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SurveyMonkey Announces First Quarter 2019 Financial Results

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SAN MATEO, Calif., May 08, 2019 (GLOBE NEWSWIRE) -- SurveyMonkey Inc. (“SurveyMonkey”), a leading global survey software company, announced today that its parent company, SVMK Inc. (Nasdaq: SVMK, and collectively with SurveyMonkey referred to as “SVMK”, “we” or “us”), reported first quarter 2019 financial results for the period ended March 31, 2019, and posted a shareholder letter with complete first quarter 2019 financial results and management commentary on its investor relations website at investor.surveymonkey.com.

Q1 2019 Key Results

  • Revenue was $68.6 million for 17% year-over-year growth.

  • Paying users totaled 670,862 compared to 610,457 in Q1 2018, for 10% year-over-year growth, and up 24,135 paying users from Q4 2018, for 4% quarter-over-quarter growth. Approximately 78% of our paying users were on annual plans, up from 75% in Q1 2018 and 77% in Q4 2018.

  • Average revenue per user was $423 compared to $390 in Q1 2018, for 8% year-over-year growth, and down slightly from $425 in Q4 2018.

  • Enterprise sales revenue was approximately 16% of total revenue, up from approximately 13% in Q4 2018. We ended the quarter with 3,909 enterprise sales customers, up from 2,838 in Q1 2018, for 37% year-over-year growth, and an increase of 343 customers from Q4 2018.

  • GAAP operating margin was (24%) and non-GAAP operating margin was 0%.

  • GAAP net loss was ($17.8) million and Adjusted EBITDA was $8.5 million.

  • GAAP basic and diluted net loss per share was ($0.14). Non-GAAP basic and diluted net loss per share was ($0.02).

  • Net cash provided by operating activities was $7.8 million and unlevered free cash flow was $7.5 million, for an 11% margin.

  • On April 1, 2019, we closed our acquisition of Usabilla. In Q1 2019, we incurred approximately $0.9 million in transaction costs in connection with this acquisition which impacted our operating expenses and cash flows for the quarter.

  • Cash and cash equivalents was $165.9 million and total debt was $216.9 million for net debt of $51.0 million. Subsequent to Q1 2019, our acquisition of Usabilla resulted in a net cash outlay of approximately $53 million.

“Our Q1 2019 results mark a strong start to the year and demonstrate the continued progress against the execution plan we outlined during our IPO. Our paying user growth continues to accelerate driven by sales of SurveyMonkey Enterprise and adoption of our collaborative Teams plans with approximately 90% of the net adds in the quarter from annual plans. Our recent acquisition of Usabilla strengthens our international presence and we believe our combined software solutions offer unparalleled value to customer-centric marketers and will further accelerate our enterprise sales,” said SurveyMonkey CEO Zander Lurie. “We continue to deliver solid revenue growth and robust cash flow, and have increased confidence in the strategy we are executing to scale our business.”

Financial Outlook

Q2 2019

Revenue

$72 million - $73 million

15% - 16% YoY growth

Non-GAAP operating margin

(4%) - (2%)


FY 2019

Revenue

$298 million - $304 million

17% - 20% YoY growth

Non-GAAP operating margin

(1%) - +1%

Unlevered free cash flow

$50 million - $53 million

17% margin

With the strength in our Teams offering and enterprise sales, coupled with the acquisition of Usabilla, we’re updating our financial outlook for Q2 2019 and full-year 2019.

Our financial outlook includes contribution from Usabilla beginning April 1, 2019. The revenue contribution from Usabilla will be impacted by ASC 805 fair value purchase accounting adjustments to deferred revenue that will reduce the amount of revenue to be recognized. We expect the headwind from the deferred revenue adjustment to be strongest in Q2 2019 and then have decreasing impact over the course of the year. Post the deferred revenue adjustment, we expect Usabilla to contribute approximately two points of revenue growth towards our full year 2019 financial outlook – a disproportionate percentage of which will be recognized in the second half of the year. We also expect Usabilla to be a headwind on non-GAAP operating margin and unlevered free cash flow margin.

