Smartsheet has announced the significant achievement of reaching $1 billion in annualised recurring revenue (ARR) in Q4. This feat makes Smartsheet the first in the work management category to do so.
The news follows the company’s recent recognition as a Leader in the December 2023 Gartner Magic Quadrant for Collaborative Work Management, confirming the strength and maturity of the category that Smartsheet pioneered.
This achievement is a testament to Smartsheet's 19-year mission to transform the way people work. The platform securely powers critical work on a large scale for thousands of global organisations, including approximately 85% of the 2023 Fortune 500 companies.
Increasingly, people are recognising that effective productivity at work requires more than just communication tools. Platforms like Smartsheet enable people to manage the 'work that happens in the middle.' In the current climate, companies also need efficient solutions across their entire organisations that provide a quick return on investment.
Smartsheet, the enterprise work management platform, was created with the intention of empowering individuals to devise better methods for managing work. In 2006, when Smartsheet began serving customers, businesses struggled to stay in sync or execute at pace, given they were running essential parts of their businesses on email, documents, and spreadsheets.
The cloud-based Smartsheet platform, however, allowed teams and organisations to manage their work and collaborate with teammates, customers, and partners, marking the inception of the collaborative work management category, the company states.
Mark Mader, CEO of Smartsheet, reflected on the journey and the recent milestone, "Crossing this financial threshold of $1 billion in ARR is meaningful, but at the same time should be recognised as another marker along the way. The truly exhilarating moments are seeing not what we've built for ourselves, but rather what our customers build on our platform."
He added that hearing from customers about how they are changing lives and solving problems has been the most gratifying part of their journey.
Dion Hinchcliffe, Vice President and Principal Analyst at Constellation Research, underscored the importance of work coordination platforms, asserting that they bridge the gap in the digital workplace between systems of record and communication tools. The steady growth of these tools, as reflected by Smartsheet crossing the $1 billion mark in ARR, indicates a critical point of growth and maturity for the category.
Customer-centric innovation and the continuous evolution and enhancement of its platform are key factors driving Smartsheet's success. Its commitment to enabling customers to achieve their goals has led to the recent unveiling of the next generation of its platform, which incorporates massive scale and AI capabilities.
Last year, Smartsheet was distinguished as a Customers' Choice in the June 2023 Gartner Peer Insights Voice of the Customer in the Collaborative Work Management market. The company received the highest rating and had the highest percentage of customers willing to recommend the platform. "We have a very diverse set of clients who are achieving outstanding results with Smartsheet," said Amin Panjwani, CEO of Achievan.com, Smartsheet's Platinum Partner.
He sees this achievement as a sign that Smartsheet's focus on customer-first innovation is working and looks forward to growing the partnership and business together.