Project management software maker Smartsheet (NYSE:SMAR) will be reporting earnings tomorrow after the bell. Here's what you need to know.
Last quarter Smartsheet reported revenues of $157.3 million, up 43.2% year on year, beating analyst revenue expectations by 3.81%. Despite the stock dropping on the results, it was a strong quarter for the company, with an exceptional revenue growth and accelerating growth in large customers. The company added 922 enterprise customers paying more than $5,000 annually to a total of 15,150.
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 38.8% year on year to $162.5 million, in line with the 36.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.19 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 4.52%.
Looking at Smartsheet's peers in the project management software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Atlassian delivered top-line growth of 30.2% year on year, beating analyst estimates by 5.2% and Asana reported revenues up 57.3% year on year, exceeding estimates by 4.8%. Atlassian traded down 3.8% on the results, and Asana was down 1.28%. Read our full analysis of Atlassian's results here and Asana's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 9.43% over the last month. Smartsheet is down 2.13% during the same time, and is heading into the earnings with analyst price target of $62.7, compared to share price of $38.98.
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The author has no position in any of the stocks mentioned.