2024-03-19 12:56:51 ET
Summary
- Smartsheet's Q4 earnings showed a slowdown in topline growth, mainly due to weakness in the SMB segment.
- The company is focusing on cross-selling premium capabilities and introducing new features to drive future revenue growth.
- Despite growth headwinds, Smartsheet's fundamentals remain stable and its valuation is conservative, making it an attractive investment opportunity.
Introduction and investment thesis
Smartsheet ( SMAR ) has been one of my top picks in the project and work management software ("PWMS") space for a while now. It's compelling valuation, expanding margins, transparent management, and large growth potential for its premium capabilities have been my main reasons why I preferred the stock. In addition, the growth rate of calculated billings showed a positive turnaround in the preceding Q3 quarter, which made me conclude in a previous article that it was a good opportunity to load up on shares....
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For further details see:
Smartsheet Q4 Earnings: Turnaround Postponed [Downgrade]