Smartsheet Inc (NASDAQ:SMAR) stock surges 15.15% (As on March 15, 11:42:06 AM UTC-4, Source: Google Finance) after the company posted a surprise profit and revenue beat in its fourth-quarter earnings report. The company ended the period with 1,484 customers that generated at least $100,000 in revenue per year, up 45% from a year earlier. Dollar-based net retention rate was 125%.  Meanwhile, its number of customers that deliver at least $50,000 in annual sales rose 36% from a year ago, to 3,206. Those customers are spending more too, with the average annual contract value per domain-based customer rising 20% to $8,377. Net operating cash flow was $20.2 million, compared to $(0.2) million in the fourth quarter of fiscal 2022. Free cash flow was $16.4 million, compared to $(2.7) million in the fourth quarter of fiscal 2022.

Further, the company has Added over 400 product enhancements in fiscal year 2023, including Desktop App; Okta Directory Integration; Project Assistant, a guided experience to help customers quickly build and share projects with just a few simple inputs; DataTable to enable customers to visualize and collaborate on large data sets; and mobile offline forms to keep work moving even in areas of no to low connectivity.

SMAR in the fourth quarter of FY 23 has reported the adjusted earnings per share of 7 cents, beating the analysts’ estimates for the adjusted earnings per share of penny. The company had reported the adjusted revenue growth of 35 percent to $212.3 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $206.2 million. Subscription revenue was $198.9 million, an increase of 37% year over year. Professional services revenue was $13.5 million, an increase of 15% year over year. Non-GAAP operating income was $7.5 million, or 4% of total revenue, compared to non-GAAP operating loss of $(14.5) million, or (9)% of total revenue, in the fourth quarter of fiscal 2022.

Looking ahead, the company forecast adjusted earnings of between eight and nine cents per share for the first quarter, with revenue of $213 million to $215 million. Analysts are targeting a loss of five cents per share on higher sales of $217.1 million.

For the full year, Smartsheet is expecting adjusted earnings of between 31  and 38 cents per share, with sales ranging from $943 million to $948 million. Again, Wall Street’s forecast contrasts rather starkly, with analysts looking for a loss of seven cents per share on total revenue of $955.6 million for the year.