SVMK - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to SurveyMonkey's Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference may be recorded. [Operator Instructions] I would like to hand the conference over to your host, Vice President of Investor Relations, Gary Fuges. ahead. go please Sir,

Gary Fuges

afternoon, to Good XXXX Second Earnings Call. and you. SurveyMonkey's welcome Quarter Thank

today's website Zander with Those prepared on call Hale, on release related this me Joining are commentary. a issued XXXX at Debbie your Prior Investor press CFO. our financial call, take and we President; shareholder Lurie, posted Clifford, After QX we'll items our letter investor.surveymonkey.com. were remarks, and questions. Relations to our and Tom CEO; results

A will our management may the to and the related of call, considered Factors forward-looking revenue, this of entitled statements, an uncertainties, predicted subject these of the risks contained our course filings. performance. Actual in differ indication our the margin in to quarterly are we make and various results annual filings future particular, be section to the uncertainties Securities in including and which During in results operating from reports, flow. you cash statements with is strategy, reported and and business materially and not refer risks results Risk relating to our Commission, investments, and Exchange should discussion

should to our furnished measures to With Zander. also over found filed and or be today non-GAAP be may non-GAAP discussion are include reconciliation GAAP website. non-GAAP turn our letter, with with on in A IR from of now our otherwise isolation that, the X-K release the in and to our in and found earnings today results Zander? considered which I'll SEC call financial may will These stated. shareholder measures not Our a for, be addition unless substitute GAAP results.

Zander Lurie

QX health for Against and performance, C-suite agenda, thank of financial guidance we and strong flow. exceeding crisis the delivered Gary, and the in rise to justice our million every backdrop joining to free a revenue cash our cities team today. profitability working our macroeconomic occasion. With tightened uncertainty, racial and protests and initiatives global home, America in you Thanks, continues on $XX Corporate generating from us

sequentially headwinds was runway more clear turning business considerable count massive I experiment paid further affecting believe In new in are software successful our This net in new our and prior net as QX, gather base, paying transformation. critical With are XX,XXX than our quarter. execute organizations segmentation. of now to logos on feedback customers. for employees confident our XXX XX% well-being performance, companies all added to we than on from base through our needs organizations and that quarter's year-over-year. are SurveyMonkey data today. results increased am to gains as the and features Digital managing further there long-term more resilient, in annual were action an a We contracts. transformation added with sales quarters. monetization channel, your is still user their we strategy validate can acceleration our into enterprise highly accelerate macro is half tailwind take whom more converting and in customer launch of time we users customers' digital XX% we enterprise on continue valuable. the and it package user while Based first We is on More when your particularly a the our

and and sales products revenue our We enablement, improve productivity increased more tools. than better XX% enterprise customer through improved year-over-year. to Annualized stronger per continued processes

Standardized and opportunities. sales prioritizing and qualifying onboarding their are reps measuring, rigor, helping enablement deals faster. more close first have We

of organizations industries This win like and there need us relationships where Sisters process product for Korn deepen to We ZoomInfo. America, motion Ferry, also deals and selling pivoted products. acute our Stitch our Big Fix, enabled and Github, thredUP Demand and packaging of with target combination Gen, flexibility Big is Brothers to

a our stronger said and forward. since many products IPO, see and get motion sales I've marketing trajectory in times every enterprise bit no single looking change little our this As quarter. I

software office COVID-XX. as every safe can be for spaces. systems and SurveyMonkey and state to companies from help fight believe of state other like the SMS of the Sending returning many fight Island winning the Salesforce a help surveys and integrating We record will as Rhode municipality help Daily continues well we navigate via complexity entities. with large also Our was of pandemic large to U.S. strategy

of of with We intent alongside systems engaged actively the work.com. engineers use SurveyMonkey the with expanding are Salesforce executives, solutions integrators and

from You implementing Governor hear successfully our disease Raimondo successful the has at solution. so been because SurveyMonkey Rhode the about and curve by software Salesforce more likely will Island testimonial flattening

gained customer products, and with as we for meaningful software experience be new further ground customers. market cross-selling Additionally, believe we will of SurveyMonkey lighthouses our well software thousands drive opportunities which research customers as our for

