According to a recent report by Verified Market Research, the global enterprise collaboration market size is projected to grow at 9% CAGR from $29.45 billion in 2020 to $53.3 billion by 2028. Smartsheet (Nasdaq: SMAR) recently announced its third-quarter results that continued to outpace market expectations.

Smartsheet’s Financials

For the third quarter, Smartsheet’s revenues grew 44% to $144.63 million ahead of the market’s forecast of $139.93 million. Non-GAAP net loss was $0.03 per share, which was significantly better than the market’s estimated loss of $0.11 per share.

By segment, Subscription revenues grew 46% to $132.6 million, and Professional services revenue grew 50% to $12 million.

Among operating metrics, customers with annualized contract value (ACV) of $5,000 or higher increased 27% to 14,228. Customers with ACV of $50,000 or higher grew 56% to 2,078 and customers with ACV of $100,000 or higher soared 72% to 868. Its net dollar retention rate was 131% and the average ACV per domain-based customer increased 37% to $6,368.

For the fourth quarter, Smartsheet expects revenues of $151-$152 million and non-GAAP net loss per share of $0.16-$0.14. The market was looking for revenues of $151.68 million and a loss of $0.15 per share. Smartsheet expects to end the year with revenues of $544-$545 million and a loss of $0.32-$0.30 per share. The market was looking for revenues of $545.1 million and a net loss of $0.31 per share for the year.

Smartsheet’s PaaS Growth Focus

Smartsheet has been focused on developing its PaaS capabilities through WorkApps. Released last year, WorkApps is Smarsheet’s no-code platform that empowers users to build intuitive web and mobile applications to streamline business and simplify collaboration. More than 50,000 WorkApps have been created to date that are helping create composite solutions across an organizations’ Smartsheet deployment and get the maximize yield from their existing cloud investments such as Microsoft 365 and Google Workspace.

Like most PaaS players though, Smartsheet does not divulge much usage or revenue metrics for WorkApps. I believe that companies need to reveal important metrics on PaaS capabilities, ecosystem, and growth to provide analysts with the right tools to value this strong capability.

Meanwhile, Smartsheet continues to expand its partnership across other solutions providers and customers. It strengthened the integration with Brandfolder, enabling new and existing customers to have a more flexible and powerful way to securely store, customize, and share assets. Within the digital asset management space, it integrated Brandfolder Dam and Smartsheet CWM to provide a single platform for marketers and creatives that provides shared visibilities and allows teams to be positioned to respond quickly to asset performance.

The integration is helping it provide a better digital content life cycle and asset management capabilities to companies like McClaren. Recently, Smartsheet announced its partnership with McLaren Racing which will enable Smartsheet’s technology to be integrated into McLaren Racing’s infrastructure, improving the team’s digital transformation in addition to it having the ability to manage fan engagement and race operations.

Its stock is currently trading at $72.39 with a market capitalization of $9.006 billion. It climbed to a 52-week high of $85.65 in February. It had fallen to a 52-week low of $51.11 in May.