Smartsheet Inc. (NYSE:SMAR) Q3 2024 Earnings Call Transcript

Mark Mader: The key driver there is we are serving a subset of their employee population. And one of the things that we have done in doing a multi-million dollar, multi-year deal with them is not do a discounted by 90%, give away all the users, but really being thoughtful about how we grow with them over the years. And when I look at that customer and how they started with us as a $5,000 or $6,000 customer years ago and where they are today, we are seeing that as an upward trajectory for many years to come. But the key driver there is there are still very nice, large populations who are not yet utilizing the Smartsheet platform. And the nice thing is once you have flight ops and the product teams using it, you have these examples then you can show these adjacent teams.

And when you are speaking the language of that carrier, the likelihood of them having higher confidence in following suit, I would argue, goes up. That’s what we have seen in our other very large accounts.

Chris Fountain: That’s helpful. Thank you. 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.

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. Obviously, gov is a pretty big quarter – Q3 is a pretty big quarter for gov. And on the, what I call – where we have seen some level of, what I call, pressure, it’s come in energy, utilities, tech. Those are the vertical slices we have seen. But in general, across the SMB, we have seen really good logo growth all through the year, that stayed consistent. We have seen that pressure in SMB expansions. So, just to make sure it’s parsed out.

Chris Fountain: Okay. Great. Thank you, Pete.

Mark Mader: You’re welcome Chris.

Operator: And that concludes today’s presentation. I would like to turn the call back over to Aaron Turner for any additional or closing remarks.

Aaron Turner: Great. Thanks Lisa and thanks everyone for joining us today. We will speak with you again next quarter.

Operator: Thank you. That concludes today’s presentation. Thank you.