Project management software maker Smartsheet (NYSE:SMAR) will be reporting earnings tomorrow after market hours. Here's what you need to know.
Last quarter Smartsheet reported revenues of $212.3 million, up 34.9% year on year, beating analyst revenue expectations by 3.16%. It was a weak quarter for the company, with revenue guidance for the next quarter and full year missing analysts' expectations. The company added 647 enterprise customers paying more than $5,000 annually to a total of 18,093.
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 27.2% year on year to $214.2 million, slowing down from the 43.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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 3.35%.
Looking at Smartsheet's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Monday.com delivered top-line growth of 49.5% year on year, beating analyst estimates by 4.49% and Atlassian reported revenues up 23.6% year on year, exceeding estimates by 1.52%. Monday.com traded up 12% on the results, Atlassian was down 10%. Read our full analysis of Monday.com's results here and Atlassian's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 16.5% over the last month. Smartsheet is up 21.3% during the same time, and is heading into the earnings with analyst price target of $51.7, compared to share price of $48.64.
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The author has no position in any of the stocks mentioned.