Smartsheet vs Xero: Revenue, Profit and Business Model
Smartsheet had $958.3M of annual revenue in FY2024 and a net loss of $104.6M. Xero had ~$1.6B of annual revenue in FY2026 and ~$97.1M of net income.
Latest financial snapshot
Smartsheet
- Latest annual revenue
- $958.3M (FY2024)
- Net income
- -$104.6M
- Net margin
- -10.9%
- Revenue growth
- +46.3% a year, FY2017–FY2024
Xero
- Latest annual revenue
- ~$1.6B (FY2026)
- Net income
- ~$97.1M
- Net margin
- 6.1%
- Revenue growth
- +25.9% a year, FY2022–FY2026
Financial summary
Smartsheet
Smartsheet grew revenue from $67.0 million in fiscal 2017 to $958.3 million in fiscal 2024 (year ended January 31, 2024), a 25% increase that year, while the GAAP net loss narrowed from $215.6 million in fiscal 2023 to $104.6 million. In its last reported quarter as a public company, Q3 fiscal 2025, revenue rose 17% to $286.9 million, ARR grew 15% and the company posted $1.3 million of GAAP net income. As a private company since January 2025, it no longer publishes results. Smartsheet Inc. is a major American enterprise software company providing cloud-based work management and collaboration tools, sustaining a market valuation typically over $8 billion.
Xero
For the year ended 31 March 2026 Xero reported operating revenue of ~$1.59 billion (NZ$2.75 billion), up 31%, net profit of ~$96.9 million (NZ$167 million), down 27% because of Melio acquisition costs, and free cash flow of ~$321 million (NZ$554 million). Subscribers rose 11% to 4.92 million and average revenue per customer rose 23% to NZ$55.44.
Revenue and profit by year
Smartsheet
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $958.3M | -$104.6M | -10.9% | +25.0% | Source |
| FY2023 | $766.9M | -$215.6M | -28.1% | +39.2% | Source |
| FY2022 | $550.8M | -$171.1M | -31.1% | +42.9% | Source |
| FY2021 | $385.5M | -$115M | -29.8% | +42.3% | Source |
| FY2020 | $270.9M | -$95.9M | -35.4% | +52.4% | Source |
| FY2019 | $177.7M | -$53.9M | -30.3% | +59.7% | Source |
| FY2018 | $111.3M | -$49.1M | -44.1% | +66.1% | Source |
| FY2017 | $67M | -$15.2M | -22.7% | — | Source |
Xero
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$1.6B | ~$97.1M | 6.1% | +30.9% | Source |
| FY2025 | ~$1.2B | ~$132.1M | 10.8% | +22.7% | Source |
| FY2024 | ~$994M | ~$101.3M | 10.2% | +22.4% | Source |
| FY2023 | ~$811.9M | ~-$65.8M | -8.1% | +27.6% | Source |
| FY2022 | ~$636.2M | ~-$5.3M | -0.8% | — | Source |
Where the revenue comes from
Smartsheet
- Subscriptions95
Per-user plans plus premium add-ons such as Control Center, Data Shuttle, Dynamic View, Resource Management and Brandfolder ($273.7M of $286.9M revenue in Q3 fiscal 2025).
- Professional services5
Implementation, consulting and training ($13.2M in Q3 fiscal 2025).
Xero
- Subscriptions and platform88
Recurring subscription revenue from accounting plans, add-ons and other platform services.
- Melio payments12
Transaction revenue from Melio's US bill pay and receivables platform, which contributed ~$193 million (NZ$332 million) in FY26.
Business model and strategy
Smartsheet
How it makes money
Smartsheet sells software subscriptions. Customers pay per user on tiered plans (Pro, Business, Enterprise) and can add premium capabilities such as Control Center, Dynamic View, Data Shuttle, Bridge, Resource Management and Brandfolder digital asset management.
Growth strategy
Under CEO Rajeev Singh, Smartsheet is focusing on enterprise AI: the November 2025 ENGAGE launch added AI agents and data features to the platform. It has also cut costs through two rounds of layoffs, rebuilt its executive team and revamped its partner program in 2026 to lean more on channel sales.
Competitive advantage
Smartsheet's main advantage is a familiar grid interface that lets non-technical business users start quickly, paired with enterprise controls (Control Center for portfolio provisioning, Dynamic View for restricted sharing, admin governance) and a FedRAMP-authorized Smartsheet Gov environment for public-sector buyers.
Xero
How it makes money
Xero sells monthly software subscriptions to small businesses, sole traders, and accounting and bookkeeping firms. The core product covers bank reconciliation, invoicing, bills, payroll in several markets and financial reporting, and plans are priced in tiers by market. Most customers reach Xero through accountants and bookkeepers, who adopt it for their practice and move clients onto it.
Growth strategy
Xero's strategy centres on three jobs for small businesses (accounting, payments and payroll) in three main markets (Australia and New Zealand, the UK and the US). In the US it is combining Xero and Melio under one leadership team, adding online bill payments inside Xero and embedded payroll. It is also building AI features, including its JAX assistant, into the core product.
Competitive advantage
Xero's main advantage is its accountant and bookkeeper channel in Australia, New Zealand and the UK, which brings small business clients onto the platform. Melio adds a US payments product that it owns.
Questions about Smartsheet vs Xero
Which company has higher revenue — Smartsheet or Xero?
Smartsheet had $958.3M (FY2024), while Xero had ~$1.6B (FY2026). By latest annual revenue, Xero is the larger business, with Smartsheet showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Smartsheet vs Xero?
Smartsheet's market capitalisation stands at $8.4B, while Xero's is $6.5B. Smartsheet carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Xero.
How does revenue per employee compare for Smartsheet and Xero?
Smartsheet has $290k / employee in revenue per employee, while Xero has $363k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Smartsheet and Xero make money?
Smartsheet and Xero generate revenue in fundamentally different ways. Smartsheet: Smartsheet sells software subscriptions. Xero: Xero sells monthly software subscriptions to small businesses, sole traders, and accounting and bookkeeping firms.
Which company is valued higher relative to revenue — Smartsheet or Xero?
On a price-to-sales (P/S) basis, Smartsheet trades at 8.8x P/S and Xero at 4.1x P/S. Smartsheet commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Xero. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Smartsheet bigger than Xero?
By last reported revenue, Xero (~$1.6B (FY2026)) is the larger company compared to Smartsheet ($958.3M (FY2024)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Smartsheet vs Xero overview