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SurveyMonkey Announces Fourth Quarter and Fiscal Year 2019 Financial Results

Company Delivers Record Revenue in 2019, Surpasses $300 million and 21% YoY growth

Fourth Quarter Enterprise Sales Revenue Grew 145% Year-over-Year to 25% of Total Revenue

Adds over 3,000 Enterprise Customers in 2019

SAN MATEO, Calif. — February 13, 2020 — SurveyMonkey (Nasdaq: SVMK), a leading global survey software company, today announced that its parent company, SVMK Inc., reported fourth quarter and full year 2019 financial results for the period ended December 31, 2019. 

“SurveyMonkey delivered a strong fourth quarter with 24% year-over-year revenue growth. Enterprise sales accounted for 25% of our revenue, up from 13% one year ago. We added world-class businesses to our growing customer roster, including CBS Interactive, Duracell, CORT, and Office Depot Europe,” said Zander Lurie, CEO at SurveyMonkey. “2019 was a banner year for the company: we expanded our global footprint with the launch of our Dublin data center and the acquisition of Usabilla in Amsterdam, acquired GetFeedback to enhance our Customer Experience solutions for the Salesforce ecosystem, and eclipsed $300 million of annual revenue. Our disciplined investments enabled us to deliver 17% unlevered free cash flow margin in conjunction with our accelerated revenue growth. I’ve never been more excited about the opportunity ahead.”

Q4 2019 Key Results

  • Revenue was $84.3 million, an increase of 24% year-over-year.
  • Enterprise sales revenue was approximately 25% of total revenue, up from approximately 13% in Q4 2018 and 23% in Q3 2019. We ended the quarter with 6,578 enterprise sales customers, up 84% from 3,566 in Q4 2018.
  • Deferred revenue was $141 million, an increase of 39% year-over-year.  Remaining performance obligation was $160.7M, an increase of 45% year-over-year.
  • Paying users totaled 720,921, an increase of 74,194, or 11% from 646,727 in Q4 2018, and an increase of 7,704 paying users from Q3 2019. Approximately 84% of our paying users were on annual plans, up from 77% a year ago.
  • Average revenue per user was $467, up 10% from $425 in Q4 2018 and up 4% from $448 in Q3 2019.
  • GAAP operating margin was (23%) and non-GAAP operating margin was (1%).
  • GAAP net loss was ($21.3) million and Adjusted EBITDA was $8.3 million.
  • GAAP basic and diluted net loss per share was ($0.16). Non-GAAP basic and diluted net loss per share was ($0.02).
  • Net cash provided by operating activities was $9.4 million, free cash flow was $6.6 million and unlevered free cash flow was $9.7 million for 11%, 8% and 11% margin, respectively.

Full Year 2019 Key Results

  • Revenue was $307.4 million, an increase of 21% year-over-year.
  • Enterprise sales revenue was approximately 21% of total revenue, up from approximately 12% in 2018.
  • GAAP operating margin was (22%) and non-GAAP operating margin was 1%.
  • GAAP net loss was ($73.9) million and Adjusted EBITDA was $38.6 million.
  • Net cash provided by operating activities was $54.7 million, free cash flow was $40.2 million and unlevered free cash flow was $53.7 million, for 18%, 13% and 17% margin, respectively.
  • Cash and cash equivalents totaled $131.0 million and total debt was $215.5 million for net debt of $84.5 million.

Full Year 2019 Business Milestones

Customer Experience (CX)

  • SurveyMonkey acquired GetFeedback, a CX solution designed for the Salesforce ecosystem.
  • SurveyMonkey acquired Usabilla, a leading global Voice of Customer (VoC) technology provider company, based in Amsterdam.

Market Research

  • Audience Premium launched to help professionals gather deeper, faster insights.

International

  • SurveyMonkey achieved International Organization for Standardization (ISO) 27001 security recognition from the British Standards Institute.
  • SurveyMonkey advanced cloud operations in Europe for enterprise customers with the launch of a Dublin datacenter.

Culture

  • SurveyMonkey appointed Debbie Clifford as CFO and Eric Johnson as CIO.
  • SurveyMonkey recognized as best place to work on annual round-ups by Fortune, Best Place to Work, and Glassdoor.
  • SurveyMonkey ranked #1 in the Enterprise Feedback software category in the Fall 2019 G2 Grid, ranked #1 survey software solution by Capterra’s Top 20 Survey Software report.

SurveyMonkey posted a shareholder letter with complete fourth quarter and fiscal 2019 financial results and management commentary on its investor relations website at investor.surveymonkey.com.

Financial Outlook

Q1 2020
Revenue$85 million - $86 million25% YoY growth
Non-GAAP operating margin-4% to -2%
FY 2020
Revenue$375 million - $381 million22% - 24% YoY growth
Non-GAAP operating margin1% to 2%
Free cash flow$40 million - $43 million

We define free cash flow as operating cash flow less capital expenditures. We believe this metric provides a better view of our working capital management than unlevered free cash flow. Therefore, we will guide to free cash flow going forward. You can find a comprehensive explanation of non-GAAP measures at the end of this press release.

We expect basic and diluted weighted average shares outstanding to be approximately 136 million in Q1 and 139 million for the full year 2020.

Conference Call Information

We will host a conference call today to discuss our Q4 and Fiscal 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 February 20, 2020 by dialing (855) 859-2056 or (404) 537-3406 and entering passcode 2277176#.

Upcoming Events

Zander Lurie, CEO, will be presenting at the 2020 JMP Securities Technology Conference in San Francisco, CA on Tuesday, February 25, 2020.  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. Debbie Clifford, CFO, and Tom Hale, President, will also be hosting one-on-one meetings at the SunTrust Technology, Internet, & Services Conference in New York, NY on Tuesday, March 10, 2020.

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
investors@surveymonkey.com

Media Contact:
Lara Sasken
lsasken@surveymonkey.com

Source: SurveyMonkey Inc.

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