SVMK - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by. My name is Rob, and I will be your conference operator today. At this time, I'd like to welcome everyone to the SurveyMonkey's Fourth Quarter and Fiscal Year 2020 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remark, there will be a question-and-answer session. now Vice hand Gary President would to conference Fuges. I host, your of Instructions] like the to over [Operator Investor Relations, Sir, ahead. please go

Gary Fuges

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

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

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

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

Zander Lurie

grew in integrations stacks. better help crisis. better volatile to remote in that XXXX. and a Thank saw today. stakeholders you, face to of a our with we We customers' served no and In growth. team injustice paths our $XXX line XXXX, community. to kept our found focus and free a case generation And cash to new for and Zoom thank year pillars. in together year we you to collect In before and customers, exceeding software new products work came survey joining ranges guidance and and SurveyMonkey and over our for our the COVID data and In full we team Salesforce political like feedback navigate new top experience our pandemic, customer hit. use partners developed deepened templates core businesses, our and health Gary, set alternative racial cash research educators of the deliver million with nonprofits solutions uncertainty, one flow, million revenue environment all generated market meeting emerging help added their and ServiceNow a our XX% us Microsoft the coming, feedback We We leverage and shipped in $XX compelling heightened to shareholders

customers, to learn Our go-to-market board our across a delivery strategy accountable is XXXX. we for listen, XXXX customer solve lot problem our we motion, for our helps We to own our the believe With We product plan our and and mindset a and innovation our we performance can testament of beyond. in us share sell effectively. that There in growth and Employing continued and agility. base take enterprise XXXX also in action. learnings software were continue market team's helps customers more commitments. a execute are expand

self-serve which QX Enterprise revenue excited Headspace, of the We improving in can was revenue of growth like traction and so customers, rate, early market. are in SurveyMonkey for. integrated the give feedback they XX% XXXX with CX accelerate sustained We to period. QX. base, but a feedback-oriented growth its growth wouldn't the candidates QX it our where to In our for year customers closed offering, primary our QX, our Teams, In year need ListenXGood. we products the harder helps from drive revenue than increase compelling believe with massive channel, ago a wins continue Carrefour, enterprise With we they launched with great Enterprise they well-known channel, free our would tough again, are self-serve again credit are And with have which rates customers the funnel a strong, for as renewal customer of The logo of including our predicted we products face products, resonating drive new a growth flow total integrate in partnership us Evernote, agility. we enterprise In in our channel. enterprise platform. but through Crisis offices illustrated to Enterprise. experience our well do about of newly software. accounted growth mid-March cash and XXX added sequentially had and XX%. supporting because with Net-net, did Our XX% really in we with systems high-growth launch driver, I top and results do companies accelerated in approximately Enterprise the book Avon, marketing, revenue logos XX% our QX valuable generates I'm did. healthy ran on, remains we performance upselling year-over-year. Enterprise our in business low better. We year we were the to adoption our guest ended new and Mulberry the double-digit self-serve, up over and in Monument X,XXX year-over-year to other for Center, compared SurveyMonkey also

the business end the Enterprise heights new set Our we market. XXXX reach of in at QX higher didn't specifically on, sights winning results the our

us to actions deal work in. will Remote we increase. for improve and put sales rates opportunities cases, higher sizes retention taken believe solutions Douglas, We of will added hired we've to we and are our capture Research, an around Graham and Market than larger each productivity. CX, convert more Research more and not team. design will the leaders and the Market hires surveys, customers help sales sales further the whose firms plan value following achieve As place, hires quick-close over leadership excuse. investments deal self-serve team focus former into we these sales product to change environment new the In we We've our gives customers strengths we've In We services addressable customers, for where business sales Equally sales. Market to and we're be in is in offering businesses. compete improvement, like initiatives former course momentum environment justify executive investment. this In and between the consumer, deliver org Europe and we this we sit use and our to high-value Tom our account surveys, will sizes importantly, at lead will of that the CX Dublin. in deals go-to-market, our The Research out help pillar assessed team packaged on leadership three including financial will and traction we're as high-velocity and aligned talent. valuable sizes deal EU we our early in into Oracle BXB will efficiency the adding verticals: year, believe sales, and continue Head our In Sales Murdock, Market build Research, technology enable in new Dynata. to outcomes. Digital we Kantar of confidence think represents a we huge key further market, and steering lead sales win sales where In Head help hiring us CX of our can believe HubSpot

January now book kickoff our we've could maximize ground Finally, Officer. Ken our meeting the to In first-ever annual in in our Ken companies prior of Customer us categories Neustar. business within our have success sales sales. customers to value. bar and growth from we strong the of we enterprise clear our customer Put running XX-plus help announced the optimistic and years and leadership land at go-to-market Ewell December, executive so Chief growth hit Ken our experienced these brings for in X,XXX-plus AT&T like Ken across an as simply, deliver strength drive products The help changes our of a IBM, base. experience signal added raises Enterprise made that business. value of at leaders is I'm XXXX. both We will customer SurveyMonkey. that drive We And and enterprise expand

the like systems grit, and and was differentiated in clearly and and on are we ServiceNow. Microsoft, key Salesforce agility, products XXXX and deliverables. to will continue to determination with We of increasingly go-to-market winning paths record value of integrations year price We're delivering product Our relevant growth turn proving revenue will our XX-plus even time now forward in looking and out percent discuss I'll the of alternative while terms found their confident of we're execution. remain a it product if in again longer-term who pushed key initiatives. traction our line. to partnership goal yet and over Tom, I to XXXX. to Tom? COVID call committed SurveyMonkey growth driving our at

