Smartsheet (SMAR) Tops Q1 EPS by 8c, Revenues Beat; Offers 2Q & FY21 Revenues Below Consensus, Provides 2Q & FY21 EPS Guidance

Smartsheet (NYSE: SMAR) reported Q1 EPS of ($0.11), $0.08 better than the analyst estimate of ($0.19). Revenue for the quarter came in at $85.5 million versus the consensus estimate of $81.29 million.

First Quarter Fiscal 2021 Financial Highlights

• Revenue: Total revenue was $85.5 million, an increase of 52% year over year. Subscription revenue was $77.2 million, an increase of 53% year over year. Professional services revenue was $8.3 million, an increase of 42% year over year.
• Operating Loss: GAAP operating loss was $28.8 million, or 34% of total revenue, compared to GAAP operating loss of $20.9 million, or 37% of total revenue, in the first quarter of fiscal 2020. Non-GAAP operating loss was $13.6 million, or 16% of total revenue, compared to non-GAAP operating loss of $14.1 million, or 25% of total revenue, in the first quarter of fiscal 2020.
• Net Loss: GAAP net loss was $27.8 million, compared to GAAP net loss of $19.8 million in the first quarter of fiscal 2020. GAAP net loss per share was $0.23, compared to GAAP net loss per share of $0.19 in the first quarter of fiscal 2020. Non-GAAP net loss was $12.5 million, compared to non-GAAP net loss of $13.0 million in the first quarter of fiscal 2020. Non-GAAP net loss per share was $0.11, compared to non-GAAP net loss per share of $0.12 in the first quarter of fiscal 2020.
• Cash Flow: Net operating cash flow was negative $24.3 million, compared to net operating cash flow of negative $9.2 million in the first quarter of fiscal 2020. Net free cash flow was negative $28.2 million, compared to negative $13.1 million in the first quarter of fiscal 2020.

"We delivered a good first quarter, given the market conditions," said Mark Mader, President and CEO of Smartsheet. “Smartsheet has become an increasingly mission-critical platform for enterprises seeking to enable a dynamic workforce; a workforce capable of working from anywhere, adapting to rapidly changing conditions, and staying deeply connected to their individual work and the mission of their teams, no matter the circumstance."

GUIDANCE:

Smartsheet sees Q2 2021 EPS of ($0.18)-($0.16), versus the consensus of ($0.14). Smartsheet sees Q2 2021 revenue of $86-87 million, versus the consensus of $88.23 million.

Smartsheet sees FY2021 EPS of ($0.54)-($0.45), versus the consensus of ($0.57). Smartsheet sees FY2021 revenue of $360-370 million, versus the consensus of $370.17 million.

For the second quarter of fiscal 2021, the Company currently expects:

• Total revenue of $86.0 million to $87.0 million, representing year-over-year growth of 33% to 35%
• Calculated billings of $91.0 million to $93.0 million, representing year-over-year growth of 15% to 17%
• Non-GAAP operating loss of $21.0 million to $19.0 million
• Non-GAAP net loss per share of $0.18 to $0.16, assuming basic and diluted weighted average shares outstanding of approximately 119.5 million
• Net free cash flow of negative $11 million to negative $9 million

For the full fiscal year 2021, the Company currently expects:

• Total revenue of $360.0 million to $370.0 million, representing year-over-year growth of 33% to 37%
• Non-GAAP operating loss of $65.0 million to $55.0 million
• Non-GAAP net loss per share of $0.54 to $0.45, assuming basic and diluted weighted average shares outstanding of approximately 119.5 million

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

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