Shares in Smartsheet Inc. were up by nearly 6% in late trading today after the management platform provider reported strong second-quarter results.

For the quarter that ended July 31, Smartsheet reported adjusted earnings per share of 16 cents, up from a loss of 10 cents per share in the same quarter of last year, on revenue of $235.6 million, up 26% year-over-year. Analysts had expected earnings per share of eight cents on revenue of $229.6 million.

Smartsheet’s strong numbers were driven by customer growth, with all segments seeing solid increases. Customers with annual contract values of $100,000 or more grew 36% year-over-year, to 1,665, while customers with $50,000 or more grew 30%, to 3,552, and customers with annual contract values of $5,000 or more grew 14%, to 19,031. As of the end of the quarter, the average annual contract value across all customers was $8,863, up 17% year-over-year.

Cash flow in the quarter was $48.5 million, up from $10.2 million in the same quarter of fiscal 2023.

Business highlights in the quarter include Smartsheet releasing new generative artificial intelligence capabilities to select customers in private beta. The company also strengthened its enterprise platform’s scale and performance systems with computational feature enhancements and increasing cross-sheet cell linking capacity from 30,000 to 500,000 per sheet.

“Our platform’s scalability continues to drive strong demand from enterprises looking for solutions to manage their mission-critical work securely and consistently,” Chief Executive Mark Mader said in the company’s earnings release. “We remain focused on delivering innovation around generative AI and other areas to help our customers achieve more and to extend our leadership position in the enterprise work management market.”

For the third quarter of fiscal year 2024, Smartsheet said it expects adjusted earnings per share of eight to nine cents on revenue of $240 million to $242 million. Earnings per share was a beat, as analysts were expecting seven cents, but the revenue outlook was a miss at the midpoint versus an expected $241.24 million.

For its full year, Smartsheet expects earnings per share of 53 to 57 cents on revenue of $950 million to $953 million, versus an expected 42 cents and $948.8 million.

Image: Smartsheet