The global Enterprise Collaboration Market size is expected to grow at 13% CAGR from $47.2 billion in 2021 to $85.8 billion by 2026. Smartsheet (Nasdaq: SMAR) continues to benefit from this high growth trend.

Smartsheet’s Financials

For the first quarter, Smartsheet’s revenues grew 44% to $168.3 million ahead of the market’s forecast by 3.6%. Non-GAAP net loss was $0.18 per share, in line with the market’s estimates.

By segment, Subscription revenues grew 43.7% to $155.8 million, and Professional services revenue grew 43.7% to $13.03 million.

Among operating metrics, customers with annualized contract value (ACV) of $5,000 or higher increased 25% to 15,879. Customers with ACV of $50,000 or higher grew 50% to 2,516 and customers with ACV of $100,000 or higher soared 68% to 1,108. Its net dollar retention rate was 133% and average ACV per domain-based customer increased 32% to $7,210.

For the second quarter, Smartsheet expects revenues of $180-$181 million and a non-GAAP net loss per share of $0.21-$0.19. The market was looking for revenues of $178.23 million and a loss of $0.18 per share.

Smartsheet expects to end the fiscal year 2023 with revenues of $756-$761 million and a loss of $0.67-$0.59 per share. The market was looking for revenues of $752.17 million and a net loss of $0.66 per share for the year.

Smartsheet’s Growth Focus

Smartsheet continues to focus on expanding its share of wallet within its customers through its land and expand strategy. The net new plans added in Q1 increased by more than four times versus Q1 of last year. Smartsheet is able to grow those numbers through innovative products that drive usage across multiple departments. To target the marketing teams within an organization, the company recently launched several enhancements including new integration capabilities with Brandfolder, Smartsheet’s digital asset management platform.

By combining the work management solutions with digital asset management, the integrated Smartsheet platform will align marketing and creative work, streamline asset discovery and delivery, and optimize value through unified team and asset performance analytics. By providing the ability to connect Brandfolder assets directly to Smartsheet’s workflows, marketers will be able to use assets in new and creative ways. Customers will be able to access Brandfolder Insights data in Smartsheet and use that data to create custom reports and dashboards that help teams and executives connect asset and team performance to shape creative and marketing strategy.

Smartsheet is also making it easier for customers to adopt its technology. Recently, it introduced an onboarding experience that lets new and existing users get their project management system set up and shared with their team in just a few clicks. The new experience uses a simple interface that lets users build and share projects, creates reports in a dashboard, and organizes them within team workspace.

Its stock is currently trading at $32.82 with a market capitalization of $4.2 billion. It hit a 52-week high of $85.65 in September last year and a 52-week low of $27.05 in June.

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