Smartsheet Inc (NYSE:SMAR), a company specializing in workplace collaboration software, stock fell 0.071% (As on December 6, 11:22:13 AM UTC-4, Source: Google Finance) after the reports of a potential acquisition by a consortium that includes Vista Equity Partners and Blackstone. The consortium is considering a takeover of the U.S. software maker, which is currently valued at around $7 billion. The specifics of the deal under consideration have not been disclosed. Meanwhile, the company has posted better than expected results for the third quarter of FY 25. Subscription revenue was $273.7 million, an increase of 18% year over year. Professional services revenue was $13.2 million, a decrease of (2)% year over year. Non-GAAP net income was $61.0 million, compared to $22.6 million in the third quarter of fiscal 2024. Net operating cash flow was $63.5 million, compared to $15.1 million in the third quarter of fiscal 2024. Free cash flow was $61.8 million, or 22% of total revenue, compared to $11.4 million, or 5% of total revenue, in the third quarter of fiscal 2024.
Moreover, for the third quarter, Annualized recurring revenue (“ARR”) was $1.133 billion, an increase of 15% year over year. Average ARR per domain-based customer was $10,708, an increase of 16% year over year. Dollar-based net retention rate was 111%. Number of all customers with ARR of $100,000 or more grew to 2,137, an increase of 20% year over year. Number of all customers with ARR of $50,000 or more grew to 4,293, an increase of 15% year over year. Number of all customers with ARR of $5,000 or more grew to 20,430, an increase of 5% year over year
SMAR in the third quarter of FY 25 has reported the adjusted earnings per share of 43 cents, beating the analysts’ estimates for the adjusted earnings per share of 30 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 17 percent to $286.9 million in the third quarter of FY 25, beating the analysts’ estimates for revenue of $283.6 million. Non-GAAP operating income was $56.4 million, or 20% of total revenue, compared to $19.4 million, or 8% of total revenue, in the third quarter of fiscal 2024.
On the other hand, the company has introduced a Smartsheet connector for Amazon Q Business, which will give Amazon Q Business customers the power to ask an intelligent assistant for information about their work in Smartsheet, eliminating data silos and enhancing visibility.