Momentive Announces Second Quarter 2021 Financial Results

RPO Increases 24%, Deferred Revenue Increases 24% Year-over-Year 
Revenue Increases 20% Year-over-Year

SAN MATEO, Calif. — August 4, 2021 — Momentive (NASDAQ: MNTV), an agile experience management company (formerly SurveyMonkey), today reported second quarter results for the period ended June 30, 2021.

“In Q2, we executed on our corporate rebrand to Momentive while delivering strong Q2 financial results: 20% year-over-year revenue growth, even faster expansion of our leading growth indicators, and a 22% free cash flow margin,” said Zander Lurie, chief executive officer of Momentive. “At Momentive, we’re launching and selling solutions to help enterprises like NBC Universal, Daimler, and Kellogg shape what’s next for their stakeholders.”

Q2 2021 Key Results

  • Total revenue was $109.4 million, an increase of 20% year-over-year.
  • Enterprise sales revenue was $33.9 million, an increase of 33% year-over year. Enterprise sales revenue accounted for approximately 31% of total revenue, up from approximately 28% in Q2 2020. We ended the quarter with approximately 9,400 enterprise sales customers, up 30% from approximately 7,200 in Q2 2020.
  • Self-serve revenue was $75.5 million, an increase of 15% year-over-year.
  • Leading Growth Indicators: Deferred revenue was $197.3 million, an increase of 24% year-over-year. Remaining performance obligations (RPO) were $221.6 million, an increase of 24% year-over-year.
  • Paying users totaled approximately 862,200, an increase of approximately 81,200, or 10% from approximately 781,000 in Q2 2020. Approximately 90% of our paying users were on annual plans, up from 86% a year ago.
  • Average revenue per user was $514, up approximately 8% from $478 in Q2 2020.
  • GAAP operating margin was negative 24.4% and non-GAAP operating margin was 1.3%.
  • GAAP net loss was $29.2 million and GAAP diluted net loss per share was $0.20. Non-GAAP net loss was $0.8 million and non-GAAP diluted net loss per share was $0.01.
  • Net cash provided by operating activities was $26.2 million and free cash flow was $23.8 million for 24.0% and 21.7% margin, respectively.
  • Cash and cash equivalents totaled $283.2 million and total debt was $212.7 million for net cash of $70.5 million as of June 30, 2021.

Q2 2021 Business and Product Updates

  • Relaunched as Momentive, an agile experience management company that helps organizations shape what’s next, and began trading on the Nasdaq under the ticker symbol MNTV.
  • Announced that GetFeedback has been recognized as a leader in Experience Management and Feedback Analytics in the G2 Grid Reports for Summer 2021. GetFeedback was also awarded the Easiest Setup and Easiest to Use badges for the enterprise market, and Best Estimated ROI badge for the mid-market.
  • Announced four new AI-powered market research solutions that improve audience targeting with advanced analytics and hosted its inaugural Market Research Summit, Fast Forward Live.
  • Launched the latest SurveyMonkey App for Zoom Video Communications, delivering an embedded feedback experience accessible within Zoom meetings and the desktop client.
  • Promoted Justin Coulombe to Chief Financial Officer.
  • Announced with Tableau the launch of a Path to a New Normal, a new year-long public opinion research initiative.

Momentive posted a shareholder letter with its second quarter 2021 financial results and management commentary on its investor relations website at investor.momentive.ai.

Financial Outlook 

For the third quarter and full year of 2021, Momentive currently expects the following:

Q3 2021FY 2021
Revenue
Y-o-Y growth at mid-point 
$112.5 million - $114.5 million 
19% 
$443 million - $447 million 
18% 
Non-GAAP operating margin2.0% to 4.0% 2.0% to 4.0% 
Free cash flowNA$47 million - $52 million 

For the third quarter of 2021, the company expects basic weighted average shares outstanding to be approximately 148 million and diluted weighted average shares outstanding to be approximately 152 million. For the full year 2021, the company expects basic weighted average shares outstanding to be approximately 147 million and dilutive weighted average shares outstanding to be approximately 154 million. For a detailed explanation of the company’s non-GAAP measures, please refer to the appendix section of this press release.

Conference Call Information

Momentive senior management will host a conference call today to discuss the company’s Q2 2021 financial results. This call is scheduled to begin at 2:00 pm PT / 5:00 pm ET and can be accessed by dialing (833) 900-1542 or (236) 712-2281 (ID: 5464802). An archived webcast of the conference call will be accessible on Momentive’s Investor Relations page, investor.momentive.ai. A telephonic replay of the conference call will be available until Wednesday, August 11, 2021, and can be accessed by dialing (800) 585-8367 or (416) 621-4642 and entering the passcode 5464802.

About Momentive

Momentive (NASDAQ: MNTV - formerly SurveyMonkey) is a leader in agile experience management, delivering powerful, purpose-built solutions that bring together the best parts of humanity and technology to redefine AI. Momentive products, including GetFeedback, SurveyMonkey, and Momentive brand and market insights solutions, empower ​decision-makers at 345,000 organizations worldwide to shape exceptional experiences. More than 20 million active users rely on Momentive to fuel market insights, brand insights, employee experience, customer experience, and product experience. Ultimately, the company’s vision is to raise the bar for human experiences by amplifying individual voices. 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.