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Smartsheet’s (SMAR - Free Report) platform continues to gain traction across enterprises. Recently, Delivery Hero, a notable local delivery service platform, selected Smartsheet to streamline work management, boost real-time visibility and drive business value.
By leveraging Smartsheet’s platform, Delivery Hero witnessed considerable time savings via consolidation of projects and status reporting. The elevated productivity will enable the team to focus on value-adding tasks and bolster business growth.
Momentum in digital transformation trends due to coronavirus crisis induced work-from-home and online learning wave is anticipated to fuel adoption of Smartsheet’s cloud-based enterprise platforms, which facilitate execution of dynamic 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 expected to drive revenues in the quarters ahead.
Per IDC data, the enterprise applications market is projected to hit $265.7 billion by 2024, from $224.6 billion in 2019, at a five year CAGR of 3.4%. Positive digital transformation trends, increasing use of modern software with advanced automation, connectivity, and visibility capabilities, remain encouraging.
Smartsheet’s significant investments in product innovation and efforts to enhance the reach of their products through advertising campaigns is anticipated to aid it in fortifying presence in the enterprise software market by acquiring new customers and retaining existing ones.
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 remain tailwinds.
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 help the company in attracting new customers and expanding existing government agencies’ client base.
In addition, the global COVID-19 outbreak is expected to drive 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 third quarter of fiscal 2021, the company’s dollar net retention rate was 125%. Moreover, Smartsheet’s average ACV per domain-based customer increased 42% year over year to $4,665. This trend is likely to continue in the days ahead 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.
Notably, on Aug 24, 2020, Smartsheet 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.
Smartsheet, currently carrying a Zacks Rank #3 (Hold), closed the buyout worth $152.5 million during the fiscal third quarter, which comprised $126.6 million in cash and $25.9 million in stock. Brandfolder contributed approximately $1.7 million to revenues and $3.2 million to billings in the fiscal third quarter. Also, the company acquired deferred revenues of $4.7 million from the buyout.
Although the aforementioned efforts bode well over the longer haul, Smartsheet’s continued investments in products and acquisitions are likely to keep margins under pressure at least in the near term.
Moreover, higher expenditure on brand advertising, amid stiff competition from Zoho and monday.com, are headwinds.
Furthermore, COVID-19 led macroeconomic weakness induced reduced spend across small and medium sized businesses (SMB) might limit growth.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Smartsheet's (SMAR) Enterprise Platform Witnesses Solid Adoption
Smartsheet’s (SMAR - Free Report) platform continues to gain traction across enterprises. Recently, Delivery Hero, a notable local delivery service platform, selected Smartsheet to streamline work management, boost real-time visibility and drive business value.
By leveraging Smartsheet’s platform, Delivery Hero witnessed considerable time savings via consolidation of projects and status reporting. The elevated productivity will enable the team to focus on value-adding tasks and bolster business growth.
Momentum in digital transformation trends due to coronavirus crisis induced work-from-home and online learning wave is anticipated to fuel adoption of Smartsheet’s cloud-based enterprise platforms, which facilitate execution of dynamic 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 expected to drive revenues in the quarters ahead.
Smartsheet Inc. Revenue (Quarterly)
Smartsheet Inc. revenue-quarterly | Smartsheet Inc. Quote
Efforts To Boost Clientele Hold Promise
Per IDC data, the enterprise applications market is projected to hit $265.7 billion by 2024, from $224.6 billion in 2019, at a five year CAGR of 3.4%. Positive digital transformation trends, increasing use of modern software with advanced automation, connectivity, and visibility capabilities, remain encouraging.
Smartsheet’s significant investments in product innovation and efforts to enhance the reach of their products through advertising campaigns is anticipated to aid it in fortifying presence in the enterprise software market by acquiring new customers and retaining existing ones.
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 remain tailwinds.
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 help the company in attracting new customers and expanding existing government agencies’ client base.
In addition, the global COVID-19 outbreak is expected to drive 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 third quarter of fiscal 2021, the company’s dollar net retention rate was 125%. Moreover, Smartsheet’s average ACV per domain-based customer increased 42% year over year to $4,665. This trend is likely to continue in the days ahead 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.
Notably, on Aug 24, 2020, Smartsheet 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.
Smartsheet, currently carrying a Zacks Rank #3 (Hold), closed the buyout worth $152.5 million during the fiscal third quarter, which comprised $126.6 million in cash and $25.9 million in stock. Brandfolder contributed approximately $1.7 million to revenues and $3.2 million to billings in the fiscal third quarter. Also, the company acquired deferred revenues of $4.7 million from the buyout.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Risks Remain
Although the aforementioned efforts bode well over the longer haul, Smartsheet’s continued investments in products and acquisitions are likely to keep margins under pressure at least in the near term.
Moreover, higher expenditure on brand advertising, amid stiff competition from Zoho and monday.com, are headwinds.
Furthermore, COVID-19 led macroeconomic weakness induced reduced spend across small and medium sized businesses (SMB) might limit growth.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>