We are forecasting revenue in Q2 2019 to grow 15% to 16%. In Q2 2018, we benefited from the pricing changes to our self-serve customers that began in mid-2017 and drove maximum core revenue impact with 21% year-over-year growth, setting up a more difficult comparison from a year-over-year growth perspective in Q2 2019.

We expect our growth initiatives in enterprise sales and our collaborative Teams offering, combined with the integration of Usabilla, to drive accelerating revenue growth in the second half of 2019.

As we shared previously, we adopted the new lease accounting guidance under ASC 842, effective January 1, 2019. Under this guidance, lease payments associated with our San Mateo headquarters are now accounted for as an operating expense in the condensed consolidated statements of operations. Prior to the adoption of ASC 842, these lease payments were primarily accounted for as interest expense. As a result of this change, non-GAAP operating income in Q1 2019 was impacted by approximately $1.5 million and we expect the full-year impact to be approximately $6 million. There is no impact to free cash flow from this change. For comparison purposes, under the new accounting guidance, non-GAAP operating margin for Q2 2018 and full-year 2018 would have been 6.1% and 3.6%, respectively.

Conference Call Information

We will host a conference call today to discuss our Q1 2019 business and financial results. This call is scheduled to begin at 2:00 pm PT / 5:00 pm ET and can be accessed by dialing (866) 417-2046 or (409) 217-8231. To listen to a live audio webcast, please visit SurveyMonkey’s Investor Relations website at investor.surveymonkey.com. A replay of the audio webcast will be available on the same website following the call. A telephonic replay will be available through May 15, 2019 by dialing (855) 859-2056 or (404) 537-3406 and entering passcode 2065413#.

Upcoming Events

Zander Lurie, CEO and Interim CFO, will be presenting at the 2019 J.P. Morgan Global Technology, Media & Communications Conference in Boston, MA on Tuesday, May 14, 2019. A live webcast will be accessible from the SurveyMonkey investor relations website at investor.surveymonkey.com. Following the event, a replay will be made available at the same location.

About SurveyMonkey

SurveyMonkey is a leading global survey software company on a mission to power the curious. The company’s People Powered Data platform empowers over 17 million active users to measure and understand feedback from employees, customers, website and app users, and the market. SurveyMonkey’s products, enterprise solutions and integrations enable 350,000+ organizations to solve daily challenges, from delivering better customer experiences to increasing employee retention. With SurveyMonkey, organizations around the world can transform feedback into business intelligence that drives growth and innovation.

Investor Relations Contact:
Karim Damji
investors@surveymonkey.com

Media Contact:
Sandra Gharib
sandrag@surveymonkey.com

Source: SurveyMonkey Inc.

SVMK INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (1)

(in thousands)

March 31,
2019

December 31,
2018

Assets

Current assets:

Cash and cash equivalents

$

165,910

$

153,807

Accounts receivable, net of allowance

7,189

7,336

Deferred commissions, current

2,248

1,981

Prepaid expenses and other current assets

15,219

7,081

Total current assets

190,566

170,205

Property and equipment, net

45,532

117,718

Operating lease right-of-use assets

60,266

Capitalized internal-use software, net

33,710

33,280

Acquisition intangible assets, net

8,299

9,324

Goodwill

336,861

336,861

Deferred commissions, non-current

3,932

3,317

Other assets

8,554

8,643

Total assets

$

687,720

$

679,348

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

2,983

$

2,804

Accrued expenses and other current liabilities

11,937

9,692

Accrued compensation

11,730

20,070

Deferred revenue

110,691

101,236

Operating lease liabilities, current

6,139

Debt, current

1,900

1,900

Total current liabilities

145,380

135,702

Deferred tax liabilities

4,341

4,246

Debt, non-current

215,040

215,515

Financing obligation on leased facility

92,009

Operating lease liabilities, non-current

82,528

Other non-current liabilities

5,436

12,493

Total liabilities

452,725

459,965

Commitments and contingencies

Stockholders’ equity:

Preferred stock

Common stock

1

1

Additional paid-in capital

582,652

551,937

Accumulated other comprehensive loss

(306

)

(287

)

Accumulated deficit

(347,352

)

(332,268

)

Total stockholders’ equity

234,995

219,383

Total liabilities and stockholders’ equity

$

687,720

$

679,348

(1) The Company adopted ASC 842 as of January 1, 2019 on a prospective basis. Amounts presented for as of March 31, 2019 are under ASC 842 and amounts presented as of December 31, 2018 are under ASC 840.


