SurveyMonkey Announces First Quarter 2020 Financial Results

Products
Product Overview
SurveyMonkey is built to handle every use case and need. Explore our product to learn how SurveyMonkey can work for you.
SurveyMonkey
Get data-driven insights from a global leader in online surveys.
Features
Explore core features and advanced tools in one powerful platform.
SurveyMonkey Forms
Build and customize online forms to collect info and payments.
Integrations
Integrate with 100+ apps and plug-ins to get more done.
Market Research Solutions
Purpose-built solutions for all of your market research needs.
SurveyMonkey Genius
Create better surveys and spot insights quickly with built-in AI.
INDUSTRIES
Healthcare
Education
Technology
Government
Financial Services
See more Industries
ROLES
Marketing
Customer Experience
Product
Human Resources
Research
See more roles
USE CASES
Online Polls
Registration Forms
Employee Feedback
Event Feedback
Customer Satisfaction
See more use cases
Templates
Net Promoter Score
Measure customer satisfaction and loyalty for your business.
Customer Satisfaction
Learn what makes customers happy and turn them into advocates.
Website Feedback
Get actionable insights to improve the user experience.
Contact Information
Collect contact information from prospects, invitees, and more.
Event Registration
Easily collect and track RSVPs for your next event.
Event Feedback
Find out what attendees want so that you can improve your next event.
Employee Engagement
Uncover insights to boost engagement and drive better results.
Meeting Feedback
Get feedback from your attendees so you can run better meetings.
360-degree employee evaluation
Use peer feedback to help improve employee performance.
Course Evaluation
Create better courses and improve teaching methods.
University Instructor Evaluation
Learn how students rate the course material and its presentation.
Product Testing
Find out what your customers think about your new product ideas.
See all templates
Pricing
Enterprise
Resources

Contact Sales Log in

SurveyMonkey Announces First Quarter 2020 Financial Results

Company reports record revenue of $88.3 million, an increase of 29% year-over-year

85% of paying users on annual plans, up from 78% in Q1 2019

SAN MATEO, Calif.— May 7, 2020 — SurveyMonkey, a leading global survey software company, today announced that its parent company, SVMK Inc. (Nasdaq: SVMK), reported first quarter financial results for the period ended March 31, 2020.

“SurveyMonkey’s product suite is uniquely positioned to help our customers navigate this period of uncertainty. Listening to stakeholder feedback and taking action is a top priority for organizational leaders in unstable times. The results we delivered this quarter underscore the power of a market leading brand and agile software solutions that deliver value and results with speed,” said Zander Lurie, chief executive officer at SurveyMonkey. “In Q1, we welcomed world-class businesses including Kraft Heinz, Unilever, Informatica, Darden Restaurants, and Travix to our growing roster. We drove 29% year-over-year revenue growth and shipped important new products for Customer Experience and Market Research customers. The combination of our durable subscription-based business model paired with our price-disruptive solutions provides for a strong foundation in any economic environment. Our team is dedicated to serving our largest enterprise and government customers with packaged solutions and services as well as meeting the needs of our SMB and nonprofit clients with templates and flexible packages. I am heartened by our focused strategy and strong balance sheet, and I’m confident we will emerge an even stronger company on the other side of this health and economic crisis.”

Q1 2020 Key Results

Revenue was $88.3 million, an increase of 29% year-over-year.
Enterprise sales revenue was approximately 29% of total revenue, up from approximately 16% in Q1 2019 and 25% in Q4 2019. We ended the quarter with 6,800 enterprise sales customers, up 75% from 3,900 in Q1 2019.
Deferred revenue was $152.0 million, an increase of 37% year-over-year. Remaining performance obligation was $169.1 million, an increase of 39% year-over-year.
Paying users totaled 746,200, an increase of 75,300, or 11% from 670,900 in Q1 2019, and an increase of 25,200 paying users from Q4 2019. Approximately 85% of our paying users were on annual plans, up from 78% a year ago.
Average revenue per user was $483, up 14% from $423 in Q1 2019 and up 3% from $467 in Q4 2019.
GAAP operating margin was (25.2)% and non-GAAP operating margin was (1.6)%.
GAAP net loss was ($24.3) million and GAAP basic and diluted net loss per share was ($0.18). Non-GAAP net loss was ($4.3) million basic and diluted net loss per share was ($0.03).
Net cash provided by operating activities was $4.2 million and free cash flow was $0.9 million for 4.8% and 1.0% margin, respectively.
Cash and cash equivalents totaled $144.6 million and total debt was $215.0 million for net debt of $70.4 million as of March 31, 2020.

