Smartsheet stock spiked more than 12% in after-hours trading as the company saw revenue grow 38% year-over-year to $98.9 million for its fiscal third quarter with a non-GAAP net loss of $0.12. Wall Street expected revenue of $94.6 million and a loss of $0.21 per share.
Smartsheet’s subscription revenue was up 41% to $90.9 million. The Bellevue, Wash.-based company, which sells collaboration work management software, nearly doubled the amount of customers with annualized contract values of more than $100,000, to a total of 504.
In a statement, Smartsheet CEO Mark Mader cited the increase in large contracts and a “new high water mark for our Government business.” He said the company is benefitting from enterprises shifting their work to digital platforms.
Smartsheet expects revenue to reach $102-to-$103 million in the fourth quarter, up 30% year-over-year.
Shares of Smartsheet have nearly doubled in price since March.
Smartsheet also announced today the appointment of Pete Godbole as chief financial officer. Godbole previously was CFO at Hearsay and GoodData, and also worked at VMWare as a finance leader. He’ll replace Jennifer Ceran, who is retiring.
“Pete is an enterprise software industry veteran whose success architecting business and financial models will help drive our next phase of growth,” Mader said in a statement. “At a time when Collaborative Work Management platforms are gaining enterprise adoption in support of digital-first and transformation strategies, I look forward to working with Pete to firmly position Smartsheet as the leader in this large and growing market.”
In September Smartsheet paid $155 million to acquire Brandfolder, a Denver, Colo.-based startup that sells digital asset management software.
Smartsheet rival Asana went public in September; shares have remained stable. Tomasz Tunguz, a venture capitalist at Redpoint, compared Asana’s current metrics to Smartsheet when it went public two years ago. He noted that Asana “should fetch a premium for faster growth, better gross margins, and superior sales efficiency.”
Smartsheet employs more than 1,600 people across five cities worldwide. Its market capitalization is north of $7.5 billion.
