you transformative I'm year Maybe on think that thought would focusing year, note bit a commented you the want and in it? there? talk to we'll about you remarks, the really

Mark Mader

convergence, -- company in And around margin see Well, our maturity it's really, offerings. career you maturity of we've work these our growing. on I what becoming when but life go-to-market that of being things a things where many this of our a converge. A I transformative as motion. the I been year. next I And It's in couple in company's never lot you opportunities just think number with think, year. is is expansion product don't approaching the you perfect that laid good good a get converged. have while see I I it's really see model. over have last maturity those years progression in your opportunities think or in still your when

I out manifest to So sat. best itself we'll in customer And in will it do dimensions. on think different cash in profitability, growth report our those flow,

Keith Bachman

Right, right, Interesting. right.

market, question, question. question. release previous to a of is I answer can't or follow-up was the understand What press philosophical want one My I rumors pose about that you more Okay. asking questions the in and

and you as remember, would are sort used selling a the and will, depict word juncture? if pros at this But of, Board You company how on you Board cons the the you you on year. or member, the friction, next transformative

Mark Mader

Yes, question that cousin comment to position I one on that first in a is and to a we're think that the asked, not close today. was

Operator

There no will turn this closing back time. now I over Turner at the to call Aaron questions further for remarks. are

Aaron Turner

Great. with Thank speak you soon. we'll and you all for joining us again today,

Operator

concludes conference Thank all This call. today's your for participation. you

You may now disconnect.

Smartsheet (SMAR) 5 Sep 242025 Q2 Earnings call transcript