Smartsheet (SMAR) down on conservative full-year guide, analyst remains optimistic

Shares of Smartsheet (NYSE: SMAR) plunged 12% in premarket trading Friday after the software as a service offering (SaaS) provider’s full-year guidance missed Wall Street’s expectations.

For the fiscal Q4 2024, the company reported earnings per share (EPS) of $0.34, surpassing the consensus prediction of $0.18. The company's revenue for the quarter was $256.9 million, exceeding the expected $255.2 million by analysts.

For the first quarter of 2025, Smartsheet projects an EPS between $0.26 and $0.27, ahead of the analyst consensus of $0.20. Revenue is expected to be between $257 million and $259 million, which is below the expected $263.7 million by analysts.

Looking at the full year of 2025, Smartsheet expects an EPS in the range of $1.06 to $1.13, missing the consensus projection of $0.93. It forecasts its annual revenue to be between $1.113 billion and $1.118 billion, also under the analysts' expectation of $1.142 billion.

“On guidance, we highlight that SMAR is assuming that F4Q24 and February trends persist through the year, which will likely be a very back-end loaded year for Enterprise, and management is embedding incremental conservatism given the new sales leadership change,” Wolfe Research analysts said in their post-earnings note.

The broker reiterated an Outperform rating on the stock and the target price of $45, citing “a de-risked guide and multiple ways to win at current valuations.”

In the report, Smartsheet also announced it has appointed Max Long as President of Go-to-Market and promoted Praerit Garg to President of Product & Innovation.

By Vahid Karaahmetovic

You May Also Be Interested In

• Synopsys upgraded at Piper Sandler on Intel foundry momentum, Apple opportunity
• Bernstein SocGen Group Reiterates Outperform Rating on Hermes International (RMS:FP) (HESAY) after cautious commentary
• Morgan Stanley upgrades CDW on stronger AI-driven server demand