Project management software maker Smartsheet (NYSE:SMAR) will be reporting results tomorrow after market close. Here's what investors should know.
Last quarter Smartsheet reported revenues of $235.6 million, up 26.2% year on year, beating analyst revenue expectations by 2.6%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates. On the other hand, its net revenue retention declined. The company added 548 enterprise customers paying more than $5,000 annually to a total of 19,031.
Is Smartsheet buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Smartsheet's revenue to grow 20.9% year on year to $241.3 million, slowing down from the 38% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 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 3.1%.
Looking at Smartsheet's peers in the project management software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Atlassian (NASDAQ:TEAM) delivered top-line growth of 21.1% year on year, beating analyst estimates by 1.3% and Asana reported revenues up 17.7% year on year, exceeding estimates by 1.5%. Atlassian traded down 11.8% on the results, and Asana was down 5.8%.
Read the full analysis of Atlassian's and Asana's results on StockStory.
There has been positive sentiment among investors in the project management software segment, with the stocks up on average 10.1% over the last month. Smartsheet is up 12.8% during the same time, and is heading into the earnings with analyst price target of $53.6, compared to share price of $45.7.
The author has no position in any of the stocks mentioned.