Salesforce is grow the serve integration with agile, track research great challenger this disruptive had phenomenal launch our Suite, QX, in QX a CX who Salesforce. mid-market prioritize We've on on that included with and companies deals. Our by year CX to price integrated value, six to Market opportunity to addressing GetFeedback have ecosystem built solution. multiple we a figure position an offering to speed and

chances This and new based in disruptive a for transformation your stretching where that solutions, and our disruption. panels world and customers can as theme is the the win pricing a power environment. incumbents has budget. the We and expensive-services-based winning our a will offer. help agile digital marketing we like value I our important in massive as primed are We liquidity industry are on of of TAM

in the headwinds tailwinds. Were those Absolutely. there are QX? So QX

call. longer percentage of enterprise in with We higher points to see May sales continue on the we churn to and consistent self-serve two in cycles industries, certain discussed three what

and crisis. some We delivered we targeted customers packaging. solid economic lost primarily execution force the product impacted acutely industries sales by gains, also through enterprise productivity enterprise from Nevertheless, prospecting

we strategy digital are sound. of and busier, relevant believe in transformation. this Today's are period is but leakier macro seen We positioned results thrive will normalized first we today it for accelerated that business in than industries. last will the is half targeted our different tailwinds are did a resilient, quarter looks quarters but create pre-COVID. headwinds pandemic economic broader of to model bucket business and for be top The many are believe would our our the expected, stronger stronger be two environment. robust us, is transitory anything believe in the but we The and our than our a products in durable. we've is ever, more The in our SurveyMonkey's enterprise wreckage business more As and more demonstrate funnel history, are unlike

enough to for dedication team all power of continues on to thank curious. can't to Our execute the I Tom. mission With stakeholders. to over I'll our their behalf that, turn call of our the them

Tom Hale

The QX center leap U.S. cloud of our in the huge to cloud. July completed continuing On the customers. Zander. took a innovate on-premise migration into to Thanks, while for data our team X, we

ranked developer Now increase has the site speed, in speed, and hosted for already cloud-based uptime, on migration, production traffic which Google notice. in is is for XXX% site Being of our and a we greater After SEO. resiliency great pages nine perfect the XXx improved is data saw number productivity. driving of taken the cloud centers. users

a better surveys, big key and planned to deliver. a continued we QX on response-based journey new our In executed enterprise, see flawlessly. model the and opportunity an evolving of tested was for learn driver enterprise basic free of carefully paid to pricing customers our monetize migration In the value in and X. we growth. XX% launched the we pricing product. self-serve, new initiative continue response U.S. We'll team and our align survey This packages team don't users us who implemented XX-month limits a In to user test our sales Our pay starting with April we our here as our today. was

have We usage, which we first scales new the on last new since late quarter. to was monetization to This better pricing full deliver. the based us so allows piloting model, year, our value been QX match model

rates, the We've model. size excited new be will volumes days, as increased very average we're win seat-based deal in early the deals, This old to and While survey by similar days the it's for while come. purely seeing our Usabilla results. end-to-end deal of a we pricing pay for to the to years release we dividends offering, response-based products. experience, customer remain XXXX Suite, multi-quarter In expect GetFeedback journey CX which and and the for our GetFeedback track on combines close

and examples to partners and rationale always base forward. use software opportunity research of analysis started CORT our into We world's customer It's projects CX business a The engagements, forward for are is new insights, CX our see Customers Charitable the purchase In is our We're partners SurveyMonkey is we our brands. in-market. online customer business. where and by our enterprise proof-of-concept When a the build adopters us event. and many buyers, our new in and a upsell them among major our and our our for live while roll our many companies program good attendees credits. to to new team. the Freshworks. a to Virtual best goal have Curiosity simple. getting product is of our addressing automatic key GetFeedback our in Zendesk great of be This flow a expect customers a than audience and multichannel expert are And SurveyMonkey the grow Microsoft. sequentially product, consumer are Ecosystem to partners and Program just from in We without our Microsoft our you seeing integrations additional look surveys the turnarounds, on, launching saw SurveyMonkey relative users. mutual at has continued research, and and Dole the from QX, app as double more for case early Salesforce Teams or next savings integration Technology we're we mid-October. and them And doubling our great to for and will conference our solutions including CX market been winning to next our deploy services quick like the is AI-generated for our in opportunities the we in updating Conference to our Conference, partners, proud Food May, like Vanguard steady in finally, selling ecosystem. strategy QX, CX are ecosystem gaining of of quarter. deepen participated market, in we new over in solutions with our are wins Suite. retention. This into driver testing. our cost and HubSpot, of see key to for reach STEP amplify concept customers market are I'm higher value creative business, number conferences and to XXXX following already users from of new Microsoft quarter, strategy the doubled within adding SurveyMonkey loyal love momentum. unlock customers solutions continuing Even app our QX pulling month, part to SimSpace. of added integration four Impact this We're our starting installations integrations, and We we

in strategy. challenging our and continue turn the We occasion over customers call deliver rise environment a to to Debbie. the I'll to now to for our

