According to a recent Markets and Markets report, the global Enterprise Collaboration Market is expected to grow from $47.2 billion in 2021 to $85.8 billion by 2026 at a CAGR of over 12%. The continuing remote work conditions are helping companies such as Smartsheet (Nasdaq: SMAR) that offer solutions geared to help drive collaboration within organizations.

Smartsheet’s Financials

For the quarter, Smartsheet’s revenues grew 44% to $131.7 million ahead of the market’s forecast of $114.76 million. Non GAAP net loss was $0.05 per share, significantly better than the market’s estimated loss of $0.13 per share.

By segment, Subscription revenues grew 45% to $121.1 million, and Professional services revenue grew 40% to $10.6 million.

Among operating metrics, customers with annualized contract value (ACV) of $5,000 or higher increased 34% to 13,420. Customers with an ACV of $50,000 or higher grew 64% to 1,856 and customers with an ACV of $100,000 or higher soared 73% to 748. Its net dollar retention rate was 128% in the reported quarter and the ACV per domain-based customer increased 42% year over year to $5,915.

For the current quarter, Smartsheet expects revenues of $138-$139 million with Non-GAAP net loss per share of $0.12-$0.10. The market was looking for revenues of $129.941 million with a loss of $0.11 per share. Smartsheet expects to end the year with revenues of $530-$533 million with a loss of $0.44-$0.36 per share. The market was looking for revenues of $514.09 million for the year with a net loss of $0.39 per share.

Smartsheet’s Growth Focus

Smartsheet has been known as Excel on steroids. However, a recent customer study revealed several important aspects of its product. Smartsheet’s built-in integrations are driving use cases that a traditional excel application fails to support. By allowing customers to aggregate data from Salesforce, Jira, and other external systems in one place, customers are able to use Smartsheet to run their entire business. Smartsheet also allows customers to easily create custom workflows within internal departments and external vendors that help in managing activities within the support functions.

Smartsheet’s WorkApps offering is also helping it gain market presence. WorkApps is a no-code solution that allows users to build easy-to-navigate apps using Smartsheet and external content like Tableau dashboards or Google Docs. Its builder capability is available to licensed users of the Enterprise plan. Once built, WorkApps can be shared with a licensed user on any Smartsheet plan, internal or external to the company, at no additional cost. Smartsheet does not share detailed metrics about the usage and adoption of WorkApps.

The enterprise team collaboration applications market is a crowded one with players like Microsoft; Slack, bought by Salesforce, and Atlassian. Analysts believe that collaboration platforms that offer robust APIs, AI capabilities, and the ability to integrate with other solutions will see strong growth.

Smartsheet’s stock is currently trading at $75.01 with a market capitalization of $9.38 billion. It hit a 52-week high of $85.65 in February and a 52-week low of $40.21 in September last year.