Shares in Smartsheet popped Friday on second-quarter earnings, revenue and billings that topped Wall Street estimates. The company's profit outlook also came in above views, sending SMAR stock soaring.
The Bellevue, Wash.-based company reported earnings after the market close on Thursday. Smartsheet said it earned an adjusted 16 cents a share, swinging from a 10-cent loss a year earlier.
Meanwhile, revenue rose 26% to $235.6 million. Analysts polled by FactSet had expected earnings of 7 cents a share on sales of $229.6 million.
On the stock market today, SMAR stock jumped 13% to 45.59 in morning trades. Smartsheet plunged in June after reporting its first-quarter results and weak outlook.
SMAR Stock: Billings Come In Ahead Of Views
Smartsheet's billings, a sales growth metric, rose 18% to $243.1 million vs. Wall Street's estimate of $228 million.
"Billings beat by 6% on stabilizing macro and improved enterprise sales execution," SMAR stock analyst Brent Thill from Jefferies said in a note to clients. "Unchanged fiscal 2024 billings guide looks conservative, especially if some of the new second half catalysts can deliver vs. none being embedded in guide."
Companies use Smartsheet's software to manage workflows and projects, and facilitate collaboration. In the current October-ending quarter, Smartsheet predicts adjusted earnings in a range of 8 cents to 9 cents vs. views for 7 cents. It also projected sales of $241, in line with estimates.
"We remain focused on delivering innovation around generative AI and other areas to help our customers achieve more and to extend our leadership position in the enterprise work management market," Chief Executive Mark Mader said in the earnings release.
SMAR stock holds a Composite Rating of 87 from Investor's Business Daily. Its Relative Strength Rating is 68.
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