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

SMAR Cover Image

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.

Smartsheet Total Revenue

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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