Smartsheet focuses on growth through AI and strategic partnerships

The success story of Smartsheet is characterized by an impressive expansion of its customer base, enhancement of its product features, and increased use of AI tools. In the second quarter of the fiscal year 2025, the company recorded strong growth in the enterprise segment. An impressive 75 customers increased their annual recurring revenue volume by more than $100,000, while three transactions exceeded the one-million-dollar mark—one even surpassing $4 million. The number of customers with an ARR of over one million dollars increased by 50% compared to the previous year, reaching a total of 77. Smartsheet ended the quarter with an annual recurring revenue of $1.093 billion and more than 15.3 million users. The ARR growth was an impressive 17% year-over-year. At the annual ENGAGE customer conference, Smartsheet announced a partnership with Amazon's cloud computing platform, Amazon Web Services. A new connector is set to seamlessly integrate data from Smartsheet into Amazon Q Business, an AI-powered assistant, thus simplifying project management. This partnership aims to eliminate data silos that many companies face. This will enable users to make data-driven decisions and increase productivity by leveraging Smartsheet data in conjunction with applications like Salesforce and Slack. Smartsheet’s growing customer base, including significant partners like Amazon, Microsoft, and Alphabet, has significantly contributed to its success. The collaboration with Alphabet includes deep integration with Google Apps for Work to enhance workplace productivity through Gmail and Calendar synchronization, as well as secure Drive storage and seamless G Suite access. In cooperation with Microsoft, workflow optimization was advanced through integration into Office 365, improving productivity and collaboration in teams. With a steadily growing AI portfolio and a strong partner base, Smartsheet will further drive its revenue growth. For the third quarter of fiscal year 2025, Smartsheet expects revenue in the range of $282 to $285 million, representing an annual growth of 15-16%. The non-GAAP results are estimated to be 29-31 cents per share. For the fiscal year 2025, the company forecasts revenue between $1.17 billion and $1.18 billion, reflecting growth of 14.2-14.5% year-over-year. The non-GAAP results are expected to range between $1.36 and $1.39 per share.