Lawsuit Details - Wohl & Fruchter LLP filed a class action lawsuit on November 14, 2024, in the United States District Court for the Southern District of New York on behalf of Smartsheet, Inc (NYSE: SMAR) stockholders as of October 25, 2024 [1] - The lawsuit asserts claims under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 regarding the proposed sale of Smartsheet to affiliates of Blackstone, Inc, Vista Equity Partners Management, LLC, and Platinum Falcon B 2018 RSC Limited [1] - The proposed sale involves a payment of $56.50 per share in cash to Smartsheet stockholders [1] Investor Notification - Smartsheet investors are notified that any member of the purported Class may move the Court to serve as lead plaintiff within 60 days after the date of this notice [2] - Investors can learn more about the class action lawsuit or inquire about their rights by completing a form on Wohl & Fruchter's website or contacting them via phone or email [2] About Wohl & Fruchter - Wohl & Fruchter LLP has over a decade of experience representing investors in litigation arising from fraud and corporate misconduct, recovering hundreds of millions of dollars in damages for investors [3] - The firm has offices in New York City and Monsey and can be contacted through their website, phone, or email [3]

Financial Performance - The company ended the quarter with annualized recurring revenues of $1.093 billion and more than 15.3 million users, with ARR growth of 17% year over year [2] - For Q3 fiscal 2025, the company expects revenues in the $282-$285 million range, suggesting year-over-year growth of 15-16% [7] - For fiscal 2025, revenues are projected to be between $1.17 billion and $1.18 billion, indicating a 14.2-14.5% increase year over year [8] Customer and Enterprise Growth - The company registered strong growth in the enterprise segment, with 75 customers increasing ARR by more than $100,000 and three transactions exceeding $1 million, including one over $4 million [1] - The number of customers with ARR of more than $1 million surged 50% year over year, totaling 77 [1] Product and AI Integration - The company announced a partnership with AWS to introduce a new AI-powered data connector that synchronizes data into Amazon Q Business, enhancing productivity and decision-making [3][4] - The connector enables seamless querying of project, program, and process information managed in Smartsheet, fostering a unified search experience across knowledge bases [4] Strategic Collaborations - The company's growing clientele includes key partners like Amazon, Microsoft, and Alphabet, which have been major growth drivers [5] - Collaboration with Alphabet includes deep integration with Google Apps for Work, enhancing productivity through features like Gmail and Calendar sync [5] - Integration with Microsoft Office 365 has streamlined work processes, improving productivity and collaboration across teams [6]

Stock Performance - Smartsheet shares have risen 8 6% over the past month and hit a new 52-week high of $55 63 [1] - The stock has gained 16 3% since the start of the year compared to the Zacks Computer and Technology sector's 25 2% and the Zacks Internet - Software industry's 24 4% [1] Earnings and Revenue - Smartsheet has not missed earnings consensus estimates in the last four quarters [2] - In the last earnings report on September 5 2024 Smartsheet reported EPS of $0 44 versus consensus estimate of $0 29 and beat the consensus revenue estimate by 0 86% [2] - For the current fiscal year Smartsheet is expected to post earnings of $1 39 per share on $1 12 billion in revenues representing a 63 53% change in EPS and a 16 74% change in revenues [3] - For the next fiscal year the company is expected to earn $1 55 per share on $1 28 billion in revenues representing year-over-year changes of 11 4% and 14 63% respectively [3] Valuation Metrics - Smartsheet has a Value Score of F Growth Score of A and Momentum Score of A resulting in a VGM Score of B [6] - The stock trades at 40X current fiscal year EPS estimates a premium to the peer industry average of 31 5X [7] - On a trailing cash flow basis the stock trades at 5X versus its peer group's average of 24 2X [7] - The stock has a PEG ratio of 1 27 [7] Zacks Rank and Style Scores - Smartsheet currently has a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions [8] - The company fits the criteria of having a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B [8] Industry Comparison - Meta Platforms Inc (META) a peer in the industry has a Zacks Rank of 2 (Buy) Value Score of C Growth Score of B and Momentum Score of A [9] - Meta Platforms Inc beat the consensus estimate by 9 79% last quarter and is expected to post earnings of $21 36 per share on revenue of $161 62 billion for the current fiscal year [10] - Meta Platforms Inc shares have gained 17 5% over the past month and trade at a forward P/E of 27 75X and a P/CF of 30 06X [10] - The Internet - Software industry is in the top 29% of all industries indicating favorable conditions for Smartsheet and Meta Platforms Inc [11]

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the sale of Smartsheet Inc. to Blackstone and Vista Equity Partners for $56.50 per share in cash, focusing on the rights of Smartsheet shareholders [1][2]. Group 1: Investigation Details - The investigation examines whether Smartsheet and its board violated federal securities laws and fiduciary duties by not securing the best possible consideration for shareholders [2]. - Concerns include whether Blackstone and Vista are underpaying for Smartsheet and if all material information necessary for shareholders to assess the merger was disclosed [2]. Group 2: Potential Actions - Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures, and other forms of relief related to the proposed transaction [3]. - The firm operates on a contingent fee basis, meaning shareholders would not incur out-of-pocket legal fees or expenses [3]. Group 3: Firm Background - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, having recovered millions for defrauded investors [4].

