NEW YORK, Jan. 06, 2026 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, announces a class action lawsuit on behalf of all former stockholders of Smartsheet Inc. (NYSE: SMAR) in connection with the January 2025 sale (the “Merger” or “Buyout”) of Smartsheet to affiliates of investment funds managed by affiliates of Blackstone Inc. (collectively “Blackstone”), investment funds managed by Vista Equity Partners Management, LLC (“Vista Equity Partners” or “Vista”), and Platinum Falcon ...

Core Viewpoint - A class action lawsuit has been filed against Smartsheet Inc. regarding allegations of securities fraud and unlawful business practices related to a recent merger [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Smartsheet and certain officers and directors engaged in securities fraud during the solicitation of stockholder approval for a merger with investment funds managed by Blackstone, Vista Equity Partners, and others [4][5]. - Investors have until February 24, 2026, to request to be appointed as Lead Plaintiff if they purchased Smartsheet securities during the class period [2]. Group 2: Allegations Against Smartsheet - The complaint alleges that Smartsheet issued a misleading Schedule 14A Proxy statement to the U.S. Securities and Exchange Commission, mischaracterizing the company's financial performance to solicit approval for the merger [5]. - The Proxy allegedly presented the company's quarterly earnings negatively and emphasized a financial metric created specifically for the merger approval process [5]. Group 3: Financial Implications - The merger consideration was set at $56.50 per share, which was within the range of a discounted cash flow analysis but below several analyst price targets that had been raised following the company's successes in early 2024 [6].

Core Viewpoint - A class action lawsuit has been announced by Rosen Law Firm on behalf of former stockholders of Smartsheet Inc. regarding the January 2025 sale of the company to a consortium including Blackstone, Vista Equity Partners, and Platinum Falcon [1] Group 1: Lawsuit Details - The lawsuit claims that Smartsheet's management issued a misleading Proxy statement to solicit stockholder approval for the Buyout, misrepresenting the company's financial performance [5] - Allegations include that the Proxy emphasized a fabricated financial metric and portrayed quarterly earnings negatively to influence the approval process [5] Group 2: Participation Information - Former Smartsheet stockholders may join the class action without incurring out-of-pocket fees through a contingency fee arrangement [2] - Interested parties can join the class action by visiting the provided link or contacting the law firm directly [3][6] Group 3: Law Firm Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field [4] - The firm has recovered hundreds of millions for investors, including over $438 million in 2019 alone [4]

Core Viewpoint - Rosen Law Firm has announced a class action lawsuit on behalf of former stockholders of Smartsheet Inc. related to its January 2025 sale to a consortium including Blackstone, Vista Equity Partners, and Platinum Falcon [1] Group 1: Lawsuit Details - The lawsuit claims that Smartsheet's management issued a misleading Proxy statement to solicit stockholder approval for the Buyout, mischaracterizing the company's financial performance [5] - Allegations include that the Proxy emphasized a fabricated financial metric and presented quarterly earnings negatively to influence the approval process [5] Group 2: Participation Information - Former Smartsheet stockholders may be entitled to compensation through a contingency fee arrangement, meaning no out-of-pocket costs for them [2] - Interested parties can join the class action by visiting the provided link or contacting the law firm directly [3][6] Group 3: Law Firm Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including over $438 million for investors in 2019 [4] - The firm has been recognized for its success in securities class action settlements and has a history of representing investors globally [4]

Core Viewpoint - A class action lawsuit has been filed against Smartsheet Inc. regarding its January 2025 sale to a consortium including Blackstone, Vista Equity Partners, and Platinum Falcon, alleging violations of federal securities laws [1][2]. Group 1: Lawsuit Details - The lawsuit seeks to recover damages for investors who purchased Smartsheet shares in connection with the January 2025 merger [2]. - Allegations include that defendants issued a misleading Schedule 14A Proxy Statement to solicit stockholder approval for the buyout [3]. - Defendants are accused of mischaracterizing Smartsheet's financial performance and using a financial metric created solely for the buyout approval [3]. - Mark P. Mader, a defendant, is claimed to have failed in his disclosure obligations, leading to materially false and misleading statements about Smartsheet's business [3]. Group 2: Next Steps for Investors - Investors who purchased shares in connection with the merger have until February 9, 2026, to request to be appointed as lead plaintiff in the class action [4]. - The law firm representing the investors operates on a contingency fee basis, meaning they will only recover costs if successful [5]. Group 3: Law Firm Background - Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm specializing in securities fraud class actions and has recovered hundreds of millions for investors [6]. - The firm emphasizes restoring investor capital and ensuring corporate accountability to maintain market integrity [6].

