Smartsheet (SMAR 26.89, -0.01, -0.04%) will report
results for its fiscal third quarter (and its third quarter as a public
company) this afternoon. The company sold 11.6 mln shares in an IPO priced at
$15 in April. Management will host a call at 16:30 ET.
Smartsheet is a provider of a cloud-based platform designed for work execution, enabling organizations to plan, capture, track, automate, and report on work at scale. Serving over 76,000 customers, including 96% of the Fortune 100, in 190 countries, Smartsheet empowers collaboration, drives better decision making, and accelerates innovation for its users. Smartsheet complements existing enterprise investments by integrating with applications from Microsoft, Google, Salesforce, Atlassian, and many others.
Smartsheet beat quarterly estimates and raised guidance in its first two quarterly reports. Second quarter revenue grew 59% to $42 mln. The number of all customers with annualized contract values of $50,000 or more grew 146% to 298.
Analysts expect third quarter results within the company's forecast calling for an adjusted net loss of $0.15-0.16/share with revenue up 48-51% to $43.5-44.5 mln. The company guided for a fiscal 2019 (ending January) adjusted net loss of $0.56-0.52/share with revenue up 50-52% to $167-169 mln and billings up 48-50% to $201-204 mln. Revenue growth is currently expected to slow to 39% next year.
Investors are looking for another beat and raise report this afternoon in order for the stock to sustain its lofty valuation. With a $2.7 bln valuation, SMAR trades at a mid-teens sales multiple, which means the company has little margin for error when it reports this afternoon.
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