Core Insights - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum, addressing the challenge of defining momentum [2] Company Overview: Smartsheet (SMAR) - Smartsheet currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance [4] Performance Metrics - Over the past week, Smartsheet shares increased by 7.58%, significantly outperforming the Zacks Internet - Software industry, which rose by only 0.29% [6] - In a longer timeframe, Smartsheet's shares have risen by 28.87% over the past quarter and 39.42% over the last year, compared to the S&P 500's increases of 4.59% and 34.78%, respectively [7] Trading Volume - The average 20-day trading volume for Smartsheet is 6,855,747 shares, indicating a strong trading interest [8] Earnings Outlook - In the past two months, 7 earnings estimates for Smartsheet have been revised upwards, while none have been revised downwards, raising the consensus estimate from $1.26 to $1.39 [10] - For the next fiscal year, 5 estimates have increased, while 2 have decreased, indicating a generally positive outlook [10]

Core Viewpoint - Johnson Fistel, LLP is investigating potential breaches of fiduciary duties by Smartsheet's board in relation to the proposed acquisition by Blackstone and Vista Equity Partners, which offers shareholders $56.50 per share in an all-cash transaction [1][2][3]. Group 1 - Smartsheet has accepted an acquisition proposal from Blackstone and Vista Equity Partners, with shareholders set to receive $56.50 per share [2]. - The investigation by Johnson Fistel focuses on whether Smartsheet's board adequately explored alternatives to the acquisition and secured the best possible price for shareholders [3]. - Analyst projections for Smartsheet's earnings and revenue growth indicate that the company's shares have historically traded at higher prices, raising questions about the fairness of the acquisition offer [3].

Group 1 - Monteverde & Associates PC is investigating Smartsheet Inc. regarding its proposed merger with Einstein Parent, Inc., where Smartsheet shareholders will receive $56.50 in cash per share [1] - Monteverde & Associates PC has been recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report, indicating its successful track record in recovering money for shareholders [1] - The firm operates from the Empire State Building in New York City and specializes in class action securities litigation [2] Group 2 - The firm encourages shareholders with concerns to contact them for additional information, emphasizing that no company, director, or officer is above the law [3] - Monteverde & Associates PC has a successful history in trial and appellate courts, including the U.S. Supreme Court, showcasing its legal expertise [2]

Group 1 - Smartsheet has agreed to be acquired by Blackstone and Vista Equity Partners for $8.4 billion, offering investors $56.50 per share, which is an 8.5% premium over the previous closing price [1][2] - The acquisition represents a 41% premium to the volume weighted average closing price for the 90 days leading up to July 17, prior to media reports about a potential sale [1] - Following the announcement, Smartsheet shares increased by more than 6%, reaching their highest levels since early 2022 [2] Group 2 - The merger aims to enhance Smartsheet's platform accessibility for all organizations and teams that rely on collaborative work for successful outcomes, according to Vista Equity Partners directors [2] - Smartsheet has a 45-day "go-shop" period to seek other potential buyers before the transaction is finalized, which is expected to close on January 31 [1]

Core Viewpoint - Wohl & Fruchter LLP is investigating the fairness of the proposed sale of Smartsheet, Inc. to Vista Equity Partners and Blackstone for $56.50 per share, which is below the price targets set by various Wall Street analysts [1][3]. Group 1: Sale Details - Smartsheet announced an agreement to be sold for $56.50 per share in cash on September 24, 2024 [2]. - The proposed sales price is lower than the price targets from several analysts, including $63.00 from Citi and $62.00 from Guggenheim [3]. Group 2: Investigation Purpose - The investigation aims to determine if the Smartsheet Board of Directors acted in the best interests of shareholders and if the agreed price is fair [3]. - It also seeks to confirm whether all material information regarding the transaction has been fully disclosed [3].

Acquisition Overview - Smartsheet, an enterprise work management software platform, will be acquired by Blackstone and Vista Equity Partners in an all-cash deal valued at $8.4 billion, with shareholders receiving $56.50 per share, representing a 41% premium over the stock's average closing price for the past three months [1] Involved Parties - Vista Equity Partners, co-founded by billionaire Robert F. Smith, specializes in enterprise software deals and manages over $100 billion in assets [2] - Blackstone, the world's largest private equity firm, has more than $1 trillion in assets [2] Investor Insights - Eminence Capital, managed by Ricky Sandler, is the largest hedge fund holder of Smartsheet, with 4.3 million shares as of the latest filing for Q2, representing the fund's sixth largest holding [3] - Eminence began acquiring Smartsheet shares in the second half of 2022 at around $34 each, increasing its position to 4.3 million shares with an average purchase price of about $36 per share [4] Financial Impact - With the acquisition price of $56.50 per share, Eminence Capital stands to gain approximately $90 million, reflecting a 60% increase in value over two years [4] Historical Context - This acquisition is not the first for Eminence Capital; the fund was also the largest hedge fund owner of Keurig Green Mountain during its acquisition by JAB Capital in 2015 at a 78% premium [5]