Smartsheet Inc. Announces Fourth Quarter and Full Fiscal Year 2022 Results
03/15/2022 - 04:05 PM
Fourth quarter total revenue grew 43% year over year to $157.4 million
Fourth quarter calculated billings grew 48% year over year to $224.3 million
Fourth quarter net operating cash flow was negative $0.2 million , net free cash flow was negative $2.7 million
BELLEVUE, Wash. --(BUSINESS WIRE)--
Smartsheet Inc. (NYSE: SMAR), the enterprise platform for dynamic work, today announced financial results for its fourth fiscal quarter ended January 31, 2022 .
"Our results this quarter cap off an incredible fiscal year at Smartsheet,” said Mark Mader , President and CEO of Smartsheet . “We once again set new quarterly records for large deals and accelerated annual billings growth. Our momentum has never been stronger. We enter FY23 with a growing team that is focused on delivering the market-leading innovation that is increasingly vital for our customers. The global work management market is thriving, and customers are choosing Smartsheet in record numbers."
Fourth Quarter Fiscal 2022 Financial Highlights
Revenue: Total revenue was $157.4 million , an increase of 43% year over year. Subscription revenue was $145.7 million , an increase of 44% year over year. Professional services revenue was $11.7 million , an increase of 34% year over year.
Operating Loss: GAAP operating loss was $52.1 million , or 33% of total revenue, compared to GAAP operating loss of $29.0 million , or 26% of total revenue, in the fourth quarter of fiscal 2021. Non-GAAP operating loss was $14.5 million , or 9% of total revenue, compared to non-GAAP operating loss of $5.3 million , or 5% of total revenue, in the fourth quarter of fiscal 2021.
Net Loss: GAAP net loss was $53.1 million , compared to GAAP net loss of $28.7 million in the fourth quarter of fiscal 2021. GAAP net loss per share was $0.42 , compared to GAAP net loss per share of $0.23 in the fourth quarter of fiscal 2021. Non-GAAP net loss was $15.5 million , compared to non-GAAP net loss of $4.9 million in the fourth quarter of fiscal 2021. Non-GAAP net loss per share was $0.12 , compared to non-GAAP net loss per share of $0.04 in the fourth quarter of fiscal 2021.
Cash Flow: Net operating cash flow was negative $0.2 million , compared to net operating cash flow of positive $15.2 million in the fourth quarter of fiscal 2021. Net free cash flow was negative $2.7 million , compared to positive $9.9 million in the fourth quarter of fiscal 2021.
Fiscal Year 2022 Financial Highlights
Revenue: Total revenue was $550.8 million , an increase of 43% year over year. Subscription revenue was $507.4 million , an increase of 44% year over year. Professional services revenue was $43.5 million , an increase of 33% year over year.
Operating Loss: GAAP operating loss was $170.0 million , or 31% of total revenue, compared to GAAP operating loss of $120.5 million , or 31% of total revenue, in fiscal 2021. Non-GAAP operating loss was $34.2 million , or 6% of total revenue, compared to non-GAAP operating loss of $41.2 million , or 11% of total revenue, in fiscal 2021.
Net Loss: GAAP net loss was $171.1 million , compared to $115.0 million in fiscal 2021. GAAP net loss per share was $1.36 , compared to GAAP net loss per share of $0.95 in fiscal 2021. Non-GAAP net loss was $35.3 million , compared to non-GAAP net loss of $39.7 million in fiscal 2021. Non-GAAP net loss per share was $0.28 , compared to non-GAAP net loss per share of $0.33 in fiscal 2021.
Cash Flow: Net operating cash flow was negative $3.5 million , compared to net operating cash flow of negative $15.6 million in fiscal 2021. Net free cash flow was negative $20.8 million , compared to negative $31.6 million in fiscal 2021.
