Survey Monkey Ipo Press Release

Survey monkey ipo press release

News Release

, (GLOBE NEWSWIRE) -- (SurveyMonkey), a leading global survey software company, today announced that its parent company, (Nasdaq: , and collectively with SurveyMonkey referred to as “SVMK,” “we” or “us”), reported financial results for the fourth quarter and year ended , and posted a shareholder letter with complete fourth quarter and fiscal year 2018 financial results and management commentary on its investor relations website at investor.surveymonkey.com.

Q4 2018 Key Results

  • Revenue was , an increase of 19% year-over-year.
  • Paying users totaled 646,727 compared to 606,077 in Q4 2017, for 7% year-over-year growth, and up 25,656 paying users over Q3 2018, for 4% quarter-over-quarter growth.

    Growth in paying users was primarily driven by sales of SurveyMonkey Enterprise and adoption of our self-serve Teams plans.

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    Approximately 77% of our paying users were on annual plans, up from 76% a year ago.

  • Average revenue per user was compared to in Q4 2017 and in Q3 2018, representing 13% year-over-year and 2% quarter-over-quarter growth, respectively.
  • Self-serve revenue was approximately 87% of total revenue with enterprise sales revenue comprising approximately 13% of total revenue.

    We ended the quarter with 3,566 enterprise sales customers up from 2,758 in Q4 2017 and 3,226 in Q3 2018, for 29% year-over-year and 11% quarter-over-quarter growth, respectively.

  • GAAP operating margin was (29%) and non-GAAP operating margin was 2%.
  • GAAP operating margin and GAAP net loss included a restructuring charge related to a previously vacated facility and in fees associated with the refinancing of our 2017 Credit Facility.
  • GAAP net loss was and Adjusted EBITDA was .

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    Net loss included a debt modification charge associated with the refinancing of our 2017 Credit Facility.

  • GAAP basic and diluted net loss per share was . Non-GAAP basic and diluted net loss per share was .
  • Net cash provided by operating activities was and unlevered free cash flow was for 17% and 18% margin, respectively.
  • Cash and cash equivalents totaled and total debt was for net debt of .

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    In , we refinanced our 2017 Credit Facility, reduced the spread on the term loan by 75 basis points, extended the maturity date, and repaid of our existing debt.

FY 2018 Key Results

  • Revenue was , an increase of 16% year-over-year. Core revenue, which excludes in revenue related to the non-self-serve portion of SurveyMonkey Audience in Q1 2017 through Q3 2017, increased 19%.
  • GAAP operating margin was (50%) and non-GAAP operating margin was 6%.
  • GAAP operating margin and GAAP net loss included the recognition of in stock-based compensation expense and in employer related payroll taxes both in connection with the vesting of RSUs upon the effectiveness of our IPO, a restructuring charge related to a previously vacated facility, and in fees associated with the refinancing of our 2017 Credit Facility.
  • GAAP net loss was and Adjusted EBITDA was .

    GAAP net loss also included a debt modification charge associated with the refinancing of our 2017 Credit Facility.

  • Net cash provided by operating activities was and unlevered free cash flow was , both for 18% margin.

“Our strong financial results cap off a transformative 2018 and highlight the traction that we are gaining in the marketplace,” said SurveyMonkey CEO . “We are capitalizing on our strong brand, massive footprint and open integration architecture to move up market into larger enterprise relationships.

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Our strategy is working. Over the next few years we intend to execute on our plan to double our business by investing efficiently in new products, geographies, and enterprise sales. The survey software category is a multi-billion-dollar global market and being public has helped us share our vision with current and future customers.” 

CFO Transition

SurveyMonkey also announced that its Chief Financial Officer, , is retiring during the second quarter of 2019 for personal reasons.

Survey monkey ipo press release

He will continue to serve in his current role until , and then plans to remain at the Company as a non-executive employee until to assist in the Company’s search for his successor, which is underway, and to advise and support the Company during this transitional period. Mr.

Survey monkey ipo press release

Maly will participate on today’s earnings call.

“SurveyMonkey is an incredible company that helped create – and then revolutionized – the category of survey software. My ten-year journey with the company has been a true privilege and I am honored to have worked with such an amazing team,” said Mr.

Survey monkey ipo press release

Maly. “SurveyMonkey’s world-class products, inspiring culture of talented employees and proven business model ensure many years of growth and leadership will continue.

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I am confident in the company’s long-term vision and look forward to seeing Zander and team achieve even greater success in the years to come.”

“Tim has been a high integrity leader whose business acumen, values and resilience helped us achieve critical milestones over the years, culminating in the IPO. Our operational and financial discipline is a testament, in part, to his many contributions,” said .

“On behalf of our entire management team and Board of Directors, we are grateful for Tim’s leadership and friendship over the last decade. We have a strong bench of talent in our finance and accounting organization and look forward to welcoming a new CFO in the coming months.”

Financial Outlook

Our growth investments are yielding strong results.

Press Releases

In 2019, we will continue to invest in efforts that drive enterprise sales, fuel growth in our core self-serve channel, and expand our international business. We also expect to generate significant cash flow over the course of the year while investing to position the company for an even stronger 2020.

Our accelerated growth in the first half of 2018 was driven in part by the pricing changes we made to our SurveyMonkey self-serve plans in 2017, setting up a more difficult comparison from a year-over-year growth perspective in 2019.

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We expect our growth investments in enterprise sales and self-serve Teams to drive accelerating revenue growth in the second half of 2019. Our investments in international market expansion are expected to contribute to revenue growth towards the end of 2019.

