Smartsheet Soars 5% in a Month: Key Factors Driving Growth

September 17, 2024 12:44 PM PDT | By Team Kalkine Media

Smartsheet Soars 5% in a Month: Key Factors Driving Growth — Image source: Shutterstock

Recent News

Toyoda Gosei to Open New Plant in South India for Safety Systems and I...

4 great SWAN ETFs: RWL, SCHD, DGRO, COWZ

Central Iron Ore Limited: Drilling Results Finalised

Buy Microsoft stock and its 15% upside – Morningstar

Headlines

Smartsheet has outperformed both its sector and key competitor Asana, driven by strong customer growth and product advancements.
The company's second-quarter results highlight significant revenue increases and successful integration of AI tools.
Strategic partnerships with Amazon and Alphabet, along with new customer acquisitions, underscore Smartsheet's expanding market presence.

Smartsheet (NYSE:SMAR) shares have shown impressive performance, rising by 5.4% over the past month, surpassing both the broader Computer & Technology sector and the Internet - Software industry peer Asana (ASAN), which has experienced a decline of 10.3%. During the same period, the overall sector has decreased by 2.2%.

This recent uptick in Smartsheet’s share value can be attributed to several factors, including its expanding customer base, enhanced product features, and the growing adoption of AI tools.

In the second quarter of fiscal 2025, Smartsheet demonstrated substantial growth in its enterprise segmentThe company saw 75 customers increase their annual recurring revenue (ARR) by more than $100,000 each, with three transactions surpassing $1 million, including one over $4 millionThe number of customers with ARR exceeding $1 million rose by 50% year over year, reaching 77Smartsheet concluded the quarter with an annualized recurring revenue of $1.093 billion and over 15.3 million users, marking a 17% year-over-year growth in ARR.

The company's growing adoption of AI tools has been particularly noteworthyIn the second quarter of 2024, Smartsheet’s AI features, such as formula generation and tech summaries, experienced a 50% sequential growth, helping 47,000 users save an estimated 1 million hours.

Further enhancing its portfolio, Smartsheet introduced a new Kanban-style board view in the same quarterThis addition provides customers with improved visibility into task status, allowing them to quickly view what is in progress, completed, or upcomingSmartsheet's expanding customer base, including notable partners like Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL), has significantly contributed to its success.

In July, Smartsheet integrated Amazon Q Business, a generative AI-powered assistant designed to streamline knowledge management and enhance employee productivity globallyAdditionally, its collaboration with Alphabet has been substantial, featuring deep integration with Alphabet’s Google Apps for Work, which includes Gmail and Calendar sync, secure Drive storage, and seamless G Suite access.

During the second quarter of fiscal 2025, Smartsheet also achieved notable expansions and acquired new customers, including Intuit, Skechers, City National Bank, and a major financial services companyThese developments highlight the company’s enterprise readiness and scalability.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.