SurveyMonkey (SVMK) Reports In-Line Q3 EPS

SurveyMonkey (NASDAQ: SVMK) reported Q3 EPS of ($0.01), in-line with the analyst estimate of ($0.01). Revenue for the quarter came in at $95.4 million versus the consensus estimate of $95.19 million.

Q3 2020 Key Results

• Total revenue was $95.4 million, an increase of 20% year-over-year.
• Enterprise sales revenue was $27.4 million, an increase of 53% year-over-year. Enterprise sales revenue accounted for approximately 29% of total revenue, up from approximately 23% in Q3 2019. We ended the quarter with approximately 7,700 enterprise sales customers, up 25% from approximately 6,100 in Q3 2019.
• Self-serve revenue was $68.0 million, an increase of 11% year-over-year.
• Deferred revenue was $165.1 million, an increase of 24% year-over-year. Remaining performance obligations (RPO) were $183.3 million, an increase of 20% year-over-year.
• Paying users totaled approximately 803,000, an increase of approximately 90,000, or 13% from more than 713,000 in Q3 2019, and an increase of approximately 22,000 paying users from Q2 2020. Approximately 87% of our paying users were on annual plans, up from 82% a year ago.
• Average revenue per user was $478, up approximately 7% from $448 in Q3 2019.
• GAAP operating margin was negative 23.7% and non-GAAP operating margin was 2.2%.
• GAAP net loss was $26.1 million and GAAP basic and diluted net loss per share was $0.19. Non-GAAP net loss was $1.3 million and non-GAAP basic and diluted net loss per share was approximately $0.01.
• Net cash provided by operating activities was $17.9 million and free cash flow was $16.2 million for 18.7% and 17.0% margin, respectively.
• Cash and cash equivalents totaled $206.3 million and total debt was $214.1 million for net debt of $7.8 million as of September 30, 2020.

“With 20% year-over-year revenue growth, nearly 450 sequential new enterprise customers, and more than $16 million in free cash flow, SurveyMonkey posted another strong quarter in Q3,” said Zander Lurie, chief executive officer of SurveyMonkey. “We continued our move up-market as organizations like Calendly, Calm, Gainsight, GAF Materials, McDonald’s Japan, NerdWallet, and Trustmark chose our powerful, agile software to turn feedback into action. Our launch of the GetFeedback platform positions us to be a force in customer experience, a market that is hungry for a cost-efficient solution as organizations increasingly prioritize customer feedback on their digital transformation journey.”

GUIDANCE:

SurveyMonkey sees Q4 2020 revenue of $99-101 million, versus the consensus of $100.62 million.

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

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