Smartsheet's stock gets a big lift as bottom-line trends impress

By Emily Bary

Software company's adjusted profit beats estimates, as does its outlook on the metric

Smartsheet Inc. delivered an upbeat earnings outlook, sending shares of the software maker more than 12% higher in Wednesday's extended session.

For the full fiscal year, Smartsheet (SMAR) models revenue of $1.116 billion to $1.121 billion, while the FactSet consensus was for $1.116 billion. The collaboration-software company's prior full-year outlook was for $1.113 billion to $1.118 billion in revenue.

In terms of adjusted earnings per share, Smartsheet is now looking for $1.22 to $1.29 over the course of the full fiscal year, whereas its prior forecast called for $1.06 to $1.13. Analysts had been modeling $1.11.

The company projects total second-quarter revenue of $273 million to $275 million, with the midpoint of that - $274 million - matching the consensus view. Smartsheet's bottom-line forecast of 28 cents to 29 cents in adjusted earnings per share exceeded the 25-cent consensus projection.

"We continue to see significant demand from our enterprise customers and now have 72 customers with annualized recurring revenue over $1 million, an increase of 50% year over year," Chief Executive Mark Mader said in a release.

He said that "the combination of new product innovations, the upcoming launch of our modern pricing and packaging model and a reinvigorated go-to-market strategy" sets Smartsheet up for "long-term, durable growth."

In the fiscal first quarter, Smartsheet notched a 20% revenue increase to $263 million, while analysts were looking for $258 million.

The company's net loss narrowed to $8.9 million, or 6 cents a share, from a $29.9 million loss, equating to 23 cents a share, seen a year before.

On an adjusted basis, Smartsheet earned 32 cents a share, while analysts had been anticipating 27 cents.

-Emily Bary

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06-05-24 2015ET

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