12 Best Small Cap Tech Stocks to Buy

2. Smartsheet Inc. (NYSE:SMAR)

Market Capitalization as of September 11: $7.12 billion

Number of Hedge Fund Holders: 57

Smartsheet Inc. (NYSE:SMAR) is a cloud-based work management platform offering collaborative workspaces by helping teams plan, track, and manage projects and tasks. It offers features like Gantt charts, Kanban boards, and real-time collaboration tools, making it a popular choice for businesses of all sizes.

In June, the company launched a new pricing and packaging model, that offers more flexibility and options for customers. It simplifies pricing, allows for more users, and provides broader access to features. 1000s of new customers have started using the new pricing model.

Smartsheet Inc. (NYSE:SMAR) had a strong second quarter of fiscal 2025, with 75 customers increasing their spending by over $100,000. It now has 77 customers spending over $1 million per year, which is a 50% increase from last year. The annual recurring revenue is $1.093 billion, and the company over 15.3 million users. Total revenue generated in FQ2 2025 was $276.41 million, recording a 17.33% improvement from the same quarter last fiscal year.

It signed new customers like Intuit, Skechers, and City National Bank. There was a recent large deal with a Big 4 consulting firm to use Smartsheet Inc. (NYSE:SMAR) to streamline their client engagement. This customer estimates that Smartsheet Inc. (NYSE:SMAR) saved their team 39,000 working hours and reduced their project delivery costs by nearly 12%.

With strong growth, innovative features, and a focus on customer satisfaction, the company is well-positioned for continued success. It is held by 57 hedge funds, of which the largest position is $285,050,902 by Vista Equity Partners.

Brown Capital Management Small Company Fund stated the following regarding Smartsheet Inc. (NYSE:SMAR) in its Q2 2024 investor letter:

“Second, our portfolio holdings are well positioned to exploit future opportunities. We invest in many companies that are producing AI-based applications for their businesses and customers. Examples include enterprise-software companies with industry-specific data, such as Appfolio (APPF) and Smartsheet Inc. (NYSE:SMAR). Recently Appfolio released updated Generative AI features that help users increase productivity through automation. Smartsheet has integrated AI features into its services, including formula generation, data analytics and a chat bot. Investing in AI now, even though overall revenue growth is depressed, will leave these companies with even better products. Additionally, adoption of these tools could lead to more licenses sold as well as higher-priced licenses per user.”