Earnings Analysis for SMAR
Revenue Analysis
Total and Operating Revenue: SMAR’s operating revenue has shown growth over the observed periods, increasing from $219.886 million in 2023-04-30 to $256.949 million by 2024-01-31. This suggests a stable enhancement in the company’s core revenue streams.
Gross Profit: Similarly, the gross profit has risen from $174.005 million in 2023-04-30 to $210.458 million in 2024-01-31. These figures indicate improving operational efficiency or pricing strategies over time.
Cost Management
Cost of Revenue: Despite the increased revenue, the cost of revenue has remained fairly consistent, standing at $46.491 million in 2024-01-31 compared to $45.881 million in 2023-04-30.
Operating Expense: There’s a significant portion allocated to operating expenses, with a slight reduction from $234.33 million in 2023-10-31 to $227.028 million in 2024-01-31, reflecting possible efficiency improvements.
Total Expenses: Total expenses showed a high of $281.368 million in 2023-10-31, slightly decreasing to $273.519 million by 2024-01-31.
Profitability Analysis
EBITDA: SMAR’s EBITDA has remained negative, showing a notable deficit, specifically a movement from -$28.633 million in 2023-10-31 to -$9.566 million by 2024-01-31, suggesting some level of improvement.
Operating Income: Operating income has been consistently negative but shows improvement, moving from -$35.45 million in 2023-10-31 to -$16.57 million by 2024-01-31.
Pretax Income: The pretax income also remained in the negative territory but improved from -$29.264 million in 2023-10-31 to -$9.089 million in 2024-01-31.
Net Income: Reflecting the trends seen in other profitability metrics, net income also showed negative figures but improved from -$32.428 million in 2023-10-31 to -$8.976 million in 2024-01-31.
Cash Flow Indicators
Reconciled Depreciation: Depreciation expenses have been fairly stable, pointing to consistent capital expenditure amortization over time, with $7.004 million recorded in 2024-01-31.
Interest Income: Interest income has witnessed a slight increase, moving from $6.976 million in 2023-10-31 to $7.601 million by 2024-01-31.
Taxation
Tax Rate: The tax rate saw a dramatic reduction to 0.012433 by 2024-01-31 from 0.21 in earlier periods.
Tax Provision: The tax provision was at -$113,000 in 2024-01-31, which is significantly less than the previous $3.164 million in 2023-10-31.
Tax Effect Of Unusual Items: There was zero tax effect of unusual items throughout the observed periods, indicating that no exceptional or non-recurring tax-related items impacted the earnings.
Shareholder Metrics
Diluted and Basic EPS: Both diluted and basic EPS show negative values but have improved, moving from -$0.24 in 2023-10-31 to an improvement (though not stated) by 2024-01-31.
Average Shares: The number of average shares used in the calculations was around 135.189 million and 132.542 million for basic and diluted in earlier periods, but no data is available for the most recent date.
Net Income Available to Common Stockholders: Consistently negative at -$32.428 million in 2023-10-31 improving slightly by 2024-01-31.
Conclusion
SMAR has demonstrated improvement in revenue, gross profit, and a reduction in losses across various profitability metrics. The stabilization in costs and the significant tax rate reduction are also positive signs. However, the company still faces challenges with maintaining positive operating incomes and needs to work towards turning around its net income. Continued monitoring and possibly restructuring strategies could be beneficial in further reducing expenses and enhancing operational efficiency.