Shares of Smartsheet (NYSE: SMAR) were up 9.4% as of 2 p.m. ET Friday after the work-management software company announced strong fiscal second-quarter 2024 results for the period ended July 31.
Quarterly revenue climbed 26% year over year to $235.6 million, translating to adjusted net income of $22 million, or $0.16 per share. Analysts on average were expecting earnings of only $0.07 per share on revenue of $229.6 million.
CEO Mark Mader said the company easily exceeded all of its guidance, crediting the platform’s scalability for driving “strong demand from enterprises looking for solutions to manage their mission-critical work securely and consistently.”
Average contract values (ACV) per customer climbed 17% to $8,863, and the number of customers with ACV of at least $100,000 grew 36% to 1,665. Smartsheet’s dollar-based net retention rate was a healthy 121%, indicating existing customers spent an average of 21% more on the company’s solutions after their first year.
Looking ahead to the full 2024 fiscal year, Smartsheet now expects revenue of $950 million to $953 million, up 24% at the midpoint and higher than previous guidance of $943 million to $948 million. The company also called for full fiscal-year adjusted net income per share of $0.53 to $0.57, up from its old outlook for a range of $0.37 to $0.44 and above Wall Street’s consensus for full-year adjusted earnings of $0.42.
In the end, this was a straightforward beat-and-raise performance from Smartsheet, and the stock is responding in kind.
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