Q1 2020 Business Highlights

Ranked #2 by G2 in its 2020 report of 100 best global software companies.
Launched COVID-19 packaged solutions for enterprise customers to address use cases such as symptom monitoring, contact tracking, healthcare worker needs assessment, onsite health assessment for businesses prior to re-opening, and employee and customer sentiment. Packages range from survey templates to consulting and technology integration services.
Launched coronavirus crisis resources to support our customers and the community, including COVID-19 survey templates, discounts for education, charities and non-profit organizations, and critical insights from SurveyMonkey’s research team on society’s views on the novel coronavirus. Onboarded new governmental and healthcare customers in need of COVID-19 related survey research.
Announced COVID Near You, a collaboration with Boston Children’s Hospital and the Harvard Medical School, to accelerate critical coronavirus research efforts across the United States. COVID Near You will use the scale and reach of millions of daily survey respondents through SurveyMonkey to collect essential community data on the current global crisis.
Announced that the Rhode Island Department of Health (RIDOH) has deployed SurveyMonkey’s Enterprise Solution and Salesforce Integration in approximately 11 days to assist in COVID-19 tracking efforts. Through its HIPAA-compliant survey offering, SurveyMonkey enables the RIDOH to monitor all individuals exposed to the coronavirus who opt-in through daily survey links sent via SMS text. The data will help the RIDOH to track and monitor the virus’ impact.
Joined #OpenWeStand, a consortium of organizations pledging support for small businesses by offering online resources to help navigate the COVID-19 crisis.
Launched the Expert Solutions suite of market research tools that simplifies product and marketing concept testing. Expert Solutions combines the SurveyMonkey Audience market research panel and its AI-Powered Insights for respondent data pattern recognition with seven different concept testing solutions, making it easier than ever for customers to collect feedback on what messages, visuals and products resonate with their target demographic.
Surpassed the milestone of $15 million raised for non-profit organizations through Contribute platform, where SurveyMonkey offers charitable incentives of 50 cents per completed survey.

SurveyMonkey posted a shareholder letter with complete first quarter 2020 financial results and management commentary on its investor relations website at investor.surveymonkey.com.

Financial Outlook

Given the increased uncertainty in the macroeconomic environment, SurveyMonkey is withdrawing its previously-issued full year 2020 financial outlook. The company will continue to provide quarterly guidance and expects to return to providing full year guidance once the pandemic’s impact on its business becomes clearer.

For the second quarter of 2020, SurveyMonkey currently expects the following:

Q2 2020
Revenue	$87 million - $90 million	18% YoY growth at mid-point
Non-GAAP operating margin	0% to 2%

The company expects basic and diluted weighted average shares outstanding to be approximately 139 million for the second quarter 2020. 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 2020 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 14, 2020 by dialing (855) 859-2056 or (404) 537-3406 and entering passcode 7289852#.

Upcoming Events

Senior management is scheduled to present at the following virtual investor conferences:

Zander Lurie, CEO, will be presenting at the 2020 JPMorgan Global TMT Conference on Tuesday, May 12.
Zander Lurie, CEO will be presenting at the Needham 15th Annual Tech & Media Conference on Wednesday, May 20.
Debbie Clifford, CFO will be hosting one-on-one meetings at the Craig-Hallum Annual Growth Conference on Wednesday, May 27.
Tom Hale, president, and Debbie Clifford, CFO, will be presenting at the BAML Technology Conference on Wednesday, June 3.

A live webcast of the conference presentations 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 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 more than 335,000 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:
Gary J. Fuges, CFA
gfuges@surveymonkey.com

Media Contact:
Lara Sasken
lsasken@surveymonkey.com

Source: SurveyMonkey Inc.

Download full results

To read all of our press releases visit our Newsroom.