Smartsheet (SMAR) Q4 Earnings Report Preview: What To Look For
Project management software maker Smartsheet (NYSE:SMAR) will be reporting earnings tomorrow after market hours. Here's what to expect.
Last quarter Smartsheet reported revenues of $245.9 million, up 23.2% year on year, beating analyst revenue expectations by 1.9%. It was a solid quarter for the company, with an impressive beat of analysts' billings estimates. Non-GAAP operating profit also outperformed nicely, showing that there is not only topline strength but operating efficiency and expense leverage. Lastly, guidance was solid, with full year guidance raised from the previous outlook. The company added 358 enterprise customers paying more than $5,000 annually to a total of 19,389.
Is Smartsheet buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Smartsheet's revenue to grow 20.5% year on year to $255.9 million, slowing down from the 34.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3%.
Looking at Smartsheet's peers in the project management software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Atlassian delivered top-line growth of 21.5% year on year, beating analyst estimates by 3.6% and Monday.com reported revenues up 35.1% year on year, exceeding estimates by 2.4%. Atlassian traded up 10.8% on the results, and Monday.com was down 7%.
Read our full analysis of Atlassian's results here and Monday.com's results here.
Investors in the project management software segment have had steady hands going into the earnings, with the stocks up on average 0.9% over the last month. Smartsheet is down 6.6% during the same time, and is heading into the earnings with analyst price target of $55.7, compared to share price of $41.8.
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