We are adopting the new lease accounting guidance under ASC 8421, effective .

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Under this guidance, lease payments associated with our headquarters will be treated as operating expense in the income statement beginning in 2019. Prior to 2019, these lease payments were primarily treated as interest expense. We anticipate a headwind to non-GAAP operating income of approximately on a full-year basis, or approximately each quarter, as these lease payments move from interest expense to operating expense.

There is no impact to free cash flow from this change.

Q1 2019
Revenue$67.5 million - $68.5 million15% - 17% YoY growth
Non-GAAP operating margin0% - 1%
FY 2019
Revenue$290 million - $295 million14% - 16% YoY growth
Non-GAAP operating margin2% - 3.5%
Unlevered free cash flow$55 million - $58 million19% - 20% margin

For comparison purposes, under the new accounting guidance, non-GAAP operating margin for Q1 2018 and full-year 2018 would have been 0% and 3.6%, respectively.

1 Our financial outlook for 2019 is based on the new lease accounting guidance under ASC 842, effective .

Under ASC 842, the lease for our headquarters in is expected to be classified as an operating lease with a corresponding right-of-use asset and liability on the balance sheet.

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Beginning in 2019, these lease payments will be classified as an operating expense in the Consolidated Statements of Operations.

Previously, the lease was classified as build-to-suit with a corresponding owned building asset and financing obligation on leased facility. Prior to 2019, these lease payments were primarily classified as interest expense in the Consolidated Statements of Operations.

Conference Call Information

We will host a conference call today to review financial results.

This call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m.

ET and can be accessed by dialing (866) 417-2046 from the United States or (409) 217-8231 internationally with reference to the company name and conference title, and a live webcast and replay of the conference call can be accessed from the SurveyMonkey investor relations website at investor.surveymonkey.com. Following the completion of the call, a telephonic replay will be available through February 20, 2018 at (855) 859-2056 from the United States or (404) 537-3406 internationally with recording access code 3397918#.

Upcoming Events

, CEO, will be presenting at the 2018 in on .

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

Founded in 1999, SurveyMonkey changed the way people gather feedback by making it easy for anyone to create their own online surveys. Our mission is to power curious individuals and organizations around the globe to measure, benchmark and act on the opinions that drive success.

Our People Powered Data platform enables organizations of any size to have conversations at scale to deliver impactful customer, employee and market insights. Our 850+ employees are dedicated to fueling the curiosity of over 17.5 million active users globally.

Source:

Investor Relations:

[email protected]

Media:
SurveyMonkey

[email protected]

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SVMK INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
 (in thousands)December 31, 2018December 31, 2017
Assets
Current assets:
Cash and cash equivalents$153,807$35,345
Accounts receivable, net of allowance7,3365,429
Deferred commissions, current1,9811,225
Prepaid expenses and other current assets7,0815,056
Total current assets170,20547,055
Property and equipment, net117,718131,331
Capitalized internal-use software, net33,28041,493
Acquisition intangible assets, net9,32413,594
Goodwill, net336,861336,861
Deferred commissions, non-current3,3172,006
Other assets8,6435,749
Total assets$679,348$578,089
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$2,804$3,380
Accrued expenses and other current liabilities9,69210,173
Accrued compensation20,07014,910
Deferred revenue101,23684,818
Debt, current1,9002,032
Total current liabilities135,702115,313
Deferred tax liabilities4,2464,168
Debt, non-current215,515316,289
Financing obligation on leased facility92,00993,385
Other non-current liabilities12,4938,891
Total liabilities459,965538,046
Commitments and contingencies
Stockholders’ equity:
Preferred stock
Common stock11
Additional paid-in capital551,937217,594
Accumulated other comprehensive income (loss)(287)19
Accumulated deficit(332,268)(177,571)
Total stockholders’ equity219,38340,043
Total liabilities and stockholders’ equity$679,348$578,089
SVMK INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
(in thousands, except per share amounts)2018201720182017
Revenue$67,932$57,012$254,324$218,773
Cost of revenue(1)(2)19,01515,59677,98262,679
Gross profit48,91741,416176,342156,094
Operating expenses:
Research and development(1)20,19113,770106,18853,660
Sales and marketing (1)(2)24,17417,72095,78373,511
General and administrative(1)20,53012,64297,33947,940
Restructuring3,4921,6383,5251,785
Total operating expenses68,38745,770302,835176,896
Loss from operations(19,470)(4,354)(126,493)(20,802)
Interest expense5,6206,83527,80126,865
Other non-operating income (expense), net(430)(340)(298)7,610
Loss before income taxes(25,520)(11,529)(154,592)(40,057)
Provision for (benefit from) income taxes(322)(19,598)148(16,047)
Net income (loss)$(25,198)$8,069$(154,740)$(24,010)
Net income (loss) per share, basic and diluted$(0.20)$0.08$(1.43)$(0.24)
Weighted-average shares used in computing basic net income (loss) per share125,454100,804107,900100,244
Weighted-average shares used in computing diluted net income (loss) per share125,454102,202107,900100,244

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

Three Months Ended
December 31,
Year Ended
December 31,
(in thousands)2018201720182017
Cost of revenue$1,155$633$8,931$2,503
Research and development4,8362,85348,7399,918
Sales and marketing2,6351,44719,0468,069
General and administrative7,0403,69055,05414,496
Stock-based compensation, net of amounts capitalized$15,666$8,623$131,770$34,986

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

Three Months Ended
December 31,
Year Ended
December 31,
(in thousands)2018201720182017
Cost of revenue