Fiscal Year 2022 Business Highlights
Ended the year with a dollar-based net retention rate of 134%, an increase from 123% at the end of fiscal year 2021
The number of all customers with annualized contract values ("ACV") of $100,000 or more grew to 1,026, an increase of 74% year over year
The number of all customers with ACV of $50,000 or more grew to 2,354, an increase of 55% year over year
The number of all customers with ACV of $5,000 or more grew to 15,150, an increase of 28% year over year
Average ACV per domain-based customer increased to $6,977 , an increase of 37% year over year
Ended the year with 2,539 employees, up 624 from the end of fiscal year 2021
Introduced Smartsheet Advance, a tiered premium offering to unlock the full potential of Smartsheet’s platform for customers as they scale
Introduced Pro Plan, our updated entry-level plan, allowing new customers to get started in a more collaborative and cost-efficient way
Launched Smartsheet Regions, with the first region in the European Union , giving global organizations more control over where they host their Smartsheet content
Enhanced Smartsheet’s enterprise-grade security and governance by introducing Enterprise Plan Manager, customer managed encryption keys, and expanded data retention controls
Released Work Insights, a new capability that automatically aggregates customers’ data and visualizes it to help uncover key trends, activities, and bottlenecks
Unified Smartsheet’s Resource Management tool with the core Smartsheet platform so customers can access their resourcing plans directly from their project sheets
Expanded Smartsheet’s ecosystem, including new integrations with Webex, Lucidspark, and HubSpot and new partnerships with McAfee and UiPath
Smartsheet and Brandfolder were recognized as leaders on G2’s Grid for Project and Portfolio Management Software and Grid for Digital Asset Management Software , respectively
The section titled "Use of Non-GAAP Financial Measures" below contains a description of the non-GAAP financial measures with a reconciliation between GAAP and non-GAAP information. The section titled "Definitions of Business Metrics" contains definitions of certain non-financial metrics provided within this earnings release.
Financial Outlook
For the first quarter of fiscal year 2023, the Company currently expects:
Total revenue of $162 million to $163 million , representing year-over-year growth of 38% to 39%
Non-GAAP operating loss of $25 million to $23 million
Non-GAAP net loss per share of $0.20 to $0.18 , assuming basic and diluted weighted average shares outstanding of approximately 128.0 million
For the full fiscal year 2023, the Company currently expects:
Total revenue of $750 million to $755 million , representing year-over-year growth of 36% to 37%
Calculated billings of $905 million to $925 million , representing year-over-year growth of 37% to 40%
Non-GAAP operating loss of $90 million to $80 million
Non-GAAP net loss per share of $0.70 to $0.62 , assuming basic and diluted weighted average shares outstanding of approximately 128.5 million
Net free cash flow of negative $15 million to negative $10 million
We have not reconciled net free cash flow guidance to net cash from operating activities because we do not provide guidance on the reconciling items between net cash from operating activities and net free cash flow, due to the uncertainty regarding, and the potential variability of, these items. The actual amount of such reconciling items will have a significant impact on our net free cash flow. Accordingly, a reconciliation of net cash from operating activities to net free cash flow guidance is not available without unreasonable effort. We do not provide reconciliation of calculated billings guidance as its components are solely revenue and deferred revenue, and guidance for revenue is already provided.
Conference Call Information
Smartsheet will host a conference call and live webcast for analysts and investors at 1:30 p.m. Pacific Time on March 15, 2022 . A live webcast and accompanying presentation can be accessed on the Investor Relations section of the Company's website at: https://investors.smartsheet.com . The conference call can also be accessed by dialing (888) 440-6385, or +1 (646) 960-0180 (outside of the US). The conference ID is 7672979. A replay of the call via webcast will be available at https://investors.smartsheet.com or by dialing (800) 770-2030 or +1 (647) 362-9199 (outside of the US). The dial-in replay will be available until the end of day on March 22, 2022 . The webcast replay will be available for one year.
Forward-Looking Statements
This press release contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, statements about Smartsheet’s outlook for the first fiscal quarter ending April 30, 2022 and the full fiscal year ending January 31, 2023 , and Smartsheet’s expectations regarding possible or assumed business strategies, potential growth and innovation opportunities, new products, and potential market opportunities.
Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “believe,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: the impact of the COVID-19 pandemic, our ability to achieve future growth and sustain our growth rate, our ability to attract and retain customers and increase sales to our customers, our ability to develop and release new products and services and to scale our platform, our ability to increase adoption of our platform through our self-service model, our ability to maintain and grow our relationships with strategic partners, the highly competitive and rapidly evolving market in which we participate, our ability to identify targets for, execute on, or realize the benefits of, potential acquisitions, and our international expansion strategies. Further information on risks that could cause actual results to differ materially from forecasted results is included in our filings with the SEC , including our Annual Report on Form 10-K for the fiscal year ended January 31, 2022 to be filed with the SEC . Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures are included within this press release.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP financial metrics to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
We define non-GAAP operating loss as GAAP operating loss excluding share-based compensation expense, amortization of acquisition-related intangible assets, one-time costs associated with mergers and acquisitions, and litigation expenses and settlements related to matters that are outside the ordinary course of business. We define non-GAAP net loss as GAAP net loss excluding non-recurring income tax adjustments associated with mergers and acquisitions and the same exclusions that are used to derive non-GAAP operating loss. There are a number of limitations related to the use of these non-GAAP measures as compared to GAAP operating loss and net loss, including that the non-GAAP measures exclude share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy.
