Why Smartsheet Inc (NYSE: SMAR) stock is crashing

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Smartsheet Inc (NYSE: SMAR) stock lost over 19.6% in the pre-market session of June 4th, 2020 (Source: Google finance) after the company posted dissapointing fourth quarter of FY 20. The company posted lower than expected its fiscal first-quarter billings and gave a weaker than expected outlook for the second quarter. Calculated billings for the fiscal first quarter grew to $89.9 million from $69.1 million, while analysts were expecting $94.1 million. Due to COVID-19 pandemic and rapidly changing global economic environment, the company has withdrawn its previously issued full-year 2021 billings and free cash flow guidance. The company has reported Non-GAAP net loss of $12.5 million, compared to non-GAAP net loss of $13.0 million in the first quarter of fiscal 2020. The company has generated negative net operating cash flow of $24.3 million, compared to net operating cash flow of negative $9.2 million in the first quarter of fiscal 2020. . The company has also generated negative net free cash flow of $28.2 million, compared to negative $13.1 million in the first quarter of fiscal 2020.

Further, the company has posted reduction in Non-GAAP operating loss to $13.6 million, or 16% of total revenue, compared to non-GAAP operating loss of $14.1 million, or 25% of total revenue, in the first quarter of fiscal 2020.

Subscription revenue rose 53% to $77.2 million year over year. Professional services revenue grew 42% to $8.3 million year over year.For the fiscal second quarter, Smartsheet expects the revenue to be in the range of $86 million to $87 million and an adjusted net loss to be in the range of 16 cents to 18 cents a share. Analysts surveyed by FactSet had projected $88.2 million in revenue and a 14 cent adjusted loss per share. Smartsheet also projects fiscal second-quarter billings to be in the range of $91 million to $93 million, while the FactSet consensus was for $104.2 million.

For fiscal 2021, the company expects total revenue of $360 million to $370 million and Non-GAAP net loss per share of $0.54 to $0.45

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