SVMK INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (1)

Three Months Ended
March 31,

(in thousands, except per share amounts)

2019

2018

Revenue

$

68,641

$

58,491

Cost of revenue(2)(3)

17,530

18,063

Gross profit

51,111

40,428

Operating expenses:

Research and development(2)

20,806

17,940

Sales and marketing (2)(3)

26,050

17,421

General and administrative(2)

20,556

13,018

Restructuring

(66

)

5

Total operating expenses

67,346

48,384

Loss from operations

(16,235

)

(7,956

)

Interest expense

3,659

7,094

Other non-operating income (expense), net

1,979

633

Loss before income taxes

(17,915

)

(14,417

)

Provision for (benefit from) income taxes

(138

)

300

Net loss

$

(17,777

)

$

(14,717

)

Net loss per share, basic and diluted

$

(0.14

)

$

(0.15

)

Weighted-average shares used in computing basic and diluted net loss per share

126,786

101,212

(1) The Company adopted ASC 842 as of January 1, 2019 on a prospective basis. Amounts presented for the three months ended March 31, 2019 are under ASC 842 and amounts presented for the three months ended March 31, 2018 are under ASC 840.

(2) Includes stock-based compensation, net of amounts capitalized as follows:

Three Months Ended
March 31,

(in thousands)

2019

2018

Cost of revenue

$

1,096

$

658

Research and development

4,766

3,447

Sales and marketing

2,780

768

General and administrative

6,469

3,667

Stock-based compensation, net of amounts capitalized

$

15,111

$

8,540

(3) Includes amortization of acquisition intangible assets as follows:

Three Months Ended
March 31,

(in thousands)

2019

2018

Cost of revenue

$

488

$

488

Sales and marketing

537

604

Amortization of acquisition intangible assets

$

1,025

$

1,092


SVMK INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three Months Ended March 31,

(in thousands)

2019

2018

Cash flows from operating activities

Net loss

$

(17,777

)

$

(14,717

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

9,655

11,979

Non-cash leases expense

1,338

Stock-based compensation expense, net of amounts capitalized

15,111

8,540

Amortization of debt discount and issuance costs

75

242

Deferred income taxes

95

143

Gain on sale of a private company investment

(1,001

)

(999

)

Other

(154

)

175

Changes in assets and liabilities:

Accounts receivable

163

(763

)

Prepaid expenses and other assets

(2,184

)

(1,857

)

Accounts payable and accrued liabilities

2,991

1,099

Accrued interest on financing lease obligation, net of payments

(358

)

Accrued compensation

(8,359

)

(7,449

)

Deferred revenue

9,575

9,728

Operating lease liabilities

(1,725

)

Net cash provided by operating activities

7,803

5,763

Cash flows from investing activities

Purchases of property and equipment

(581

)

(880

)

Capitalized internal-use software

(3,150

)

(2,640

)

Proceeds from sale of a private company investment

1,001

999

Net cash used in investing activities

(2,730

)

(2,521

)

Cash flows from financing activities

Proceeds from stock option exercises

7,640

1

Employee payroll taxes paid for net share settlement of restricted stock units

(1,765

)

Repayment of debt

(550

)

(750

)

Net cash provided by (used in) financing activities

7,090

(2,514

)

Effect of exchange rate changes on cash

(44

)

Net increase in cash, cash equivalents and restricted cash

12,119

728

Cash, cash equivalents and restricted cash at beginning of period

154,371

35,345

Cash, cash equivalents and restricted cash at end of period

$

166,490

$

36,073

Supplemental cash flow data:

Interest paid for term debt

$

3,423

$

5,126

Interest paid for financing obligation on leased facility

$

$

2,038

Cash paid for operating leases

$

3,438

$

Income taxes paid (refunds received)

