Shares in work management platform provider Smartsheet Inc. dropped in late trading today after reporting a lower-than-expected earnings outlook.

For the quarter ended April 30, Smartsheet reported a loss before costs such as stock compensation of $23.7 million, or 18 cents per share, more than doubling a loss of $10.7 million, or nine cents per share, in the same quarter last year. Revenue rose 44%, to $168.3 million. Analysts had expected an adjusted loss of 19 cents per share on revenue of $162.5 million.

Subscription revenue in the quarter came in at $155.3 million and professional services revenue at $13 million, both up 44% year-over-year. Net operating cash flow was a negative $5.1 million, compared with $3 million in the first quarter of fiscal 2022. Smartsheet’s dollar-based net retention rate was 133%, meaning it’s squeezing more revenue from existing customers, and the number of customers with annualized contract values of $100,000 or more jumped 68%, to 1,108.

Highlights in the quarter included the release of new integration capabilities with Brandfolder. The capabilities enhance the features between Smartsheet and Brandfolder to help marketers manage their work, content and people from ideation to execution. Smartsheet also released Project Assistant, a new onboarding experience that guides users through creating of a new project.

“New customers selected Smartsheet at an accelerating rate, as evidenced by record net new plans added and bookings achieved in the first quarter,” Mark Mader, president and chief executive officer of Smartsheet, said in a statement. “We continue to see significant expansion, especially in the enterprise tier, as customers experience the powerful impact our platform has across their organizations.”

For the second quarter of fiscal 2023, Smartsheet predicted an adjusted loss of 19 to 21 cents per share on revenue of $180 million to $181 million. Analysts expected an adjusted loss of 17 cents per share on revenue of $179.3 million.

For the full fiscal year 2023, the company predicts an adjusted loss of 59 to 67 cents per share on revenue of $756 million to $761 million.

Overall, Smartsheet’s quarterly financial report was a mixed bag, with a beat on earnings and revenue and on the revenue outlook. Still, it was the lower-than-expected predicted earnings for the second quarter that investors focused on.

Smartsheet shares fell almost 6% after the bell following a 3.7% rise in the regular session.

Image: Smartsheet