SmartSheet (SMAR) will report its fiscal second quarter
results (and its second quarter as a public company) this afternoon. Management
will host a call at 16:30 ET.
Smartsheet is a cloud-based platform for work execution, enabling organizations to plan, capture, track, automate, and report on work at scale.
Smartsheet empowers collaboration, drives better decision making, and accelerates innovation for over 75,000 customers in 190 countries, including 90% of the Fortune 100. Smartsheet complements existing enterprise investments by deeply integrating with applications from Microsoft, Google, Salesforce, Atlassian, and many others.
The stock is up just over 100% since the company's 11.6 mln share IPO at $15 in late April.
On June 4, the company beat first quarter estimates and guided second quarter and fiscal 2019 (January) revenue above consensus.
Revenue grew 63% to $36 mln. The number of all customers with annualized contract values (ACV) of $5,000 or more grew 78% to 4,349. Investors were impressed by the growth potential and large total addressable market (TAM).
Analysts expect second quarter results within the company's forecast calling for an adjusted net loss of $0.13-0.14/share with revenue up 44-48% to $38.5-39.5 mln.
The company guided for a fiscal 2019 (ending January) adjusted net loss of $0.59-0.56/share with revenue up 43-46% to $159-162 mln and billings +42-44% to $193-196 mln.
Investors are looking for another “beat and raise” report this afternoon in order for the stock to sustain its lofty valuation.
With a $3.4 bln valuation on a fully diluted basis, SMAR trades at more than 20x sales estimates for the year, or ~15x sales estimates for next year. That's expensive, even relative to the myriad of recent enterprise software IPOs that trade with a double-digit sales multiple.
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