Smartsheet (SMAR) Tops Q4 EPS by 7c, Revenues Beat; FY20 EPS Guidance Below Consensus, FY20 Revenue Guidance Above Estimates

Smartsheet (NYSE: SMAR) reported Q4 EPS of ($0.07), $0.07 better than the analyst estimate of ($0.14). Revenue for the quarter came in at $52.2 million versus the consensus estimate of $49.75 million.

"Q4 capped a great year for Smartsheet," said Mark Mader, CEO of Smartsheet. "Our work execution platform continues to empower customers across the globe, our leadership in the expanding Collaborative Work Management market continues to strengthen, and we remain intensely focused on helping enterprises achieve a competitive advantage through digital transformation."

"The momentum in our business is supported by strength across our key metrics," said Jennifer Ceran, CFO of Smartsheet. "Our net dollar retention rate reached 134%, aided by domain average ACV growth of 50% and growth in the number of customers with ACVs over $5,000 and over $50,000 increasing 63% and 135%, year over year, respectively."

Fourth Quarter Fiscal 2019 Financial Highlights

• Revenue: Total revenue was $52.2 million, an increase of 58% year over year. Subscription revenue was $46.5 million, an increase of 56% year over year. Professional services revenuewas $5.7 million, an increase of 77% year over year.
• Operating Loss: GAAP operating loss was $12.7 million, or 24% of total revenue, compared to GAAP operating loss of $8.6 million, or 26% of total revenue, in the fourth quarter of fiscal 2018. Non-GAAP operating loss was $8.5 million, or 16% of total revenue, compared to non-GAAP operating loss of $7.5 million, or 23% of total revenue, in the fourth quarter of fiscal 2018.
• Net Loss: GAAP net loss was $11.7 million, compared to GAAP net loss of $8.7 million in the fourth quarter of fiscal 2018. GAAP net loss per share was $0.11, compared to GAAP net loss per share of $0.45 in the fourth quarter of fiscal 2018. Non-GAAP net loss was $7.5 million, compared to non-GAAP net loss of $7.0 million in the fourth quarter of fiscal 2018. Non-GAAP net loss per share was $0.07, compared to non-GAAP net loss per share of $0.08 in the fourth quarter of fiscal 2018.
• Cash Flow: Net operating cash flow was positive $4.0 million, compared to net operating cash flow of negative $6.6 million in the fourth quarter of fiscal 2018. Net free cash flow was positive $1.0 million, compared to negative $10.0 million in the fourth quarter of fiscal 2018.

GUIDANCE:

Smartsheet sees Q1 2020 EPS of ($0.19)-($0.18). Smartsheet sees Q1 2020 revenue of $54-55 million.

Smartsheet sees FY2020 EPS of ($0.59)-($0.55), versus the consensus of ($0.52). Smartsheet sees FY2020 revenue of $253-257 million, versus the consensus of $243.77 million.

• Total revenue of $253.0 million to $257.0 million, representing year-over-year growth of 42% to 45%
• Non-GAAP operating loss of $65.0 million to $60.0 million
• Non-GAAP net loss per share of $0.59 to $0.55, assuming basic and diluted weighted average shares outstanding of approximately 106 million
• Calculated billings of $305 million to $310 million, representing year-over-year growth of 41% to 43%
• Net free cash flow burn of up to $20 million

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

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