SmartSheet

Company

Smartsheet is a cloud-based platform for dynamic work. >80% of companies in fortune 500 rely on smartsheet

Product

Smartsheet Platform

  • Dashboard
  • Portals
  • Cardview: viz tool for workflows
  • Grid: grid view of work
  • Projects: single source of truth for all project info
  • Calendar: conenct deadlines to workflows
  • Forms: Enable biz users to collect info
  • Automated Actions: automate workflows
  • Integrations: Gsuite, office 365, slack, box, docusign, dropbox
  • WorkApps: build nocode apps using Smartsheet and Table, gdocs
  • Connectors: Salesforce, adobe, atlassian ,snow, msft
  • Control Center: Real time visibility into projects
  • Accelerator: Prepackage solutions: IT PMO, Professiona lservices, M&A, customer engagement, sales rep onboarding, GDPR, sales forecasting, campaign maangement, marketing events, marketing shared services, CCPA
  • Dynamic View: collaboration on same dataset across vendors
  • Data Uploader: centralized merge/replace data
  • Bridge: intellgient workflows and automate biz processes across platforms
  • 10,000 ft: plan and allocate resources across projects
  • Brandfolder: centralized platform for all digital content

Pricing:

  • Pro: $7/month
  • Biz: $75/month
  • Enterprise: ?

Core Metrics

  • Revenue: 539M (+40% YoY projecteD)
    • Q2: 131.7M (+44% YoY)
    • Subscription: 121M (+45% YoY)
    • Cost of subscription revenue: 18M
    • Cost of Professional services: 9M
    • Gross profit: 104M (+44% YoY)
  • Customers
    • >$500k: 41
    • >$100k: 748(+73% YoY)
    • >$50k: 1856(+64% YoY)
    • >$5k: 13,420 (+34% YoY)
    • >10k employees (enterprise): 2832
  • Average ACV: $5915
  • NDR: 128%
    • >10k employee (140%)

Analysis

I know what you’re thinking…isn’t this just Excel? I think Smartsheet fills a good niche inbetween Excel, project management and RPA. The number of customers using the product prove that there is some problem that Jira and Excel haven’t solved yet. I believe the numerous integrations and customizability gives Smartsheet the legup over existing software for enterprise use cases.

Smartsheet has proven itself in growing consistently at 40% YoY and growing its customer base. Smartsheet has a huge funnel of 2832 enterprise customers that it should be able to upsell more products to.

Smartsheet is trading at a 18x revenue multiple which is quite undervalued as a SaaS company relative to peers. I believe Smartsheet should trade closer to its peers with similar fundamentals: (Mongodb 42x rev, okta 31x rev). At current prices, I believe Smartsheet will have 2x upside once investors get past the idea of Smartsheet being a Excel clone.

 

tech investing