Smartsheet Inc SMAR Shares traded higher on Wednesday after the company reported better-than-expected financial results and issued strong earnings guidance. Several analysts also raised price targets after the print.

• Sales Q1: $212.34 million surpassed estimates of $206.19 million
• Earnings per share Q1: 7 cents beat estimates for a 1 cent loss

Free cash flow totaled $16.4 million in the fourth quarter. Smartsheet ended the quarter with $456.4 million in cash and short-term investments.

“In FY24, despite the macro environment“The cost savings initiatives we implemented in FY23, combined with natural economies of scale in our business, will result in significant free cash flows and an increase in operating margin,” said Pete GodboleCFO of Smartsheet.

Outlook: Smartsheet expects revenue of between $213 million and $215 million for the first quarter versus estimates of $217.1 million. The company expects adjusted earnings of between 8 and 9 cents per share for the first quarter versus an estimated loss of 6 cents per share.

Smartsheet also issued full-year 2024 revenue guidance of $943 to $948 million and adjusted earnings guidance of 31 to 38 cents per share.

See also: Why Sportradar Stock Sprints Higher on Wednesday

Analyst Rating:

• Keybanc analyst Jason Celino kept Smartsheet at an Overweight rating, increasing the price target to $53 from $48.
• Needham analyst Scott Berg reiterated Smartsheet a buy with a price target of $57.
• Credit Suisse analyst Fred Lee reiterated Smartsheet with a neutral and $40 price target.
• Wells Fargo analyst Michael Turrin kept Smartsheet at an Overweight rating, increasing its price target to $50 from $45.
• Oppenheimer analyst George Iwanyc kept Smartsheet with an outperform and raised the price target to $55 from $50.

SMAR Price Action: Smartsheet shares are up 15.8% at $44.45 at press time Gasoline Pro.

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