Why Smartsheet Shares Are Surging After Hours

Smartsheet Inc SMAR shares are trading higher in Tuesday's after-hours session after the company turned in better-than-expected financial results and issued strong earnings guidance.

• 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.

"Our Q4 results cap off a strong fiscal year in which we achieved the major milestone of positive free cash flow," said Mark Mader, president and CEO of Smartsheet. 

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.

CFO Pete Godbole said: "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."

The company also appointed Smartsheet director Mike Gregoire as board chair, effective March 9.

See Also: What's Going On With SentinelOne Stock After Hours?

SMAR Price Action: Smartsheet shares were up 9.19% at $41.83 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Smartsheet.