SurveyMonkey Announces Third Quarter 2018 Financial Results
SAN MATEO, Calif. – Nov. 23, 2018 – SurveyMonkey Inc. (SurveyMonkey), a leading global survey software company, today announced that its parent company, SVMK Inc. (Nasdaq: SVMK, and collectively with SurveyMonkey referred to as “SVMK,” “we” or “us”), reported financial results for the third quarter ended September 30, 2018, and posted a shareholder letter with complete third quarter 2018 financial results and management commentary on its investor relations website.
Q3 2018 Financial Highlights
- Revenue of $65.2 million, an increase of 18% year over year. Core revenue, which excludes $0.4 million in revenue related to the non-self-serve portion of SurveyMonkey Audience in Q3 2017 (the final quarter with reported revenue), increased 19% year over year. Strength across the business drove our results.
- GAAP operating margin of (145%) and non-GAAP operating margin of 10%.
- GAAP operating margin and net loss for Q3 2018 included $89.9 million in stock-based compensation expense related to the achievement of the liquidity event-related performance condition in connection with our initial public offering (IPO) for certain restricted stock units that met their service-based vesting condition as of the end of Q3 2018 and $1.2 million in employer payroll tax expense related to these restricted stock units.
- Q3 2018 net loss was ($102.4) million, largely due to the IPO-related stock-compensation charge. Adjusted EBITDA was $17.0 million.
- Net cash provided by operating activities of $12.0 million and unlevered free cash flow of $11.4 million.
“We are off to a great start as a public company resulting from our strong execution and focus,” said SurveyMonkey CEO, Zander Lurie. “SurveyMonkey was built on the belief that empowering individuals across organizations to engage with their key constituents is paramount to success. The importance of organizations understanding the voices and opinions of their customers and employees is more acute than ever. I’m confident in our strategy, our competitive position and the team we have to execute against our global opportunity.”
“We delivered healthy revenue growth and robust cash flow in the third quarter,” said SurveyMonkey CFO & COO, Tim Maly. “We see continued momentum in our core self-serve channel and acceleration in our sales-assisted channel with our enterprise-grade survey platform and suite of purpose-built software solutions. We see a steady path to higher monetization selling our new products into our large footprint of organizations with active SurveyMonkey usage.”
Q4 2018 and FY 2018 Financial Outlook
Initial Public Offering and Concurrent Private Placement with Salesforce Ventures LLC
On September 28, 2018, we completed our IPO and a concurrent private placement with Salesforce Ventures LLC, in which we issued and sold an aggregate of 20,583,333 shares of our common stock at $12 per share. Proceeds from the IPO and concurrent private placement, net of underwriters’ discounts, commissions, and offering costs totaled $225.3 million.
In October 2018, we refinanced our 2017 Credit Facility and paid down $101.3 million of our existing debt.
Conference Call Information
We will host a conference call today to review our third quarter financial results and to discuss our business results and financial outlook. This call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m. ET and can be accessed by dialing (866) 417-2046 from the United States or (409) 217-8231 internationally with reference to the company name and conference title, and a live webcast and replay of the conference call can be accessed from the SurveyMonkey investor relations website at investor.surveymonkey.com. Following the completion of the call, a telephonic replay will be available through 11:59 PM ET on November 20, 2018 at (855) 859-2056 from the United States or (404) 537-3406 internationally with recording access code 9976356#.
Zander Lurie, CEO, will be presenting at the 2018 Credit Suisse Technology, Media & Telecom Conference in Scottsdale, AZ, on Tuesday, November 27, 2018. A live webcast will be accessible from the SurveyMonkey investor relations website. Following the event, a replay will be made available at the same location.
An archived webcast of the conference call will be accessible on the Investor Relations section of the company’s website, https://investor.surveymonkey.com. A telephonic replay of the conference call will be available until Tuesday, November 20, 2018, by dialing (855) 859-2056 or (404) 537-3406 and entering passcode 9976356#.
Founded in 1999, SurveyMonkey changed the way people gather feedback by making it easy for anyone to create their own online surveys. Our mission is to power curious individuals and organizations around the globe to measure, benchmark and act on the opinions that drive success. Our People Powered Data platform enables organizations of any size to have conversations at scale to deliver impactful customer, employee and market insights. Our 750+ employees are dedicated to fueling the curiosity of over 16 million active users globally.
Source: SurveyMonkey Inc.
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