Software solutions provider Smartsheet Inc. (SMAR) in Bellevue, Wash., is known for developing and marketing the Smartsheet application. It is better-than-expected bookings performance in its last reported quarter, and a record number of large deals, have helped the enterprise platform achieve double-digit revenue growth. But SMAR’s stock is down 15.2% in price over the past month and 10.9% over the past year. While a recent study conducted by Forrester Consulting on behalf of SMAR, which revealed that the platform delivers a 680% ROI over three years could lead to increased demand for its services, the SaaS platform provider’s losses continue to grow.
Although the accelerated rollout of its platform across large companies could significantly grow its subscription revenue, the stock’s expensive valuation and negative cash flow could make investors nervous. In addition, the stock is trading 26.8% below its 52-week high of $85.65. Also, SMAR is currently trading lower than its 50-day and 200-day moving averages of $69.89 and $68.54, respectively, indicating a downtrend.
