|Bid||18.48 x 1200|
|Ask||18.49 x 1300|
|Day's Range||17.83 - 20.10|
|52 Week Range||16.35 - 28.12|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 04, 2021 - Aug 09, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||28.18|
Shares of software company SVMK (NASDAQ: SVMK), also known as SurveyMonkey, popped on Friday after the company beat its own revenue guidance for the first quarter of 2021. For the quarter, SVMK generated revenue of $102.3 million, up 16% year over year and exceeding the high end of its revenue guidance of $101.5 million. Sales to enterprise customers grew faster than total revenue, up 24% from last year and now accounting for 30% of total revenue.
SVMK (SVMK) delivered earnings and revenue surprises of 0.00% and 1.39%, respectively, for the quarter ended March 2021. Do the numbers hold clues to what lies ahead for the stock?
RPO Increases 21%, Deferred Revenue Increases 23% Year-over-Year Company Raises Full Year 2021 Revenue Outlook SAN MATEO, Calif., May 06, 2021 (GLOBE NEWSWIRE) -- SurveyMonkey (Nasdaq: SVMK), a leader in agile software solutions for customer experience, market research, and survey feedback, today reported first quarter results for the period ended March 31, 2021. “Our first quarter can be summarized in one word: execution,” said Zander Lurie, chief executive officer of SurveyMonkey. “We are moving up-market through agile, AI-powered solutions that help customers like Cedars Sinai, Glassdoor, Kawasaki Motors, and The Very Group manage their stakeholders’ experiences. We exceeded the high-end of our Q1 revenue guidance range and accelerated our leading indicators for growth – RPO and deferred revenue – which increased 21% and 23% year-over-year, respectively. We are increasing our full year 2021 revenue outlook, reflecting our confidence in our long-term growth strategy and our ability to execute.” Q1 2021 Key Results Total revenue was $102.3 million, an increase of 16% year-over-year.Enterprise sales revenue was $31.2 million, an increase of 24% year-over year. Enterprise sales revenue accounted for approximately 30% of total revenue, up from approximately 29% in Q1 2020. We ended the quarter with approximately 8,800 enterprise sales customers, up 29% from approximately 6,800 in Q1 2020.Self-serve revenue was $71.1 million, an increase of 13% year-over-year.Deferred revenue was $187.5 million, an increase of 23% year-over-year. Remaining performance obligations (RPO) were $204.9 million, an increase of 21% year-over-year.Paying users totaled approximately 845,800, an increase of approximately 99,600, or 13% from approximately 746,200 in Q1 2020, and an increase of approximately 25,500 paying users from Q4 2020. Approximately 89% of our paying users were on annual plans, up from 85% a year ago.Average revenue per user was $498, up approximately 3% from $483 in Q1 2020.GAAP operating margin was negative 26.2% and non-GAAP operating margin was negative 0.6%.GAAP net loss was $29.6 million and GAAP diluted net loss per share was $0.20. Non-GAAP net loss was $3.3 million and non-GAAP diluted net loss per share was $0.02.Net cash provided by operating activities was $17.3 million and free cash flow was $15.1 million for 16.9% and 14.7% margin, respectively.Cash and cash equivalents totaled $247.4 million and total debt was $213.1 million for net cash of $34.3 million as of March 31, 2021. Q1 2021 Product Updates Launched the latest features of GetFeedback, including AI-powered listening, visualization features, and sentiment analysis supported across ten languages. The latest release enables customers to collect feedback in even more places like ATMs and high-security websites. The new GetFeedback website also brings the solution into a more unified brand with SurveyMonkey.Announced the availability of SurveyMonkey Brand Tracker and SurveyMonkey Industry Tracker, two new, agile market research solutions that enable brands and financial services firms to continuously monitor shifts in market perception and quickly react to fuel growth.Expanded its Return-to-Work solutions for businesses, including automated insights, industry benchmarking, trend analysis, and quick setup guided by SurveyMonkey Genius™, which combines AI, machine learning and decades of industry expertise.Launched a solution for healthcare organizations that utilizes SurveyMonkey Enterprise to capture critical experience and sentiment feedback from patients and employees who are on the front lines of the COVID-19 pandemic. Q1 2021 Diversity, Equity and Inclusion Updates Launched a partnership with the Eva Longoria Foundation to provide Latina entrepreneurs free resources, including access to SurveyMonkey products and training modules to help their businesses succeed.Launched a survey with AAPI Data to increase awareness of the ongoing hate crimes and hate incidents experienced by the Asian American and Pacific Islander community.Launched a minority small business index with Operation HOPE to quantify the experiences