Smartsheet beats Q2 expectations, raises full-year outlook

BELLEVUE, Wash. - Smartsheet Inc . (NYSE:SMAR ) reported better-than-expected second-quarter results and raised its full-year guidance, driven by strong enterprise growth and improved profitability.

Smarsheet shares were little changed in after-hours trading after they rose 4.3% Thursday following a report by Reuters that the company is attracting interest from private equity firms.

The enterprise work management platform posted adjusted earnings per share of $0.44, surpassing analyst estimates of $0.29. Revenue for the quarter reached $276.4 million, up 17% YoY and slightly above the consensus estimate of $274.29 million.

Smartsheet's CEO Mark Mader highlighted the company's enterprise momentum, stating, "Our customers are scaling their work on Smartsheet, with over 70 customers expanding their Smartsheet annualized recurring revenue by more than $100,000 this quarter."

The company's annualized recurring revenue (ARR) grew 17% YoY to $1.093 billion, while its average ARR per domain-based customer increased 16% YoY to $10,291. Smartsheet also reported a dollar-based net retention rate of 113%.

For the third quarter, Smartsheet expects revenue between $282 million and $285 million, representing 15% to 16% YoY growth. The company raised its full-year outlook, now projecting revenue of $1.116 billion to $1.121 billion, up from its previous guidance.

Smartsheet's improved profitability was evident in its record free cash flow of $57.2 million, or 21% of total revenue. The company ended the quarter with $706.6 million in cash, cash equivalents, and short-term investments.

(This article does not provide investment advice or recommendations. All information is based on the company's earnings report and guidance.)

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com