Stephen Branstetter, the chief operating officer at Smartsheet, resigned from the company in September 2021 after joining in 2013. Following his resignation, Branstetter will continue to serve as an advisor until November 18th. His departure coincides with reports of acquisition talks by private equity firms Vista Equity Partners and Blackstone that value Smartsheet at nearly $8 billion. Branstetter, who was named COO in 2021, previously held roles including senior vice president of operations and vice president of services and customer success. Despite selling some of his Smartsheet stock, he still holds over 64,000 shares.
In response to Branstetter’s resignation, Smartsheet announced that it will eliminate the chief operating officer position and transition to a dual President model with separate roles for President, Go-to-Market and President, Product & Innovation. Reports of potential acquisition talks first emerged in June, prompting the company to hire investment bankers. Smartsheet shares have increased by more than 30% since June, with its current market capitalization standing at around $7 billion. The company’s fiscal second-quarter earnings reported a 17% increase in revenue to $276.4 million, with an operating loss of $8.5 million compared to $36.1 million in the same period the previous year.
During the earnings conference call, Smartsheet CEO Mark Mader declined to comment on the reports of acquisition talks. Smartsheet offers cloud-based enterprise work management technologies for project management, collaboration, data storage, task automation, and assignment. The company’s clientele includes 85% of the Fortune 500 companies, placing it in competition with firms such as Asana, Monday.com, and Microsoft. Smartsheet, founded in 2005 and becoming public in 2018, currently employs more than 3,300 individuals.
Stephen Branstetter, the now-former COO at Smartsheet, decided to resign from his position in September of 2021. Branstetter had been with the company since 2013 and played a crucial role in various leadership positions, eventually being named COO in 2021. His decision to leave came amidst reports of acquisition talks by private equity firms Vista Equity Partners and Blackstone, which could potentially value Smartsheet at nearly $8 billion. While Branstetter has sold some of his Smartsheet stock, he still holds a significant number of shares.
In response to Branstetter’s departure, Smartsheet announced its plans to eliminate the COO position and adopt a dual President model, appointing separate presidents for Go-to-Market and Product & Innovation. The company first garnered interest from private equity firms in June, subsequently hiring investment bankers. Smartsheet’s share prices have surged by over 30% since the initial reports, leading to a current market capitalization of approximately $7 billion. In its fiscal second-quarter earnings, the company saw a 17% increase in revenue to $276.4 million and an operating loss of $8.5 million, an improvement from the previous year.
During the conference call to discuss the earnings, CEO Mark Mader chose not to address the reports of acquisition talks. Smartsheet’s offerings include cloud-based enterprise work management tools for project tracking, collaboration, data storage, and task automation. The company boasts a diverse client base of 85% of Fortune 500 companies, positioning it as a key player in the enterprise software market alongside competitors like Asana, Monday.com, and Microsoft. Founded in 2005 and becoming public in 2018, Smartsheet currently employs over 3,300 individuals serving a wide range of businesses and organizations.
