SurveyMonkey (SVMK) Tops Q4 EPS by 2c, Revenues Beat; Offers Q1 & FY20 Revenue Guidance Above Consensus

SurveyMonkey (NASDAQ: SVMK) reported Q4 EPS of ($0.02), $0.02 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $84.3 million versus the consensus estimate of $83.83 million.

Q4 2019 Key Results

• Revenue was $84.3 million, an increase of 24% year-over-year.
• Enterprise sales revenue was approximately 25% of total revenue, up from approximately 13% in Q4 2018 and 23% in Q3 2019. We ended the quarter with 6,578 enterprise sales customers, up 84% from 3,566 in Q4 2018.
• Deferred revenue was $141 million, an increase of 39% year-over-year. Remaining performance obligation was $160.7M, an increase of 45% year-over-year.
• Paying users totaled 720,921, an increase of 74,194, or 11% from 646,727 in Q4 2018, and an increase of 7,704 paying users from Q3 2019. Approximately 84% of our paying users were on annual plans, up from 77% a year ago.
• Average revenue per user was $467, up 10% from $425 in Q4 2018 and up 4% from $448 in Q3 2019.
• GAAP operating margin was (23%) and non-GAAP operating margin was (1%).
• GAAP net loss was ($21.3) million and Adjusted EBITDA was $8.3 million.
• GAAP basic and diluted net loss per share was ($0.16). Non-GAAP basic and diluted net loss per share was ($0.02).
• Net cash provided by operating activities was $9.4 million, free cash flow was $6.6 million and unlevered free cash flow was $9.7 million for 11%, 8% and 11% margin, respectively.

“SurveyMonkey delivered a strong fourth quarter with 24% year-over-year revenue growth. Enterprise sales accounted for 25% of our revenue, up from 13% one year ago. We added world-class businesses to our growing customer roster, including CBS Interactive, Duracell, CORT, and Office Depot Europe,” said Zander Lurie, CEO at SurveyMonkey. “2019 was a banner year for the company: we expanded our global footprint with the launch of our Dublin data center and the acquisition of Usabilla in Amsterdam, acquired GetFeedback to enhance our Customer Experience solutions for the Salesforce ecosystem, and eclipsed $300 million of annual revenue. Our disciplined investments enabled us to deliver 17% unlevered free cash flow margin in conjunction with our accelerated revenue growth. I’ve never been more excited about the opportunity ahead.”

GUIDANCE:

SurveyMonkey sees Q1 2020 revenue of $85-86 million, versus the consensus of $84.08 million.

SurveyMonkey sees FY2020 revenue of $375-381 million, versus the consensus of $372 million.

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

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