Smartsheet : ESG report 2024 (2024)

A company built

on meaningful change

In 2005, we embarked on a journey to create work management software that would empower anyone to drive meaningful change. Earlier this year, we reached a significant milestone when Smartsheet became the first in the Enterprise Work Management category to surpass $1 billion in annualized recurring revenue. We are operating on a much bigger scale than when we started.

With scale comes responsibility - to our customers and to our communities. Nonprofits and businesses of all sizes, including more than 85% of Fortune 500 companies, trust Smartsheet to help them deliver impactful results for their organizations and those they serve. As we grow, we honor our responsibilities to our customers, partners, and shareholders, in terms of what we deliver, and how we do business.

Last year, we published a corporate social responsibility report, which highlighted how we enacted meaningful change within Smartsheet and our communities. Over the past year, we've broadened our focus into a more encompassing environmental, social, and governance (ESG) approach. We've developed a better understanding of the environmental impact of our business, matured our programs, and improved transparency in our disclosures. In this ESG report, we are sharing where we are right now, and charting a course for the path ahead.

Here are a few highlights of our work over the past year:

• We engaged a third party to conduct a carbon emission analysis and we took steps toward reducing our carbon footprint. We achieved carbon neutrality for Scope 1 and Scope 2 carbon emissions through the purchase of renewable energy credits and carbon avoidance credits. Using the data from the analysis, we are evaluating options and developing a strategy to reduce Scope 3 emissions.
• We served our global communities through another year of Sponsor X, service projects, and donations to organizations that support people in unlocking their potential.

• We maintained our rigorous governance standards and were diligent about oversight, engaging in practices that support our business ethics commitments, and upholding standards for risk management and mitigation.
• We enhanced transparency surrounding ESG subjects by improving disclosures and working to align them with leading frameworks and standards, including those from the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD).
• We completed a materiality assessment in May of 2024 to help inform our strategic approach to ESG going forward. The results of this assessment, included in this report, are helping us identify and prioritize the issues that are most critical to our business.

Our progress is powered by the hard work, creativity, and dedication of our team members. They are the heart of every product innovation, customer relationship, and corporate initiative designed to have a positive effect on the people we serve, and our planet.

There is an ever-expanding opportunity for impact as we grow. We will continue to share our progress and learnings as we explore ways to bring this ESG approach to bear at Smartsheet in the months and years to come.

MARK MADER

PRESIDENT & CEO

Smartsheet was founded in 2005 to empower human achievement. Since then, we've enabled individuals and the organizations they represent

in 190+ countries to become high achievers by creating innovative work management solutions, mobilizing a passionate and diverse global team, and making a positive impact in communities where we live

and work.

We have a mission: To empower anyone

to drive meaningful

2. ABOUT SMARTSHEET

Taking on the world "The Smartsheet Way"

OUR VALUES:

change.

And we're doing that "The Smartsheet Way" by collectively following our set of values that show us how to act, both as a company and as individuals.

Prioritizing "We" Before "Me"

Pursuing Progress

We work together as one team in service of our mission and celebrate the big and small successes of each other and our customers along the way.

We believe deeply that better, fairer, and further is always possible. We work in progress and empower others to do the same - for individuals, for business, and for society.

85% 25%Revenue up

of Fortune 500 companies use

Smartsheet from FY23

for FY24

Total revenue $958.3m

3,330 global employees as of January 31, 2024, with

2,563 in the US and 767 internationally

1

San Jose, Costa Rica

5

Sydney, Australia

ARR: Annualized Recurring Revenue

ARR: Annualized Recurring Revenue was

$1.031 billion

(an increase of 21% year-over-year)

Revenue

Total revenue was

$958.3 million

(an increase of 25% year-over-year)

Operating income increased

Non-GAAP operating income*

$100.9 million

(up from non-GAAP operating loss of $36 million in FY23)

Cash flow increased

Net operating cash flow

$157.9 million

(up from $23.6 million in FY23)

Free cash flow

$144.5 million

(up from $9.8 million in FY23)

3OUR APPROACH

TO ESG

From passion to progress

At Smartsheet, we care about making a positive impact. We do this by putting our people, resources, and technology to work for causes that are important to us, and by helping to improve the communities we're a part of.

We're relentless when it comes to giving our customers the best products, but we're also focused on fine-tuning our business to be kinder to the planet, our people, and our communities.

None of it would be possible without our incredible global team, so we've worked hard to understand what they care about and what motivates them. Through our team, we're shaping an ESG approach that is relevant and builds on everything we've already achieved.