Momentive Announces Fourth Quarter and Full Year 2021 Financial Results
Increases Enterprise Sales Revenue by 34% Year-over-Year in Q4 2021
Generates 18% Year-over-Year Revenue Growth, $48.6 Million in Free Cash Flow in Full Year 2021
SAN MATEO, Calif. — February 10, 2022 — Momentive (NASDAQ: MNTV), an agile experience management company (formerly SurveyMonkey), today reported fourth quarter and full year results for the period ended December 31, 2021.
“The team achieved strong results in the sales-assisted channel, as we continue to move upmarket with our Surveys, Market Research and CX products,” said Zander Lurie, chief executive officer of Momentive. “Enterprise sales revenue increased 34% year-over-year in the quarter, and we added more than 1,300 new customers. Further, our leading indicators showed strength, win rates and productivity per sales rep increased, and renewal rates remained strong. Our solutions are resonating in the market and are helping more businesses optimize the experiences they deliver.”
Mr. Lurie continued, stating: “Our 2021 financial performance met the expectations we set at the beginning of the year, which is a testament to the team’s dedication in a year unlike any other in the company’s history. As we begin 2022, we are enthusiastic about our future with Zendesk, and we are committed to completing the transaction and establishing a differentiated platform that unlocks actionable insights for customers at scale and drives faster growth, and greater profitability for our shareholders.”
Q4 2021 Key Results
- Total revenue was $117.3 million, an increase of 16% year-over-year.
- Enterprise sales revenue was $40.0 million, an increase of 34% year-over year. Enterprise sales revenue accounted for approximately 34% of total revenue, up from approximately 29% in Q4 2020. We ended the quarter with approximately 11,900 enterprise sales customers, up 45% from approximately 8,200 in Q4 2020.
- Self-serve revenue was $77.4 million, an increase of 9% year-over-year.
- Deferred revenue was $201.8 million, an increase of 18% year-over-year. Remaining performance obligations were $228.2 million, an increase of 21% year-over-year.
- Paying users totaled approximately 888,700, an increase of 8% from approximately 820,300 in Q4 2020. Approximately 91% of our paying users were on annual plans, up from 88% a year ago.
- Average revenue per user was approximately $526, up 6% from approximately $494 in Q4 2020.
- GAAP operating margin was negative 33.6% and non-GAAP operating margin was 0.2%.
- GAAP net loss was $41.5 million and GAAP diluted net loss per share was $0.28. Non-GAAP net loss was $1.5 million and non-GAAP diluted net loss per share was $0.01.
- Net cash used in operating activities was $2.5 million and free cash flow was negative $4.9 million.
Full Year 2021 Key Results
- Total revenue was $443.8 million, an increase of 18% year-over-year.
- Enterprise sales revenue was $142.7 million, an increase of 32% year-over year.
- Self-serve revenue was $301.1 million, an increase of 12% year-over-year.
- GAAP operating margin was negative 25.4% and non-GAAP operating margin was 2.0%.
- GAAP net loss was $123.2 million and GAAP diluted net loss per share was $0.84. Non-GAAP net loss was $0.9 million and non-GAAP diluted net loss per share was $0.01.
- Net cash provided by operating activities was $57.8 million and free cash flow was $48.6 million for 13.0% and 10.9% margin, respectively.
- Cash and cash equivalents totaled $305.5 million and total debt was $211.7 million for net cash of $93.8 million as of December 31, 2021.
Full Year 2021 Business Milestones
Launched new products and solutions
- Relaunched as Momentive, an agile experience management company.
- Launched Return to Work solutions for SurveyMonkey Enterprise to support HR and business leaders with crucial employee sentiment data.
- Debuted Workplace Equity IQ to help companies like Headspace and Chime measure diversity, equity, and inclusion (DEI) and take action on the insights.
- Announced GetFeedback’s new listening, analysis, and automation capabilities and its Embedded Listener and Program Accelerator to accelerate and scale CX programs.
- Launched AI-powered market research solutions -- including brand and industry tracking solutions, audience targeting solutions, and advanced analytics capabilities -- and expanded our market research panel with highly targeted business-to-business and healthcare audience segments.
Expanded our partnerships and integrations for the enterprise
- Announced new GetFeedback integrations for Slack and Salesforce and for the Salesforce Commerce Cloud to enable businesses to improve customer experiences and drive business results.
- Launched the SurveyMonkey Enterprise app for Zoom to deliver embedded feedback that enhances in-meeting experiences.
- Announced a new integration for SurveyMonkey Enterprise with ServiceNow to prepare organizations for the future of work by seamlessly pairing feedback data with digital workflows.
Made key executive team enhancements
- Promoted Justin Coulombe to the role of chief financial officer.
- Hired Antoine Andrews as our first Chief Diversity & Social Impact Officer to accelerate our diversity, equity, inclusion, and social impact initiatives and positively influence our communities.
Continued to prioritize DEI initiatives
- Partnered with Operation HOPE to quantify the experiences of Black small business owners and aspiring entrepreneurs.
- Conducted a study with AAPI to share Asian Americans' and Pacific Islanders' experiences with racial discrimination, hate crimes, and harassment.
- Partnered with the Eva Longoria Foundation to provide Latina entrepreneurs free resources to help their businesses succeed.
- Partnered with Women’s March Global to power a survey that asked women in over 150 countries about the human rights issues they face, in honor of International Women’s Day.
Received industry recognition and accolades
- Honored by Great Place to Work® Best Workplaces for Parents™.
- Ranked among the strongest U.S. firms with revenue of $50 million to $2 billion in the 2021 Inc.’s Best-Led Companies list.
- Announced as a winner of two categories in Comparably’s Workplace Culture Awards: Best Work-Life Balance (No. 6) and Happiest Employees (No. 20).
- GetFeedback was recognized as a leader in experience management in the G2 Grid Reports.
Due to the Company’s pending acquisition by Zendesk, Momentive is not hosting a conference call and webcast to discuss these financial results. Additionally, the Company is not providing financial guidance for Q1 2022 and full year 2022.
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. 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 raise the bar for human experiences by amplifying individual voices. Learn more at momentive.ai.
Investor Relations Contact:
Gary J. Fuges, CFA
Source: Momentive Global Inc.