Smartsheet Inc.

Good day and thank you for standing by. Welcome to the Smartsheet first quarter fiscal 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. If you would like to ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Aaron Turner, Head of Investor Relations. Thank you. Please go ahead.

Thank you, Mike. Good afternoon, and welcome, everyone, to Smartsheet's first quarter of fiscal year 2022 earnings call. We will be discussing the results announced in our press release issued after the market closed today. With me today are Smartsheet CEO Mark Mader and our CFO, Pete Godbull. Our Chief Strategy and Product Officer, Gene Farrell, will also be available during the Q&A. Today's call is being webcast and will also be available for replay on our investor relations website at investors.smartsheet.com. There is a slide presentation that accompanies Pete's prepared remarks, which can be viewed in the events section of our investor relations website. During this call, we will make forward-looking statements within the meaning of the federal securities laws. We have based these forward-looking statements largely on our current expectations and projections about future events, financial trends, and our expectations around the impact of COVID-19 on our business. These forward-looking statements are subject to a number of risks and other factors, including but not limited to those described in our SEC filings available on our investor relations website and on the SEC website at www.sec.gov. Although we believe that the expectations reflected in the forward-looking statements are reasonable, our actual results may differ materially and adversely. All forward-looking statements made during this call are based on information available to us as of today, and we do not assume any obligation to update these statements as a result of new information or future events except as required by law. In addition to the U.S. GAAP financials, we will discuss certain non-GAAP financial measures. A reconciliation to the most directly comparable U.S. GAAP measures is available in the presentation that accompanies this call, which can also be found on our Investor Relations website. With that, let me turn the call over to Mark.