Tom Hale

in year our Microsoft long-term Zoom drive Teams, team to of our XXXX. of the a We and like activity. survey journey innovation. launched enterprises. tracing, with monetization. delivery urgent it our accomplished In incremental and enhanced to our on so in contributor made In we We we'll growth seats announced for goals. an introduced of engagement year employee that I'm Teams what Thanks, funnel surveys, investment return Communications to for it and a product We use large product usage capped our functionality and a for customer response top Zander. installations XXXX had help exceptional to responded easier we solutions platform cases free data proud support of and shows incremental integration to build with Video work. contact in super analysis upmarket remote cycle with and of QX needs manage cap post-COVID

the customers response-based completed to support pricing new in to we Enterprise, work rolled QX. also Enterprise SurveyMonkey We for out which

selling seeing continues impact the model XX%-plus the new it's the drive cycle improved new of with model to for customers shoots in Enterprise And sizes no driving on the QX. in seat-and-complete we're a green deal While early, monetization. lift

value Carlex and productive, factories increased get we're relationship win-win. getting volume. our based on to a customer employees customers customers. deliver daily VX I existing enterprise In to new In deploying help January, believe platform, new story value offering solution enterprise COVID tie Glass, we a shared will they our about the systems Carrefour, factors. scale. that In a that we on new of great response helps economics of that their for the keep customer pillars, increase best X,XXX enables seeing is newer example, Carlex the products Carlex better call, their Headspace shipped to usage. an better as agile, mix our price-disruptive true-up CX, after experiences leverage feedback risk surveys our of It's its track and to launched Xx For last their integrated a business them to that our record to Mulberry of like we

to survey solutions do open These a using today. that of Commerce our Cloud marketing new and rapidly our our more like are to Solutions market messaging decisions. full-service In their Expert proud Companies and in products fraction research I'm Verizon shipped companies to packaging agencies. we new already CX critical announced at also introduced our research ad the enable adjacent Market agile we integration, Research of of Research, to make up opportunities Communications say opportunity. cost incremental We are to creative and Market in-house which

make more XXXX, promise experience to and faster, deliver look more fill to cost-effective, better to we to As agile, ahead is employees. customers understand our gaps solutions and to easier, it

investments aggressively machine are in We our learning. ramping

we're investing use to Our customers answers are SurveyMonkey but specific started. have cases with seen guided getting get insights enables our we increase great value benefits Genius for the to while confidence, target that customers. In deliver users to automated solutions new to save just time already. Features time surveys, like

for big platform organizations, employee Our with to value, the our add agile to survey and In we small, of experience. more precise GetFeedback integrate evolution a to generate out enhanced for it's about always-on of new of platform the can quiver this SurveyMonkey functionality expanding customer our Research the multichannel work easily in leaders CX, graduate NPS, navigate key to delivering and so and of addition segmentation XXXX, solutions. the platform. solutions the our return Card CSAT will solutions Abandonment. shipping helps month a In Enterprise customer in And work And our arrow to in build Market breadth agile CX introduce and go-to-market We'll Market XXXX, will XXX-degree GetFeedback programs more Enterprise the richer like with elements continue motion. customers analytics all Research will the and view new prebuilt targeting. CX and

deliver team to of innovation value, in building our to further more another Research the service make launching our Debbie. the share move is expand of success logos to new take great Solutions wallet. believe pricing software over As on from our a market more task. Expert excited share use I'll goals expansion, other the our investor and modules lot investing to optimization. we and and legacy done is and allow we're XXXX There's customer webinar, to services-led Market massive, cases, the as of will The discussed get new tracking such year brand industry to tracking, we call strategy to us upmarket. and with strategy and year of but we're We're the December opportunity up to turn offerings now here and to of this

Debbie Clifford

revenue comparisons year-over-year. cash compared to XX% XX% Revenue the QX three which all in our Revenue quarter of fourth in year performance on our due grew from in increased an review then year-over-year with to Thanks, revenue otherwise year-ago period. QX channel Enterprise XXXX. where $XXX Revenue Enterprise again QX, growth, and non-GAAP our Tom. summarize a to driven in from the growth total basis. pillars. then profitability full million, increase a was growth The like-for-like sales all product channel revenues for accounted revenue highlighted deferred self-serve flow not our XX% XX% XXXX. strong so ongoing This XX% results year noted, by or affected healthy revenue for packaging. and were Deferred free-to-paid a of Remaining Unless and solid I'll million, QX to XX%. QX financial approximately of free obligations, reflecting for was XX% a was Teams approximately backlog, growth of first operating and were review $XXX RPO, by are quarter rates is performance growth. our full is start I'll year and outlook generation. acquisitions, finish by due planned our $XXX pricing increased the million. of to revenue refinement and convergence sum

to previously, now our and year-ago versus revenue annual primarily with and margin plans, we anticipate associated the been in Non-GAAP offerings. revenue Market Research that growth contributors will overall and in RPO to As user has annual we've XX% addition to XX% mentioned bookings to was of growth paid from on With deferred monthly converge. strategy gross XX% in plans. revenue added our period our users revenue, due base volume-based our deferred growth growth migrate costs to lower

