Smartsheet Earnings: What To Look For From SMAR

Project management software maker Smartsheet (NYSE:SMAR) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.

Smartsheet beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $263 million, up 19.6% year on year. It was a slower quarter for the company, with decelerating growth in large customers and a miss of analysts’ billings estimates. It added 159 enterprise customers paying more than $5,000 annually to reach a total of 19,977.

Is Smartsheet a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Smartsheet’s revenue to grow 16.5% year on year to $274.5 million, slowing from the 26.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Smartsheet has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.3% on average.

Looking at Smartsheet’s peers in the project management software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Monday.com delivered year-on-year revenue growth of 34.4%, beating analysts’ expectations by 3%, and Asana reported revenues up 10.3%, in line with consensus estimates. Monday.com traded up 16.1% following the results.

Read our full analysis of Monday.com’s results here and Asana’s results here.

There has been positive sentiment among investors in the project management software segment, with share prices up 6.4% on average over the last month. Smartsheet is up 4.7% during the same time and is heading into earnings with an average analyst price target of $53.9 (compared to the current share price of $47.47).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.