Smartsheet — Merger or Acquisition (September 2024)
41 slides from Smartsheet's merger presentation, Sep 24, 2024
Slide 1: Welcome to the FY25 Q3 All-Team Meeting
Bi smartsheet ENGAGE Welcome to the FY25 Q3 All-Team Meeting ee ENGAGE Seattle: Oct 7-10, 2024 Two weeks until ENGAGE Seattle! While we wait for the All-Team Meeting to begin, let's look back at the best moments from ENGAGE 2023. Bi smartsheet
Slide 2: FY25 Q3 All-Team Meeting
FY25 Q3 All-Team Meeting September 24, 2024 Chat with us on Slack in #all_team_meetings smartsheet
Slide 3: Legal: Forward-Looking Statements
Legal Forward-Looking Statements ‘Ths conmunicaten may conten fra coking lalements cng among oe ngs, sttement regarding the abit othe patios ocomee the proposed ansarton and Me expecta ting of cola of he oped tanacton be prospective perfomance and ou of Smarsheetsbisness, pafomance and coporuntes a
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Slide 5: Brightspot Award
Brightspot Award Our core competencies... ¢ Drive Results e Continuously Learn & Adapt e Earn Trust e Take Accountability e Value and Leverage Differences
Slide 6: Sarah Earl - Drive Results
Confidential until Sept 24! Sarah Earl Sr. Critical Situations Escalation Manager * Transforms challenges into successes with key client renewals. * Streamlines teamwork to resolve issues efficiently. * Enhances customer satisfaction through improved service. Drive Results
Slide 7: Luka Cubela - Earn Trust
Confidential until Sept 24! Luka Cubela Procurement Manager * Navigates complex contract negotiations to deliver optimal results. * Builds trust with transparent and solution-focused communication. * Expertly leads challenging vendor discussions. Earn Trust
Slide 8: Josh Jones - Continuously Learn & Adapt
| Sept 24! Josh Jones Sr. Large Enterprise Solutions Engineer * Inspires team growth through knowledge sharing and mentorship. * Builds customer confidence with strategic insights and adaptability. %* Drives success through innovative ey problem-solving. y Continuously Learn & Adapt
Slide 9: Nancy Weaver - Accountability
Confidential until Sept 24! Nancy Weaver Marketing Project Manager % Took ownership and led Silver King through marketing complexities. %* Managed timelines and led 40+ stakeholders toa successful launch. * Ensured team alignment and success through clear communication. Accountability
Slide 10: Katie Weisse - Value & Leverage Differences
Confidential until Sept 24! Katie Weisse Manager, Business Development + Recognize individual talents and offers personalized support. * Leads with agility, quickly adapting and aligning with a new team. * Fosters growth by creating a nurturing environment for success. Value & Leverage Differences
Slide 11: Brightspot Award Winners
Confidential until Sept 2 Sarah Earl Drive Results Nancy Weaver Take accountability Luka Cubela Earn Trust Katie Weisse Value & Leverage Differences | Josh Jones Continuously Learn & Adapt
Slide 12: Opening Remarks
Opening Remarks Mark Mader, CEO
Slide 13: State of the Business
State of the Business Pete Godbole, Chief Financial Officer
Slide 14: Smartsheet Announces Q2 FY25 Results
Annualized Revenue recurring revenue $276.4 M $1.093 B Sm a rtsh eet Up 17% year-over-year Up 17% year-over-year Announces Dollar-based net Q2 FY25 retention rate Free cash flow? Results! 113% $57.2 M 21% of revenue ’ See our earnings press release published September 5. 2024 for full disclosure. pu
Slide 15: Street Reaction
Street Reaction “Solid execution continued, with 120% Enterprise NRR, impressive large deal performance, upside across metrics in Q2 and strong efficiency driving >800 bps of YoY operating margin expansion and >135% YoY operating income growth. We are confident in Smartsheet's ability to continue dr
Slide 16: External Perspective
External Perspective Q2 performance exceeded expectations on both topline and profitability measures Q2 Performance © Topline © Revenue of $276M, up 17% YoY © ARR of $1.09B, up 17% YoY © Profitability © Free Cash Flow of $57M, representing 21% of revenue © Non-GAAP Operating Income of $45M, represen
Slide 17: H2 Opportunities
H2 Opportunities Key initiatives supporting H2 performance e Pricing & Packaging: o Provisional member expansion o Customer migrations e Use case campaigns e ACE trials e Premium support e Free plan deprecation Maintain prudent approach to investing e Capacity to invest a function of bookings perfor
Slide 18: Engagement Survey
Engagement Survey Jo Deal, Chief People Officer
Slide 19: FY25 Engagement Survey By The Numbers
FY25 Engagement Survey By The Numbers 8 67% 69% PARTICIPATION OVERALL ENGAGEMENT % WHO COMMENTED +4% from May 2023 10% from May 2023 8,187 total comments
Slide 20: Engagement Survey Timeline: Where Are We?