Non-GAAP negative in gross margin compared non-GAAP to due margin and margin XXXX to the QX X.X% and management. QX X.X% to performance normalize time. was XX% range over and in a XXXX operating disciplined gross X.X% expect in We expense revenue

in We've operating As we manage revenue strategy on been expect while outlook, our to challenging all growth versus able in flow. XXXX investing in cash execute operating in cash growth, $XX.X to seen macroeconomic realize also cash flow and generated drive XXXX leverage We as the million $X.X free to backdrop. against invest nominal million diligently and strategy. to we our our long-term continue

revenue in with with, we approximately line cash Total ranges XX% The to provided increased year-over-year in the February million For Company's the revenue approximately a position. equivalents, eclipsed year free million. revenue In ended XXXX. channel was approximately X.X% $XXX margin cash million. operating $XX free full annual a of of in non-GAAP year in guidance net $XX produced flow to now year-over-year, and We million Enterprise first operating cash are an we XXXX, growing the positive and million approximately the we margin for increase and full history, flow time $XXX and $XXX we XX% in and year XXXX, cash $XXX generated million. cash exceeded

as Our our business the model. teams products XXXX and performance resilience illustrates of well our agility the of as

Turning outlook. to our

rate. expect the XX% revenue range XX% of QX revenue we $XXX.X approximately total the that QX, XXXX Normalizing growth Market XXXX nonrecurring effect or million revenue be of range in approximately Enterprise on revenue for QX dampening growth for $XX.X in nonrecurring XX% to revenue million in midpoint the this For customer a at would low to growth and in the Research for Recall midpoint. period, $X had guidance. enterprise that year-ago one million be at we has the of year-over-year from

non-GAAP the expect which investments, breakeven increased discussed. as to and We range reflects higher X%, as Tom negative of G&A go-to-market as seasonality in be margin operating expense to Zander and well product

full expect XXXX, exited For and sales to approximately million the XX% million to XX% revenue year or to reflects year-over-year which as be $XXX of enterprise XXXX. the $XXX of range in new we growth, we headwinds impact

Our assumes year in self-serve rate the the guidance full will XXs. will revenue to growth growth XXXX revenue in that the revenues be similar and Enterprise rate grow

operating flow line through million X% to and in range where long-term flow and XXXX dynamics we growth. year remote challenges In managing margin solid cash and was drove summary, COVID. work while generating associated top market leverage growth, and for of the cash in We X% operating free cash while of a to $XX investing with operating our to incremental be balanced a $XX driving continuation free the expect which to non-GAAP the million, of be range both approach margins of reflect

we laser-focused and committed XXXX. enter are to strategy long-term on are as our execution We

and invest we have is and turn positioned a Our strong, to business, drive move Zander. further long-term to well now call of are to strategy growth. I'll strong upmarket we back the book

Zander Lurie

innovation in execution, employee world-class XXXX to is Debbie. of but people. any to core employees but Never The and in strengthening its you, big has many to and terms product in us and inclusion as it empathy. our corporate colleagues culture. for go-to-market culture business we when was a as redoubled learn and support today their commitment so our SaaS also competitive of also Thank strides finest huge equity enterprise count our advantage, year grow on been diversity, important We is XXXX. made find

outlines the published he'll evolve as help confident inclusive win further effort and With more diversity Social will but of as will a his in will a and plan XX% and business at in diversity newly-created team progress We inclusion drive Andrews goals excellence Company. initiative two our positively also culture. goals. of our and our of Diversity color, and decades that added January, accelerate welcome of We Gap with achievements, report I'm just QX, Chief commitment just our a identified our multiyear retain our our announced make Impact functions initiatives don't Antoine equity, me the Officer. Nike made in XXXX to community the our approximately and you He hires hiring sustainability lead in XX% benchmarks year, Antoine as sustainable, hire, you our well in this team, keep will on quarter You arena, In equitable identified on women this to Symantec, DEI we update sustained thrilled impact an to communities. or product help that this to diversity more December, important. we to develop and all diversity, social if financial In levels customers race our accountable on our arena. and stronger. influence to posted I'm and Company's our us Inc., our formally create In develop and Antoine role, hold Europe, and to to we our In and diverse people to organizations we business. first progress our work like a experience foster as like supplier society. Antoine as

efforts across XX% all of Company representation As a XX% focused sits the underrepresented in women. quarters our of and and four result minorities hiring at XXXX, for today retention for

the We're DEI rights, Global surveys for to of March global Finally, one pleased Count, DEI, we're our our even document to expertise see and over own Global, accelerate women's Global proud XXXX. and March am software, our chapters social their feedback mapping for software. strive advancing in customers Women's in organizations and is good our customers, using to the this support of of our using position mission-critical We undertaken ever I initiative been began more other momentum we'll a the our strongest to largest believe XXX-plus products barriers move community ever initiatives. to in SurveyMonkey the and global run upmarket. progress. world-class confident I we've and to to our gain cultural, through be network culture, course so economic Women's we audience XXXX It's shareholders. in women's

our Our is their conviction in strategy. our questions. all to for stakeholders more products stronger to in win take year now you and to ways your It's our XXXX. time XXXX. than support team We'll find are in Thank ago, a today as

Operator

from JPMorgan. Mark from [Operator Instructions] question of your And first line the comes Murphy

Your is line open.

