Smartsheet Shares Are Soaring Today: Here's Why

Smartsheet Inc SMAR shares are trading higher Wednesday after the company reported better-than-expected financial results and issued strong earnings guidance. Several analysts also raised price targets following the print.

• Q1 Revenue: $212.34 million beat estimates of $206.19 million
• Q1 EPS: 7 cents beat estimates for a loss of 1 cent

Free cash flow totaled $16.4 million in the fourth quarter. Smartsheet ended the quarter with $456.4 million in cash equivalents and short-term investments.

"In FY24, despite the macro environment, the cost saving initiatives we put in place in FY23 combined with natural economies of scale in our business will result in significant free cash flows and operating margin expansion," said Pete Godbole, CFO of Smartsheet.

Outlook: Smartsheet expects first-quarter revenue to be between $213 million and $215 million versus estimates of $217.1 million. The company sees first-quarter adjusted earnings between 8 and 9 cents per share versus estimates for a loss of 6 cents per share.

Smartsheet also issued full-year 2024 revenue guidance of $943 million to $948 million and adjusted earnings guidance of 31 cents to 38 cents per share.

See Also: Why Sportradar Stock Is Sprinting Higher Wednesday

Analyst Assessment:

• Keybanc analyst Jason Celino maintained Smartsheet with an Overweight and raised the price target from $48 to $53.
• Needham analyst Scott Berg reiterated Smartsheet with a Buy and a $57 price target.
• Credit Suisse analyst Fred Lee reiterated Smartsheet with a Neutral and a $40 price target.
• Wells Fargo analyst Michael Turrin maintained Smartsheet with an Overweight and raised the price target from $45 to $50.
• Oppenheimer analyst George Iwanyc maintained Smartsheet with an Outperform and raised the price target from $50 to $55.

SMAR Price Action: Smartsheet shares are up 15.8% at $44.45 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Smartsheet.