September 28, 2022

Robotic Notes

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Smartsheet shares drop on lower-than-expected outlook

2 min read

Shares in work management platform provider Smartsheet Inc. dropped in extended trading today after the company reported a lower-than-expected outlook in its quarterly earnings report.

For the quarter ended Jan. 31, Smartsheet reported a loss before certain costs such as stock compensation of $ 15.5 million, or 12 cents per share, compared with an adjusted loss of $ 4.9 million, or four cents per share, in the same quarter of the previous fiscal year. Revenue rose 43% to $ 157.5 million. Analysts had expected an adjusted loss of 15 cents per share on revenue of $ 151.6 million.

Net operating cash flow in the quarter was negative $ 200,000, compared to net operating positive cash flow of $ 15.2 million in the same quarter last year.

For the full fiscal year 2022, Smartsheet reported an adjusted loss of $ 35.3 million, or 28 cents per share, compared to $ 39.8 million, or 33 cents per share, the year prior. Revenue for the year also rose 43% to $ 550.9 million.

Highlights in fiscal 2022 included a dollar-based net retention rate of 134%, up from 123% from fiscal 2021. The number of customers with annual contract values ​​of $ 100,000 or larger grew to 1,026, up 75% year-over-year. Where Smartsheet is spending money is clear: The company’s headcount grew to 2,539 employees as of the end of the fiscal year, up 624.

“We once again set new quarterly records for large deals and accelerated annual billings growth,” Mark Mader, president and chief executive officer of Smartsheet, said in a statement. “We enter FY23 with a growing team that is focused on delivering the market-leading innovation that is increasingly vital for our customers.”

Looking forward, Smartsheet is predicting an adjusted loss of 18 to 20 cents on revenue of $ 162 million to $ 163 million in its first quarter. For the full fiscal year 2023, the company predicted an adjusted loss of 62 to 70 cents a share on revenue of $ 750 million to $ 755 million.

Analysts had predicted an adjusted loss of 11 cents a share on revenue of $ 160 million in the first quarter and a loss of 27 cents a share on revenue of $ 730.1 million for fiscal 2023.

The big miss in the outlook on earnings is what investors looked at and it was reflected in Smartsheet’s share price. Smartsheet shares fell 5.31% in late trading.

Image: Smartsheet

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