The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Maybe first, I wanted to start just doubling down a little bit on Brandfolder and Outfit. it does feel like you're maybe -- and please
tell me if I'm wrong on this interpretation. It does feel like you are kind of doubling down on the marketing use case. I know this is
a horizontal platform, and there's virtually unlimited use cases.
But can you maybe talk a little bit about the feedback that you've been getting from customers and prospects that led to kind of
this motion to go deeper on the marketing side? And then I have a follow-up.
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Wonderful. That's really helpful. And then, look, I appreciate all the commentary around expense control. Obviously, the prudent
thing to do in this environment. But maybe one that I'd like to drill down a little bit more on this the stock comp, right? It definitely
continues to get elevated, right? SBC is now about 25% of revenue. You're tracking close to 4% annual dilution. I know it's obviously
a messy way to analyze it.
But maybe taking a step back, can you talk a little bit about your philosophy around stock comp? And any kind of longer-term or
medium-term plans you may have to kind of get stock comp down over time?
Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: I want to go back to the elongated sales cycles comment. Could you give us maybe more texture around if it was more enterprise,
small- and mid-market-business driven? Was there any difference between the various geos? And was the elongation largely around
larger size deals versus smaller?
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SEPTEMBER 01, 2022 / 8:30PM, SMAR.N - Q2 2023 Smartsheet Inc Earnings Call
Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: I see. Understood. Okay. And the other question, I guess, when I'm looking at the billings guidance, I did this math pretty quickly,
but it seems like the second half slows about 10 points versus the first half. And it seems like the slowdown was more pronounced
during 2020 when you had to take the billings guidance off the table at that time. Maybe compare the 2 environments. What are
you hearing from customers are seeing in the deals now versus what was in the -- the July -- April-July time frame in 2020?
Question: Andrew Lodovico DeGasperi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: I guess, I mean, first, just on a follow-up on the employee side. I mean has employee retention been an issue since the realignment,
particularly on the quota-carrying side, or have you not seen any changes?
Question: Andrew Lodovico DeGasperi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Great. And then secondly, just on the -- given the change in market conditions, I just wondered if you've seen an improved competitive
environment, particularly from the smaller CWM players. Why has that been unchanged as well?
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