On Tuesday, Smartsheet unveiled its financial results for the fourth quarter, showing its revenue declining compared to 2022’s income.
Its stock price dropped by -3.57% to $38.32 per share on March 14. However, it is anticipated to increase by 12.73% to $43.20 apiece in the upcoming session.
The earnings per share of Smartsheet jumped to $0.07, beating the markets’ -$0.01 forecast and previous data. The software industry exceeded the EPS consensus three times in the last four quarters.
Moreover, its revenue plunged to $212.30 million, surpassing the $206.25 million estimates. Yet, it is lower than the prior $219.60 million figures. Smartsheet managed to top revenue estimates four times in the past four quarters.
Also, the company’s subscription revenue reached $198.90 million, marking an improvement of 37.00% year-over-year. Professional services income was up to $13.50 million, a 15.00% development YoY.
Furthermore, the net operating cash flow of Smartsheet hit $20.20 million. As a result, free cash flow increased to $16.40, higher than the $2.70 million in fiscal 2022’s fourth quarter.
Meanwhile, GAAP net loss lessened to $42.70 million, versus the $53.10 million in the fourth quarter of FY 2022. Its non-GAAP net profit was $9.90 million, compared to the $15.50 million in the Q4 last fiscal year.
In addition, the non-GAAP basic and diluted net income per share of Smartsheet was $0.08 and $0.07, respectively.
Mike Gregoire of Smartsheet Takes on a New Role
The Executive Committee of the Board of Directors appointed Smartsheet Director Mike Gregoire as board chair. He replaced Geoffrey Barker, who has been board chair since 2017 and remains a board member.
Based on Gregoire’s statement, he looks forward to growing the firm’s enterprise investments for sturdy and long-term growth. He feels privileged to have this expanded leadership role in Smartsheet.
Besides, his leadership came in during the entity’s ongoing success. This triumph includes recognitions from G2 and Fast Company for customer satisfaction and enterprise platform transformations.
Also, his career spanned over 25 years in the software and technology sector. He is an extensively recognized strategic thinker in the industry. Additionally, Gregoire is a founding partner at Brighton Park Capital.