Pinjalim Bora

I heard just for in Zander, -- firstly, sitting first Pinjalim something. Mark. is This

yield something think on better, a understand uplift that kind seats-and-complete said the with response-based basically little a pricing along model? XX% called mixture I bit is of seat-based Trying pricing, you model. to

Zander Lurie

you survey see with ARPU responses, uplift XX%. as these use there. to the It will our our of is, And or model. year, And SurveyMonkey use debuted yes. base April that That of customers. customers And increase is from solutions we is go that in blended to We customers ARPC a all can strategy. our installed of more Enterprise we it and core X,XXX-plus our believe a new component this seat-and-complete back

Pinjalim Bora

I see.

going really not a completely mix? response-based, customer moving to it's be you're So but a to

Zander Lurie

basket plan variable upon will, course, of uplift based to XX% then blended of whereby on responses. be contract. responses. Yes. It's ACV But about comes buy uplift the up and the And of initial a a utilization a a seats you basket the of

Pinjalim Bora

question at to a Enterprise mean, circle next I I the And it. business hindering you'd the got is, that weakness? mean, is the there a Enterprise reason is understand business primary you Understood, Are way color level? sales that is a competition people there would probably is end? Is at -- or the seeing execution-related be high competition. Any I helpful. would talk mainly product-related? that more mean, there about that

Zander Lurie

Sure, our team moment. world and Pinjalim. across that that is remember customers. in product I mean, team name for did others, have step to in maturing, this to we're QX company reads into landing CPG, feature of mean, office, size world-class and in biggest for for on if technology alone to more deliver tooling. in pillars, services, be the the three benefiting XXXX back logos business believe sales important companies, including our a parity just our three We mentorship in the hit winning a I the could We've you world, And the across as the of the digital-first services, in sales enablement, Carrefour a What's companies it. categories. financial is couldn't when I companies we the to been COVID could new business I enterprise our three all years. over from services, journey logos got a we value XXX our in new proud for sales X,XXX had XXXX,

to on web transact want a And inbound volume don't to in the of who leads that but an for so we deployment. such want buy have come folks

and job acquisition. we of goals customer is really do need What we to customers is more do to so helping job us great a deployment, we value. model of more reach what in I our some terms so deliver of, new our hit of further to value need and business to can deeper better drive deployment our deeper better going a And cross-sell, expansion software,

What for didn't the It position had team. Debbie put are really heights sales doesn't So of fact The it stronger in if this tactical we in First, is, set QX. hired related. taken said, we going stand those? COVID are out a as that world-class that matter think Tom HubSpot, XXXX. up ourselves in we some we've moves much we us reach high-velocity to leader to Murdock, out was

place account put that's more a the after up more cost-efficient help much larger, So team team frees deployment. Enterprise executive really, high-value also to deal. two, That call win bigger, those us in three our to strategic, quick-close go to

out Europe CX to leader Secondly, really flow business. our us help Graham we out in hired Douglas of Oracle,

we help Ken hired us mentioned, we to X,XXX Officer, Ewell, really as partnership, the of Customer Tom release Third, our about. customers. then Commerce excited which existing today, really the world-class, Cloud footprint Chief expand are we press And Salesforce on those got

million-plus most integration Clouds, customers is to Given which the Salesforce software, platform, X.XX a across see ecosystem. our Salesforce we in the huge and opportunity feedback guest CX attach deepest the valuable

are growth. value handful are moves accelerate these help us So a of we that going to deliver in 'XX and

Operator

line from next the of Eric UBS. Your from Sheridan question comes

open. is line Your

Eric Sheridan

on against maybe back platform, margins, we're customer the up you towards to we going know to is can just want retention? And much the investments as a view? get 'XX? if get sense of a spend as how some in point translate, early people want everyone go by GetFeedback think in following a then just a better margins to through people year should team. sense and traction the sort flipping but how how of full year like, make on to well thinking early customer about you, and for maybe second how question What Maybe can, does little Zander. that that the a we on on deeper, be just excited hope I I we and multiple margins year last growth of granularity not through about some And margins. should of the would year better I evolve sense of bit

Zander Lurie

I'll if Yes, to I'll they then or kick pass elaborate. it want off, to it Tom and Debbie

in And GetFeedback. with category XXXX the today, For CX offerings now in the platform, look GetFeedback and Usabilla the earnest, integrated. we me, I have we acquisitions really at and are of two entered, that

got we winning see world-class You're half the in and this the we as offering best year. Carrefour announcements and companies, things you in But ones that so inspiring pivoted. ecosystem. to as is helping your of platform customers just, that's think at if the especially that coming big not companies that ecosystem, the and the for this And place that Salesforce valuable, from Headspace customers are took and most world were business out GetFeedback going think digital the website to you've launches XXXX first customers, especially are the really and working there first in where Salesforce we rabbit it and on staying some the everybody as are enhance that a transformation. home. Mulberry like they models doing are in companies, And home well-constructed about where poor all in were is And ones the

if again, have we SurveyMonkey Enterprise XX,XXX at look customers us. Qualtrics So and between today, you

You've to -- our to X.XX product where see Salesforce think really, we the huge more do, discerning on the customer want but customers? it's you success a any in IT ServiceNow category We've Cloud world. fact the Tom, development some share not buyers, buyers of most holding plus platform customers is plus to from Microsoft, in this tailwinds. the million a really got development early more got early, winning