and hopefulness of Black small business owners and aspiring entrepreneurs. SurveyMonkey posted a shareholder letter with its first quarter 2021 financial results and management commentary on its investor relations website at investor.surveymonkey.com. Financial Outlook For the second quarter and full year of 2021, SurveyMonkey currently expects the following: Q2 2021FY 2021RevenueY-o-Y growth at mid-point$106 million - $108 million18%$440 million - $447 million18%Non-GAAP operating margin0.0% to 2.0%2.0% to 4.0%Free cash flowNA$47 million - $52 million For the second quarter of 2021, the company expects basic weighted average shares outstanding to be approximately 146 million and diluted weighted average shares outstanding to be approximately 149 million. For the full year 2021, the company expects basic weighted average shares outstanding to be approximately 147 million and dilutive weighted average shares outstanding to be approximately 154 million. For a detailed explanation of the company’s non-GAAP measures, please refer to the appendix section of this press release. Conference Call Information SurveyMonkey senior management will host a conference call today to discuss the company’s Q1 2021 financial results. This call is scheduled to begin at 2:00 pm PT / 5:00 pm ET and can be accessed by dialing (833) 900-1542 or (236) 712-2281 (ID: 2993662). An archived webcast of the conference call will be accessible on SurveyMonkey’s Investor Relations page, investor.surveymonkey.com. A telephonic replay of the conference call will be available until Thursday, May 13, 2021, and can be accessed by dialing (800) 585-8367 or (416) 621-4642 and entering the passcode 2993662. About SurveyMonkey SurveyMonkey is a leader in agile software solutions for customer experience, market research, and survey feedback. The company’s platform empowers more than 20 million active users to analyze and act on feedback from employees, customers, website and app users, and market research respondents. SurveyMonkey’s products, enterprise solutions, and integrations enable more than 345,000 organizations to deliver better customer experiences, increase employee retention, and unlock growth and innovation. Ultimately, SurveyMonkey’s vision is to raise the bar for human experiences by amplifying individual voices. Investor Relations Contact:Gary J. Fuges, CFAinvestors@surveymonkey.com Media Contact:Sandra Gharibpr@surveymonkey.com Source: SVMK Inc. SVMK INC.CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands) March 31, 2021 December 31, 2020 Assets Current assets: Cash and cash equivalents $247,418 $224,390 Accounts receivable, net 23,617 24,177 Deferred commissions, current 6,112 5,429 Prepaid expenses and other current assets 12,298 10,520 Total current assets 289,445 264,516 Property and equipment, net 15,392 18,924 Operating lease right-of-use assets 57,815 56,986 Capitalized internal-use software, net 29,395 29,462 Acquisition intangible assets, net 18,330 21,207 Goodwill 465,913 468,764 Deferred commissions, non-current 11,105 10,018 Other assets 8,329 7,940 Total assets $895,724 $877,817 Liabilities and stockholders’ equity Current liabilities: Accounts payable $6,863 $3,348 Accrued expenses and other current liabilities 20,940 15,198 Accrued compensation 22,643 32,149 Deferred revenue, current 186,917 169,872 Operating lease liabilities, current 9,123 8,318 Debt, current 1,900 1,900 Total current liabilities 248,386 230,785 Deferred revenue, non-current 626 760 Deferred tax liabilities 5,243 5,153 Debt, non-current 211,241 211,716 Operating lease liabilities, non-current 74,034 74,487 Other non-current liabilities 8,708 8,560 Total liabilities 548,238 531,461 Commitments and contingencies Stockholders’ equity: Preferred stock — — Common stock 1 1 Additional paid-in capital 869,174 835,444 Accumulated other comprehensive income 2,255 5,208 Accumulated deficit (523,944) (494,297)Total stockholders’ equity 347,486 346,356 Total liabilities and stockholders’ equity $895,724 $877,817 SVMK INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months EndedMarch 31, (in thousands, except per share amounts) 2021 2020 Revenue $102,298 $88,265 Cost of revenue (1)(2) 20,772 19,944 Gross profit 81,526 68,321 Operating expenses: Research and development (1) 32,983 26,557 Sales and marketing (1)(2) 52,036 42,091 General and administrative (1) 23,322 21,932 Total operating expenses 108,341 90,580 Loss from operations (26,815) (22,259)Interest expense 2,299 3,086 Other non-operating (income) expense, net 315 (1,236)Loss before income taxes (29,429) (24,109)Provision for income taxes 218 141 Net loss $(29,647) $(24,250)Net loss per share, basic and diluted $(0.20) $(0.18)Weighted-average shares used in computing basic and diluted net loss per share 144,692 136,911 (1) Includes stock-based compensation, net of amounts capitalized as follows: Three Months EndedMarch 31, (in thousands) 2021 2020 Cost of revenue $1,482 $960 Research and development 9,497 