Cloud-based software as a service company that specializes in online survey development, SurveyMonkey (NASDAQ: SVMK), reported first-quarter losses that were narrower than what the street anticipated. Adjusted net loss for the quarter was 2 cents per share, compared to 15 cents per share projected by the street.
Q1 revenues improved 17% to $68.6 million, edging past the average analysts’ expectation of $68.23 million. Enterprise sales revenue was approximately 16% of total revenue, up from about 13% in Q4.
The stock gained 7.9% during extended trading hours on Wednesday. SVMK shares have gained 45% since the beginning of this year.
The company, which debuted on Nasdaq in September last year, said its paid users at the end of the quarter were 670,862, 10% higher than the same period last year. The average revenue per user (ARPU) grew 8% year-over-year to $423.
CEO Zander Luries said, “Our paying user growth continues to accelerate driven by sales of SurveyMonkey Enterprise and adoption of our collaborative Teams plans with approximately 90% of the net adds in the quarter from annual plans.”
Outlook
For the second quarter, the company expects revenue in the range of $72-73 million, suggesting 15-16% year-over-year growth. Non-Gaap operating margin is projected to be negative four to negative two percent.
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For the full year, revenues are projected in the range of $298-304 million, up 17-20% year-over-year.
During the previous earnings conference call, the management had laid out its plans for the company’s growth. The management plans to invest in efforts that drive enterprise sales, fuel growth in its core self-serve channel, and expand its international business.
SurveyMonkey expects to generate significant cash flow over the course of the year while aiming to position the company for an even stronger 2020.