Smartsheet Inc. (NYSE:SMAR) Q2 2024 Earnings Call Transcript

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Pete Godbole: There’s nothing unusual. We always see our first month be the smallest and our last month is the biggest. There was nothing unusual about the linearity, if you will.

Operator: Your next question comes from the line of Ryan MacWilliams with Barclays. Your line is open.

Pete Newton: Hey, thanks for taking the questions. This is Pete Newton on for Ryan MacWilliams. I’m pleased to see that the sequential customer adds improved across all sizes, the 5,000, 50,000. What would you say drove that step up? And then how would you characterize those conversations with customers that you’re moving from one of those positions to the higher one?

Mark Mader: I think customers are looking for a conversation that goes beyond, do you need more seats? And when I think of what our teams are able to present to them now, it’s really a portfolio of solutions. Do you want to talk about how you set yourself up to strategic transformation. Do you want to talk about how to drive efficiency into your marketing realm. Do you want to talk about how to execute modern project management and now starting to inject the Gen AI pieces. So you have multiple themes that are hitting. And the way we monetize both through the licensing of seats, and through these capabilities, we have more opportunities to deliver value and get paid for that. So I think the — we are starting to — we are continuing to see the benefits.

I spoke to the progress on the advanced sales. It was great to see that people are seeing value across that entire portfolio and saying, hey, I’m going to step into that bundle and get the benefits from all. So I think the greater — the degree to which we can continue to see success on the capabilities, combined with seats, I think will manifest itself in this 50,000, 100,000, 500,000 levels stepping up. Yes, I think that’s probably the key driver that I would point to.

Pete Newton: Perfect. That’s very helpful. And then if you could comment just on average deal size closed throughout the quarter? Was there any differences later in the quarter versus earlier, or any comments there?

Pete Godbole: The average deal size, I want to make sure I understand your question. Is it the deal size that played out as we went through the quarter? Or was it the deal size in comparison to some other period?

Pete Newton: You trended through the quarter. Just trying to get a glimpse at how that linearity looked.

Pete Godbole: Yes, the deal size, typically, as you would think, the larger deals book more towards the end of the quarter. The deal size did grow, but it grew sort of consistent with our seasonal expectations.

Pete Newton: Okay. Perfect. Thanks for the color, guys.

Pete Godbole: No problem.

Operator: This concludes our Q&A session for today. I turn the call back to Aaron Turner.

Aaron Turner: All right. Great. Thank you for joining us this quarter, and we will speak to you again soon.

Operator: This concludes today’s conference call. You may now disconnect.

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