Shares of Smartsheet Inc. dropped 7% in the extended session Thursday despite better-than-expected quarterly results and guidance for the software-as-a-service company. Smartsheet lost $40.1 million, or 31 cents a share, in the fiscal third quarter, compared with a loss of $36.7 million, or 29 cents a share, in the year-ago period. Adjusted for one-time items, Smartsheet lost 1 cent a share. Revenue rose 38% to $199.6 million, the company said. Analysts polled by FactSet expected an adjusted loss of 15 cents a share on sales of $194 million. Smartsheet guided for fiscal fourth-quarter revenue between $205 million and $207 million, which would represent 30% to 32% growth, and an adjusted net loss per share between 2 cents and breakeven. FacSet consensus calls for a loss of 9 cents a share on revenue of $204 million for the quarter. For the full fiscal year 2023, the company guided for revenue between $760 million and $762 million, which would be growth of 38% on-year, and an adjusted loss per share between 31 cents and 30 cents. The analysts polled by FactSet expect fiscal 2023 adjusted loss per share of 53 cents on revenue around $753 million. “In the current challenging macro environment, customers are turning to Smartsheet to help execute more strategically and efficiently,” Chief Executive Mark Mader said in a statement. “Looking ahead, I am confident in our ability to continue to unlock significant value for our customers, and generate durable, long-term growth with improving profitability.” Shares of Smartsheet ended the regular trading day up 5.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.