From Nasdaq: 2024-09-17 14:16:00

Smartsheet (SMAR) stock has outperformed its competitors in the past month, with a 5.4% increase while Asana (ASAN) has seen a 10.3% decline. Smartsheet’s success can be attributed to its growing customer base, enhanced product features, and adoption of AI tools.

In Q2 of fiscal 2025, Smartsheet reported strong growth in its enterprise segment, with 75 customers increasing their annual recurring revenue by over $100,000. The company also saw a 50% year-over-year increase in customers with ARR of more than $1 million, reaching 77. Total annualized recurring revenue stood at $1.093 billion.

Smartsheet’s range of AI tools, including formula generation and tech summaries, have contributed to significant time savings for users. The company also introduced a new Kanban-style board view and partnered with Amazon and Alphabet to enhance productivity. New customer acquisitions like Intuit and Skechers have also fueled growth.

For Q3 of fiscal 2025, Smartsheet expects revenues in the range of $282-$285 million, indicating a year-over-year growth of 15-16%. The company’s stock currently carries a Zacks Rank #3 (Hold) and has a forward 12-month Price/Sales ratio of 7.14X, suggesting a stretched valuation.

Interested in exploring more stock options? Zacks Investment Research offers a special promotion where you can access all their picks for just $1. Take advantage of this offer to discover potential investment opportunities and get insights from their portfolio services like Surprise Trader and Technology Innovators.



Read more at Nasdaq: Smartsheet Up 5% in a Month: Should You Buy, Hold or Sell the Stock?