Tom Hale

our great integration of our strategy. Salesforce just that's As opportunity, you with we example going released a deep Commerce today, And Cloud. saw an

the are as strategy space want our move We to integration well and go that is go broad. We in clouds. this with vendor with deep as an only across the Cloud, Commerce just to

Qualtrics that is customers. I'd to big most out of the which here one displacement. CX we think Avon, and the Carrefour cite are thing a was of winning top market, I point important

to require firms at are a time pending win. solution, solution we have CX solve or We solution, their their problems. problems on are When their us time Salesforce agility, to CRM When problems a win. to that market, meaning we looking

of straight great So for And cycle investment customers. opportunity take a into the our products super deliver Salesforce we've this have to our ecosystem. we really the heart got that year's to behind

Debbie Clifford

impacting see then super is on time. talked trend in what is And over you in can product investments Ultimately, cycle chime of the about, with our I the margin Tom what margin. operating that

expenses G&A reset QX, taxes operating the X%. guidance, was breakeven if payroll QX employee certain we So look like margin benefits. at you to do, in it And our and have negative of

to going this is So X%, the the in And achieve be embarking year, X% the guidance for investment over operating leverage driving you'll our and we're drive as progresses. to course annual cycle us are gradually of biggest in operating year driver margin that super order of what product. of improving on see innovation to to the we there

Operator

of Your next Bank from question Brad from America. comes of Sills line the

open. is line Your

Bradley Sills

new go-to-market it's made? pipeline-oriented Ken. being comments that you I like or bit, sounds need for CX wanted some the is business In obviously, that's on than to expected. about and a ask Graham Zander, just a this do of to some to you of hires, with Enterprise little be for think bit the expand the be focus It changes perhaps little going weaker more your mind, a made

is, areas so how And be guess I my some to go-to-market need Was the question shortfall year? would versus classify it that this you pipeline changed?

Zander Lurie

building to the business, we I world. were catering self-serve kind Chief March mentorship Enterprise the people incredible into mid-size years thanks value. from where all humming for got of fair. to customers our companies, companies business, to outbound Totally on XX I the for large And transact business where ones demand, delivering Brad, were a in with generation We said, web Resident sales a the we and went hit and the this question. and time. enablement, as then think around at interfacing with And tough really John really We carrier. getting be an really of driving Officer, COVID frank, demand academy our

lot And team largely deals, a winning was so were remote deals to grit, inbound. demonstrated that sales challenging. And a environment of going our

marketing the move. about got took we've This fire. that's I sharpen our tactical is I we There's in gen, healthy. know no And market think to just a the us our motion. burning crisp that possible our achieving So demand up go-to-market, and are heights not

learned big some And we QX. saw And measures a reasons some in got with so exciting lot we motions put We've in gen XXXX. prescriptive marketing demand We in some some leaders. place. new

of kind soon. to environment have and anytime isn't this You mindset recognize your going growth away flex

pivots. I with acceleration, drive have for finest starts quarter, some our really going I'm take to me. and So to some what was that they're we've also made hopeful not accountability but got

Bradley Sills

on you details use appreciate it to more cases Commerce wanted Got is curious that. This about Any Cloud the the ask for there. it. I And And is could I just point interesting. How that? integrated? solution. is exactly? out What solution

Zander Lurie

Yes, we helped bunch believe and that of said, and CEO and who ago. his really to manager can a with work bringing is increasingly do I GetFeedback transform together on this, now who's was is of And And the products brought years to and Tom offer Chill, partnership. leader two this platform. factor. of Craig but the product, prioritizing it's to shapes Salesforce, all the on Usabilla of it a product key proud elaborate I'll X.X let a this agility. are We Agility GetFeedback. of interesting Tom GetFeedback acquired super the functionality. we're sizes leader as in CEO scale general of customers, become add it He

the professional targeting hugely are that bit time-intensive, services. of not yesteryear. see customers huge as that We we of need That's motion army a expensive

on focusing and take the responsive get behavior all really be can web, their data right that to to we're So make need moves. they and so Salesforce that customers customers agility action, into the on the that want

Bradley Sills

Zander. Thanks,

Zander Lurie

Tom, might anything add there? else you

Tom Hale

some we things joint use want I for Deckers, oriented an like a case being of here, mean, of abandonment, have color. understand able just card going to on. give moment already Yeti, transaction Yes. it's of what's in surveys, the And e-commerce customers to kind lot this Crocs, really post-purchase Puma. around I

collecting. are areas is Cloud customers change then you're of that is actually which this. to your two-way not and data our data heart some Salesforce one learn, part is Commerce who is that of the key And and just collecting it. deep And think browser, the about what's sales the see here of lot of test with wrong one data because we it's It's strategy can to each the interchange. of clouds any the across Commerce a And It's and a just go in up figuring need there showing across fastest-growing and mail, Cloud this you then e-commerce to business. of So strategy. trying hottest out and the

into And to and another able be for say, call solution reason those it's customers a to hey, we've great for just so got us you.

a you a and moment great If action on want we've click in take got it, solution. to feedback

it to of So ago we're super able announced This with this. XX the in and the days face kind demonstrate that pleased market. We of the agility shipped quarter. it is this we're