Core Viewpoint - Rosen Law Firm has announced a class action lawsuit on behalf of former stockholders of Smartsheet Inc. regarding the January 2025 sale of the company to a consortium including Blackstone, Vista Equity Partners, and Platinum Falcon [1] Group 1: Allegations and Legal Proceedings - The lawsuit alleges that Smartsheet misled investors about its business operations and financial performance during the solicitation of stockholder approval for the buyout [2][3] - It is claimed that a false and misleading Schedule 14A Proxy statement was issued, which mischaracterized Smartsheet's financial success and emphasized a fabricated financial metric to solicit approval for the buyout [3] - Defendant Mark P. Mader is accused of failing to exercise reasonable care in fulfilling his disclosure duties [3] Group 2: Participation and Representation - Shareholders interested in participating in the class action must file motions to serve as lead plaintiff by February 9, 2026, with the option to remain an absent class member if they choose not to participate [4] - All representation in the lawsuit is on a contingency fee basis, meaning shareholders will not incur fees or expenses [5] Group 3: About Rosen Law Firm - Rosen Law Firm is recognized for its commitment to shareholder rights litigation, having recovered over $1 billion for shareholders since its inception [6]

Company Overview - Smartsheet, an AI-enhanced work management platform, was sold for $8 4 billion, making it a private company held by Blackstone and Vista Equity Partners [1] - The platform is used by over 85% of the 2024 Fortune 500 companies, highlighting its widespread adoption in large enterprises [2] Strategic Partnerships and Innovations - Smartsheet partnered with Amazon Web Services (AWS) to integrate its data model with AWS' generative AI assistant, Amazon Q Business, enabling customers to access work management data through AI queries [3][4] - The integration aims to enhance customer productivity by allowing seamless access to data without concerns about data storage locations [4] Industry Trends - Private equity deals in Europe saw a significant uptick in 2024, with buyout deals worth over $1 billion increasing by 78% to $133 billion, compared to a 29% increase globally [5][6] - The increase in dealmaking is attributed to firms taking advantage of lower valuations during Europe's economic downturn [5] Future Outlook - A more relaxed regulatory environment in the United States under the Trump administration is expected to further boost dealmaking activity in 2024 [7]

Company Performance - Smartsheet reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, and up from $0.16 per share a year ago, representing an earnings surprise of 43.33% [1] - The company achieved revenues of $286.87 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 1.14% and increasing from $245.92 million year-over-year [2] - Over the last four quarters, Smartsheet has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Smartsheet shares have increased approximately 17.3% since the beginning of the year, while the S&P 500 has gained 27.6% [4] - The current Zacks Rank for Smartsheet is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $295.71 million, and for the current fiscal year, it is $1.39 on revenues of $1.12 billion [8] - The estimate revisions trend for Smartsheet is currently mixed, which may change following the recent earnings report [7] - The Internet - Software industry, to which Smartsheet belongs, is ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook for the sector [9]

Revenue and Growth - Annualized recurring revenue (ARR) increased to $1,133 million as of October 31, 2024, up from $981 million in the previous year[148]. - Average ARR per domain-based customer rose to $10,708, compared to $9,225 a year ago[148]. - The number of customers with ARR of $100,000 or more increased to 2,137, up from 1,779[148]. - Subscription revenue increased by $41.2 million, or 18%, for the three months ended October 31, 2024, compared to the same period in 2023, driven by capabilities-based products and user-based subscription plans[173]. - Total revenue for the three months ended October 31, 2024, was $286.9 million, representing a 17% increase from $245.9 million in the same period of 2023[172]. Profitability and Expenses - Gross profit for the three months ended October 31, 2024, was $233.1 million, a 17% increase from $198.9 million in the same period of 2023[179]. - Total operating expenses for the three months ended October 31, 2024, were $236.5 million, slightly up from $234.3 million in the same period of 2023[179]. - Net income for the three months ended October 31, 2024, was $1.3 million, compared to a net loss of $32.4 million in the same period of 2023[171]. - Subscription cost of revenue increased by $7.2 million, or 21%, for the three months ended October 31, 2024, primarily due to increased hosting fees and employee-related expenses[180]. - General and administrative expenses increased by $14.8 million, or 14%, primarily due to one-time acquisition-related costs[195]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended October 31, 2024, was $172.8 million, an increase of $74.6 million compared to $98.2 million for the same period in 2023[217]. - Net cash provided by investing activities during the nine months ended October 31, 2024, was $38.6 million, a change of $142.0 million from net cash used in investing activities of $103.4 million in 2023[218]. - Net cash used in financing activities for the nine months ended October 31, 2024, was $39.7 million, a decrease of $55.0 million compared to net cash provided by financing activities of $15.4 million in 2023, primarily due to share repurchases[219]. - The company authorized a stock repurchase program of up to $150.0 million, with $9.7 million spent on repurchasing 0.2 million shares at an average price of $46.05 per share during the three months ended October 31, 2024[213]. Future Outlook and Economic Factors - The company entered into a Merger Agreement with affiliates of Blackstone, Vista, and ADIA, with each share of Class A common stock to be converted into cash of $56.50[138][139]. - The Merger is expected to close in the fourth quarter of the fiscal year ending January 31, 2025, subject to customary closing conditions[143]. - The company anticipates operating expenses to increase in absolute dollars but decrease as a percentage of total revenue over the long term due to economies of scale[164]. - Macroeconomic conditions, including interest rate fluctuations and inflation, may significantly influence the company's results of operations[145]. Financial Position and Risks - Cash and cash equivalents amounted to $454.3 million, with short-term investments totaling $306.6 million as of October 31, 2024[206]. - Deferred revenue as of October 31, 2024, totaled $560.4 million, with $556.3 million expected to be recognized as revenue in the next 12 months[208]. - The company does not believe that a hypothetical increase of 100 basis points in interest rates would have a material impact on the value of its cash equivalents or short-term investments[227]. - The company has foreign currency risks related to revenue and expenses denominated in currencies other than the U.S. dollar, but does not expect a 10% change in currency value to materially affect operating results[228]. - The company may seek additional equity or debt financing in the future to meet capital requirements, which could affect its ability to compete successfully if not raised on acceptable terms[212].

