Smartsheet had their annual customer conference and a financial analysts day yesterday.
Here are the slides from the analysts day with a cohort analysis on page 38 and the target financial model on page 46:
https://investors.smartsheet.com/events-and-presentations/pr…
The keynote is on youtube if you search Smartsheet Engage 2019.
It was a little slow off the start, but the back half is good showing the new products they are releasing.
Some notes from the Engage keynote and financial analyst presentation.
- They have gone from 1 $1M customer last year to 4 now.
A fortune 500 customer spending over $1M shows how valuable this tool can be to a large company. They have a lot of room to keep increasing the net expansion rate.
- committed to being FCF neutral next year.
They had slipped $5M in the FCF forecast this year to expand quicker in the UK and Asia. They also have accelerated the switch to cloud service providers.
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Expect to be $1 B in revenue in 3-5 years.
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In 75% of fortune 500.
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4000 people at the Engage conference, double last year.
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Adding partners to help sell Smartsheet that are value add, example of BDO, 5th largest accounting firm.
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Some companies are starting to use Smartsheet as their project management dashboard for the entire company.
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Have added the capability, with Adobe, to approve design documents across businesses. An example is a marketing campaign that is be tracked, managed, and all the workflow happening within smartsheet, both from the marketing company and the customer.
• Can do what Docusign does, but within the scope of managing the project.
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10% of subscription business is from accelerators and other add ons, up from 6% last year.
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churn for customers >$5K is around 2%.
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159% Net Retention Rate in the fortune 100 customers.
They are focused on what their customers want, and implementing solutions to solve their customers pain points. I think this company has a long runway ahead. I want to see them make progress and get FCF positive with improvement every year, and that will start happening next year. (in 2 Q’s)
Jim