Operator

comes next Youssef your question from line of Truist. the Squali And from

open. is line Your

Youssef Squali

needed business? way Zander, the anything the to in on the margin couple want trying in the that achieved growth efficiency don't this Is you're questions. sales the with COVID, in great just the Enterprise to the new or rest your there the in looking -- channel about alluded if investment hit a the beat change your long-term new Enterprise guys being fourth of is letter. a the guys reconcile in -- of understand and year. COVID middle horse to just So issue, for guys structural the sales, but the you Enterprise dead in I'm to for it's XX% increase just at of I the outlook and you of QX for Enterprise the investments or to that you QX the guide softer hard maybe having to which quarter, comment XXXX reason QX in cycle And and sales investment trying kind sales

Zander Lurie

margin to have don't any think outlook. update I Youssef. Thanks, going on we're long-term

I X.X category. public about the category we Here's This when say what ago. years went a is could huge

You digital are to the compress seeing companies transformation. cycle more

starts on the web. business Your

said, is Your ability customers, attributes what react, every focusing as respond, coming. to what's key to on. we're Tom of the to understand This important some

mean, business heart have today. the this heart and CX and state done way is companies doctors' the are offices incredible And the that. We surveys gets companies of trucking is that, retail at testimonial at from and governments. of I

love we the category. So

We a move. have tactical taken

we swat We our there's in it's measures are the I commitment nothing it's accelerate There of position the on strategy. redoubling cast have dies any If growth. the us taken of criticism that execution-based, strategy. is QX our numbers XX-plus we that of performance, and the look result If some of put a is think to a there's any revenue, prescriptive businesses already. and light to subscription-based of about this our percent

taken products to and on people. we've we the I'll moves we continue our is right marketing a let And competitive a margins. to the to edge this hypercompetitive sales. environment for want and were Debbie now, accelerate to stay and know aspirations. We world-class reach So But necessary bleeding And elaborate at of believe environment. it's

So win. takes we it know what to

Debbie Clifford

performance year-ago would nonrecurring if normalize Research growth $X from about QX guide were indicator QX, RPO Enterprise growth line business be our period, highlight, And into a of rate And growth revenue we reconcile that that our at yes, the I if in trajectory you trying RPO and would you growth million revenue the we for with to XX%. leading just That's look RPO. the exit as was the if had of rate Market in XX%.

what That's So our you we're the I look focused performance. encourage at of indicator as RPO to most on.

Operator

Your next Craig-Hallum. from from question of Bennett comes Chad line the

open. is line Your

Chad Bennett

to enterprise question you into deals. look year And you how when CX impact outlook for your least it's relative deal you're just at what And XXs, that related growth? just CX to then said your in qualitatively the more the know pipeline, early, the and have I can that enterprise is, to again, sales of kind I but of for talk fairly you and in baked deals just the a any -- there early in add-on on at seeing average it's also can the give you So you think CX color, of growth about pipeline CX last this product? sizes cycles much

Zander Lurie

cetera. leaders was, these outcomes. that as need customers businesses agility. you et who help on, are we card for the on both survey-based, Market CX as and ripe that design, thank for us -- on help see Primarily, challenges, well as in them opportunity sales their to shops, around we prioritize business know have them CX place. solve Salesforce In understanding Research Chad, that are are to CX new integration as these you new and Customers issues what's abandonment, with smaller targeting Salesforce going managers, website in on are for they with question. customers general big hypergrowth, specifically,

deal to relative deal sizes survey are than the demonstrably median $XX,XXX, are the ACVs smaller. or the $XX,XXX the our for So because where mean are these sizes business bigger overall $XX,XXX, quite or

deal the days. It's is significantly of is can business. demand, for in their generate about really that days, our this but reach as has size XX ability and keep ideal room challenges there's larger utility more to to be XX deal own not their expansion can The cycles buyers a business only high-quality be integration. So CX how that

Debbie Clifford

And just to on. follow

today a in to to the is growth revenue It's overall what In contributor is XXXX, Customer for our going rate number future. the the a that I'd but Experience today. business us impact guide growth it's to small in we single-digit say terms drive in the total of anticipate

are year. in past, don't recurring big We about the it into it's in back be think driver accelerate the don't bullish of half But we manifest business nature growth and of until revenue stated the very opportunity. But of we've given XXXX. much our to a XXXX this in the beyond. As model, bookings going revenue bookings expect those we will growth

Chad Bennett

maybe for then me. quick And Great. one follow-up

business. just and of But terms on the terms know deeper ability -- of of of on think getting talked looks the lot mean, so made to in driving for in a you've better it sell changes about at I you the CX, like side high-quality leadership adds, enterprise So just to side. sure, feet I speak, the Zander, I and deployments street, the the on Enterprise

it sales sure force leadership to decently an force right but changes, I 'XX the you do sales Enterprise added in You sales you have doubled 'XX. the enterprise-grade in force, now? understand also. I'm

Zander Lurie

number. what revenue it say way about will the punches team is its current I CX mean, above I

short we we if when is believe frame believe time is because they businesses, team growth, said, in the up in with whether And any back this moment. that we as Gilbert business need. Douglas buyer So right resources Debbie care listening, them health position is she's and meet in or can support CPG giving the marketing this help massive her have and her accelerate product need, and relatively can of a staffed we to Fred know or the but the opportunity, is half our are of opportunity world-class. Graham staffed success multi, long a this set and $XXX a million QX, year. in this are believe all over the growth and tee a difference But we the build multiyear we'll We for and to the And salespeople world-class for take to term. up we're we we the up And make.