6,457 Sales and marketing 5,778 4,343 General and administrative 6,842 5,742 Stock-based compensation, net of amounts capitalized $23,599 $17,502 (2) Includes amortization of acquisition intangible assets as follows: Three Months EndedMarch 31, (in thousands) 2021 2020 Cost of revenue $1,490 $2,010 Sales and marketing 1,133 1,358 Amortization of acquisition intangible assets $2,623 $3,368 SVMK INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Three Months Ended March 31, (in thousands) 2021 2020 Cash flows from operating activities Net loss $(29,647) $(24,250)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 10,694 12,288 Non-cash leases expense 3,340 3,423 Stock-based compensation expense, net of amounts capitalized 23,599 17,502 Deferred income taxes 99 97 Bad debt expense 307 421 Gain on sale of a private company investment — (1,001)Other 508 317 Changes in assets and liabilities: Accounts receivable (76) (1,953)Prepaid expenses and other assets (4,682) (2,208)Accounts payable and accrued liabilities 9,251 2,647 Accrued compensation (9,274) (10,452)Deferred revenue 16,985 11,229 Operating lease liabilities (3,786) (3,827)Net cash provided by operating activities 17,318 4,233 Cash flows from investing activities Purchases of property and equipment — (406)Capitalized internal-use software (2,268) (2,946)Proceeds from sale of a private company investment — 1,001 Net cash used in investing activities (2,268) (2,351)Cash flows from financing activities Proceeds from stock option exercises 9,553 13,815 Repayment of debt (550) (550)Net cash provided by financing activities 9,003 13,265 Effect of exchange rate changes on cash (309) (1,267)Net increase in cash, cash equivalents and restricted cash 23,744 13,880 Cash, cash equivalents and restricted cash at beginning of period 224,614 131,683 Cash, cash equivalents and restricted cash at end of period $248,358 $145,563 Supplemental cash flow data: Interest paid for term debt $2,177 $2,967 Non-cash investing transactions: Stock compensation included in capitalized software costs $559 $776 Accrued unpaid capital expenditures $547 $204 Lease liabilities arising from obtaining right-of-use assets, net $2,676 $— SVMK INC.SUPPLEMENTAL DISAGGREGATED REVENUE DATA (unaudited) Quarterly Disaggregated Revenue Three Months Ended(in thousands) Mar. 31, 2021 Dec. 31, 2020 Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020Self-serve revenue $71,112 $71,197 $68,001 $65,398 $63,107Enterprise revenue 31,186 29,778 27,428 25,543 25,158Revenue $102,298 $100,975 $95,429 $90,941 $88,265 Self-serve revenues are generated from products purchased independently through our website.Enterprise revenues are generated from products sold to organizations through our sales team. SVMK INC.RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) (1) Reconciliation of GAAP to Non-GAAP (Loss) Income from operations Three Months EndedMarch 31, (in thousands, except percentages) 2021 2020 GAAP Loss from operations $(26,815) $(22,259)GAAP Operating margin (26)% (25)%Stock-based compensation, net 23,599 17,502 Amortization of acquisition intangible assets 2,623 3,368 Non-GAAP Loss from operations $(593) $(1,389)Non-GAAP Operating margin (1)% (2)% Reconciliation of GAAP to Non-GAAP (Loss) Income and (Loss) Income per diluted share Three Months EndedMarch 31, (in thousands, except per share amounts) 2021 2020 GAAP Net Loss $(29,647) $(24,250)GAAP Net Loss per diluted share $(0.20) $(0.18)Weighted-average shares used to compute GAAP net loss per diluted share 144,692 136,911 Stock-based compensation, net 23,599 17,502 Amortization of acquisition intangible assets 2,623 3,368 Gain on sale of a private company investment — (1,001)Income tax effect on Non-GAAP adjustments (2) 96 97 Non-GAAP Net Loss $(3,329) $(4,284)Non-GAAP Net Loss per diluted share $(0.02) $(0.03)Weighted-average shares used to compute Non-GAAP net loss per diluted share 144,692 136,911 (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, and gain on sale of a private company investment. Non-GAAP adjustments pertain to the income tax effects of amortization of acquisition-related intangible assets. Calculation of Free Cash Flow Three Months EndedMarch 31, (in thousands) 2021 2020 Net cash provided by operating activities $17,318 $4,233 Purchases of property and equipment — (406)Capitalized internal-use software (2,268) (2,946)Free cash flow $15,050 $881 SVMK INC.RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) (1) Supplemental GAAP and Non-GAAP Information Three Months EndedMarch 31, (in thousands, except percentages) 2021 2020 GAAP Gross profit $81,526 $68,321 GAAP Gross margin 80% 77%Stock-based compensation, net 1,482 960 Amortization of acquisition intangible assets 1,490 2,010 Non-GAAP Gross profit $84,498 $71,291 Non-GAAP Gross margin 83% 81% GAAP Research and development $32,983 $26,557 GAAP Research and development margin 32% 30%Stock-based compensation, net 9,497 6,457 Non-GAAP Research and development $23,486 $20,100 Non-GAAP Research and development margin 23% 23% GAAP Sales and marketing $52,036 $42,091 GAAP Sales and marketing margin 51% 48%Stock-based compensation, net 5,778 4,343 Amortization of acquisition intangible assets 1,133 1,358 Non-GAAP Sales and marketing $45,125 $36,390 Non-GAAP Sales and marketing margin 44% 41% GAAP General and administrative $23,322 $21,932 GAAP General and administrative margin 23% 25%Stock-based compensation, net 6,842 5,742 Non-GAAP General and administrative $16,480 $16,190 Non-GAAP General and administrative margin 16% 18% (1) Please see Appendix A for explanation of non-GAAP measures used. 