Debbie Clifford

Thanks, again, revenue results both margin. QX and non-GAAP expectations exceeded operating Tom. our for Once our

demand free are business. cash which validates near us and of our we same As the we quarter, strategy to in investing strong position in growth. in on time, focused last Zander for strategy our strategic while for and the the for quarter, term resilience Consistent Tom financial best our solutions our optimizing outlined with flow at initiatives we the long-term feedback the saw demonstrates believe we discussed,

otherwise QX all year-over-year. Unless Turning financial noted, comparisons to our results. are

anniversary As acquisition April the of marked a X reminder, Usabilla. X-year of our

Revenue paid our our Usabilla, plans. quarter by QX which the as an self-serve in customers our has channel increase third X% of to million, XX%. COVID-related in QX closed acquisition paywalls use include an well driven results refinement impact ongoing driven grew as XXXX. of was upgrading combination of in from a increase the that QX, cases $XX.X from in addition In into demand GetFeedback arising Revenue the of XXXX of

into Tom for year of ago paid number XX% of As in QX, revenue XX% compared and reduced the our sales in In and earlier, to responses free revenue mentioned plan, our grew within accounted in QX. enterprise period XX% which total more conversion XX% we plans. channel, the drove

enterprise strength we versus accounted which RPO, SurveyMonkey market $X revenue were the productivity reflecting growth. is in XX% from the for call, we Deferred enterprise, enterprise revenue benefits nonrecurring Excluding deferred sales QX, of last a $XXX obligations, or million as to the research QX, audience and in customer in revenue due Remaining discussed was XX% in increase. revenue reflecting growth in well revenue initiatives. as XX% million, our sales sequential performance experience of $XXX that to million. realizing sales increased The on the revenue backlog, offerings our sum are and XX% period which

challenging we've performance up for X.X%, a now non-GAAP accounting we strategy growth, and Counter an growth in cash plans investment us on million $XX.X and Total creation to actions environment. revenue expense paid beat, lower ago our anticipate costs sought a the steady $XX We which approximately digital outlined We flow, channels. revenue to and to held operating work described from a million capital. demand call, working equivalents, net As including the bringing cash rate. to with margin base that, increase in to closer of the sales monthly levels $XXX primarily maximize versus bookings to Non-GAAP annual as disciplined previous In hiring backdrop. to was facilities expenses maintain less to our due out XXXX quarter and we work marketing generated deferred spend revenue QX to due to sequentially overall an pace mentioned With margin negative XX% growth costs XXXX user our in added previously, X.X% X.X% normalize and the to QX basis was on from an and of the channel efficient measures Gen digital gross both annual will ended growth. users, addition deferred growth the be in in continued marketing to year Non-GAAP variable against of we that XX% to for paid operating calls, RPO ongoing pressure, impact QX XX% expenses reduction primarily of to we and free quarter-over-quarter remote in in on proactive resulting we in our reflects toward continues period dollar from continue such and management. as optimization quarter-over-quarter, cash been due our competitive RPO a build due Demand non-GAAP million position. with our coupled and across debt approximately plans. revenue has our revenue us operating economic cash neutral lower migrate the optimization particular, declined revenue $XX.X contributor flow in million more

$XXX which Our total credit revolving facility. stands approximately $XX potential liquidity at includes of our on capacity million, million

pleased resilience are the we're seeing. with We

pandemic an While and deal near markets our revenue there how our remains will uncertainty customers, us impact provides macro great which the is COVID-XX our model economy, regarding of asset, a visibility. recurring the term with

data We points are more gathering every day.

financial various impacts While from in what scenarios us are have downturn. the to evaluating our of this we of mid continuously we depending to long-term and understanding better one the time. help COVID the term, duration in many near performance the be unknowns, we guidance With a out may will depth so variety quarter understand economic limit of of to at on outcomes potential the a

