Smartsheet (SMAR) Tops Q3 EPS by 3c, Revenues Beat; Offers Q4 & FY20 EPS/Revenue Guidance

Smartsheet (NYSE: SMAR) reported Q3 EPS of ($0.15), $0.03 better than the analyst estimate of ($0.18). Revenue for the quarter came in at $71.5 million versus the consensus estimate of $69.76 million.

"We delivered another strong quarter in Q3 and are well-positioned for the future," said Mark Mader, President and CEO of Smartsheet. "We are demonstrating the ability to extend and expand across the enterprise and, most importantly, customers are realizing value and are leaning in."

Third Quarter Fiscal 2020 Financial Highlights

• Revenue: Total revenue was $71.5 million, an increase of 53% year over year. Subscription revenue was $64.4 million, an increase of 55% year over year. Professional services revenue was $7.2 million, an increase of 34% year over year.
• Operating Loss: GAAP operating loss was $31.8 million, or 45% of total revenue, compared to GAAP operating loss of $16.4 million, or 35% of total revenue, in the third quarter of fiscal 2019. Non-GAAP operating loss was $20.7 million, or 29% of total revenue, compared to non-GAAP operating loss of $10.2 million, or 22% of total revenue, in the third quarter of fiscal 2019.
• Net Loss: GAAP net loss was $28.9 million, compared to GAAP net loss of $15.6 million in the third quarter of fiscal 2019. GAAP net loss per share was $0.25, compared to GAAP net loss per share of $0.15 in the third quarter of fiscal 2019. Non-GAAP net loss was $17.7 million, compared to non-GAAP net loss of $9.4 million in the third quarter of fiscal 2019. Non-GAAP net loss per share was $0.15, compared to non-GAAP net loss per share of $0.09 in the third quarter of fiscal 2019.
• Cash Flow: Net operating cash flow was positive $1.0 million, compared to net operating cash flow of positive $2.4 million in the third quarter of fiscal 2019. Net free cash flow was negative $2.9 million, compared to negative $2.0 million in the third quarter of fiscal 2019.

GUIDANCE:

Smartsheet sees Q4 2020 EPS of ($0.17)-($0.16), versus the consensus of ($0.16). Smartsheet sees Q4 2020 revenue of $77-78 million, versus the consensus of $76.34 million.

Smartsheet sees FY2020 EPS of ($0.53)-($0.52), versus the consensus of ($0.55). Smartsheet sees FY2020 revenue of $269.4-270.4 million, versus the consensus of $267.09 million.

For the fourth quarter of fiscal 2020, the Company currently expects:

• Total revenue of $77.0 million to $78.0 million, representing year-over-year growth of 48% to 50%
• Non-GAAP operating loss of $21.5 million to $19.5 million
• Non-GAAP net loss per share of $0.17 to $0.16, assuming basic and diluted weighted average shares outstanding of approximately 117.5 million

For the full fiscal year 2020, the Company currently expects:

• Total revenue of $269.4 million to $270.4 million, representing year-over-year growth of 52%
• Billings of $326.0 million to $328.0 million, representing year-over-year growth of 51%
• Non-GAAP operating loss of $67.0 million to $65.0 million
• Non-GAAP net loss per share of $0.53 to $0.52, assuming basic and diluted weighted average shares outstanding of approximately 112.5 million
• Net free cash flow burn of $25 million

For earnings history and earnings-related data on Smartsheet (SMAR) click here.

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