Smartsheet : ESG report 2024

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Environmental, Social and

Governance (ESG) Report

Fiscal Year 2024

February 1, 2023 - January 31, 2024

TABLE OF CONTENTS

1.	A MESSAGE FROM OUR CEO	3
2.	ABOUT SMARTSHEET	4
3.	OUR APPROACH TO ESG	8
4.	PRIORITIZING THE PLANET	13
5.	DRIVING MEANINGFUL CHANGE	17
6.	EMPOWERING OUR PEOPLE	21
7.	CARING FOR COMMUNITIES	34
8.	ACTING WITH INTEGRITY	37
9.	OUR JOURNEY: WHAT'S NEXT	42
10.	APPENDIX	43

1A MESSAGE FROM OUR CEO

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

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2ABOUT SMARTSHEET

This is us

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.

Our platform has revolutionized business operations for countless organizations by enabling them to work faster and more effectively every day. We're proud to power companies of all sizes across nearly every industry, including nonprofit organizations, small businesses, and more than 85% of Fortune 500 companies around the world. Our platform is redefining the possibilities of work management and empowering anyone to drive meaningful change.

ONE VISION:

Together we are creating the dynamic platform to empower everyone, everywhere, to change the way the world works.

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We have a mission: To empower anyone

to drive meaningful

2. ABOUT SMARTSHEET

Taking on the world "The Smartsheet Way"

OUR VALUES:

Seizing Opportunity	In our pursuit of progress, we've set
	ambitious goals for ourselves, because
	we know that if we're not continuously
	improving, we're falling behind.
Winning With Integrity	We love to win but not at all costs. We
	always strive to act with honesty and
	transparency and to do the right thing,
	even when it's hard.

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.

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FY24: our business in a nutshell

2. ABOUT SMARTSHEET

Smartsheet used in	Operating in
190+	officesSIX
countries	around the world

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

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						2
						3
	1				4
		London, UK
				Boston, MA, USA
					Tokyo, Japan
Bellevue, WA, USA
Global Headquarters	6

San Jose, Costa Rica

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Sydney, Australia

WHERE YOU'LL FIND US	COUNTRIES WE WORK IN:
		Our office hubs	1. USA 2. United Kingdom 3. Germany 4. Japan 5. Australia 6. Costa Rica

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2. ABOUT SMARTSHEET

Our FY24 finances

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)

*To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles
("GAAP"), we provide investors with certain non-GAAP financial measures, including operating loss, net loss, net loss per share, free cash flow, and calculated
billings. For a full reconciliation for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP, please
see our 2024 Annual Report and Exhibit 99.1 to our Current Report on Form 8-K filed March 14, 2024.	7

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.

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3. OUR APPROACH TO ESG

Our approach to ESG

We're still in the early phase of our journey, but we've established the foundations for what we want to achieve. Moving from a corporate social responsibility report for FY23 to an ESG report for FY24 is indicative of our broadening focus, beyond social responsibility to a more encompassing approach for the environmental, social, and governance factors related to our business. Our ESG report dives deeper into the environmental impact and the social and governance practices of our organization. Incorporating ESG principles throughout our business helps us to recognize, evaluate, and manage risks while capitalizing on opportunities within a rapidly evolving business landscape. Through our ESG disclosures, we offer transparent insights into our efforts to address material concerns.

In this report, we disclose certain ESG-related accomplishments, highlights, practices, and processes; we also review the key items identified in our materiality assessment. Through these disclosures, we are working toward alignment to the Task Force on Climate-Related Financial Disclosures (TCFD) framework. We have also aligned our reporting with the Sustainability Accounting Standards Board (SASB) Software and IT Services Standard and have incorporated a SASB index in our Appendix.

As we progress, we'll strive for transparency and continue to review what we can do better as we grow our business.

OUR FIVE AREAS OF FOCUS:

SUPPORTING	DRIVING	EMPOWERING	CARING FOR	ACTING WITH
THE PLANET	MEANINGFUL	OUR PEOPLE	COMMUNITIES	INTEGRITY
	CHANGE

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Analysis and summary of the collected data points to identify key findings and areas of focus.

3. OUR APPROACH TO ESG

Understanding our

ESG priorities

To help us build our ESG plan of action and inform our strategic approach, we completed our inaugural materiality assessment in May 2024. We believe that to achieve long-term success as a business, we need to thoroughly review and consider the expectations of our stakeholders and society at large.

The process for conducting our materiality assessment was led by independent third-party experts and consisted of three phases:

Evaluation of the priorities of key external stakeholders (including prominent

ESG frameworks, ratings agencies, our investors, and shareholders), and

1. benchmarking our practices against those priorities, as well as against industry peers.

Collection of direct feedback and observations from key internal stakeholders

2. through comprehensive surveys and interviews, including with relevant team leads and members of Smartsheet's senior leadership team.

3.

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