$

247

$

(33

)

Non-cash investing and financing transactions:

Stock compensation included in capitalized software costs

$

953

$

327

Proceeds receivable from stock option exercises

$

6,779

$

Accrued unpaid capital expenditures

$

517

$

1,893

Derecognized financing obligation related to building due to adoption of ASC 842

$

92,009

$

Derecognized building due to adoption of ASC 842

$

71,781

$

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents at beginning of period

$

153,807

$

35,345

Restricted cash (included in other assets) at beginning of period

564

Total cash, cash equivalents and restricted cash at beginning of period

$

154,371

$

35,345

Cash and cash equivalents at end of period

$

165,910

$

36,073

Restricted cash (included in other assets) at end of period

580

Total cash, cash equivalents and restricted cash at end of period

$

166,490

$

36,073


SVMK INC.

RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) (1)

Three Months Ended March 31, 2019

(in thousands, except percentages and per share amounts)

GAAP

GAAP
% of Revenue(3)

Stock-based
compensation,
net

Amortization
of intangible
assets

Restructuring

Gain on sale
of a private
company
investment

Non-GAAP

Non-GAAP
% of Revenue(3)

Revenue

$

68,641

100

%

$

$

$

$

$

68,641

100

%

Cost of revenue

17,530

26

%

(1,096

)

(488

)

15,946

23

%

Gross profit

51,111

74

%

1,096

488

52,695

77

%

Operating expenses:

Research and development

20,806

30

%

(4,766

)

16,040

23

%

Sales and marketing

26,050

38

%

(2,780

)

(537

)

22,733

33

%

General and administrative

20,556

30

%

(6,469

)

14,087

21

%

Restructuring

(66

)

%

66

%

Total operating expenses

67,346

98

%

(14,015

)

(537

)

66

52,860

77

%

Loss from operations

(16,235

)

(24

)%

15,111

1,025

(66

)

(165

)

%

Interest expense

3,659

5

%

3,659

5

%

Other non-operating income (expense), net

1,979

3

%

(1,001

)

978

1

%

Loss before income taxes

(17,915

)

(26

)%

15,111

1,025

(66

)

(1,001

)

(2,846

)

(4

)%

Benefit from income taxes(2)

(138

)

%

(94

)

(232

)

%

Net loss

$

(17,777

)

(26

)%

$

15,111

$

1,119

$

(66

)

$

(1,001

)

$

(2,614

)

(4

)%

Net loss per share, basic and diluted

$

(0.14

)

$

(0.02

)

Weighted-average shares used in computing basic and diluted net loss per share

126,786

126,786

(1) Please see Appendix A for explanation of non-GAAP measures used.
(2) Due to the full valuation allowance on our US deferred tax assets, there were no tax effects associated with the Non-GAAP adjustments for stock-based compensation, net, restructuring and gain on sale of a private company investment. Non-GAAP adjustments to our benefit from income taxes pertains to deferred tax expense related to amortization of acquisition intangible assets.
(3) Percentages may not sum due to rounding.


SVMK INC.

RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) (1)

Three Months Ended March 31, 2018

(in thousands, except percentages and per share amounts)

GAAP

GAAP
% of Revenue(3)

Stock-based
compensation,
net

Amortization of
intangible
assets

Restructuring

Gain on sale
of a private
company
investment

Non-GAAP

Non-GAAP
% of Revenue(3)

Revenue

$

58,491

100

%

$

$

$

$

$

58,491

100

%

Cost of revenue

18,063

31

%

(658

)

(488

)

16,917

29

%

Gross profit

40,428

69

%

658

488

41,574

71

%

Operating expenses:

Research and development

17,940

31

%

(3,447

)

14,493

25

%

Sales and marketing

17,421

30

%

(768

)

(604

)

16,049

27

%

General and administrative

13,018

22

%

(3,667

)

9,351

16

%

Restructuring

5

%

(5

)

%

Total operating expenses

48,384

83

%

(7,882

)

(604

)

(5

)

