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According to a recent report, the global enterprise collaboration market is expected to grow at a 14% CAGR from $47.74 billion in 2022 to $92.41 billion by 2027. Work management platform provider Smartsheet (Nasdaq: SMAR) recently announced its third-quarter results that exceeded market estimates.
 

Smartsheet’s Financials

For the third quarter, Smartsheet’s revenues grew 38% to $199.6 million, ahead of the market’s forecast of $195.94 million. Net loss was $0.01 per share, ahead of the market’s estimated loss of $0.14 per share.

By segment, Subscription revenues grew 40% to $186.1 million, and Professional services revenue grew 12% to $13.5 million.

Among operating metrics, customers with annualized contract value (ACV) of $5,000 or higher increased 23% to 17,446. Customers with ACV of $50,000 or higher grew 43% to 2,962 and customers with ACV of $100,000 or higher grew 55% to 1,346. Its net dollar retention rate was 129% and the average ACV per domain-based customer increased by 25% to $7,951.

For the fourth quarter, Smartsheet expects revenues of $205-$207 million and non-GAAP net loss per share of $0.02-$0.00. The market was looking for revenues of $204.07 million and a loss of $0.09 per share for the quarter.

Smartsheet expects to end the year with revenues of $760-$762 million and a loss of $0.31-$0.30 per share. The market was looking for revenues of $752.74 million and a net loss of $0.51 per share.
 

Smartsheet’s Product Upgrade

Smartsheet continues to improve its product offerings and recently announced several new features that will make remote collaboration better. For projects specifically, it released a feature called Project Assistant that is a seamless way to get started on the platform. The solution guides new users through the steps needed to build a complete solution with a sheet, reports, and dashboards. To help with resource planning, it added Capacity View, which is an interactive resource planning view in Resource Management by Smartsheet. Soon, resource managers will be able to use Capacity View to visualize the real-time capacity of their teams and individuals so they can better plan, prioritize, and staff future work. It is also planning to release a new Desktop App that will allow customers to have multiple Smartsheet items open simultaneously, tab easily between them, and stay up to date with notifications.
 

Smartsheet’s App Integrations

Smartsheet is also making sure that it integrates better with other enterprise apps. It announced its ability to combine and store high volumes of data from multiple sources in Smartsheet with DataTable. The service will be available as part of Smartsheet’s Advance Gold Plan and will showcase DataTable as part of a set of capabilities that help bring millions of rows of siloed data from external systems of record like ERPs, CRMs, and databases into Smartsheet. This will allow organizations to take action on their work with comprehensive information via two-way data movement and a centralized source of truth in Smartsheet. It also released plans for integration with Okta’s directory service, which will enable organizations that use Okta to simplify and streamline account management for their employees.

Its stock is currently trading at $40.69 with a market capitalization of $5.34 billion. It hit a 52-week high of $66.74 in January last year and a 52-week low of $25.09 in October.

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