QX, For $XX expect at $XX midpoint. or be the revenues to range million in growth million we XX% the of year-over-year to

to X%. in and non-GAAP continue free leadership opportunities for range while X% expect term. drive differentiation, in strategic growth, to industry the immediate cash to the of intend to operating flow to We balancing We margin in be invest competitive

Now turn the Zander. call to back I'll over

Zander Lurie

race presents the at SurveyMonkey acute. even relations of pandemic at an United The partisanship June division A issues economic class made States XX%, biggest challenges, ideology at CNBC the more out justice social in race significant as and recent survey beating single source difficult XX%, already XX% alone Thanks, XX%. but Debbie. identified situation have at downturn intense and

For major racism be white by is perception Black NBC SurveyMonkey, products biggest May to dominant and that XXXX facing never race we'd is to services the allowed since is a up our bigotry. race intolerance among and far and XX% said Americans Americans, America significantly hate, And poll. SurveyMonkey divide. used is At black the the today. promote News problem problem the

taking efforts redoubling Justice our we laid a group plans further in equity prescriptive Now on employees. promote hosting We're out leaders SurveyMonkey of community. mission we are black Task Force, brown diversity, justice action are to to and our Internally, Racial the by racial to and with our well-being inclusion. of at and SurveyMonkey a our support programs

organizations our candidates – backgrounds. on and be decidedly anti-racist. our educate equity And black templates, the how program. fighting amplifying team recently training to and can research And featuring are working cause. systemic our survey support adding a Externally, policies DEI to to this having identifying we our launched from candidate on a resources, we've justice social expanding regarding reiterating We and landing donated commitment that underrepresented Contribute our to we focused are are sources lives recruiting, page to from organizations statement SurveyMonkey are and we racism for initiating team including racial including free

taking and directors. our Monday, and initiative track DEI boards representation of are survey racial individuals we other On our women, the new XX LGBTQ announced leadership within to major with of technology template employees, teams action. vendors, our use We minority companies to

Box, we SurveyMonkey is Chime be process first the Intuit, are but inform proud be of companies Improving and we requirement time-sensitive to important will investing with provide create we with a and organization DEI DEI Together, effort, Our with is more more opportunity more measurable questions. join make doing can who We our to Thank largest equitable are are vendors, the for business committed We XX and fight. and look our goal This Upwork, SurveyMonkey. change and will to connecting stronger partner take financial our to to now forward our step, encourage communities this in and working make to to diverse, suppliers in all-important lasting to Eventbrite, community, like sustained your are an consultants goals that underrepresented PagerDuty, inclusive. marginalized. we us broader them in within with people vendors Zoom. and to you.

Operator

of first the comes from Our Craig-Hallum. Bennett of line Instructions] Chad [Operator question

Your line is open.

Chad Bennett

taking to nice challenging in for quarter. the question a and Thanks environment my on job, say least the again, Great.

kind I So on side few guess, trying of to I'm here. the the a things enterprise correlate of business,

kind enterprise it, about based spoke look includes you I per on year-over-year. like churn if that, customer. if I'd was look So if ACV, per customer up XX% that guess, think don't showed enterprise and I I at it XX% I call year-over-year at guess, growing of But I or model, I how just kind my revenue of not. up know

– I'm equation, there missing me attach is So there's data help just probably but that two of those kind in points. something

Zander Lurie

just We logos Chad, I work accurate, the the with year-over-year that you last generated revenue few on quarter. revenue average Hey I'm was we'll have model. the that and our enterprise total and with the weeks spent per reflects the as net Committee, that customer in Audit in new XX% think the individually auditors sure so is to growth quite well as

Chad Bennett

sales off phrase the then I relative you maybe vertical it, of handful Zander, cycle also and exposure sense then customers just that – customers of and Can you side? little that bit there? maybe what you're longer the And us enterprise spoke, on just cycles Okay. dropped about the a give how seeing know And size sales don't out a a on of you dropped base. there how the

Zander Lurie

Yes. Absolutely.