39,893

68

%

(Loss) Income from operations

(7,956

)

(14

)%

8,540

1,092

5

1,681

3

%

Interest expense

7,094

12

%

7,094

12

%

Other non-operating income (expense), net

633

1

%

(999

)

(366

)

(1

)%

Loss before income taxes

(14,417

)

(25

)%

8,540

1,092

5

(999

)

(5,779

)

(10

)%

Provision for income taxes(2)

300

1

%

(139

)

161

%

Net loss

$

(14,717

)

(25

)%

$

8,540

$

1,231

$

5

$

(999

)

$

(5,940

)

(10

)%

Net loss per share, basic and diluted

$

(0.15

)

$

(0.06

)

Weighted-average shares used in computing basic and diluted net loss per share

101,212

101,212

(1) Please see Appendix A for explanation of non-GAAP measures used.
(2) Due to the full valuation allowance on our US deferred tax assets, there were no tax effects associated with the Non-GAAP adjustments for stock-based compensation, net, restructuring, and gain on sale of a private company investment. Non-GAAP adjustments to our provision for income taxes pertains to deferred tax expense related to amortization of acquisition intangible assets.
(3) Percentages may not sum due to rounding.


SVMK INC.

RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) (1)(2)

Calculation of Unlevered Free Cash Flow

Three Months Ended March 31,

(in thousands)

2019

2018

Net cash provided by operating activities

$

7,803

$

5,763

Purchases of property and equipment, net

(581

)

(880

)

Capitalized internal-use software

(3,150

)

(2,640

)

Interest paid for term debt

3,423

5,126

Unlevered free cash flow

$

7,495

$

7,369

Calculation of Adjusted EBITDA

Three Months Ended March 31,

(in thousands)

2019

2018

Net loss

$

(17,777

)

$

(14,717

)

Provision for (benefit from) income taxes

(138

)

300

Other non-operating (income) expenses, net

(1,979

)

(633

)

Interest expense

3,659

7,094

Depreciation and amortization

9,655

11,979

Stock-based compensation, net

15,111

8,540

Restructuring

(66

)

5

Adjusted EBITDA

$

8,465

$

12,568

(1) Please see Appendix A for explanation of non-GAAP measures used.
(2) The Company adopted ASC 842 as of January 1, 2019 on a prospective basis. Amounts presented for the three months ended March 31, 2019 are under ASC 842 and amounts presented for the three months ended March 31, 2018 are under ASC 840.


APPENDIX A

SVMK INC.
EXPLANATION OF NON-GAAP MEASURES

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP (“GAAP”), we use the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net loss, non-GAAP net loss per share, adjusted EBITDA and unlevered free cash flow. Our definition for each non-GAAP measure used is provided below, however a limitation of non-GAAP financial measures are that they do not have uniform definitions. Accordingly, our definitions for non-GAAP measures used will likely differ from similarly titled non-GAAP measures used by other companies thereby limiting comparability.

With regards to the Non-GAAP guidance provided above, a reconciliation to the corresponding GAAP amounts are not provided as the quantification of certain items excluded from each respective non-GAAP measure, which may be significant, cannot be reasonably calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense, net, requires additional inputs such as number of shares granted and market price that are not currently ascertainable.

Non-GAAP gross profit, non-GAAP gross margin: We define non-GAAP gross profit as GAAP gross profit less stock-based compensation, net and less amortization of intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.

Non-GAAP operating income (loss): We define non-GAAP operating income (loss) as GAAP operating loss less stock-based compensation, net, less amortization of intangible assets and less restructuring.

Non-GAAP net loss, non-GAAP net loss per share: We define non-GAAP net loss as GAAP net loss less stock-based compensation, net, less amortization of intangible assets, less restructuring, and less gain on sale of a private company investment. Non-GAAP net loss per share is defined as non-GAAP net loss divided by the weighted-average shares outstanding.