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 (loss) income from operations, Non-GAAP operating margin, Non-GAAP net (loss) income, Non-GAAP net (loss) income per diluted share, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP research and development, Non-GAAP research and development margin, Non-GAAP sales and marketing, Non-GAAP sales and marketing margin, Non-GAAP general and administrative, Non-GAAP general and administrative margin, and 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 is 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 (loss) income from operations, Non-GAAP operating margin: We define Non-GAAP (loss) income from operations as GAAP loss from operations excluding stock-based compensation, net, and amortization of acquisition intangible assets. Non-GAAP operating margin is defined as Non-GAAP (loss) income from operations divided by revenue. Non-GAAP net (loss) income, Non-GAAP net (loss) income per diluted share: We define Non-GAAP net (loss) income as GAAP net loss excluding stock-based compensation, net, amortization of acquisition intangible assets, gain on sale of a private company investment, and including the income tax effect on Non-GAAP adjustments. Non-GAAP net (loss) income per diluted share is defined as Non-GAAP net (loss) income divided by the weighted-average shares outstanding. Non-GAAP gross profit, Non-GAAP gross margin: We define Non-GAAP gross profit as GAAP gross profit excluding stock-based compensation, net and amortization of acquisition intangible assets. Non-GAAP gross margin is defined as Non-GAAP gross profit divided by revenue. Non-GAAP research and development, Non-GAAP research and development margin: We define Non-GAAP research and development as GAAP research and development excluding stock-based compensation, net. Non-GAAP research and development margin is defined as Non-GAAP research and development divided by revenue. Non-GAAP sales and marketing, Non-GAAP sales and marketing margin: We define Non-GAAP sales and marketing as GAAP sales and marketing excluding stock-based compensation, net and amortization of acquisition intangible assets. Non-GAAP sales and marketing margin is defined as Non-GAAP sales and marketing divided by revenue. Non-GAAP general and administrative, Non-GAAP general and administrative margin: We define Non-GAAP general and administrative as GAAP general and administrative excluding stock-based compensation, net. Non-GAAP general and administrative margin is defined as Non-GAAP general and administrative divided by revenue. 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 condensed 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 these measures are 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 acquisition 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 acquisition intangible assets will recur in future periods.Gain on sale of a private company investment: Gain on sale of a private company investment 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. Free cash flow: We define free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment and capitalized internal-use software. We consider free cash flow to be an important measure because it measures our liquidity after deducting capital expenditures for purchases of property and equipment and capitalized software development costs, which we believe provides a more accurate view of our cash generation and cash available to grow our business. We expect to generate positive free cash flow over the long term. Free cash flow 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, such as net cash provided by operating activities. Some of the limitations of free cash flow are that free cash flow does not reflect our future contractual commitments and may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure. 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 financial outlook, outstanding shares, 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 the COVID-19 coronavirus pandemic; 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 are included in documents filed with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in the Quarterly Report on Form 10-Q that will be filed for the quarter ended March 31, 2021, 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 6, 2021, and we undertake no obligation to update this information.