Earnings To Watch: Smartsheet (SMAR) Reports Q3 Results Tomorrow

Petr Huřťák /
2022/11/30 4:12 am EST

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

Last quarter Smartsheet reported revenues of $186.6 million, up 41.7% year on year, beating analyst revenue expectations by 3.39%. It was a mixed quarter for the company, with exceptional revenue growth but underwhelming revenue guidance for the next quarter. The company added 803 enterprise customers paying more than $5,000 annually to a total of 16,682.

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 34.3% year on year to $194.3 million, slowing down from the 46.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 per share.

Smartsheet Total Revenue

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 4.09%.

Looking at Smartsheet's peers in the productivity software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Atlassian delivered top-line growth of 31.4% year on year, beating analyst estimates by 0.12% and monday.com reported revenues up 64.8% year on year, exceeding estimates by 4.94%. Atlassian traded down 25.1% on the results, and monday.com was up 5.94%. Read our full analysis of Atlassian's results here and monday.com's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.98% over the last month. Smartsheet is down 17.3% during the same time, and is heading into the earnings with analyst price target of $44.30, compared to share price of $28.36.

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The author has no position in any of the stocks mentioned.