Smartsheet (SMAR) Tops Q2 EPS by 8c; Offers Q3 EPS/Revenue Guidance Above Consensus. Affirms FY20 EPS/Revenue Outlook

September 4, 2019 4:13 PM EDT

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Smartsheet (NYSE: SMAR) reported Q2 EPS of ($0.08), $0.08 better than the analyst estimate of ($0.16). Revenue for the quarter came in at $64.6 million versus the consensus estimate of $63.52 million.

Second Quarter Fiscal 2020 Financial Highlights

  • Revenue: Total revenue was $64.6 million, an increase of 53% year over year. Subscription revenue was $58.3 million, an increase of 56% year over year. Professional services revenue was $6.3 million, an increase of 29% year over year.
  • Operating Loss: GAAP operating loss was $20.9 million, or 32% of total revenue, compared to GAAP operating loss of $13.0 million, or 31% of total revenue, in the second quarter of fiscal 2019. Non-GAAP operating loss was $10.8 million, or 17% of total revenue, compared to non-GAAP operating loss of $8.7 million, or 21% of total revenue, in the second quarter of fiscal 2019.
  • Net Loss: GAAP net loss was $19.1 million, compared to GAAP net loss of $12.3 million in the second quarter of fiscal 2019. GAAP net loss per share was $0.17, compared to GAAP net loss per share of $0.12 in the second quarter of fiscal 2019. Non-GAAP net loss was $9.0 million, compared to non-GAAP net loss of $8.1 million in the second quarter of fiscal 2019. Non-GAAP net loss per share was $0.08, equal to non-GAAP net loss per share recorded in the second quarter of fiscal 2019.
  • Cash Flow: Net operating cash flow was negative $2.7 million, compared to net operating cash flow of negative $1.1 million in the second quarter of fiscal 2019. Net free cash flow was negative $7.3 million, compared to negative $4.2 million in the second quarter of fiscal 2019.

“We delivered another strong quarter by executing our strategy of providing high-value solutions for enterprises, expanding Smartsheet’s presence in new and existing customers, and driving international growth,” said Mark Mader, President and CEO of Smartsheet. “Our platform, designed to accelerate individual and enterprise achievement, enabled more teams and businesses of all sizes to move faster, address significant challenges, and drive innovation.”

GUIDANCE:

Smartsheet sees Q3 2020 EPS of ($0.19)-($0.18), versus the consensus of ($0.14). Smartsheet sees Q3 2020 revenue of $69-70 million, versus the consensus of $68.92 million.

Smartsheet sees FY2020 EPS of ($0.58)-($0.54), versus the consensus of ($0.54). Smartsheet sees FY2020 revenue of $265-268 million, versus the consensus of $264.29 million.

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

  • Total revenue of $69.0 million to $70.0 million, representing year-over-year growth of 47% to 49%
  • Non-GAAP operating loss of $23.0 million to $22.0 million
  • Non-GAAP net loss per share of $0.19 to $0.18, assuming basic and diluted weighted average shares outstanding of approximately 116.5 million
  • Net free cash flow burn of up to $4.0 million

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

  • Total revenue of $265.0 million to $268.0 million, representing year-over-year growth of 49% to 51%
  • Billings of $320.0 million to $324.0 million, representing year-over-year growth of 48% to 50%
  • Non-GAAP operating loss of $70.0 million to $66.0 million
  • Non-GAAP net loss per share of $0.58 to $0.54, assuming basic and diluted weighted average shares outstanding of approximately 112.5 million
  • Net free cash flow burn of up to $25.0 million

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



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