Smartsheet jumps after PT hikes on rosy 2024 margin outlook

Smartsheet

15/03/2023 13:20

** Shares of cloud-based software firm Smartsheet Inc
 SMAR.N  rise 9.4% to $41.91 premarket
    ** Co expects fiscal 2024 gross margin to remain above 80%,
eliciting PT hikes by at least 7 brokerages to between $42 and
$55 from $36 to $50
    ** SMAR posted Q4 revenue of $212.3 mln, up 35% vs. est. of
$206.2 mln - Refinitiv data
    ** Co on Tuesday forecast fiscal 2024 revenue below
estimates 
    ** "In FY24, despite the macro environment, the cost saving
initiatives we put in place in FY23 combined with natural
economies of scale in our business will result in significant
free cash flows and operating margin expansion" - CFO Pete
Godbole
    ** Canaccord Genuity says SMAR's weak revenue forecast was
offset by its "stellar" margin forecast; SMAR's stock jumping
"is a testament to just how much sentiment has shifted among
software investors" towards profitability.
    ** Up to last close, SMAR down ~3% YTD

 (Reporting by Chavi Mehta in Bengaluru)
 ((Chavi.Mehta@thomsonreuters.com;))