the after out We QX growth plan path year, force than of have we lot year, focus my and a So I growth on the doubling charted to albeit sales enthusiasm in for on enough sales productivity a can't different included planned. been had this about business. we last a successful little enterprise with that, which our say in

verticals, government, been about X% from impacted care So imagine, industries is the base. enterprise away we domain have health COVID-XX, by really shying us FinServe, particularly focused of strongest which for that our efforts technology, CPG, on our you can

redoubled in Gen verticals and So it but acutely our was minimis the those we Demand strength. boxed had that verticals saw, were into efforts impacted around selling frankly, time and de that really churn, motions

success saw So then that a bookings. converting excellent into lot in really we quarter Demand and of in Gen the

education, people that to So needed small there by it's products with time our need in their geography, has a team. entity, healthcare, really connect the And this support kind nice been in period. in to and are testament to every fact every large during a really businesses, stakeholders in job relevant incredibly sensitive every SurveyMonkey government, the industry, a when of businesses,

Debbie Clifford

over And over add reflects quarter, revenue new our And more net and customers strong that than the has added been XXX last remains consistently just XXX%. during the enterprise rate net on several retention quarters, growth. I'd we which

Chad Bennett

Right.

the for Thanks Okay. answers.

Zander Lurie

Thanks Chad.

Operator

Thank you.

UBS. Sheridan Eric question next Our of comes from

Your question, please.

Eric Sheridan

Thanks was the the and on questions two taking self-serve. with for question team. around Maybe everyone well all hope

understand. Just wanted to

in as move part number called thinking anything would X. product are the having user year, we take out some of You the of through number that be the changes is the then the you're as growth. world. as self-serve some on to should playing marketing that of How two, advantage additional back dynamics doing in maybe paid And about there being the those of out changes, broader you to made changes making plan the be you impact you driver of

on be to consumer quite of of of funnel side? amplify the are CPMs the your your ROIs people Sort pricing to top the they low, able some self-serve or to push product with into programmatic might respect especially

Zander Lurie

time a responses approaching surveys, levels XX we've an about million start interest, Sure. users, over can now And still with of with user that monetizing user base add in XX intent, that on color. is I'll I've base been the active active Tom years XX-year we're then active associated our record and maybe more platform. when seen of X% at some SurveyMonkey history. only

living their particularly around So we're know, the stakeholders. – feedback period from we people in are sensitive collecting all in, interested

but Suite. only the market well research as and constantly our in We features surveys our platform, products are integrations GetFeedback capabilities, building across as not new

organic the constant new test. and longitudinal packaging sure segmentation different we're So muscle the share. experiment, maximize also value an we launch customers, our to We're that using building fair monetizing make we growth to to markets. but we're features, that We we test it's in constantly really deliver and pricing

drive advantage continue a Tom's paid a marketing So or team that terrific to that's competitive done know there share job companies, muscle muscle, user initiatives? and many is a frankly, of that a that help and will Eric, we with And be, has no some that number. a bit like company platform homegrown survey growth across our to covering scaled the experiment Internet is to so is other CX have. given you user base want global and do marketing about Tom, you

Tom Hale

of of that on Zander CPCs we itself, lower the the mean, presents is can something we're the about before. funnel we a the that really us go kind forward to of top funnel. to of I I usage kind opportunities crisis and the seen we Obviously, we've drive based numbers to mean, of continue really way, of think taking nonlinear Yes. in of talked are metrics I advantage have as levels seen at top and not sort elevated of spend some the of kind

So the funnel. to we spend drive top to will continue of the

the I been I results. opportunity think for it does pleased we've present think with and us an

of not secondly, durability think to of us the it only conversion the One, reach affects from the because Turning ways. time your back of into do about faster. XX% people base. And in call pulls more that pay it that I of shortens us want our I the limits. to base two the it today response And our paid limit asked The out, just benefit you first to thing sort had question.

impact, see world lots we kind other around double those opportunities of ahead. it's the So lines look along a of we and great as

Eric Sheridan

much. Thank you so

Operator

Thank you.

comes next of from Mark go Our ahead. Please Murphy JPMorgan. question

Pinjalim Bora

how and Zander, for Pinjalim second in enterprise business you mentioned the for record you of think in QX? on the – maybe I in that quarter. congrats into April. Thanks you rates looking bookings in you close generated terms far is pipeline the What had is about QX had talk see pipelines taking forward and questions This could forward trajectory the sitting everyone. Hey in and of cadence so going the in did Mark. half?

