Smartsheet stock heads for best day ever after narrower-than-expected quarterly loss

Shares of Smartsheet Inc. headed toward their best one-day gain on record Friday after the software-as-a-service company reported better-than-expected quarterly results and guidance Thursday afternoon. The stock rose as much as $38.51, 18.5% higher than Thursday's close, through 3 p.m. Eastern time Friday, when they were more than 15% higher. Smartsheet shares have never gained more than 14.7% in a single session, according to FactSet data. Smartsheet lost $40.1 million, or 31 cents a share, in the fiscal third quarter, compared with a loss of $36.7 million, or 29 cents a share, in the year-ago period. Adjusted for one-time items, Smartsheet lost 1 cent a share. Revenue rose 38% to $199.6 million, the company said. Analysts polled by FactSet expected an adjusted loss of 15 cents a share on sales of $194 million. Smartsheet guided for fiscal fourth-quarter revenue between $205 million and $207 million, which would represent 30% to 32% growth, and an adjusted net loss per share between 2 cents and breakeven. FacSet consensus called for a loss of 9 cents a share on revenue of $204 million for the quarter. For the full fiscal year 2023, the company guided for revenue between $760 million and $762 million, which would be growth of 38% on-year, and an adjusted loss per share between 31 cents and 30 cents. The analysts polled by FactSet expect fiscal 2023 adjusted loss per share of 53 cents on revenue around $753 million. "In the current challenging macro environment, customers are turning to Smartsheet to help execute more strategically and efficiently," Chief Executive Mark Mader said in a statement. "Looking ahead, I am confident in our ability to continue to unlock significant value for our customers, and generate durable, long-term growth with improving profitability." This article has been updated with additional trading data.

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