Cloud-based software as a service company that specializes in online survey development, SurveyMonkey (NASDAQ: SVMK), reported a wider loss in the second quarter due to higher costs and expenses. The bottom line came narrower than the analysts’ expectations while the top line exceeded consensus estimates.
Net loss was $18.48 million or $0.14 per share, compared to a loss of $12.46 million or $0.12 per share in the previous year quarter. Adjusted loss narrowed to $0.01 per share from $0.02 per share a year ago.
Revenue improved 20% to $75.1 million. The results were driven by a 12% increase in paying users and higher average revenue per user.
Looking ahead into the third quarter, the company expects revenue in the range of $77 million to $78 million, suggesting 18% to 20% year-over-year growth, and non-GAAP operating margin to be about breakeven.
For the full year 2019, the company lifted its revenue outlook to the range of $302 million to $306 million from the previous range of $298 million to $304 million. The revised full-year revenue outlook represents a 19% to 20% year-over-year growth. Unlevered free cash flow is predicted to be $50 million to $53 million, which represents a 17% margin.
The company said it raised revenue guidance for the full year based on the strong performance in the first half of 2019. SurveyMonkey’s growth investments continue to yield strong results and it is continuing to invest in efforts that drive enterprise sales, fuel growth in self-serve channel and expand its international business.
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Outside of the US, SurveyMonkey starts to see its investments gain traction. In Q2, the company opened its cloud-based European datacenter which is live for new enterprise customers in the Europe, its Dublin sales team is closing deals, and integration of its Usabilla acquisition is well under way.
Shares of SurveyMonkey ended Thursday’s regular session down 2.71% at $16.51 on the Nasdaq. Following the earnings release, the stock advanced over 6% in the after-market session.
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