Smartsheet stock pops on Q2 beat, acquisition reports

Shares of Smartsheet (SMAR) are trading higher on Friday following the company's second-quarter earnings report, which topped analyst estimates. The company also raised its outlook. This come in the wake of reports that Smartsheet had been involved in acquisition talks with private equity firms Vista Equity Partners and Blackstone (BX).

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This post was written by Angel Smith

Video Transcript

All right, let's get to some of today's trending tickers right now.

And by the way, throughout the trading day, you can track the best and worst performing stocks of the session on Yahoo Finance's trending ticker page.

You can scan the QR code below in order to check them out.

Uh, I wanna start, though, in terms of the actual trending tickers with the smart sheet.

Interesting story here because the company came out with its numbers.

Um, and that was, uh, today.

This is after yesterday there was a report that they were in talks with Vista and Blackstone to potentially get acquired.

So yesterday the report came out sort of midday.

The stock went up abruptly.

You can see that on your screen.

1 p.m. yesterday.

Then they reported earnings and they took another leg up.

Josh.

Yeah.

And then So with this report, private equity group moving in.

This is per Reuters includes, uh, vista, uh, Blackstone.

Talking about buying, uh, smartsheet, maker of workplace collaboration software.

Um, corporate clients like Pfizer.

Julie, um, other Fortune 500 companies.

American Airlines.

Reuters says deal could be signed in coming weeks.

Terms doesn't sound like they immediately apparent right.

And then the company's numbers, uh, came in ahead of estimates.

Annual recurring revenue a AK a subscription revenue rose by 17%.

Um, and it also had a net retention rate of 113%.

That's on a do basis.

The number of customers with annual recurring revenue of 100,000 or more was up by 24%.

So analysts liking, uh, those numbers as well as the potential for an acquisition.

Yeah, most on the street is positive on this name.

I mean, including the team at Jeffries.

They told that they looked over that print, said positive early response, new pricing and packaging.

The guide, in their opinion, looked conservative and still some firepower.

They, they point out, left in the buyback plan here.