Zander Lurie

we're Sure. lot it growth COVID the Again, of to attributed for the a that right is seeing some Thanks the question. of now, environment.

a research and CX But the for that enterprise really is one attributed in Rhode motion. and to to I some up seeing testament Island mentioned companies it use health cases like is of of our customers and a organizations solution our designed, help new in tracing these specifically contact specifically monitoring. solutions, this care product, Some surveys designed today and across the in growth of and and on we're symptom and business in of work three is market years lot a hard sales four marketing to building to purpose-built

and environment. conversion April, reentered before do our we did I'm as levels of So as work to well converting first sale a as date not in very rates, terms to pleased times to we said I COVID falloff lot demand, QX this sale, see a had in teams from of we both we first on of to saw that mentioned our it. Phototainment, record say

shifting job teams then fact, delivered. the focus and into and would for be in really that So industries our good nice companies, they on our entities buyers products

team. to market leading SurveyMonkey. It's marketing testament Daruwala, the all Nik to research marketing this a So response products We've done. we and sales it's named environment, year has did have to It's sales the that stronger year. a really gentleman than team up a our hired brought our partly of team that fact who's partly capabilities the excellent we our enterprise that work world-class has the Demand Gen last

this SurveyMonkey products. digital better, So transformation, to it the that coupled netting better, so stronger happens call. to out the a dynamic leads that of demand at funnel is to be Debbie much – selling a team guidance from in have concurrent tailwind with us we much And that be stronger presented

Debbie Clifford

economic which real I'd as backdrop. on this that has average historical been patterns, linearity challenging our bookings with see a positive we add consistent also just against

Pinjalim Bora

it. Got

maybe going are the And well? of customers? my it customers secondly, why the more And that asking will existing for a as some Okay. little it? the mainly customers of attention. Are you is response-based about start this for Can that, bit you enterprise is caught way? How you kind pricing customers talk beneficial or for nudging new it

Zander Lurie

a question. It's Sure. great

As room usage. I month it survey that company. by by fees to you enterprise a And based, I is of leaving And we've or in usage-based for history there's history one the a fact model. with year. long traditionally, have no software the mentioned, lot incremental the charged a purely this built And on was based we have monetization product

are now model component we it well both pursuing this component. as as introduced April. usage the in seat the dual We So with

did we've delivering. this value getting We've associated from trained job customers usage. are to value receptivity our appropriate to enabled. given Our teams product being good We think done able who on charged accustomed with it's really charged and for and great generate seen development we're a more the all the being based be to

do eventually by new scale a and lot customers. this this our you're motion we it. responsible with will receptivity. out not large existing have, but you customers impact, companies So super from sure with scale, you getting learn, with customers, will make we kind like you to We're working and And we test, a impetus customer-centric, are you is we and customer that know, to start in good surprised all the of way as of you

have and long are a price and on we for coupled always time, disruptor with the time been competing value a to integrations offer. we We value,

important drive one one So component, us this think monetization. it's we we know incremental but an help is to

Pinjalim Bora

Thank so Understood. much. you

Operator

next Our Ryan from you/ MacDonald Needham. comes of Thank question

open. is Your line

Ryan MacDonald

questions. my here progress deepening being thanks you're integrations GetFeedback the the taking I'm point the Zander, ecosystem. made. I Salesforce for you. Hi, brand, suite and with first asking CX the guess, the Clearly, under unifying about for the

progress as product integrated holding Just And are of making later the Thanks. ahead year, you're before for demand continue off look of hearing this unification this what a full you are seeing or would of that the we launch for until coming to of sort as any later product fully that then about love year that demand or to hear integration customers along sort perhaps process. purchase the decision? you progress at solution pent-up

Zander Lurie

for Hey the thanks Ryan, question.

the remember, area look The You massive across we're in an this think CX, is case SurveyMonkey have to of the I satisfaction, SurveyMonkey, we of customers CX. on. People the trying bar better coming NPS, is enterprise Customer that number are to buying when competitive are the customers. users services environment. level win the know satisfaction super, am product web, important it's none to really by to my delivering do product, at focused to products, we in to use help super scale reason this you their I understand, to a right X buying

software strategic and on led year to AOV, e-mail, talk the you Salesforce path a think team going it's have of a focused a two has last to I app, the continue Usabilla fair to today. really winning really the about purpose-built and say ship. build us on will us to market it products vision led capabilities to But to bringing catered that web, those acquire this I'm together. So GetFeedback both some the ask to solution April shipped GetFeedback in are higher much Usabilla Tom at platforms September. ecosystem. that of last to We're the

really were that solution omnichannel Customer XXX CX can't laser-focused So customer, the more a our both broader, quicker vision and else a for with fundamental be a and XXXX growth of say Salesforce, much at hook on I maybe anybody to holistic is a hundreds these you But to the and of is is delivering. offer right we by Tom, away, believe focused And ecosystem. deliver customers can forward. in product will thousands products going Salesforce price, on value that competing better enough better of doing than driver add the bit which you solution, that going our we're is about

