SurveyMonkey Revenue Rises 18%

November 14, 2018

SurveyMonkey reported financial results for the third quarter ended September 30, 2018, and posted a shareholder letter with complete third quarter 2018 financial results and management commentary on its investor relations website.

The firn noted a loss per share of 1 cent per share against 2 cents per share last year. In the top line, revenue came in at $65.2 million while $55.3 million take a year ago. Paid users totaled 621,000, up from 5,000 from the second quarter of 2018.

“We are off to a great start as a public company resulting from our strong execution and focus,” said SurveyMonkey CEO, Zander Lurie. “SurveyMonkey was built on the belief that empowering individuals across organizations to engage with their key constituents is paramount to success. The importance of organizations understanding the voices and opinions of their customers and employees is more acute than ever. I’m confident in our strategy, our competitive position and the team we have to execute against our global opportunity.”

“We delivered healthy revenue growth and robust cash flow in the third quarter,” said SurveyMonkey CFO & COO, Tim Maly. “We see continued momentum in our core self-serve channel and acceleration in our sales-assisted channel with our enterprise-grade survey platform and suite of purpose-built software solutions. We see a steady path to higher monetization selling our new products into our large footprint of organizations with active SurveyMonkey usage.”

Q3 2018 Financial Highlights

Revenue of $65.2 million, an increase of 18% year over year. Core revenue, which excludes $0.4 million in revenue related to the non-self-serve portion of SurveyMonkey Audience in Q3 2017 (the final quarter with reported revenue), increased 19% year over year.

GAAP operating margin of (145%) and non-GAAP operating margin of 10%.

GAAP operating margin and net loss for Q3 2018 included $89.9 million in stock-based compensation expense related to the achievement of the liquidity event-related performance condition in connection with the initial public offering (IPO) for certain restricted stock units that met their service-based vesting condition as of the end of Q3 2018 and $1.2 million in employer payroll tax expense related to these restricted stock units.

Q3 2018 net loss was ($102.4) million, largely due to the IPO-related stock-compensation charge. Adjusted EBITDA was $17.0 million.

Net cash provided by operating activities of $12.0 million and unlevered free cash flow of $11.4 million.

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