Smartsheet (SMAR) Stock: Why The Price Jumped Today

By Amit Chowdhry ● Dec 3, 2021
  • The stock price of Smartsheet Inc (NYSE: SMAR) increased by over 6% during intraday trading today. This is why it happened.

The stock price of Smartsheet Inc (NYSE: SMAR) increased by over 6% during intraday trading today. Investors are responding positively to Smartsheet’s Q3 2022 results.

Q3 2022 Highlights:

— Total revenue was $144.6 million, an increase of 46% year over year. Subscription revenue was $132.6 million, an increase of 46% year over year. Professional services revenue was $12.0 million, an increase of 50% year over year.

— GAAP operating loss was $36.0 million, or 25% of total revenue, compared to GAAP operating loss of $35.9 million, or 36% of total revenue, in the third quarter of fiscal 2021. Non-GAAP operating loss was $2.7 million, or 2% of total revenue, compared to non-GAAP operating loss of $15.0 million, or 15% of total revenue, in the third quarter of fiscal 2021.

— GAAP net loss was $36.7 million, compared to GAAP net loss of $32.0 million in the third quarter of fiscal 2021. GAAP net loss per share was $0.29, compared to GAAP net loss per share of $0.26 in the third quarter of fiscal 2021. Non-GAAP net loss was $3.4 million, compared to non-GAAP net loss of $15.1 million in the third quarter of fiscal 2021. Non-GAAP net loss per share was $0.03, compared to non-GAAP net loss per share of $0.12 in the third quarter of fiscal 2021.

— Net operating cash flow was negative $2.2 million, compared to net operating cash flow of negative $5.2 million in the third quarter of fiscal 2021. Net free cash flow was negative $6.3 million, compared to net free cash flow of negative $8.8 million in the third quarter of fiscal 2021.

For the fourth quarter of the fiscal year 2022, the company currently expects:

— Total revenue of $151 million to $152 million, representing year-over-year growth of 37% to 38%

— Calculated billings of $204 million to $205 million, representing year-over-year growth of 35% to 36%

— Non-GAAP operating loss of $20 million to $18 million

— Non-GAAP net loss per share of $0.16 to $0.14, assuming basic and diluted weighted average shares outstanding of approximately 126.5 million

— Net free cash flow of negative $6 million to negative $4 million

For the full fiscal year 2022, the company currently expects:

— Total revenue of $544 million to $545 million, representing year-over-year growth of 41%

— Calculated billings of $641 million to $642 million, representing year-over-year growth of 42%

— Non-GAAP operating loss of $40 million to $38 million

— Non-GAAP net loss per share of $0.32 to $0.30, assuming basic and diluted weighted average shares outstanding of approximately 125 million

— Net free cash flow of negative $24 million to negative $22 million

For the full fiscal year 2023, the company currently expects year-over-year growth in calculated billings of 37% to 40%.

KEY QUOTE:

“This was a record quarter for Smartsheet on multiple financial and operational levels, including closing the highest number of large deals in a quarter and seeing the best bookings performance in our company’s history. Our platform can scale from a simple project management tool used by a five-person firm to an enterprise SaaS platform that enables work across critical business systems at the largest companies in the world. Our business model and teams are primed to seize the enormous opportunity ahead of us to help global customers of all sizes transform how they work.”

— Mark Mader, President and CEO of Smartsheet

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.