We use these non-GAAP measures to compare and evaluate our operating results across periods in order to manage our business, for purposes of determining executive and senior management incentive compensation, and for budgeting and developing our strategic operating plans. We believe that these non-GAAP measures provide useful information about our operating results, enhance the overall understanding of our past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by our management in evaluating our financial performance and for operational decision making, but they are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

We have excluded the effect of the following items from the aforementioned non-GAAP measures because they are non-cash and/or are non-recurring in nature and because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance and liquidity. We further believe this measure is useful to investors in that it allows for greater transparency to certain line items in our financial statements and facilitates comparisons to historical operating results and comparisons to peer operating results. A description of the non-GAAP adjustments for the above measures is as follows:

  • Stock-based compensation, net: We incur stock based-compensation expense on a GAAP basis resulting from equity awards granted to our employees. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

  • Amortization of intangible assets: We incur amortization expense on intangible assets on a GAAP basis resulting from prior acquisitions. Amortization of acquired intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of any acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of acquired intangible assets will recur in future periods.

  • Restructuring: Restructuring expenses consist of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. We expect that restructuring costs will generally diminish over time with respect to past acquisitions and/or strategic initiatives. However, we may incur these expenses in future periods in connection with any new acquisitions and/or strategic initiatives.

  • Gain on sale of a private company investment: Gain on sale of a private company investment because it was recognized on a GAAP basis resulting from the sale of certain corporate assets. We expect that such transactions will be infrequent in occurrence and are therefore excluded from our Non-GAAP results as they do not otherwise relate to our core business operations.

For more information on the non-GAAP financial measures, please see the “Reconciliation of GAAP to Non-GAAP Data” section of this press release. The accompanying tables provide details on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures and the related reconciliations between those financial measures.

Adjusted EBITDA: We define adjusted EBITDA as net loss excluding provision for (benefit from) income taxes, other non-operating expenses (income), net, interest expense, depreciation and amortization, stock-based compensation, net, and restructuring. We consider adjusted EBITDA to be an important measure because it helps illustrate underlying trends in our business that could otherwise be masked by the effect of the income or expenses that are not indicative of the core operating performance of our business that are excluded from adjusted EBITDA. Adjusted EBITDA has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures. Some of the limitations of adjusted EBITDA are that it excludes recurring expenses for interest payments, does not reflect the dilution that results from stock-based compensation, and does not reflect the cost to replace depreciated property and equipment. It may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure.

Unlevered free cash flow: Unlevered free cash flow is a liquidity measure used by management in evaluating the cash generated by our operations after purchases of property and equipment and capitalized internal-use software but prior to the impact of our capital structure. The usefulness of unlevered free cash flow as an analytical tool is limited because it excludes certain items which are settled in cash, does not represent residual cash flow available for discretionary expenses, does not reflect our future contractual commitments, and is calculated differently by other companies in our industry. Accordingly, it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by operating activities.

Safe Harbor Statement

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements about our products, including our investments in products, technology and other key strategic areas. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements the company makes.

The risks and uncertainties referred to above include - but are not limited to - risks related to our ability to retain and upgrade customers; our revenue growth rate; our brand; our marketing strategies; our self-serve business model; the length of our sales cycles; the growth and development of our salesforce; security measures; expectations regarding our ability to timely and effectively scale and adapt existing technology and network infrastructure to ensure that our products and services are accessible at all times; competition; our debt; revenue recognition; our ability to manage our growth; our culture and talent; our data centers; privacy, security and data transfer concerns, as well as changes in regulations, which could impact our ability to serve our customers or curtail our monetization efforts; litigation and regulatory issues; expectations regarding the return on our strategic investments; execution of our plans and strategies, including with respect to mobile products and features and expansion into new areas and businesses; our international operations; intellectual property; the application of U.S. and international tax laws on our tax structure and any changes to such tax laws; acquisitions we have made or may make in the future; the price volatility of our common stock; and general economic conditions.

Further information on these and other factors that could affect our financial results is included in filings it makes with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in the Form 10-Q that will be filed for the quarter ended March 31, 2019, which should be read in conjunction with these financial results. These documents are or will be available on the SEC Filings section of our Investor Relations website page at investor.surveymonkey.com. All information provided in this release and in the attachments is as of May 8, 2019, and we undertake no obligation to update this information.