SurveyMonkey Revenue Gains 18% In Its First Public Quarter

The company's first quarter on the Nasdaq.

The company’s first quarter on the Nasdaq.

SurveyMonkey (NASDAQ: SVMKhas reported 18 percent revenue gains since going private last quarter. SurveyMonkey’s revenue increase has been attributed to increased sales from its enterprise clients. SurveyMonkey held its first earnings report (as a public company) on Tuesday, after the market closed.

SurveyMonkey Stock Analysis

The company performed well year-over-year. Here is a comparison of SurveyMonkey stock in Q3 2018, vs Q3 2017.

SurveyMonkey Stock Q3,2017 Q3, 2018
Loss Per Share 2 cents 1 cent
Revenue $65.2 million $55.3 million

SurveyMonkey stock price
gained 3 percent after the report went public. In the regular trading period, SurveyMonkey share price fell nearly 2 percent. Since SurveyMonkey went public on the Nasdaq in September, its share price has fallen by nearly 28 percent. On introduction to the public market, SVMK stock made gains of 42 percent to $17.

SurveyMonkey Stock Prediction

The company offers a digital survey solutions and data analytics for business clients and single customers. SurveyMonkey is expecting higher revenues in Q4 within the range of $64.8 million and $44.8 million. SVMK is forecasting full-year revenue to reach between $251.2 million and $253.2 million.

SurveyMonkey said that the self-serve business made up 88 percent of the company’s revenue. This is risky for investors, as most of the company’s sales comes from one channel. Although, the sales-assisted revenue segment is growing rapidly.

In the shareholder letter, SVMK said this: “We’re still early in the development and expansion of our sales-assisted strategy and we saw great traction with our sales efforts during the quarter, signing agreements with companies such as LinkedIn, Nasdaq, Sky and Intercom,”

SurveyMonkey made a net loss of $102 million in Q3. This is a significant loss compared to Q3 2017, which was $13 million. This represents an increase in year-over-year loss of $89 million for Q3. SVMK said that the losses were due to stock compensations now that the company is public.

When filing for IPO, SurveyMonkey announced that losses are growing at a faster pace that revenue (percentage based). In Q3, SVMK posted a negative operating margin of 145% in Q3. In Q3 2017, the negative operating margin was only 11%.

SurveyMonkey share price fell last month when its main competitor, Qualtrics, filed to go public. SVMK share price then increased this weekend after SAP announced that it would be acquiring Qualtrics for $8 billion.

Our analyst gives SurveyMonkey stock a 12 month forecast of $15.50.

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