Smartsheet drops on downbeat Q1 revenue forecast

Smartsheet

15/03/2024 12:58

** Shares of Smartsheet  SMAR.N  drop 10.1% to $36.22
premarket after the cloud software seller forecasts Q1 revenue
below estimates 
    ** SMAR estimates Q1 revenue between $257 mln and $259 mln,
vs. analysts' estimate of $263.6 mln - LSEG data 
    ** The downbeat forecast comes at a time when peers
Salesforce  CRM.N  and Snowflake  SNOW.N  signaled a slowdown in
tech spending as customers grapple with an uncertain economy
    ** Continued weakness in server-related expansions which
worsened into February, changes in sales leadership is what
mainly drove the co's guidance - JP Morgan 
    ** It expects "to see some pressure on SMAR shares in the
near term as investors assess the conservatism in co's model and
debate if it is a mid-teens grower or a high-teens grower" 
    ** Stock is down 15.7% YTD as of last close; it gained 21.5%
in 2023

 (Reporting by Pranav Kashyap in Bengaluru)
 ((Pranav.Kashyap@thomsonreuters.com;))