Q: What is Smartsheet (SMAR) Q2 2025 Earnings Call Transcript Summary?
**Smartsheet (SMAR) Q2 2025 Earnings Call Summary**
**Here are the specific viewpoints from the earnings call:**
**Bullish Points:**
1. 75 customers expanded their Smartsheet ARR by more than $100,000, with three transactions over $1 million, including one over $4 million.
2. The number of customers with ARR over $1 million increased by 50% from Q2 last year.
3. Annualized recurring revenue (ARR) reached $1.093 billion.
4. More than 15.3 million Smartsheet users.
5. Expanded with customers including Intuit, SKECHERS, and City National Bank.
6. Positive early results from the new pricing and packaging model.
7. Significant enhancements in user experience and AI tools, with nearly 50% sequential growth in the number of users utilizing AI tools.
8. Launched a share buyback program and repurchased 918,000 shares for $40 million.
9. Second quarter revenue of $276.4 million, up 17% year over year, with subscription revenue of $263.5 million, representing year-over-year growth of 19%.
10. Free cash flow in the quarter was $57.2 million, and the company is raising its FY '25 free cash flow guidance to $240 million, representing a free cash flow margin of 21%.
**Bearish Points:**
1. Full churn rate increased slightly due to elevated churn rates in smaller customer segments, now around 4.5%.
2. Lowered assumption for services revenue for the full year due to a higher percentage of services delivered by partners.
3. Expectation for NRR to track down, consistent with overall ARR guidance.
4. Slight tick-up in churn from smaller customers.
5. Revenue guidance includes a $5 million to $6 million headwind due to services shifting to partners.
6. Need to continue driving operational efficiencies, indicating ongoing cost scrutiny.
7. Pressure to articulate value to customers remains very high.
8. Growth is slowly decelerating in the enterprise spend environment.
For more information about Smartsheet's earnings call, you can read the relevant news: Smartsheet (SMAR) Q2 2025 Earnings Call Transcript
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