What happened
Shares of Smartsheet (SMAR +0.00%) were up 9.4% as of 2 p.m. ET Friday after the work-management software company announced strong fiscal second-quarter 2024 results for the period ended July 31.
Quarterly revenue climbed 26% year over year to $235.6 million, translating to adjusted net income of $22 million, or $0.16 per share. Analysts on average were expecting earnings of only $0.07 per share on revenue of $229.6 million.
NYSE: SMAR
Key Data Points
So what
CEO Mark Mader said the company easily exceeded all of its guidance, crediting the platform's scalability for driving "strong demand from enterprises looking for solutions to manage their mission-critical work securely and consistently."
Average contract values (ACV) per customer climbed 17% to $8,863, and the number of customers with ACV of at least $100,000 grew 36% to 1,665. Smartsheet's dollar-based net retention rate was a healthy 121%, indicating existing customers spent an average of 21% more on the company's solutions after their first year.
Now what
Looking ahead to the full 2024 fiscal year, Smartsheet now expects revenue of $950 million to $953 million, up 24% at the midpoint and higher than previous guidance of $943 million to $948 million. The company also called for full fiscal-year adjusted net income per share of $0.53 to $0.57, up from its old outlook for a range of $0.37 to $0.44 and above Wall Street's consensus for full-year adjusted earnings of $0.42.
In the end, this was a straightforward beat-and-raise performance from Smartsheet, and the stock is responding in kind.
