BELLEVUE, Wash. – Smartsheet Inc . (NYSE:SMAR) reported better-than-expected second-quarter results and raised its full-year guidance, driven by strong enterprise growth and improved profitability.
Smarsheet shares were little changed in after-hours trading after they rose 4.3% Thursday following a report by Reuters that the company is attracting interest from private equity firms.
The enterprise work management platform posted adjusted earnings per share of $0.44, surpassing analyst estimates of $0.29. Revenue for the quarter reached $276.4 million, up 17% YoY and slightly above the consensus estimate of $274.29 million.
Smartsheet’s CEO Mark Mader highlighted the company’s enterprise momentum, stating, “Our customers are scaling their work on Smartsheet, with over 70 customers expanding their Smartsheet annualized recurring revenue by more than $100,000 this quarter.”
The company’s annualized recurring revenue (ARR) grew 17% YoY to $1.093 billion, while its average ARR per domain-based customer increased 16% YoY to $10,291. Smartsheet also reported a dollar-based net retention rate of 113%.
For the third quarter, Smartsheet expects revenue between $282 million and $285 million, representing 15% to 16% YoY growth. The company raised its full-year outlook, now projecting revenue of $1.116 billion to $1.121 billion, up from its previous guidance.
Smartsheet’s improved profitability was evident in its record free cash flow of $57.2 million, or 21% of total revenue. The company ended the quarter with $706.6 million in cash, cash equivalents, and short-term investments.
(This article does not provide investment advice or recommendations. All information is based on the company’s earnings report and guidance.)
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