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Smartsheet (SMAR) to Report Q3 Earnings: What's in Store?
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Smartsheet Inc. (SMAR - Free Report) is slated to report third-quarter fiscal 2021 results on Dec 7.
For the fiscal third quarter, the company expects revenues between $94 million and $95 million. The Zacks Consensus Estimate for revenues is currently pegged at $94.5 million, which suggests growth of 32.2% from the year-ago reported figure.
Moreover, non-GAAP loss is anticipated in the range of 23-22 cents. The consensus mark for fiscal third-quarter loss has been steady at 22 cents per share in the past 30 days. Non-GAAP net loss per share was 15 cents in third-quarter fiscal 2020.
Momentum in digital transformation trends due to coronavirus crisis induced work-from-home and online learning wave is expected to have fueled adoption of Smartsheet’s cloud-based platforms, which facilitate execution of work and aid teams and organizations to plan, automate, manage, and report work.
Growing clout of Smartdashboards, Smartportals, Smartcards, Smartgrids, Smartprojects, Smartcalendars, Smartforms, Smartautomation and Smartintegrations is likely to have contributed to the fiscal third-quarter revenues.
Further, the company’s significant investments in product innovation and efforts to enhance the reach of their products through advertising campaigns may have aided it in acquiring new customers and retaining existing ones in the fiscal third quarter.
Besides, the company has been constantly rolling out new product offerings to boost value for customers. Additionally, Smartsheet’s efforts to enter new markets and improve existing product capabilities might get reflected in subscription revenues in the to-be-reported quarter.
Notably, the Zacks Consensus Estimate for subscription revenues for the fiscal third quarter is pegged at $86 million, indicating growth of 33.6% on a year-over-year basis.
In September, the company announced that its Smartsheet Gov has received Provisional Authorization (PA) by the Defense Information Systems Agency (DISA) at Impact Level (IL) 4.
These factors are likely to have helped the company in attracting new customers and expanding existing government agencies’ client base in quarter to be reported.
In addition, the global COVID-19 outbreak is likely to have driven momentum for Smartsheet’s offerings courtesy of higher demand for robust data collection and risk assessment capabilities across industries including life sciences, healthcare, finance, technology, and manufacturing.
In the last reported quarter, the company’s dollar net retention rate was 128%. Moreover, Smartsheet’s average ACV per domain-based customer increased 40% year over year to $4,156. This trend is likely to have continued in the to-be-reported quarter driven by expanded use of Smartsheet’s platform. In fact, during the fiscal third quarter, Smartsheet’s offerings were selected by notable names, including Mimecast , QAD Inc. , and Boomi, which is part of Dell Technologies’ (DELL - Free Report) business, and KEEN, Inc., to mention a few.
Additionally, the company’s expanding international presence might have contributed to the fiscal third-quarter performance.
During the quarter under review, Smartsheet concluded Brandfolder buyout. Markedly, on Aug 24, 2020, the company had inked deal to acquire Denver, CO-based, Brandfolder, in a bid to gain digital asset management capabilities and strengthen product portfolio to facilitate dynamic work.
Management anticipates Brandfolder to rake in approximately $2 million to revenues and $6 million to billings in fiscal 2021. Although this bodes well over the longer haul, Smartsheet’s continued investments in products and acquisitions are likely to have kept margins under pressure in the fiscal third quarter.
Moreover, higher expenditure on brand advertising, amid stiff competition from Zoho and monday.com, may have weighed on the company’s profitability in the to-be-reported quarter.
Furthermore, COVID-19 led macroeconomic weakness induced reduced spend across small and medium sized business (SMB) is anticipated to have limited growth in the fiscal third quarter.
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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Smartsheet (SMAR) to Report Q3 Earnings: What's in Store?
Smartsheet Inc. (SMAR - Free Report) is slated to report third-quarter fiscal 2021 results on Dec 7.
For the fiscal third quarter, the company expects revenues between $94 million and $95 million. The Zacks Consensus Estimate for revenues is currently pegged at $94.5 million, which suggests growth of 32.2% from the year-ago reported figure.
Moreover, non-GAAP loss is anticipated in the range of 23-22 cents. The consensus mark for fiscal third-quarter loss has been steady at 22 cents per share in the past 30 days. Non-GAAP net loss per share was 15 cents in third-quarter fiscal 2020.
Smartsheet Inc. Price and EPS Surprise
Smartsheet Inc. price-eps-surprise | Smartsheet Inc. Quote
Factors to Note
Momentum in digital transformation trends due to coronavirus crisis induced work-from-home and online learning wave is expected to have fueled adoption of Smartsheet’s cloud-based platforms, which facilitate execution of work and aid teams and organizations to plan, automate, manage, and report work.
Growing clout of Smartdashboards, Smartportals, Smartcards, Smartgrids, Smartprojects, Smartcalendars, Smartforms, Smartautomation and Smartintegrations is likely to have contributed to the fiscal third-quarter revenues.
Further, the company’s significant investments in product innovation and efforts to enhance the reach of their products through advertising campaigns may have aided it in acquiring new customers and retaining existing ones in the fiscal third quarter.
Besides, the company has been constantly rolling out new product offerings to boost value for customers. Additionally, Smartsheet’s efforts to enter new markets and improve existing product capabilities might get reflected in subscription revenues in the to-be-reported quarter.
Notably, the Zacks Consensus Estimate for subscription revenues for the fiscal third quarter is pegged at $86 million, indicating growth of 33.6% on a year-over-year basis.
In September, the company announced that its Smartsheet Gov has received Provisional Authorization (PA) by the Defense Information Systems Agency (DISA) at Impact Level (IL) 4.
These factors are likely to have helped the company in attracting new customers and expanding existing government agencies’ client base in quarter to be reported.
In addition, the global COVID-19 outbreak is likely to have driven momentum for Smartsheet’s offerings courtesy of higher demand for robust data collection and risk assessment capabilities across industries including life sciences, healthcare, finance, technology, and manufacturing.
In the last reported quarter, the company’s dollar net retention rate was 128%. Moreover, Smartsheet’s average ACV per domain-based customer increased 40% year over year to $4,156. This trend is likely to have continued in the to-be-reported quarter driven by expanded use of Smartsheet’s platform. In fact, during the fiscal third quarter, Smartsheet’s offerings were selected by notable names, including Mimecast , QAD Inc. , and Boomi, which is part of Dell Technologies’ (DELL - Free Report) business, and KEEN, Inc., to mention a few.
Additionally, the company’s expanding international presence might have contributed to the fiscal third-quarter performance.
During the quarter under review, Smartsheet concluded Brandfolder buyout. Markedly, on Aug 24, 2020, the company had inked deal to acquire Denver, CO-based, Brandfolder, in a bid to gain digital asset management capabilities and strengthen product portfolio to facilitate dynamic work.
Management anticipates Brandfolder to rake in approximately $2 million to revenues and $6 million to billings in fiscal 2021. Although this bodes well over the longer haul, Smartsheet’s continued investments in products and acquisitions are likely to have kept margins under pressure in the fiscal third quarter.
Moreover, higher expenditure on brand advertising, amid stiff competition from Zoho and monday.com, may have weighed on the company’s profitability in the to-be-reported quarter.
Furthermore, COVID-19 led macroeconomic weakness induced reduced spend across small and medium sized business (SMB) is anticipated to have limited growth in the fiscal third quarter.
Smartsheet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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