We use the non-GAAP financial measure of net free cash flow, which is defined as GAAP net cash flows from operating activities, reduced by cash used for purchases of property and equipment (inclusive of spend on internal-use software), and principal payments on finance lease obligations. We believe net free cash flow is an important liquidity measure of the cash that is available, after capital expenditures and operational expenses, for investment in our business and to make acquisitions. Net free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. There are a number of limitations related to the use of net free cash flow as compared to net cash from operating activities, including that net free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.
We define calculated billings as total revenue plus the change in deferred revenue in the period. Because we recognize subscription revenue ratably over the subscription term, calculated billings can be used to measure our subscription sales activity for a particular period, to compare subscription sales activity across particular periods, and as an indicator of future subscription revenue.
Definitions of Business Metrics
Average ACV per domain-based customer
We define average ACV per domain-based customer as total outstanding ACV for domain-based subscriptions as of the end of the reporting period divided by the number of domain-based customers as of the same date. We define domain-based customers as organizations with a unique email domain name.
Dollar-based net retention rate
We calculate dollar-based net retention rate as of a period end by starting with the ACV from the cohort of all customers as of the 12 months prior to such period end, or Prior Period ACV. We then calculate the ACV from these same customers as of the current period end, or Current Period ACV. Current Period ACV includes any upsells and is net of contraction or attrition over the trailing 12 months, but excludes subscription revenue from new customers in the current period. We then divide the total Current Period ACV by the total Prior Period ACV to arrive at the dollar-based net retention rate. Any ACV obtained through merger and acquisition transactions does not affect the dollar-based net retention rate until one year from the date on which the transaction closed.
About Smartsheet
Smartsheet (NYSE: SMAR) is the enterprise platform for dynamic work. By aligning people and technology so organizations can move faster and drive innovation, Smartsheet enables its millions of users to achieve more. Visit www.smartsheet.com to learn more.
Disclosure of Material Information
Smartsheet announces material information to its investors using SEC filings, press releases, public conference calls, and on its investor relations page of the company’s website at https://investors.smartsheet.com .
SMARTSHEET INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share data)
(unaudited)
Three Months Ended January 31 ,
Year Ended January 31 ,
2022
2021
2022
2021
Revenue
Subscription
$
145,655
$
101,107
$
507,375
$
352,782
Professional services
11,731
8,764
43,457
32,731
Total revenue
157,386
109,871
550,832
385,513
Cost of revenue
Subscription
22,305
17,480
77,460
59,374
Professional services
10,715
6,870
39,013
26,165
Total cost of revenue
33,020
24,350
116,473
85,539
Gross profit
124,366
85,521
434,359
299,974
Operating expenses
Research and development
48,736
32,273
165,440
118,722
Sales and marketing
98,138
62,522
329,751
230,281
General and administrative
29,637
19,771
109,204
71,443
Total operating expenses
176,511
114,566
604,395
420,446
Loss from operations
(52,145
)
(29,045
)
(170,036
)
(120,472
)
Interest income
13
11
48
1,444
Other income (expense), net
(925
)
401
(813
)
296
Loss before income tax provision (benefit)
(53,057
)
(28,633
)
(170,801
)
(118,732
)
Income tax provision (benefit)
82
32
296
(3,753
)
Net loss and comprehensive loss
$
(53,139
)
$
(28,665
)
$
(171,097
)
$
(114,979
)
Net loss per share, basic and diluted
$
(0.42
)
$
(0.23
)
$
(1.36
)
$
(0.95
)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted
127,038
122,620
125,632
120,663
Share-based compensation expense included in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands, unaudited):
Three Months Ended January 31 ,
Year Ended January 31 ,
2022
2021
2022
2021
Cost of subscription revenue
$
1,548
$
1,254
$
6,274
$
4,385
Cost of professional services revenue
1,140
571
3,788
2,146
Research and development
12,792
7,236
41,218
25,072
Sales and marketing
12,066
7,565
40,632
25,921
General and administrative
6,802
4,265
22,988
14,498
