SurveyMonkey Inc (NYSE:SVMK) Q3 2018 Earnings Conference Call - Final Transcript

Nov 13, 2018 • 05:00 pm ET


SurveyMonkey Inc (NYSE:SVMK) Q3 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the SurveyMonkey third-quarter 2018 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Karim Damji, Vice President of Investor Relations. Sir, you may begin.

Karim Damji

Thank you. Good afternoon and welcome to SurveyMonkey's third-quarter 2018 earnings conference call. On the call today, we have SurveyMonkey's CEO Zander Lurie; our Chief Financial Officer and Chief Operating Officer, Tim Maly; and our President, Tom Hale.

As this is our first earnings call as a public company, I will provide the format for today's call. Zander will begin by providing an overview of our business, philosophy, and strategy. Tom will discuss our technology, product, and marketing initiatives and Tim will review our Q3 financial results and discuss guidance for Q4 and for the full 2018 fiscal year. Following our prepared remarks, we will have a question-and-answer session.

A press release with our results for the third quarter was issued today and is posted on our investor relations website at along with an accompanying shareholder letter. Before we get started, I'd like to let everyone know that we will be presenting at the Credit Suisse TMT conference on November 27 in Scottsdale, Arizona. We will provide updates as we add other events to the schedule.

(Forward-looking Cautionary Statements) I would like to now turn the call over to Zander.

Zander Lurie

Thank you, Karim. Good afternoon, everyone. We are excited to share our results, but first I'd like to start by thanking our employees, customers, partners, and investors for their support during our IPO and the start of a new chapter.

I'm pleased to report that we delivered a strong third quarter, our first as a public company, with $65.2 million in revenue for 18% year-over-year growth, $12 million in operating cash flow, and $11.4 million in unlevered free cash flow. The combination of healthy top-line growth and robust cash flow generation is reflective of our steady march of increased monetization. And that, combined with strong visibility from our business model, makes SurveyMonkey unique among many of the new issuers today.

For those that may not be as familiar with SurveyMonkey, I will start with some context on our history and the opportunity ahead. SurveyMonkey's mission is to power curious individuals and organizations to measure, benchmark, and act on the opinions that drive success. More detail is provided in our shareholder letter, which I encourage you to read.

SurveyMonkey has transformed the way many organizations gather feedback. To compete effectively in an environment where more and more people have access to data, organizations need to understand the underlying sentiment of their customers, employees, and the markets they are going after.

While most organizations rely on operational data, which is great at determining the what, it doesn't help explain the why driving the data. Understanding the why unlocks insights so companies can act. That action might be a product launch, a new marketing