Smartsheet revenue outlook misses estimates, stock sinks

Smartsheet

14/03/2024 22:06

March 14 (Reuters) - Smartsheet  SMAR.N  on Thursday
provided a revenue outlook that missed analyst estimates,
sending its stock down 10%, even after the cloud software
seller's quarterly revenue exceeded estimates.
    
    WHY IT’S IMPORTANT
    Smartsheet's quarterly results provide fresh evidence of
tepid spending on cloud software following recent weak forecasts
from Salesforce  CRM.N  and Snowflake  SNOW.N . 
    
    CONTEXT
    The outlook for richly-valued cloud companies has become
more uncertain after Salesforce and Snowflake on Feb. 28
signaled a slowdown in tech spending as customers grapple with
an uncertain economy.
    Also late on Thursday, Photoshop software maker Adobe
 ADBE.O  forecast quarterly revenue below analysts' estimates,
sending its stock down almost 10%.
    
    BY THE NUMBERS
    Smartsheet reported quarterly revenue up 21% to $256.9
million, exceeding the average analyst estimate of $255.4
million, according to LSEG.
    For its current quarter, the company said it expects revenue
between $257 million and $259 million. That compares to the
consensus estimate of $263.6 million.
    
    MARKET REACTION 
    Smartsheet's stock dropped 10% in extended trade following
the report. During Thursday's session, the stock fell 2.3%,
bringing its year-to-date loss to almost 16%.

 (Reporting by Noel Randewich, editing by Deepa Babington)
 ((noel.randewich@tr.com;))