Smartsheet (SMAR) Shares Plunge 8% on Disappointing EPS Outlook

Smartsheet (NYSE: SMAR) shares fell around 8% after-hours following the company’s worse-than-expected EPS guidance, while Q4 results came in better than expected.

Q4 EPS was ($0.12), compared to the consensus of ($0.15), and revenue was $157.4 million (up 43% year-over-year), compared to the consensus of $151.66 million. Subscription revenue grew 44% year-over-year to $145.7 million. Professional services revenue grew 34% year-over-year to $11.7 million. Q4 calculated billings were $224.3 million, up 48% year-over-year.

The company ended the fiscal 2022-year with a dollar-based net retention rate of 134%, compared to 123% at the end of 2021.

The number of customers with annualized contract values of $100,000 or more grew 74% year-over-year to 1,026, and the number of customers with annualized contract values of $50,000 or more grew to 55% year-over-year to 2,354. The number of customers with annualized contract values of $5,000 or more grew 28% year-over-year to 15,150.

The company expects Q1/23 EPS of ($0.20)-($0.18), compared to the consensus of ($0.11), and revenue of $162-163 million, compared to the consensus of $159.83 million.

For the full 2023-year, the company expects EPS of ($0.70)-($0.62), compared to the consensus of ($0.27), and revenue of $750-755 million, compared to the consensus of $730.11 million.

Shares of SMAR are down 44% year-to-date.

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