Project management software maker Smartsheet (NYSE:SMAR) will be reporting results tomorrow after market hours. Here's what to expect.
Last quarter Smartsheet reported revenues of $219.9 million, up 30.6% year on year, beating analyst revenue expectations by 2.67%. It was a slower quarter for the company, with decelerating growth in large customers and underwhelming revenue guidance for the next quarter. The company added 390 enterprise customers paying more than $5,000 annually to a total of 18,483.
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 23% year on year to $229.5 million, slowing down from the 41.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 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 3.43%.
Looking at Smartsheet's peers in the project management software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Atlassian delivered top-line growth of 23.6% year on year, beating analyst estimates by 2.52%, and Monday.com reported revenues up 42% year on year, exceeding estimates by 3.77%. Atlassian traded up 12.3% on the results, and Monday.com was up 5.3%.
Read our full analysis of Atlassian's results here and Monday.com's results here.
There has been positive sentiment among investors in the project management software segment, with the stocks up on average 2.46% over the last month. Smartsheet is up 0.74% during the same time, and is heading into the earnings with analysts' average price target of $50.8, compared to share price of $41.
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The author has no position in any of the stocks mentioned.