Shares of Smartsheet (SMAR 1.23%), an enterprise platform company, rose sharply Tuesday after the company released better-than-expected fiscal 2021 third-quarter results following the market close Monday.
The tech stock moved as much as 20.8% higher in morning trading and was up by 18.2% as of 11:51 a.m. EST.
For the period that ended Oct. 30, Smartsheet's revenue increased by 38% year over year to $98.9 million, which beat analysts' consensus revenue estimate of $94.6 million. The company's non-GAAP net loss of $0.12 per share was also far better than the $0.22 loss Wall Street was expecting.
"As enterprises across the globe seek to digitally transform how work is delivered and innovation is achieved, the value of Smartsheet's platform is becoming increasingly clear," CEO Mark Mader said in a press release.
Mader added that one highlight of the quarter was the company's "continued strength with large deals." In the fiscal third quarter, the number of contracts with annualized values of $100,000 or more jumped by 81% year over year to 504. In addition, the number of annual contracts worth at least $50,000 increased by 73%.
Smartsheet's share price has been all over the place this year, but Tuesday's gains put the company's stock up 64% year-to-date.
Smartsheet's management issued guidance for its fiscal fourth quarter and fiscal 2021, forecasting that revenue will increase 30.5% year over year in the fourth quarter and 39.5% for the fiscal year, both at the midpoint of guidance. Management also estimates that the company's non-GAAP net loss for the full fiscal year will be $0.43 per share, at the midpoint, compared to a loss of $0.49 for fiscal 2020.