Smartsheet has crushed broader market returns since its IPO in 2018 but is also trading significantly below all-time highs right now.
Smartsheet (NYSE: SMAR) is a work management platform that allows enterprises to scale and deliver value over time. Its suite of tools and services is used by more than 80% of the companies within the Fortune 500.
Smartsheet stock went public in April 2018 and has more than doubled in the last four years. Despite its market-beating gains, SMAR stock is also trading 54% below all-time highs, allowing investors to buy the dip. Let's see what Wall Street expects from Smartsheet in fiscal 2023.
When is Smartsheet's earnings date?
Smartsheet is scheduled to report its earnings for fiscal Q1 of 2023 (ended in April) on Tuesday, June 7th at 4:30 pm Eastern Time.
How can I listen to Smartsheet's earnings call?
To listen to the call and access the earnings transcript, as well as the shareholder's letter and the company's financial statements for the quarter, all you need to do is go to Smartsheet's investor relations page.
What to expect from Smartsheet's Q1 earnings?
Smartsheet has increased revenue from $177.7 million in fiscal 2019 to $550.8 million in fiscal 2022. Wall Street expects Smartsheet to increase sales by 39% year-over-year to $162.55 million in fiscal Q1 of 2023. Comparatively, its loss per share is forecast to widen to $0.19 in Q1, from $0.09 in the year-ago period.
Analysts also expect Smartsheet sales to increase by 36.6% to $752.6 million, while its loss per share might more than double to $0.66 in fiscal 2023.
Okta's Business at Work Study identified Smartsheet as the most popular work management platform used by enterprises alongside Microsoft 365. In fact, Smartsheet is one of the only work management platform that appears on Okta's list of eight most popular applications, in addition to Microsoft
Smartsheet enables clients to implement, manage and automate processes across departments and use cases. It has successfully delivered a no-code enterprise solution that accelerates a company's decision-making process.
Further, Smartsheet ended Q4 with a dollar-based net retention rate of 134%, suggesting existing customers increased spending by 34% in the last year.
Smartsheet also experienced a record quarter for new business bookings and the number of licenses purchased by new customers in Q4. It onboarded big-ticket customers such as Target, Lucid Motors, Beyond Meat, General Mills, and Zendesk in the quarter ended in January.
In fiscal 2022, a global media conglomerate tripled annual recurring sales to more than $2 million on the Smartsheet platform. The organization added $300,000 in ARR in Q4, while another wireless telecom provider doubled ARR in fiscal 2022 via 14 separate transactions of more than $50,000.
In fiscal 2022, Smartsheet grew sales by 43% year-over-year and ended the year with $661.5 million in total billings. Its annual recurring revenue stood at $638 million, rising by $200 million in the last 12 months.
Smartsheet stock is valued at $5 billion by market cap and is trading at 6.64x forward sales, which is quite steep. It remains unprofitable and reported an operating loss of $34.2 million and a free cash flow of negative $20.8 million in 2022.
Alternatively, Smartsheet ended fiscal 2022 with a cash balance of almost $450 million, providing the company with enough room to improve the bottom line going forward.
SMAR stock is currently trading at a discount of 50%, given consensus price target estimates.
