Project management software maker Smartsheet (NYSE:SMAR) will be announcing earnings results tomorrow afternoon. Here's what investors should know.
Last quarter Smartsheet reported revenues of $199.6 million, up 38% year on year, beating analyst revenue expectations by 2.51%. It was a decent quarter for the company, with exceptional revenue growth but a decline in net revenue retention rate. The company added 764 enterprise customers paying more than $5,000 annually to a total of 17,446.
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 30.8% year on year to $205.9 million, slowing down from the 43.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 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 3.83%.
Looking at Smartsheet's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. monday.com delivered top-line growth of 56.9% year on year, beating analyst estimates by 5.85% and Atlassian reported revenues up 26.7% year on year, exceeding estimates by 2.74%. monday.com traded up 10.2% on the results, Atlassian was down 10.0%. Read our full analysis of monday.com's results here and Atlassian's results here.
Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.76% over the last month. Smartsheet is down 9.53% during the same time, and is heading into the earnings with analyst price target of $47.9, compared to share price of $40.
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The author has no position in any of the stocks mentioned.