BELLEVUE, Wash. - Smartsheet Inc . (NYSE: NYSE:SMAR) reported better-than-expected third quarter results, with revenue growing 17% year-over-year to $286.9 million, surpassing analyst estimates of $283.81 million.
The company posted adjusted earnings per share of $0.43, beating the consensus forecast of $0.30 by $0.13. Shares were trading flat following the report.
The enterprise work management platform provider saw its subscription revenue increase 18% year-over-year to $273.7 million in Q3. However, professional services revenue declined 2% to $13.2 million compared to the same period last year.
Smartsheet's annualized recurring revenue (ARR) grew 15% year-over-year to $1.133 billion. The company reported 2,137 customers with ARR of $100,000 or more, up 20% from the prior year.
The company generated free cash flow of $61.8 million in Q3, representing 22% of total revenue. This marks a significant improvement from $11.4 million or 5% of revenue in the same quarter last year.
Smartsheet also announced it has entered into a definitive agreement to be acquired by Blackstone (NYSE:BX) and Vista Equity Partners in an all-cash transaction valued at approximately $8.4 billion, or $56.50 per share.
The company ended the quarter with $760.9 million in cash, cash equivalents, and short-term investments.
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