Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| This consolidation means that the airline has an opportunity to increase visibility into its IT spend and empower Smartsheet users as it brings greater efficiency to critical activities like resource management, maintenance and scheduling |
| So it’s not like every single user is using us all day long, but it’s actually quite encouraging because people are utilizing it consistently |
| Smartsheet revenue for the quarter exceeded our guidance and grew by 23% year-over-year to $246 million, and billings grew 22% year-over-year to $268.5 million |
| Q3 was also a strong quarter for our suite of capabilities-based products |
| To conclude, we outperformed all aspects of our guidance in Q3 and are encouraged by the signals we are seeing from our incremental growth drivers such as self-discovery of capabilities and the new AI features |
| Similar to previous quarters, our enterprise business continues to perform well, which is reflected in the growth of our higher ARR customer cohort tiers and volume of large deals |
| Q3 was also a productive quarter for our federal government business in the U.S |
| But I mean, I think with another quarter under our belt, we’ll feel more confident and be able to frame that in the year ahead – for the year ahead |
| That’s a really exciting growth opportunity, both in the States as well as in countries which are partner-first oriented |
| So, we are creating these frameworks and these heads-up displays within an administration console so that the administrators and the budget holders can have very high confidence and very efficiently manage these situations |
| And I think we’ve made really good progress in the second half on that |
| Because that work went across its retail, events, theme parks and publishing divisions, Smartsheet was well positioned to win this consolidation |
| These AI skills are helping customers achieve their desired outcomes even more rapidly with the Smartsheet platform |
| We have got good positive feedback |
| We believe empowering frictionless self-discovery of high-value Smartsheet capabilities will drive greater adoption of these premium offerings, and early results have been promising with hundreds of trials started with just within the first few months |
| Pete Godbole I think when I think of the vertical focus, what we have seen is we have seen good strength in sort of, what I call, the retail, the education vertical and some of the gov |
| They found that it had a positive impact by allowing them to centralize view and manage data from these disparate sources, and their success with Data Shuttle has now led to interest in other premium capabilities |
| Going forward, the company will extend its use of Smartsheet to other initiatives such as improved speed to market for technology projects, efficient headcount management, cost controls and profit improvement initiatives |
| Like you did show some nice upside and acceleration in Q3 off of an easier compare |
| But in general, across the SMB, we have seen really good logo growth all through the year, that stayed consistent |
| Really nice quarter here |
| We have really positive feedback in terms of how people are seeing these things |
| Our strength in the enterprise continued in Q3 with expansions at companies such as Cushman & Wakefield, Cintas Corporation, biotech company BeiGene, and CommVault Systems, among others |
| But the way I would describe it is overall margins, you should see those continue to improve |
| So as we went through the quarter, we did see, what I call, strength in the enterprise build up |
| So we think of – international is a huge opportunity for us |
| Nice job on the earnings in the quarter and the cash flow |
| I’m really pleased to see the neutral or positive feedback on this |
| We continue to make strides integrating AI across the Smartsheet platform |
| This enables Smartsheet to serve a growing regional customer base, including organizations and agencies with the most demanding governance and regulatory requirements |
| Statement |
|---|
| We continue to see macro-related pressure on our higher velocity transactions and on our SMB customer segments |
| So, we are seeing some degradation that we had in Q3 on these expansions |
| We saw that trend in SMB expansion pressures continue into November |
| And on the other side of that token, we did see the SMB expansions continue to be impacted by expansion pressures |
| First question you had was on SMB expansions, and we are assuming that there is a continued degradation in Q4 |
| And I think the frequency of usage is probably a little bit lower than people had anticipated |
| We have seen that pressure in SMB expansions |
| So, it – we have assumed it moderately worsens in Q4, taking that trend line |
| And what we are anticipating in Q4 is on the SMB expansion, the trend we saw in what I would call Q3, which was degradation in the expansion rates |
| On the micro, when you talk about SMB and you assume the degradation continues |
| Although we believe that the expectations reflected in the forward-looking statements are reasonable, our actual results may differ materially or adversely – and/or adversely |
| Is it fair to think like, I guess a de-risked way for kind of building outlook is kind of below what is implied in the 4Q guidance? Pete Godbole I think as I have said before, it’s a little early to call out next year just because Q4 is a big quarter |
| I appreciate the prudence in guidance relative to the SMB expansion deterioration, Pete |
| And just a quick follow-up, going back to the macro environment on the SMB side, any industries to call out that have remained more pressured on the flip side have started to show some green shoots? Thanks |
| But I don’t think it will be a huge drag on the margin |
| And as we scale that from tens of thousands of people who have been exposed to it to well over 100,000 organizations, I would expect that friction to reduce |
| And on the, what I call – where we have seen some level of, what I call, pressure, it’s come in energy, utilities, tech |
| But just to be clear, are you assuming it gets worse or just stays the same? And then for my follow-up question, I will just ask them successfully |
| Given these pressures, we are maintaining our prudent approach to our Q4 and full year guidance |
| And then on the net retention, I think a little bit of a downtick at least for how you’re thinking about for the fiscal year guide |
Please consider a small donation if you think this website provides you with relevant information