Smartsheet (NYSE:SMAR) results gained 7% in pre-market Friday after the company reported better-than-expected second quarter results.
For Q3 FY2024, Smartsheet expects earnings per share in the range of $0.08 to $0.09, surpassing the consensus estimate of $0.07. The revenue projection is between $240 million and $242 million, slightly different from the consensus of $241.2M.
Looking at the full fiscal year 2024, Smartsheet anticipates EPS to fall within the range of $0.53 to $0.57, which is notably higher than the consensus estimate of $0.42. The revenue outlook for FY2024 stands at $950M to $953M, compared to the consensus of $948.8M.
For its second quarter, the company reported EPS of $0.16, surpassing the analyst estimate of $0.08. The company's revenue for the quarter was $235.6M, exceeding the consensus estimate of $229.6M.
“Smartsheet outperformed across all aspects of our guidance in Q2,” said Mark Mader, CEO of Smartsheet.
“Our platform’s scalability continues to drive strong demand from enterprises looking for solutions to manage their mission-critical work securely and consistently. We remain focused on delivering innovation around generative AI and other areas to help our customers achieve more and to extend our leadership position in the enterprise work management market.”
Wolfe Research analysts reiterated an Outperform rating and a $50 per share price target.
“On the back of a strong quarter and raise to FY24 operating (6.8%) and FCF (12.6%) margins, we continue to believe there are multiple ways to win with SMAR (durable double digit growth, compounding FCF, M&A). Our out-year revenue and billings estimates are largely unchanged, while we've raised on op./FCF margin estimates slightly. Reiterate OP,” they said.
BMO analysts hiked the price target to $50 per share on the Outperform-rated SMAR stock.
“We think new AI offerings and monetization strategies are intriguing as we look ahead to FY25, though 2HFY24 DBNR guidance was a bit disappointing,” they commented.