BELLEVUE, Wash. - Smartsheet Inc . (NYSE: NYSE:SMAR), a leading enterprise work management platform, has reported a robust first quarter with a 20% increase in total revenue year-over-year (YoY), reaching $263 million.
The company's adjusted earnings per share (EPS) for the quarter was $0.32, surpassing analyst expectations of $0.27. This performance indicates a strong start to the fiscal year for Smartsheet, as the company also provided positive guidance for the upcoming second quarter and full fiscal year 2025.
The company's first-quarter results were driven by a significant demand from enterprise customers, as noted by CEO Mark Mader. Smartsheet now boasts 72 customers with annualized recurring revenue over $1 million, marking a 50% increase YoY. "This will be a pivotal year for Smartsheet," Mader stated, highlighting the company's focus on new product innovations, a modern pricing and packaging model, and a reinvigorated go-to-market strategy to position for long-term growth.
In terms of financial performance, Smartsheet's subscription revenue climbed 21% YoY to $249.1 million, while professional services revenue remained relatively flat. The company's GAAP operating loss improved to $(11.1) million, or (4)% of total revenue, compared to $(32.1) million, or (15)% of total revenue, from the same quarter last year. Non-GAAP operating income was impressive, at $42.1 million, or 16% of total revenue, a substantial increase from $22.8 million, or 10% of total revenue, in the first quarter of the previous fiscal year.
Looking ahead, Smartsheet expects second-quarter revenue to be between $273 million and $275 million, with a midpoint slightly below the analyst consensus of $274.4 million. Adjusted EPS guidance for Q2 is set at $0.28 to $0.29, which is above the analyst estimate of $0.25. For the full fiscal year 2025, the company anticipates revenue to range from $1.116 billion to $1.121 billion, with the midpoint in line with the consensus of $1.12 billion. The adjusted EPS forecast for the year is $1.22 to $1.29, notably higher than the consensus estimate of $1.11.
The company ended the quarter with a strong balance sheet, including cash, cash equivalents, and short-term investments totaling $669.5 million. Additionally, Smartsheet announced an inaugural $150 million share repurchase program.
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