TODAY Org-Wide Action Planning SLT identified company-wide key priority areas and create action plans to address opportunities. Engagement Survey Timeline: Where Are We? Cascade of Action Plans Identified focus areas & action plans will be cascaded by functional leadership by the end of October. Ask
Slide 21: Priority Areas
“Comment summaries by Culture Amp's Al Priority Areas © HS Feedback about compensation, communication, and a lack of transparency from senior leadership. There is also a desire for more opportunities for career growth and development, as well as a better work-life balance. Additionally, employees wo
Slide 22: Action Plan
Action Plan: Communicate a clear vi with identified strategic priorities ® Currently working on FY26 priorities and plans e Will ensure clear communication about our corporate objectives, both from SLT as well as cascaded by leaders © Goal Setting FY26: individual goals will roll up into the top com
Slide 23: Engagement Survey Timeline: Where Are We?
Engagement Survey Timeline: Where Are We? Cascade of Functional Action Plans Identified focus areas & action plans will be cascaded by functional leadership by the end of October. Ask your leader what they're planning.
Slide 24: Go-to-Market Strategy
Go-to-Market Strategy Max Long, President, Go-to-Market
Slide 25: Simplicity at speed
Simplicity at speed
Slide 26: Subscription Model: Value Proposition & Pillars
Subscription Model: Value Proposition & Pillars ZA —Z eee: The new Smartsheet subscription model helps N customers realize more value by simplifying WN pricing, budgeting, and administration. RX N Transparent, Faster value Ease of ~X predictable pricing __ realization management ~~ Easily understand
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Slide 29: ENGAGE Seattle
ENGAGE Seattle Ben Canning, Senior Vice President, Product Experiences
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Slide 31: ENGAGE Seattle
ENGAGE Seattle World-class Speakers A Crissy Nolen CChief Marketing Officer Colliers Heather McGowan 68 Sessions and 33 Booths Rey Customer love amplified and shared 2766 Customers 1226 Domains 17 Industries 26 Countries
Slide 32: ENGAGE Seattle 2023
ENGAGE Seattle 2023 Growth by the numbers: $33.4 Million in new business 414 New opportunities opened - Valued at $26.4 Million Growth rate 13.1% vs 5.9% 2.2X the speed
Slide 33: ENGAGE Seattle 2024
ENGAGE Seattle 2024 ENGAGE
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Slide 36: Appendix
Appendix Bi smartsheet
Slide 37: Reconciliation from Net Operating Cash Flow to Free Cash Flow
Reconciliation from Net Operating Cash Flow to Free Cash Flow Three Months Ended July ix Months Ended July 31, (in thousands) 2024 2023 Net cash provided by operating activities $ 59144 $ 48,459 $ 109,222 $ 83,030 Less: Purchases of property and equipment (410) (542) (1,023) (1,395) Capitalized inte
Slide 38: Email message to Smartsheet customers and partners
5. The following is an email message to Smartsheet customers and partners sent on September 24, 2024. TO: Smartsheet Customers/Partners FROM: Max Long DATE: September 24, 2024 SUBJECT: Important News About Smartsheet Dear Valued [Customer]/[Partner], I’m excited to share important news about Smartsh
Slide 39: Social post: Smartsheet to be acquired by Blackstone and Vista
‘Smartsheet © 2h-@ Big news! Smartsheet is excited to announce that we're joining forces with Blackstone and Vista Equity Partners to drive the next chapter of growth, With this partnership, we're ready to unlock new opportunities and continue delivering the best-in-class work management solutions y
Slide 40: Social post: Smartsheet joining forces with Blackstone and Vista
Smartsheet @ @smartsheet We're thrilled to announce that Smartsheet is joining forces with @Blackstone and @Vista Equity! “ Together, we hope to unlock new opportunities, accelerate growth, and continue delivering exceptional value to our customers and partners. investors.smartsheet.com Smartsheet t
Slide 41: FAQ shared with investors
7. The following is the FAQ shared with investors of Smartsheet on September 24, 2024 relating to the Acquisition. General / Investor 1. Why take Smartsheet private? Why now? • We believe that this transaction will provide benefits for our stakeholders. • The Board and management team regularly eval