Smartsheet shares fell more than 20% on Wednesday after close of trading, despite the fact that the company had exceeded expectations for its share quarterly earnings report.
Smartsheet, located in Bellevue, Washington, had sales of $ 85.5 million, an increase of 52% over the previous year, and a non-GAAP net loss per share of $ 0.11 versus a net loss of $ 0.12 last year.
Investors may have been startled by the company's forecasts for the current quarter and fiscal year, which were below expectations. Smartsheet also withdrew its previously announced full year bills and free cash flow guidelines, "given the uncertainties surrounding the novel coronavirus and the resulting pandemic of COVID-19 disease (" COVID-19 ") and the rapidly changing global economic environment ".
"We delivered a good first quarter given the market conditions," said Mark Mader, CEO of Smartsheet, in a statement. “Smartsheet has become an increasingly business-critical platform for companies that want to enable a dynamic workforce. A workforce capable of working from anywhere, adapting to rapidly changing conditions and remaining deeply connected to their individual work and the mission of their teams regardless of the circumstances. "
When calling for profit in March, Mader said the company's strong cash position and diverse customer base would help to overcome the economic crisis.
Smartsheet, which went public in 2018, now has approximately 83,000 domain-based customers who use the company's software for project management and other collaborative work. The company employs more than 1,600 people in five cities worldwide.