Financial Performance - Total revenue for Q3 FY2025 was $286.9 million, a 17% increase year over year[2] - Annualized recurring revenue (ARR) grew 15% year over year to $1.133 billion[6] - Non-GAAP operating income was $56.4 million, representing 20% of total revenue, compared to 8% in Q3 FY2024[3] - GAAP net income was $1.3 million, a significant improvement from a net loss of $(32.4) million in Q3 FY2024[4] - Free cash flow was $61.8 million, or 22% of total revenue, compared to 5% in Q3 FY2024[5] - Total revenue for the three months ended October 31, 2024, was $286.9 million, a 16.6% increase from $245.9 million in the same period of 2023[22] - Subscription revenue reached $273.7 million for the three months ended October 31, 2024, compared to $232.5 million in the same period of 2023, reflecting a growth of 17.7%[22] - Gross profit for the nine months ended October 31, 2024, was $674.4 million, up from $561.4 million in the same period of 2023, representing a 20.1% increase[22] - Operating expenses totaled $236.5 million for the three months ended October 31, 2024, slightly up from $234.3 million in the same period of 2023[22] - Net income for the three months ended October 31, 2024, was $1.3 million, a significant improvement from a net loss of $32.4 million in the same period of 2023[22] Cash Flow and Assets - Cash and cash equivalents increased to $454.3 million as of October 31, 2024, compared to $282.1 million as of January 31, 2024[24] - Total assets reached $1.4 billion as of October 31, 2024, up from $1.3 billion as of January 31, 2024[24] - Deferred revenue was $556.3 million as of October 31, 2024, compared to $568.7 million as of January 31, 2024[24] - Net cash provided by operating activities for the nine months ended October 31, 2024, was $172.8 million, compared to $98.2 million in the same period of 2023[26] - Total net cash provided by operating activities was $63,528 for the three months ended October 31, 2024, compared to $15,146 in the same period of 2023[33] Customer Metrics - The dollar-based net retention rate was 111%[6] - The number of customers with ARR of $100,000 or more increased by 20% year over year to 2,137[6] - The average ARR per domain-based customer increased by 16% year over year to $10,708[6] Acquisition and Strategic Developments - Smartsheet entered into a definitive agreement to be acquired by Blackstone and Vista Equity Partners for approximately $8.4 billion[7] - Smartsheet unveiled a new user experience and features to enhance organizational performance[7] Non-GAAP Metrics - For the three months ended October 31, 2024, Smartsheet reported a non-GAAP operating income of $56,364, compared to $19,355 in the same period of 2023, reflecting a significant increase[30] - The non-GAAP operating margin improved to 20% for the three months ended October 31, 2024, up from 8% in the same period of 2023[30] - The company achieved a non-GAAP net income of $61,039 for the three months ended October 31, 2024, compared to a loss of $32,428 in the same period of 2023[31] - Non-GAAP net income per share, diluted, was $0.43 for the three months ended October 31, 2024, compared to $0.16 in the same period of 2023[31] - Smartsheet's free cash flow for the three months ended October 31, 2024, was $61,793, significantly up from $11,409 in the same period of 2023[33] Shareholder Information - The weighted-average shares outstanding, diluted, increased to 142,668 for the three months ended October 31, 2024, compared to 138,421 in the same period of 2023[33] Operational Costs - Share-based compensation expense for the nine months ended October 31, 2024, was $143.1 million, down from $153.4 million in the same period of 2023[26] - The company reported a loss from operations of $(3,351) for the three months ended October 31, 2024, an improvement from $(35,450) in the same period of 2023[30] - Smartsheet incurred one-time acquisition costs of $10,525 during the three months ended October 31, 2024[30] - The company’s amortization of acquisition-related intangible assets was $2,308 for the three months ended October 31, 2024, compared to $2,701 in the same period of 2023[31]