Smartsheet (SMAR 43.90, +0.26, +0.60%), a recent IPO, is set to report Q4 (Jan) results
today after the close. Smartsheet is a provider of cloud-based software which
enables companies to plan, capture, manage, automate and report on work at
scale. Smartsheet looks a bit like an Excel spreadsheet but it has a lot more
functionality when it comes to task workflow for groups.
Smartsheet adapts to many different types of work. This includes: software migration planning, vendor and contract management, brand launches, compliance reporting, event planning, customer onboarding, budget approvals, patent application processing, talent acquisition, benefit and retirement tracking, sales enablement, IR tracking, and website management.
For example, Cisco uses Smartsheet to oversee a $300 mln annual spend on programs and technology, produce events, manage infrastructure projects etc. Starbucks uses Smartsheet to disseminate important updates across thousands of stores. MOD Pizza built a standardized system in Smartsheet to manage and organize the company's rapid growth, ensuring consistency and repeatability for 100 new store openings.
After months of being range-bound in the $20-30 area, the stock has broken out in recent months, going from around $25 in early January to around $44 currently. The company is not yet profitable and it could take some time to get there. However, its top-line growth has been impressive. Revenue in OctQ rose 59.5% yr/yr to $46.9 mln, which above prior guidance of $43.5-44.5 mln.
SMAR's focus right now is not profits, rather it wants to achieve scale and grow the top line. SMAR has been spending a lot of money to develop its platform and acquire new customers. We will be posting an earnings preview a little later today on InPlay.
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