Total share-based compensation expense
$
34,348
$
20,891
$
114,900
$
72,022
SMARTSHEET INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)
January 31 ,
2022
2021
Assets
Current assets
Cash and cash equivalents
$
449,074
$
442,200
Accounts receivable, net of allowances of $7,561 and $6,933 , respectively
151,138
102,648
Prepaid expenses and other current assets
34,390
13,524
Total current assets
634,602
558,372
Long-term assets
Restricted cash
17
18
Deferred commissions
91,312
60,529
Property and equipment, net
36,835
28,613
Operating lease right-of-use assets
67,171
81,081
Intangible assets, net
44,096
54,139
Goodwill
125,605
125,605
Other long-term assets
3,194
3,432
Total assets
$
1,002,832
$
911,789
Liabilities and shareholders’ equity
Current liabilities
Accounts payable
$
1,506
$
2,851
Accrued compensation and related benefits
66,744
47,861
Other accrued liabilities
18,901
17,263
Operating lease liabilities, current
18,003
17,059
Deferred revenue
332,285
222,689
Total current liabilities
437,439
307,723
Operating lease liabilities, non-current
58,237
71,925
Deferred revenue, non-current
2,377
1,308
Other long-term liabilities
—
3,904
Total liabilities
498,053
384,860
Shareholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized, no shares issued or outstanding as of January 31, 2022 and January 31, 2021
—
—
Class A common stock, no par value; 500,000,000 shares authorized, 127,809,525 shares issued and outstanding as of January 31, 2022 ; 500,000,000 shares authorized, 123,272,902 shares issued and outstanding as of January 31, 2021
—
—
Class B common stock, no par value; 500,000,000 shares authorized, no shares issued and outstanding as of January 31, 2022 ; 500,000,000 shares authorized, no shares issued and outstanding as of January 31, 2021
—
—
Additional paid-in capital
1,047,313
898,366
Accumulated deficit
(542,534
)
(371,437
)
Total shareholders’ equity
504,779
526,929
Total liabilities and shareholders’ equity
$
1,002,832
$
911,789
SMARTSHEET INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Year Ended January 31 ,
2022
2021
Cash flows from operating activities
Net loss
$
(171,097
)
$
(114,979
)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense
114,900
71,750
Depreciation and amortization
21,765
17,255
Amortization of deferred commission costs
43,680
30,691
Unrealized foreign currency (gain) loss
1,048
(161
)
Loss on disposal of assets
—
268
Non-cash operating lease costs
14,905
11,924
Changes in operating assets and liabilities:
Accounts receivable
(48,575
)
(43,112
)
Prepaid expenses and other current assets
(19,884
)
(3,678
)
Other long-term assets
467
(5,819
)
Accounts payable
(1,331
)
(4,915
)
Other accrued liabilities
1,950
5,543
Accrued compensation and related benefits
19,906
5,811
Deferred commissions
(74,463
)
(42,965
)
Other long-term liabilities
(3,904
)
3,904
Deferred revenue
110,664
60,534
Operating lease liabilities
(13,543
)
(7,699
)
Net cash used in operating activities
(3,512
)
(15,648
)
Cash flows from investing activities
Proceeds from early termination of short-term investments
—
50,532
Purchases of long-term investments
(1,000
)
—
Purchases of property and equipment
(10,563
)
(4,176
)
Proceeds from sale of property and equipment
—
1,250
Capitalized internal-use software development costs
(6,706
)
(7,608
)
Purchases of intangible assets
(31
)
—
Payments for business acquisitions, net of cash acquired
—
(125,055
)
Net cash used in investing activities
(18,300
)
(85,057
)
Cash flows from financing activities
Payments on principal of finance leases
—
(4,129
)
Payments of deferred offering costs
—
(59
)
Proceeds from exercise of stock options
19,132
17,373
Taxes paid related to net share settlement of restricted stock units
(6,171
)
(2,150
)
Proceeds from Employee Stock Purchase Plan
17,380
14,758
Net cash provided by financing activities
30,341
25,793
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash
(1,197
)
471
Net increase (decrease) in cash, cash equivalents, and restricted cash
7,332
(74,441
)
Cash, cash equivalents, and restricted cash at beginning of period
442,348
516,789
Cash, cash equivalents, and restricted cash at end of period
$
449,680
$
442,348
Supplemental disclosures
Cash paid for interest
$
—
$
114
Cash paid for income taxes
196
168
Right-of-use assets obtained in exchange for operating lease liabilities
994
35,415
Accrued purchases of property and equipment (including internal-use software)
1,164
1,080
Share-based compensation capitalized in internal-use software development costs
1,970
1,986
Fair value of shares issued as consideration for acquisition
—
25,872
SMARTSHEET INC.
