Momentive Announces Q4 and Full Year 2022 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.
Integrations
Integrate with 100+ apps and plug-ins to get more done.
SurveyMonkey Forms
Build and customize online forms to collect info and payments.
SurveyMonkey Genius
Create better surveys and spot insights quickly with built-in AI.
Market Research Solutions
Purpose-built solutions for all of your market research needs.
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

Momentive Announces Fourth Quarter and Full Year 2022 Financial Results

Announces Workforce Reduction Plan

SAN MATEO, Calif. — February 16, 2023 — Momentive (NASDAQ: MNTV), the maker of SurveyMonkey and GetFeedback, today reported fourth quarter and full year results for the period ended December 31, 2022.

“Our fourth quarter results illustrate our continued execution against our top priorities: driving meaningful operating leverage and positioning the company for more profitable growth,” said Zander Lurie, chief executive officer of Momentive. “Today, we are announcing plans to decrease costs and prioritize the products and pricing models that efficiently drive customer acquisition, retention, and expansion. While this is a difficult decision, we have conviction these steps will enable us to navigate a more challenging selling environment in the short-term, expand margins meaningfully in full year 2023, and deliver sustained, profitable growth over time.”

Q4 2022 Key Results

Total revenue was $122.4 million, an increase of 4% year-over-year. On a constant currency basis, revenue increased 7% year-over-year.
Sales-assisted revenue was $49.3 million, an increase of 23% year-over-year. Sales-assisted revenue accounted for approximately 40% of total revenue, up from approximately 34% in Q4 2021. We ended the quarter with approximately 14,500 sales-assisted customers, up 23% from approximately 11,900 in Q4 2021.
Self-serve revenue was $73.1 million, a decrease of 6% year-over-year.
Deferred revenue was $207.4 million, an increase of 3% year-over-year. Remaining performance obligations were $238.8 million, an increase of 5% year-over-year.
Paying users totaled approximately 887,400, an increase of 1% from approximately 879,600 in Q4 2021. Approximately 93% of our paying users were on annual plans, up from 91% a year ago.
Average revenue per user was approximately $544, up 3% from approximately $530 in Q4 2021.
GAAP operating margin was negative 3.7% and non-GAAP operating margin was 18.8%.
GAAP net loss was $3.6 million and GAAP diluted net loss per share was $0.02. Non-GAAP net income was $20.7 million and non-GAAP diluted net income per share was $0.14.
Net cash from operating activities was $8.2 million and free cash flow was $6.6 million.

Full Year 2022 Key Results

Total revenue was $480.9 million, an increase of 8% year-over-year. On a constant currency basis, revenue increased 9% year-over-year.
Sales-assisted revenue was $181.3 million, an increase of 27% year-over-year.
Self-serve revenue was $299.6 million, approximately flat year-over-year.
GAAP operating margin was negative 16.9% and non-GAAP operating margin was 7.9%.
GAAP net loss was $89.9 million and GAAP diluted net loss per share was $0.61. Non-GAAP net income was $27.1 million and non-GAAP diluted net income per share was $0.18.
Net cash provided by operating activities was $8.8 million and free cash flow was $0.1 million.
Cash and cash equivalents totaled $202.8 million and total debt was $184.8 million for net cash of $18.0 million as of December 31, 2022.
The company repurchased approximately 6.6 million shares of common stock for approximately $83.5 million. As of December 31, 2022, the company’s remaining share repurchase authorization was approximately $116.5 million.

Workforce Reduction

In a Form 8-K filed with the Securities and Exchange Commission today, Momentive also announced a plan designed to further improve its operating margin (the “Plan”). The Plan involves a reduction of the company’s workforce by approximately 14%.

We estimate that we will incur approximately $7.0 million to $9.0 million in charges related to employee severance, employee benefits, and related facilitation costs in connection with the Plan. We expect that the majority of these costs will be incurred and paid during the first quarter of 2023, and that the execution of the Plan, including cash payments, will be substantially complete by the end of the second quarter of 2023.

Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process beyond the first quarter of 2023 in certain countries. The charges that we expect to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above. The costs associated with the Plan will be included in our GAAP results but are expected to be excluded from our non-GAAP financial results.

Financial Outlook

For the first quarter of 2023, Momentive currently expects the following:

	Q1 2023
Revenue Growth (year-over-year)	0% to 2%
Non-GAAP operating margin	6% to 8%

For the first quarter of 2023, the company expects basic and diluted weighted average shares outstanding to be approximately 149 million. The basic and diluted weighted average shares outstanding for the first quarter of 2023 do not include any forecasts for share repurchases after December 31, 2022.

Momentive is not providing full year 2023 revenue guidance due to the current macroeconomic environment. However, improving operating margin will remain a top priority in 2023 and the changes to the cost structure announced today put the company on a path to double non-GAAP operating margin in full year 2023 compared to full year 2022.

For a detailed explanation of the company’s non-GAAP measures, please refer to the appendix section of this press release. For more information on the company’s fourth quarter and full year 2022 financial results, please visit the Momentive investor relations website at investor.momentive.ai.

Conference Call Information

Momentive senior management will host a conference call today to discuss the company’s fourth quarter and full year 2022 financial results. This call is scheduled to begin at 2:00 pm PT / 5:00 pm ET and can be accessed by dialing (844) 200-6205 or (646) 904-5544 (ID: 687393). A telephonic replay of the conference call will be available until Thursday, February 23, 2023, and can be accessed by dialing (866) 813-9403 or (929) 458-6194 and entering the passcode 619341. An archived webcast of the Q4 earnings conference call will be accessible on investor.momentive.ai.

About Momentive

Momentive (NASDAQ: MNTV), maker of SurveyMonkey, collects and analyzes human sentiment at scale. Momentive products, including SurveyMonkey and Momentive brand and market insights solutions, equip decision-makers at 345,000 organizations worldwide with the insights they need to make decisions with speed and confidence. Millions of users rely on Momentive to fuel market insights, brand insights, employee experience, customer experience, and product experience. Ultimately, the company’s vision is to broaden the world’s perspective to shape the future of business. Learn more at momentive.ai.

Investor Relations Contact:

Gary J. Fuges, CFA

investors@momentive.ai

Media Contact:

Katie Miserany

pr@momentive.ai

Source: Momentive Global Inc.

Download full results