Tom Hale

have data Zander. view customers, what Ryan, be analyze take center. touch service and point and want a you your is combination or single out to we'll that have heart That action And the we'll products able it's actually points, this stuff. on whether very the later product what on the you're to gathering on Yes. CX the collection, be the excited GetFeedback really key well. Thanks, to digital an requires you a which add omnichannel that. solution most that's CX is to means I things year. that one offering. of is. we're that Salesforce. with the doing delivers feedback That's is here personal But places think Suite to to the of sales what recognize all analytics of touch your sort points to market with be want of And all be the data. our you what and that going or call really is to And shipping some as and together That's We're bring roll doing of unify data the that that interesting the the

answer GetFeedback current You What are doing expected the based holding And to would kind back – products selling that like demand is as ask any we step of a ultimate are the is Suite. ship? no. we the anyone the on today is pathway have

have path future So the existing to Suite. we GetFeedback a those in customers get to nice for

So there. demand in no shortage

Ryan MacDonald

And for a Excellent. as then follow-up just Debbie.

talked any that to talent gross off center. you're about from that completed the migration different Is of data of or an migration? sort potential completion remarks in centers data You margin about two there have systems now the expansion on-premise prepared the of opportunity cloud and

Debbie Clifford

in we is takes leverage the why data which we'll And today. in is get that time, where our XX% margin more that, But over out answer some math. yes, and puts able of approximately would say gross we are be is because gross short migrate centers. to The reason that fully as are margin, are we there over targeting time, I

positively some as gross as leverage costs with will mentioned, some course, Of I grows. but we margin get also time, scale that cloud will it And are there over investments revenue those from support panel proprietary we panel. research our cases where business scale including card with credit well, market leverage can't fees, like our revenue third-party, customer costs, in costs in transaction things as will

All about gross XX% of term. these the long puts and takes over net to margin out

Ryan MacDonald

very Excellent. much. Thank you

Operator

[Operator Instructions] of Next Thank Capital. the line from Knoblauch of Brett you. comes question Berenberg

is line open. Your

Brett Knoblauch

for well. I guys. taking hope all Hi question. you are Thanks my

further level on for them in Suite CX launching, and GetFeedback obviously some new Could when and bit there's guys there out you little I see how you maybe plan differentiate bigger that the names just competing to a mid detail both, plan business? maybe you on touch competing you do to enterprise guess, the market. Just when yourself

Zander Lurie

Sure. the the good Thanks, for everybody. Brett, wishes, question. for Thanks

whole think the team. management I for speak I

healthy Our focused. and families and are strong

our deal you where research, we pursuing Brett, market web, a surveys, CX, recognize in and the We built really product, market; to much to business, closed is really call awesome called deals. six the three pillars. you a a fintech We on with on bigger software-oriented quarter we've we're the figure win disruptive closer the bank. company Specifically are are Shine, get we which them leader where market this starting enterprise a leading

campaigns. logo their the them different we've jersey, helping in and to reach see their different helpful and You'll marketing really on cohorts the sentiments they're who Mavs been trying understand and around

and I massive massive the space big and base mentioned, TAM. that Salesforce – business really So XXX,XXX them market and a domains in opportunities. development, logos bringing then partnerships that leveraging some relationships we in CX, we're as winning together two environment, research are deep thinking in go-to-market ecosystem SurveyMonkey acquisitions, these product where constantly relationship marketing, and have targeting equity of users through And

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Brett Knoblauch

much. Perfect. Thanks so

Operator

you/. Thank

question Fitzgerald Fargo comes from Wells next Securities. Brian Our of

question Your please.