Thank you, Aaron. And thanks, everyone, for joining us today for our first quarter earnings call. I want to start off by thanking our customers, whose belief in our vision motivates us, and our team members, who inspire me every day with their drive and dedication. Q1 was a strong quarter. Revenue grew 37% to $117.1 million. Billings grew 48% to $132.8 million. And our dollar-based net retention rate improved by two points to 125%. We ended the quarter with over 8.5 million users. In Q1, our average domain annualized contract value, or ACV, grew 41% year-over-year to $5,461, and expansion within our base included 305 companies increasing their annual recurring revenue, or ARR, by more than $25,000, up from 173 companies in Q1 of last year. 116 increasing their ARR by more than $50,000, up from 51 in Q1 of last year, and 29 increasing their ARR by more than $100,000, up from 15 in Q1 of last year. We also continue to see strong growth within enterprises, including UnitedHealth, Amazon, Home Depot, McDonald's, Netflix, CrowdStrike, Meditech, Stanford University, Hewlett-Packard, Peloton, VMware, Rivian Automotive, California Department of Transportation, Verizon, AbbVie, Arc'teryx, Cardinal Health, Under Armour, Vertiv, Sony Pictures, Comcast, Workday, United Natural Food, Dexcom, Airbus, Intuit, AstraZeneca, Disney, Roche, TBS, St. Jude Children's Research Hospital, Honeywell, Kaiser Permanente, Sage Group, Google, Booz Allen Hamilton, United Therapeutics, Equinix, Stanley Black & Decker, Charter Communications, HubSpot, Bed Bath & Beyond, VF Corp, McGraw-Hill, F5, BlackRock, and Salesforce.com, to name a few. Our enterprise customer deployments demonstrate Smartsheet's momentum in serving the strategic needs of those customers. Enterprise customers demand and deserve capability rich platforms that can scale to support mission critical workflows while also meeting their requirements for advanced security and administration. With the Smartsheet platform, customers can manage execution and change at scale. run workflows across disparate systems, and bundle these enterprise-wide workflows into curated experience to support a broad range of use cases that cross departments and functions. And we deliver this while also providing customers with the security compliance, manageability control, and trust that they expect from their enterprise partners. Over the course of this fiscal year, we will continue to invest in our offerings, executing on a platform strategy that delivers even more value for our customers. This is something that we are well positioned to do based on our 15 years of operating experience, 15 years that have yielded thousands of insights and a deep understanding of the enterprise. We've taken this unique experience and perspective to evolve the Smartsheet platform and our vision for the future. Q1 was also a strong quarter for our government business, with expansions coming from agencies such as the GSA, NASA, the U.S. Department of Veteran Affairs, the Department of Commerce, the U.S. Department of Health and Human Services, and the Department of Defense. NASA's Jet Propulsion Lab deployed Smartsheet to support its Mars Perseverance rover, choosing our platform for the scheduling and tracking of the 2,700 parts and 17,500 machining operations moving across 18 departments. With Smartsheet, this NASA team deploys process flows to drive efficiency, Kanban systems to streamline customer communications and resource allocation, as well as dashboards for management visibility of the frequent changes in priority involved with such a significant endeavor. Notably, NASA's flow of manufacturing data is supported by an integrated workflow connecting Smartsheet to other key systems like Oracle ERP and Power BI. Since day one, customers have relied on Smartsheet to empower individuals and enable teams to not simply get work done, but to reimagine and transform how work gets done. Today, that means customers are able to rapidly build new solutions that benefit the whole organization and enable them to do their best work, like managing corporate OKRs at Intuit or delivering an end-to-end marketing solution at Snap. And as a category-leading software company, we paid attention, we listened, and we've improved our solution to solve even bigger challenges. In fact, this year, we're evolving the design of Smartsheet to offer a cleaner, more modern and accessible look, further simplifying the entire user experience. We've also introduced Work Apps, Smartsheet's no-code platform for building intuitive web and mobile apps, which further amplifies the power and usability of solutions our customers are creating on the platform every day. Many enterprise customer solutions that previously required resource-intensive development or modifications to costly legacy systems can now be quickly and efficiently solved using Smartsheet. Customers choose Smartsheet for our ability to deliver at scale, respond to and deliver on change, manage workflows across systems, and build curated experience to solve strategic business problems. Uber uses Smartsheet across critical business units, including facilities, real estate, engineering, legal, and marketing. And by employing Work Apps, Uber's performance marketing organization has been able to clarify and standardize team processes. In addition, the streamlined user experience that Work Apps provides has made it easier than ever for these teams to locate their priorities and take action. As we touched on last quarter, we've also taken a new approach to packaging to make it even easier for companies to acquire and deploy Smartsheet's premium capabilities at enterprise scale. We call this Smartsheet Advance. Smartsheet Advance responds to the demands of our growing customers by combining the ability to scale easily across departments and functions with access to premium capabilities that solve high-value business problems. The business receives robust no-code tools to automate workflows across systems, align global teams, and build scalable solutions, while giving IT the control to manage risk and maintain compliance. From skills-based resource and content management to core systems integration, Smartsheet Advanced is enterprise-ready, IT-endorsed, and built to unlock the true power of business, its people. Initial customer reaction to Smartsheet Advanced has been very positive. Recently, Smartsheet Advanced drove our expansion with a regional academic health system with over 13,000 employees and 1,500 doctors that serves a population of 1.9 million across New England. Over the past year, departments including QA, pharmacy, finance, M&A, and IT have used Smartsheet to improve process efficiencies and automate manual efforts. With Smartsheet Advanced, this medical center's IT PMO will continue to leverage their Smartsheet investment to help manage the significant system implementation projects that have resulted from organic growth and acquisitions. We plan to provide additional details on Smartsheet Advance at our Engage Conference on June 8th. To be the enterprise CWM platform of choice, Smartsheet is focused on building meaningful integrations that integrate critical systems that most organizations depend on to deliver and differentiate their work. In May, we further bolstered our enterprise offering with the new McAfee integration. a product partnership that leverages McAfee's cloud security platform to provide threat detection and to comply with data loss prevention policies. As Smartsheet's customer base continues to expand within regulated industries, the need for insight into specific risk-related activities and data input is paramount. Customers need a way to identify and flag sensitive data across their entire Smartsheet environment in an easy and intuitive manner to help find and remediate sensitive data violations. Integrating with tools like McAfee provides assurance to our customers, including CIOs and IT leaders, that their Smartsheet environments are secure and in compliance. In closing, we've started the year off with strong momentum and a clear vision for growth ahead. Now let me turn the call over to Pete to provide additional details on our financial results. Pete?