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Smartsheet Inc. Class A (SMAR) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing details a merger agreement with Einstein Parent, Inc., which will see Smartsheet become a wholly owned subsidiary. The merger is expected to close in the fourth quarter of the fiscal year ending January 31, 2025.
For the quarter ended October 31, 2024, Smartsheet reported total revenue of $286.9 million, an increase from $245.9 million in the same quarter the previous year. Subscription revenue accounted for $273.7 million, while professional services revenue was $13.2 million.
Cost of revenue for the quarter was $53.7 million, up from $47.0 million in the previous year. This resulted in a gross profit of $233.1 million, compared to $198.9 million in the previous year.
Operating expenses for the quarter totaled $236.5 million, a slight increase from $234.3 million in the prior year. Research and development expenses increased to $63.5 million, while sales and marketing expenses decreased to $127.9 million.
The company reported a net income of $1.3 million for the quarter, compared to a net loss of $32.4 million in the same period last year.
Smartsheet's cash and cash equivalents at the end of the period were $454.3 million, with short-term investments totaling $306.6 million.
The company highlighted risks related to the pending merger, including potential business uncertainties and transaction-related costs.
Smartsheet continues to focus on expanding its customer base and enhancing its platform capabilities to drive future growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Smartsheet Inc. Class A quarterly 10-Q report dated December 5, 2024. To report an error, please email earnings@qz.com.