Smartsheet revenue outlook misses estimates, stock falls

Smartsheet opens new tab on Thursday issued a revenue guidance that missed analyst estimates, causing its shares to fall 10% despite the fact that the cloud software seller's quarterly revenue exceeded expectations. 

The most recent indication of slow cloud software expenditure comes from Smartsheet's quarterly results, which match recent low projections from Salesforce, opens new tab, and Snowflake, opens new tab. 

Richly valued cloud companies have an uncertain future as consumers struggle with an uncertain economy, as indicated by signals from Salesforce and Snowflake on February 28 about a slowdown in tech spending. 

Additionally late on Thursday, Adobe, the maker of Photoshop software, opened a new tab and predicted quarterly revenue that was lower than analysts' projections, which caused its shares to drop by over 10%. 

Smartsheet reported quarterly revenue up 21% to $256.9 million, exceeding the average analyst estimate of $255.4 million, according to LSEG. 

For its current quarter, the company said it expects revenue between $257 million and $259 million. That compares to the consensus estimate of $263.6 million. 

Smartsheet's stock dropped 10% in extended trade following the report. During Thursday's session, the stock fell 2.3%, bringing its year-to-date loss to almost 16%.