Cloud-based solutions provider Smartsheet (SMAR) came out Q3 loss of 9 cents per share and revenue of $47 million, beating analysts’ estimates for Q3. Analysts had expected the company to post a loss of 16 cents per share on revenue of $44 million. The stock jumped about 8% during the extended trading hours.
The Bellevue, Washington-based tech firm had projected Q3 revenue to be between $43.5 million and $44.5 million and non-GAAP net loss per share to be in the range of $0.16 to $0.15.
GAAP loss per share was $0.15 compared to GAAP loss per share of $0.54 in the prior year period. Non-GAAP loss per share in the recently ended quarter shrunk to 9 cents from a loss per share of 11 cents in the year-ago quarter. Revenue jumped 59% to $47 million.
For the quarter ended October 31, 2018, subscription revenue surged 57% to $41.5 million and professional services revenue climbed 81% to $5.3 million.
For FY19, Smartsheet projects non-GAAP net loss per share of $0.44 to $0.42 and revenue to be in the range of $174.6 million to $175.6 million. Billings are targeted to be $210 million to $212 million, representing a year-over-year growth of 55% to 56%.
For the fourth quarter of fiscal 2019, the company eyes non-GAAP net loss per share to be $0.15 to $0.13 and revenue to be $49 million to $50 million.
As of October 31, 2018, domain-based customers increased 7% year-over-year to 77,893. The number of all customers with annualized contract values (ACV) of $50,000 or more surged 148% to 360 and average ACV per domain-based customer jumped 48% annually to $2,214.
“Off of strong billings and collections, we generated $2.4 million of positive operating cash flow while continuing to make substantial investments in the business,” said CFO Jennifer Ceran.
Cloud-based service providers like Workday (WDAY), ServiceNow (NOW) and Adobe (ADBE) gained momentum during last week encouraged by the upbeat results and strong outlook from cloud giant Salesforce (CRM).
Shares of Smartsheet ended Monday’s regular trading session at $27.06, up 0.59%. Smartsheet’s stock had so far gained 80% from its IPO price of $15 per share.