Smartsheet Inc. (SMAR) announced certain executive leadership changes and revised its third-quarter fiscal 2022 outlook, backed by continued business momentum and product demand.
The company designs and develops cloud-based work management software. SMAR also announced that its Q3FY22 results would be released on December 2 after markets close. Following the news, shares jumped 6.4% to close at $72.83 on November 12.
Revised Q3 Outlook
Based on the continued demand for its platform, strong sales execution, large deal activity, and increased contribution from its Advance premium platform capabilities, Smartsheet increased its third-year fiscal 2022 outlook.
In Q3, SMAR forecasts revenue to fall in the range of $143.5 million to $144.5 million, a 45%-46% growth year-over-year.
After assuming $4.7 million of deferred revenue from the Brandfolder transaction in Q3FY21, SMAR now expects calculated billings to be between $160.5 million and $161.5 million.
Following the resignation of SMAR’s current chief product and strategy officer, the company announced certain management changes. Praerit Garg will take over as the chief product officer and executive vice president of engineering. Meanwhile, Stephen Brandstatter will assume the role of the company’s first chief operating officer. He will oversee operations, global strategy, corporate development, and data operations/business intelligence.
Similarly, Jolene Marshall will take over as chief legal officer, and Andrew Bennett will become the chief marketing officer for commercial sales and demand generation.
Mark Mader, president and CEO of Smartsheet, said, “As we look ahead, we have an incredible opportunity to empower everyone, everywhere to drive meaningful change… With these new appointments, we are well-positioned to support our next chapter of success and growth.”
Responding to Smartsheets announcement, William Blair analyst Arjun Bhatia reiterated a Buy rating and said, “ Overall, we believe these updated expectations highlight the strong demand and durability of growth for Smartsheet’s solutions and affirm our belief that Smartsheet’s platform is uniquely positioned to win long-term market share in the enterprise collaborative work management segment.”
The SMAR stock commands a Strong Buy consensus rating based on 9 Buys and 3 Holds. The average Smartsheet price target of $91.27 implies 27.53% upside potential to current levels. Shares have gained 42.6% over the past year.