SurveyMonkey (SVMK) Tops Q1 EPS by 1c, Revenues Beat; Offers 2Q Revenue Guidance Below Consensus

SurveyMonkey (NASDAQ: SVMK) reported Q1 EPS of ($0.03), $0.01 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $88.3 million versus the consensus estimate of $85.46 million.

Q1 2020 Key Results

• Revenue was $88.3 million, an increase of 29% year-over-year.
• Enterprise sales revenue was approximately 29% of total revenue, up from approximately 16% in Q1 2019 and 25% in Q4 2019. We ended the quarter with 6,800 enterprise sales customers, up 75% from 3,900 in Q1 2019.
• Deferred revenue was $152.0 million, an increase of 37% year-over-year. Remaining performance obligation was $169.1 million, an increase of 39% year-over-year.
• Paying users totaled 746,200, an increase of 75,300, or 11% from 670,900 in Q1 2019, and an increase of 25,200 paying users from Q4 2019. Approximately 85% of our paying users were on annual plans, up from 78% a year ago.
• Average revenue per user was $483, up 14% from $423 in Q1 2019 and up 3% from $467 in Q4 2019.
• GAAP operating margin was (25.2)% and non-GAAP operating margin was (1.6)%.
• GAAP net loss was ($24.3) million and GAAP basic and diluted net loss per share was ($0.18). Non-GAAP net loss was ($4.3) million basic and diluted net loss per share was ($0.03).
• Net cash provided by operating activities was $4.2 million and free cash flow was $0.9 million for 4.8% and 1.0% margin, respectively.
• Cash and cash equivalents totaled $144.6 million and total debt was $215.0 million for net debt of $70.4 million as of March 31, 2020.

“SurveyMonkey’s product suite is uniquely positioned to help our customers navigate this period of uncertainty. Listening to stakeholder feedback and taking action is a top priority for organizational leaders in unstable times. The results we delivered this quarter underscore the power of a market leading brand and agile software solutions that deliver value and results with speed,” said Zander Lurie, chief executive officer at SurveyMonkey. “In Q1, we welcomed world-class businesses including Kraft Heinz, Unilever, Informatica, Darden Restaurants, and Travix to our growing roster. We drove 29% year-over-year revenue growth and shipped important new products for Customer Experience and Market Research customers. The combination of our durable subscription-based business model paired with our price-disruptive solutions provides for a strong foundation in any economic environment. Our team is dedicated to serving our largest enterprise and government customers with packaged solutions and services as well as meeting the needs of our SMB and nonprofit clients with templates and flexible packages. I am heartened by our focused strategy and strong balance sheet, and I’m confident we will emerge an even stronger company on the other side of this health and economic crisis.”

GUIDANCE:

SurveyMonkey sees Q2 2020 revenue of $87-90 million, versus the consensus of $91.9 million.

• Given the increased uncertainty in the macroeconomic environment, SurveyMonkey is withdrawing its previously-issued full year 2020 financial outlook. The company will continue to provide quarterly guidance and expects to return to providing full year guidance once the pandemic’s impact on its business becomes clearer.

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

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