Operator

next line Wells Your the of question comes Fargo. from from Fitzgerald Brian

open. Your is line

Brian Fitzgerald

kind follow-ups. two of Maybe

on in have slower of of to implies a that The think and in update The renewals guide a in you year in do seats renewals? looks like And you new it drive uplift when reported completes. first bit is one can that revenue the acceleration. Any on growth. similar implement you start enterprise And as terms you may sales? then

out Just if the revenue that of into thoughts trajectory we and over growth the course the wondering 'XX. as year plays had exit you 'XX on any how

Zander Lurie

told bring all annoying the elaborate the meant QX customer anomaly, Yes, of year. was on we Debbie to million $X I'll given let you the name more of of but the last year, It's an customer in it we it. up onetime shape the and

and April seats-to-complete So complete SurveyMonkey X,XXX December for is the XX%. understand is growth Seats over with Enterprise critical. and point absolutely between the QX implied in revenue We buyers model. sold deals XX,

landing there value is Our job warrant And higher the proposition XX-plus the the to higher the clearly, team ACVs. nice percent of price, did a messaging.

exciting we are be discussed going a value we Tom do about that to utilization It's logos to outcomes. going packaged with going to and and longer-term base. Ewell and enterprise those job We So business we've are back. Jeff C with But uplift. seats really clearly, suite going this return to drive what's world because have installed this couldn't work. value, a value solution the X,XXX doesn't a going work in pretty response-based a see to the go pricing to Ken every company we and to her team also solution in leader in back how to back of and important message about kinds these some solution going more on back customers better our to officer year. P&L always that drive got help to big it's she's coming bring complete at of We've and got how to around Coleman which renewals of thinking And those the remember, responses helping

Debbie Clifford

is for terms range. in throughout growth to the add, just the to XX% revenue full And guided would as the midpoint. I of year, at growth guidance year, we the our XX% trajectory QX, a XX% in

annual that to rate that the And XX% strong so have can and exit is goal aggregate we so revenue our guidance. that to hitting accelerate throughout a XX% growth year we're

Operator

comes line Josey Your Ron from question next Securities. of JMP the from

line open. Your is

Ron Josey

to is full lot one spoken the a year. investment and about but force are sales margins a about where short on wanted you talking super for This and probably I made we've maybe, relatively of one, and Debbie, going execution. a comment the XQ cycle

investments. about talked increased and product You go-to-market

more And so I bit wanted to side. that on a just comment little the product unpack

and where and Just of the GetFeedback these product more might focus just that you've investments the slew can new a a about you now talk little products, be on? bit suite focused got

Debbie Clifford

invest looking investment specifics. Tom provide this all super to turn Sure. of products, ultimately, we're with to I'll can over But it I start and across three pillars. then to cycle more in

Tom, Research, that to some even of have going -- this space. other year have Market beginning. I head be in opportunity end-to-end the we And are past we some up. want with that continue platform product the that we into cases in reps great development an we're motion to we work pillars. we selling concept across of you have ideas the in that make to these just In the over more more the is I we rollout further new about as that excited to We've the investing GetFeedback our and done work the think with in suite, and are more to We targeted do back give that XXXX. ability investing sales testing think that use And surveys, to three the to tackle it In category. have

Tom Hale

market excited the Yes, call mentioned you we're big areas ML. noise improves from make that data I'd super save fits I value your positioning signal that with we're of sources like finding inside that Zoom gathering think I and the that's time, and on Debbie. and what really the a data pulling and with proposition. of and improved range about it nailed with it, doing. data comes our integrations really want of to as out insights and one We you're at add Microsoft Teams, effective and then, as to And mapping partners the about and agile is users enterprise. And AI with course, quality and wide that automating that

of the be advantage us is gives our going AI in and part to cycle we're big ML the And super excited agile positioning. investment. So a super that competitive about of

Operator

& Company. Reilly Joshua of the from Your from Needham next line question comes

Your line is open.

Joshua Reilly

Josh Ryan. on for here. couple is This A of questions

First results here platform. that those self-service in strong the fourth we the sign-ups I the was yet. Do we the XXXX, quarter a here much believe off, But discussed were haven't talked about you know in reflection earlier to earlier strong the know of you sign-ups to lowering on were more really after XX earlier the paid is in this from year, recently the And year? this are you trends upgrading secondly, subscriptions? in responses XXX more to cohort up of quickly on then paywall terms the self-service side, platform? what Or to free after signing to converting paid quarter. seeing

Zander Lurie

for might about Josh, On charge. the balance working first value delivery such no, we all you here, to much a important have very XX,XXX XX,XXX we sign who good not marketing with who to be in so it's tuned we the on with a much growth These somebody account of sign-ups like think our team. Enterprise free every sound terms experimentation interested question, pricing that of the up early large in the the free have the between pretty from self-serve funnel as connectivity kind your paid, of are a we the relationship cohort of well cycle. conversion shorter visibility COVID and cycle day, customers people is we of

important. Your question, it's second

teams We we the an engineering, has the been users seen our continue pricing better features multiple important for optimal presentation of continue cards, with have sharing Packaging across our Teams in and it because around to marketing, associated platform. do to launch as an But we And We've SKUs. new continue love retention contributor. capabilities, growth obviously data. on of multiple We experiment presents our offered that we features variables better. the drive get product, more to rates evaluate. less in have marketing we new I is for think low evergreen growth. double-digit new and to us churn, rate team to And this new area that the credit

