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Smartsheet surges as strong Q3, full-year sales growth tops expectations

  • Smartsheet (NYSE:SMAR) shares surged more than 13% on Friday as the application software maker reported third-quarter results that topped expectations and said its revenue for fiscal 2023 would be well above Wall Street's forecast.
  • For the period ending October 31, Smartsheet (SMAR) lost 31 cents per share on a GAAP basis as revenue surged 38% year-over-year to $199.6M. Analysts were expecting a loss of 48 cents per share on a GAAP basis and $194.34M in sales.
  • Looking ahead to the fourth-quarter, Smartsheet (SMAR) expects revenue to be between $205M and $207M, compared to expectations of $204.45M, a growth rate of 30% to 32%.
  • For the entire fiscal year, the company expects revenue to be between $760M and $762M, topping estimates of $751.55M. On an adjusted basis, it expects operating losses between $45M and $43M and a net loss of 30 to 31 cents per share.
  • The company also said it expects free cash flow to be around $5M.
  • In October, RBC analyst Rishi Jaluria wrote that Smartsheet (SMAR) was viewed as a possible takeover target by a strategic buyer.