Tag: SMAR

Smartsheet (SMAR) released their Q1 (April end) FY2021 earnings report on June 3rd. They delivered a strong beat on revenue and EPS for the prior quarter. However, billings and forward revenue guidance were below expectations. The market responded by dropping the stock price by 23% the next day. This followed a strong run-up before earnings on expectations that SMAR would be a COVID-19 beneficiary. Smartsheet also released a number of product enhancements during the quarter, primarily focused on providing tools for organizations to manage their COVID-19 response. In this post, I review Smartsheet’s Q1 earnings results and other business updates. I then dig into the competitive landscape for collaborative work management, which has evolved significantly over the past year and attracted more entrants from adjacent categories. As a consequence, I have sidelined my personal investment in SMAR until Smartsheet’s competitive position in the expanded collaborative work management category becomes more clear.

On March 17, Smartsheet (SMAR) released earnings results for Q4 FY 2020. Overall, Q4 results exceeded expectations and this year’s projections are encouraging, considering the macro environment. The market responded favorably, pushing the stock price up by 2.9% the following day, in spite of a broad sell-off due to COVID-19 concerns. Analyst commentary was positive. Let’s take a deeper look at the results.

Date of Recommendation:       December 26, 2019 
Closing Stock Price:          $43.93

Smartsheet (SMAR) is a leading provider of collaborative work management tools for enterprises. Their flexible, no-code platform allows users to automate common business workflows like project tracking, request approval processing, customer onboarding, event registration and sales pipeline management. This automation is accomplished without writing custom code, allowing developers to focus on building higher-value customer-facing software.

Due to Smartsheet’s rapidly growing product offering, the huge addressable market, its strong leadership team and consistent expansion within large enterprise customers, it should be considered as a long term investment. I expect the stock price to at least triple and reach a target of $140 in the next 5 years.