Project management software maker Smartsheet (NYSE:SMAR) will be reporting results tomorrow after market hours. Here's what to look for.
Smartsheet met analysts' revenue expectations last quarter, reporting revenues of $256.9 million, up 21% year on year. It was a weaker quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter. It added 429 enterprise customers paying more than $5,000 annually to reach a total of 19,818.
Is Smartsheet a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Smartsheet's revenue to grow 17.4% year on year to $258.2 million, slowing from the 30.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Smartsheet has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.5% on average.
Looking at Smartsheet's peers in the project management software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Atlassian delivered year-on-year revenue growth of 29.9%, beating analysts' expectations by 8.1%, and Monday.com reported revenues up 33.7%, topping estimates by 3%. Atlassian traded down 9.5% following the results while Monday.com was up 25.8%.
Read our full analysis of Atlassian's results here and Monday.com's results here.
Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the project management software stocks have fared somewhat better, they have not been spared, with share prices down 6.5% on average over the last month. Smartsheet is down 4.2% during the same time and is heading into earnings with an average analyst price target of $49.3 (compared to the current share price of $37.6).
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