SurveyMonkey (SVMK) Tops Q3 EPS by 4c, Revenues Beat; Offers FY18 Revenue Guidance Above Consensus

SurveyMonkey (NASDAQ: SVMK) reported Q3 EPS of ($0.01), $0.04 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $65.2 million versus the consensus estimate of $62.86 million.

• 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.”

GUIDANCE:

SurveyMonkey sees FY2018 revenue of $251.2-253.2 million, versus the consensus of $248.85 million.

For earnings history and earnings-related data on SurveyMonkey (SVMK) click here.

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