SurveyMonkey (SVMK 11.84, +0.55, +4.87%) is higher after
reporting better than expected results for the third quarter.
SurveyMonkey was founded in 1999, but the provider of online survey services and tools did not begin trading on the public market until late September. The stock opened at $18.75 on September 26 after pricing at $12.00, but steady selling pressure over the next few weeks drove shares to a 2018 low just above $10.00 per share.
The company's survey platform generates an average of more than 20 mln answered questions daily across 190 countries and territories. Organizations employ SVMK's platform to collect Net Promoter Score data from customers, measure employee engagement, and conduct market research. More than 60 mln registered users have used the survey platform since inception. More than 16 mln users were active within the past year. The company has more than 600,000 paying users across more than 300,000 organizations. The company has paying users in 98% of the companies that make up Fortune 500.
In its first report as a public company, SurveyMonkey reported a slimmer than expected third quarter loss of $0.01 per share on revenue, which jumped 17.9% yr/yr to $65.21 mln, which was also ahead of expectations.
The company reported a third quarter net loss of $102.40 mln, which was driven by IPO-related stock-compensation charge. Adjusted EBITDA totaled $16.99 mln, representing yr/yr growth of 28.1%.
Gross margin weakened to 64.4% from 70.6% one year ago. Research & Development expense grew 247.2% yr/yr to $51.77 mln.
Looking ahead, the company expects that revenue for the fourth quarter will be between $64.8 mln and $66.8 mln, which would translate to yr/yr growth between 14% and 17%. The company's revenue guidance range is on the high end of market expectations.
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