Beating Expectations Leads to 7% Share Increase

  • Smartsheet shares rise 7% after beating 2Q earnings expectations
  • Total revenue for Q2 was $276.4 million, up 17% YoY
  • Net income of $7.9 million or 6 cents per share
  • Analysts expected revenue of $274.3 million
  • Adjusted net income per share at 44 cents, vs. expectations of 29 cents

Smartsheet, a cloud-based platform provider, has seen its shares rise by 7% to $52.80 after reporting strong second quarter earnings that surpassed market expectations. The company’s total revenue for the quarter ended July 31 reached $276.4 million, marking a 17% year-over-year increase from the previous year. Analysts had predicted a lower revenue of $274.3 million. Net income stood at $7.9 million or 6 cents per share, compared to a loss of $33.4 million in the same period last year. Adjusted net income per share was 44 cents, exceeding analyst expectations of 29 cents. For the third quarter of fiscal 2025, Smartsheet anticipates total revenue between $282 million and $285 million with an adjusted net income of 29 to 31 cents per share. The full-year projection for 2025 is a total revenue of $1.116 billion to $1.121 billion, with an adjusted net income per share ranging from $1.36 to $1.39.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Smartsheet’s financial performance, including revenue growth, stock price increase, and analyst expectations for future quarters and fiscal year. It does not include any digressions, irrelevant details, or personal opinions.
Noise Level: 4
Noise Justification: The article provides relevant information about Smartsheet’s financial performance and outlook but lacks in-depth analysis or exploration of long-term trends or consequences for stakeholders.
Public Companies: Smartsheet (SMAR)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Smartsheet’s stock price
Financial Rating Justification: The article discusses Smartsheet’s financial results, including revenue and net income, which impacted the company’s stock price, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of any extreme event in the text.
Move Size: 7%
Sector: Technology
Direction: Up
Magnitude: Large
Affected Instruments: Stocks

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