Why Smartsheet Inc (NYSE: SMAR) stock is under pressure

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Smartsheet Inc (NYSE: SMAR) stock fell over 2.7% on 4th December, 2018 (Source: Google finance) on lower than expected performance.

Non-GAAP net loss was $9.4 million, compared to non-GAAP net loss of $9.3 million in the third quarter of fiscal 2018. Non-GAAP net loss per share was $0.09, compared to non-GAAP net loss per share of $0.11 in the third quarter of fiscal 2018. Net operating cash flow was positive $2.4 million, compared to net operating cash flow of negative $2.4 million in the third quarter of fiscal 2018. Net free cash flow was negative $2.0 million, compared to negative $5.2 million in the third quarter of fiscal 2018.

SMAR in the third quarter of FY 19 has reported the adjusted earnings per share of 9 cents, beating the analysts’ estimates for the adjusted loss per share of 13 cents. The company had reported the adjusted revenue growth of 59 percent to $46.9 million in the third quarter of FY 19, beating the analysts’ estimates for revenue of $39.2 million. Subscription revenue was $41.5 million, an increase of 57% year-over-year. Professional services revenue was $5.3 million, an increase of 81% year-over-year. Billings came in at $54.9 million, up 69% versus the same quarter a year ago and ahead of the internal expectations. The net dollar retention rate was 132%, an increase of one percentage point versus last quarter. And the average annualized contract value, or ACV, per domain-based customer grew 48% year-over-year to just over $2,200.00

For the fourth quarter, Smartsheet expects an adjusted loss of 15 cents to 13 cents a share on revenue of $49 million to $50 million, while analysts had forecast a loss of 16 cents a share on revenue of $44.1 million.

For the full fiscal year 2019, the Company currently expects the total revenue of $174.6 million to $175.6 million, representing year-over-year growth of 57% to 58%. Non-GAAP operating loss is expected to be in the range of $46.0 million to $44.0 million. Non-GAAP net loss per share is expected to be in the range of $0.44 to $0.42, assuming basic and diluted weighted average shares outstanding of approximately 99.5 million. Calculated billings is expected to be in the range of $210 million to $212 million, representing year-over-year growth of 55% to 56%. Net free cash flow is expected to be in the range of up to negative $20 million

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