Smartsheet (SMAR) To Report Earnings Tomorrow: Here Is What To Expect

StockStory
2024-12-04
Smartsheet (SMAR) To Report Earnings Tomorrow: Here Is What To Expect

Project management software maker Smartsheet (NYSE:SMAR) will be reporting earnings tomorrow after market close. Here’s what you need to know.

Smartsheet beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $276.4 million, up 17.3% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations. It added 221 enterprise customers paying more than $5,000 annually to reach a total of 20,198.

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 15.4% year on year to $283.9 million, slowing from the 23.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.

Analysts covering the company have generally 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% on average.

Looking at Smartsheet’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Monday.com delivered year-on-year revenue growth of 32.7%, beating analysts’ expectations by 1.9%, and Atlassian reported revenues up 21.5%, topping estimates by 2.8%. Monday.com traded down 19.7% following the results while Atlassian was up 19%.

Read our full analysis of Monday.com’s results here and Atlassian’s results here.

There has been positive sentiment among investors in the productivity software segment, with share prices up 16.8% on average over the last month. Smartsheet’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $56.48 (compared to the current share price of $56.12).

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