Smartsheet Inc. (NYSE:SMAR) shares were trading around 7% lower Wednesday afternoon despite the company’s reported strong Q1 result, with EPS coming in at ($0.18), better than the Street estimate of ($0.19). Revenue was $168.3 million, beating the Street estimate of $162.56 million.
The strong quarterly results were highlighted by record new customer bookings, a healthy NRR of 133%, continued strong large customer activity, and ongoing platform improvements.
While recent stronger-than-expected hiring will weigh on Q2 operating margin, the management is starting to take a more conservative spending/cost control approach going forward given macro uncertainties.
The company expects Q2 EPS to range from ($0.21) to ($0.19), compared to the Street estimate of ($0.17), and revenue to range from $180 million to $181 million, compared to the Street estimate of $179.5 million.
For the full 2023-year, EPS is expected to be ($0.67)-($0.59), compared to the Street estimate of ($0.66), and revenue to be $756-761 million, compared to the Street estimate of $752.6 million.