Joshua Reilly

maybe just second great. Okay, question a And then here.

recent the the new how for we've the seems is some good a within customers opportunity seeing net from the If platform? then less Research. market of customers in maybe market? CX done the should there versus work competitive. I area that think Is base what coming to you bit part look at story a Enterprise that think That Market And of really IPO, of you're obviously about the survey product the the of the we uptake Qualtrics

Zander Lurie

a great question. It's

ways. it Let me several take in different

as to specific specs, TAM. bigger Research massive companies to world employee research a First need more their do be to target It's post-COVID benefits, market, off, Market in product cetera. a understand campaign, target only et is going their

investment our a Mavericks our favorite used in and company. did of Chime, big mobile Dallas the fine in woman Priyanka out new ACV is One really banking the insights services We of kind going Market sponsorship And year understand in spent Market CPG, We the really much, that's general particularly the jersey health with They last and huge Research huge helps than we dollars see, financial there's a success higher customers they core put think this are auto, a going you're results. Research her manager, you area already because We disruption efficacy to of are in to platform market. those making. seeing to the survey team that. to whatever after of a in evaluate surrounded that. player want the care, with a be good the be our and which you by variables, Car really folks named much get

it's this disrupting professional that software. market. competitive, a big It's with think we is So but and legacy largely competitive expensive services, we're players,

which around specific brand buyers out solution chasing. helpful gives we new for outcome As to concept whatever tracking, business continue a testing, really Tom solutions said, roll we're

Operator

the And from your Parker from Stifel. final of question Lane comes line

Your line is open.

Parker Lane

woods in catalyst tech area that and the can large can of So an in have. tool XXXX you Zander, you and business we think on workforces and of a the that play distributed as you your of I work companies think beyond the Is of role more return trends I seen about some you're neck was when much significant recently? more from a announcements we've even briefly guess engage wondering demand around touched the sort talk employee-facing the you broadly forward. seeing surveys going But to more if for

Zander Lurie

are I things why and I and and COVID, ask discussing And Absolutely. back longer be is you and the the at and those in being feed going half room ourselves XX you're thought people today, office like I come how Zoom, all mean, commute the people look and are really talk the everything over. CEOs asking rooms go elevator latency minutes and days we days and mean, deal with issue half ask in bathroom to if and meeting never to and and But somebody to e-mail office. we on are with the to would do principles protocols have between of this work. more fundamental these to you the to others employees the protocols how to going to cubes questions. to forced on flexiglass Zoom to we're first going

engage is questions going core to the that been understanding prescriptive and analysis. customers. got attributes The across about and everyone. leader the have C-suite ton into most world engagement of collaboration, more Every are doing surveys office. and solutions why those a Company, a and to HR across to the the happen be you're what to sales critical back longitudinal bringing session, asking to cohorts today platform the We we're design ingested in measuring packaged role help important SurveyMonkey position really seeing lot the elevated had in our the utility and putting we've of And platform and core people

it geo So to pivotal the functionality areas in you're roll see sales driver of more for of going be marketing C-suite issue us the as mind top of talked big a some out will vertical. every every and across about is

Tom Hale

used this a in is industry. health simply entire chime be to I'll health patient health the the care of a the steer experience. subset manage mean, company And Yes. conscious some And track like care care It care huge has the is industry domain I in to That into. become to sense, telehealth, that. health of and with really and issues space every then us now. needs for of

that some opportunities we just prospects to are steer our are our and these areas direction. customers are us solution for And of us in into. huge that dragging find so And the

our our and use So there. remote throw Then and got assets our name accessibility we've huge it's and ease step and of are into opportunity. just in great to a brand work, Zoom giant spaces like

Parker Lane

the leadership even that involved be at up from C-suite how And It cases a maybe to more change would there's go-to-market elevating having already those targeting you're perspective? and actually strike all me way the in inside does where all that there organizations conversations. not that of HR would you're

Zander Lurie

think our the We our a I for their do HR budget, year, was even this head in asking C-suite, we're they're because ever safe or and with no of to for issue provide call this of it getting was if is critical best as working HR And she he well. terms consultants buyer, Board, employees a there on how the inclusive with we the more for environment do work. week.

to environment make totally sure give a do. all of to want people, reliant less kind world them our also We There's we where are and learning. on the a we new lot we're in

Operator

Lurie, Sir? And closing the time would I CEO, turn remarks. like we the allotted our to call back Q&A. for to over have Zander for reached

Zander Lurie

appreciate in continued year in you and with of thank our during achieve to good We We're to a conferences. miss with the Well, going all this calls We at are bus revenue of your these growth to team much. Berenberg environment, look you on period. we our percent in And we drive a our wish strategy does COVID your I you the possible. I little intimate. it products, win began office. less Frankly, being further some you make growth, believe all miss so SurveyMonkey. all and all try definitely interest and healthy seeing We across is of but thank strength compete to a long-term and Zoom position tours forward that quarter move evening. committed upmarket, Truist. you families' and I at JMP, this you have to connecting recovery this XX-plus and

Operator

today's concludes This conference call.

You disconnect. may now

Momentive Global (MNTV) 12 Feb 212020 Q4 Earnings call transcript