Reconciliation from GAAP to Non-GAAP Financial Measures
(unaudited)
Reconciliation from GAAP to non-GAAP operating loss and operating margin
Three Months Ended January 31 ,
Year Ended January 31 ,
2022
2021
2022
2021
(dollars in thousands)
Loss from operations
$
(52,145
)
$
(29,045
)
$
(170,036
)
$
(120,472
)
Add:
Share-based compensation expense(1)
35,152
20,891
115,704
72,022
Amortization of acquisition-related intangible assets(2)
2,508
2,791
10,059
6,266
One-time acquisition costs
10
77
27
977
Litigation expenses and settlements(3)
—
—
10,000
—
Non-GAAP operating loss
$
(14,475
)
$
(5,286
)
$
(34,246
)
$
(41,207
)
Operating margin
(33
)%
(26
)%
(31
)%
(31
)%
Non-GAAP operating margin
(9
)%
(5
)%
(6
)%
(11
)%
(1)
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods.
(2)
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting and contribute to revenue generation. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized.
(3)
Relates to matters that are outside the ordinary course of our business.
Reconciliation from GAAP to non-GAAP net loss
Three Months Ended January 31 ,
Year Ended January 31 ,
2022
2021
2022
2021
(in thousands)
Net loss
$
(53,139
)
$
(28,665
)
$
(171,097
)
$
(114,979
)
Add:
Share-based compensation expense(1)
35,152
20,891
115,704
72,022
Amortization of acquisition-related intangible assets(2)
2,508
2,791
10,059
6,266
One-time acquisition costs
10
77
27
977
Litigation expenses and settlements(3)
—
—
10,000
—
Release of valuation allowance(4)
—
—
—
(4,014
)
Non-GAAP net loss
$
(15,469
)
$
(4,906
)
$
(35,307
)
$
(39,728
)
(1)
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods.
(2)
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting and contribute to revenue generation. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized.
(3)
Relates to matters that are outside the ordinary course of our business.
(4)
Relates to a non-recurring income tax adjustment associated with the Brandfolder acquisition.
Anti-dilutive shares (in thousands)
January 31 ,
2022
2021
Shares subject to outstanding common stock awards
11,855
11,299
Shares issuable pursuant to the Employee Stock Purchase Plan
52
162
Total potentially dilutive shares
11,907
11,461
SMARTSHEET INC.
Reconciliation from GAAP to Non-GAAP Financial Measures
(unaudited)
Reconciliation from net operating cash flow to net free cash flow
Three Months Ended January 31 ,
Year Ended January 31 ,
2022
2021
2022
2021
(in thousands)
Net cash provided by (used in) operating activities
$
(152
)
$
15,204
$
(3,512
)
$
(15,648
)
Less:
Purchases of property and equipment
(1,394
)
(1,513
)
(10,563
)
(4,176
)
Capitalized internal-use software development costs
(1,197
)
(1,635
)
(6,706
)
(7,608
)
Payments on principal of finance leases
—
(2,156
)
—
(4,129
)
Free cash flow
$
(2,743
)
$
9,900
$
(20,781
)
$
(31,561
)
Reconciliation from revenue to calculated billings
Three Months Ended January 31 ,
Year Ended January 31 ,
2022
2021
2022
2021
(in thousands)
Total revenue
$
157,386
$
109,871
$
550,832
$
385,513
Add:
Deferred revenue (end of period)
334,662
223,997
334,662
223,997
Less:
Deferred revenue (beginning of period)
267,748
182,683
223,997
158,809
Calculated billings
$
224,300
$
151,185
$
661,497
$
450,701
SMARTSHEET INC.
Reconciliation from GAAP to Non-GAAP Financial Measures
(unaudited)
Reconciliation from GAAP to non-GAAP operating loss guidance
Q1 FY 2023
FY 2023
Low
High
Low
High
(in millions)
Loss from operations
$
(75.5
)
$
(73.5
)
$
(301.0
)
$
(291.0
)
Add:
Share-based compensation expense(1)
48.0
48.0
201.0
201.0
Amortization of acquisition-related intangible assets(2)
2.5
2.5
10.0
10.0
Non-GAAP operating loss
$
(25.0
)
$
(23.0
)
$
(90.0
)
$
(80.0
)
(1)
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods.
(2)
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting and contribute to revenue generation. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized.
Reconciliation from GAAP to non-GAAP net loss guidance
Q1 FY 2023
FY 2023
Low
High
Low
High
(in millions)
Net loss
$
(75.5
)
$
(73.5
)
$
(301.0
)
$
(291.0
)
Add:
Share-based compensation expense(1)
48.0
48.0
201.0
201.0
Amortization of acquisition-related intangible assets(2)
2.5
2.5
10.0
10.0
Non-GAAP net loss
$
(25.0
)
$
(23.0
)
$
(90.0
)
$
(80.0
)
(1)
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods.
(2)
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting and contribute to revenue generation. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized.
View source version on businesswire.com : https://www.businesswire.com/news/home/20220315006072/en/
Smartsheet Inc.
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Source: Smartsheet Inc.