Smartsheet Inc. (SMAR) announced strong second-quarter financial results, exceeding analyst expectations. The company reported earnings of 44 cents per share, surpassing the anticipated 29 cents. Revenue also exceeded projections, reaching $276.41 million compared to the estimated $274.19 million.
Mark Mader, CEO of Smartsheet, attributed the success to continued growth within the enterprise segment. He highlighted that over 70 customers expanded their annualized recurring revenue with Smartsheet by more than $100,000 during the quarter. Mader expressed confidence in the company’s ability to sustain long-term growth and outlined investments in product innovations aimed at empowering customers to manage work at an even larger scale on the Smartsheet platform. He invited stakeholders to learn more at the upcoming ENGAGE Seattle customer conference.
Following the positive earnings announcement, Smartsheet raised its FY25 adjusted EPS outlook from $1.22 – $1.29 to $1.36 – $1.39. This news was well-received by the market, with Smartsheet shares gaining 4.3% to close at $49.35 on Thursday.
Analysts reacted positively to the earnings report, adjusting their price targets on Smartsheet stock. BMO Capital analyst Keith Bachman maintained an Outperform rating and increased the price target from $48 to $59. Barclays analyst Ryan Macwilliams also maintained an Equal-Weight rating but boosted the price target from $45 to $50. Needham analyst Scott Berg reiterated a Buy rating and kept a $57 price target.
The strong performance and raised outlook demonstrate Smartsheet’s continued growth and potential within the work management software market. Investors and analysts are optimistic about the company’s future, suggesting a positive trajectory for SMAR stock.
