Shares of Smartsheet (NYSE: SMAR) gained over 10% in pre-market trading after the enterprise platform for modern work management company swung to a profit in Q4 as it reported adjusted earnings of $0.07 per share versus a loss of $0.12 in the same period last year. Analysts were expecting the company to report a loss of $0.01 per share.
Sales increased by 35% year-over-year to $212.3 million, beating analysts’ expectations of $206.2 million. In addition, the company also announced the appointment of Mike Gregoire as board chair effective from March 9, 2023. Gregoire will succeed Geoffrey Barker, who has served as board chair since 2017. Barker will continue to be a member of the board of directors.
Looking forward, management now expects revenue and adjusted earnings per share for Q1 and FY24 to be in the ranges of $213 million to $215 million and $943 million to $948 million, respectively. In Q1, SMAR projected its adjusted earnings to range from $0.08 to $0.09 per share versus consensus estimates of a loss of $0.05 per share. In FY24, adjusted earnings are projected to be between $0.31 and $0.38 per share.
For reference, analysts were expecting $217.76 million and $956.89 million in revenue in Q1 and FY24, respectively.
Overall, Wall Street analysts are bullish about SMAR stock with a Strong Buy consensus rating based on three Buys and one Hold.