Unidentified Analyst

and market? This any you're And you in there headcount, dynamics the recruiting current is longer Brian. and any adapting the sort flexibility then whether or you the Will you're giving home seeing you how onboarding second one, to your work Thank you. for environment? what can us are tell of of And a to could on talk thought efforts given in shelter-in-place efficiency term? On during teams from

Zander Lurie

Yes, employees. it's one question. that's It's great a our to super important

brought We've in are as rapid years at employees today. we about to sales. count, three far products as about SurveyMonkey the employee So XXX We've employees in through acquisitions, headcount and head come significantly growth, family. of very been X,XXX investing two which marketing

We've work growth. new significant Slack the XX running full-time the everybody company world. dollars unlike March in home investing are who's from around and going In of We period month. we've been to significant Like come, since I revenue very age we Zoom old, that sales under in done else and yield really in been hired has investments and anything on those and revenue lift to that XXX numbers harvesting We've product of did AWS So and we're of and in new believe this continued new good years else. went then. to significant period, We really the job years we've launched marketing. into significant from to products, the early the company shift a the of last people innings post QX. the COVID

Sales, new Vice Product and onboarding are Marketing President of senior we So engineers.

in And new exciting be some will soon. additions see record When way of significant lapse see investments lean no we've the facilities and the culture a help to is. efforts. gives our we're teams, sales is work, lot We've productivity discussing headcount flexibility rethinking from cost the will savings. team and savings have a shipment of made you for We diversity, that made this to that time that continued can to recruiting we foolish to and us that productivity adaptability in we through some come. long how inclusion company our like not continue every tech our thrive productivity that this can from year the CapEx, and kind other hope adapt, and our strong and into be think that me and to and discussed a – delivery of you'd company Debbie engineers some we

with going we are yes, do connecting to companies our What know CEOs doing? kind and the differently? understand templates are we're reimaging how you CHROs stakeholders thousands SurveyMonkey and and other can are same. absolutely helping What do in CFOs and our their benefits their So principally in of We period, employees work hundreds we an think, and and that you So of in benefits? data that more is driver the whenever productive to health mental office templates to and way be. in our access, might everybody key a are this environment thrive help helping back flexible future, get a

Unidentified Analyst

Great. Thank you.

Operator

Thank you.

Bank of America. Our comes next from of question Sills Brad

open. is line Your

Zander Lurie

Hey, Brad.

Sherry Guo

This Hi. for is on Sherry Brad.

Zander Lurie

Hi, Sherry.

Sherry Guo

Hi. Well.

Zander Lurie

family? your are How you? are How

Sherry Guo

Thank good. you of see wanted Very or seeing just strength signs of there's good. geographies could any to if Or you. you're on Very trends Yes. relative internationally? if comment recovery? I any that

Zander Lurie

is represent XX% Zealand year team headquartered handful of and our Yes. concentrated in Canada, revenue. of to Europe. in International continues And last The then Australia, New countries we a that's Sherry. in in obviously, about acquired Thanks, Amsterdam. Usabilla

XXXX, sales field that our us. a then they deliver. office deliver last continues May put team and in spring we for Dublin to of to Dublin, team to And sales So in continue surveys for

that with I growth par would say trajectory international trajectory. growth So on U.S. looks the the

part as trajectory of recovered I of March in stung the they U.S. was back early similar have a on and and think everybody April, the half

level. in I will continue faster localization we that grow see business investments, future. help that you'll XX% track around continued the And international So initiatives think to that

Sherry Guo

questions. Thanks Great. taking for my

Zander Lurie

Sherry. Thanks,

Operator

the And [Operator for CEO, appears queue, Zander to to to no over remarks. back Sir? questions Lurie, as call further there closing in I'd turn Instructions] be like

Zander Lurie

any post of analysts in Well, a and been company for I'm to a our thank year unlike continue public fascinating XXXX kind team developments. interested you, a has at years we've our employees able and results to of of and in to Latif, lot as truly and partners, are pulling about and our where you all all and couple It's together. and our we a this continue obviously, other. been of curious deliver thank our ability a for in just post an that been and impressed proud the SurveyMonkey be there's to environment customers super our

forward wouldn't success great, there, your a you kids, some hope fresh with do a on you. you wish and continued look I with months get out roast you healthy have summer. rest wish you So I all in you some good something get that marshmallows another air, done may catching and We our of have happy, you up to Thank summer. three QX and healthy call health. in summer

Operator

participating. Thank and this today's for call. concludes Ladies conference you gentlemen,

You now disconnect. may

Momentive Global (MNTV) 8 Aug 202020 Q2 Earnings call transcript