Survey software company SVMK Inc (NASDAQ: SVMK) on Thursday reported another encouraging earnings print coupled with "robust" forward looking commentary, according to UBS.
UBS's Eric Sheridan upgraded SurveyMonkey from Neutral to Buy with a price target lifted from $18 to $24.
SurveyMonkey's second-quarter report was highlighted by a revenue beat driven by enterprise sales and strong performance in the Teams business, Sheridan wrote in a note. The company also showed an uptick in annual paying users who are on annual plans from 75% last year to 80%. Similarly, Enterprise sales as a percentage of total revenue rose from 16% last quarter to 20% in the second quarter.
Other positive takeaways from the quarter include enterprise sales customers increased by 60% last year to 4,777 and management discussed favorably its partnership with salesforce.com, inc. (NYSE: CRM) to include SurveyMonkey Audience and Usabilla.
SurveyMonkey's investment profile is raised as the company demonstrated three keys to future success, including: execution, product and partnerships. Succeeded on these three fronts should be viewed favorably by investors as it offers greater confidence in the company's ability to sustain a 20% or more growth rate over the coming five years.
Shares of SurveyMonkey closed Friday higher by 17.9% at $19.47.
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Latest Ratings for SVMK
|Mar 2019||Initiates Coverage On||Overweight|
|Oct 2018||Initiates Coverage On||Outperform|
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