SurveyMonkey: earn money by evaluating the customer experience
SurveyMonkey specializes in a rather unique direction – Customer Experience (”CX " or in translation – customer experience). The company helps to pay enough attention to customer service to fully satisfy the buyer and maintain a productive long-term relationship. SurveyMonkey cooperates with large corporations: Verizon, Johnson & Johnson, Walgreens, and so on.
Services are paid for by subscription and based on each connected user. The SaaS business model is something that is very much appreciated by representatives of Wall Street, because it implies stable cash flows.
Management expects revenue growth in 2021 by 18% y/y, to $440-447 million. At the end of the first quarter, revenue increased by 16% y/y, to $103.3 million. It may seem that the company is losing ground, as in the fourth quarter the indicator grew by 18%, but it should be taken into account the fact that in the first quarter of 2020 there was a sharp increase in revenue, which means that there is a high base effect.
SurveyMonkey attracted 600 new customers (in previous quarters, this number ranged from 400-500). In addition, ARPU (average revenue per customer) increased to a maximum of $498. Operating margin increased by 1% y/y, to -0.6%. The EV/Forward Sales ratio is 5.4x - an extremely low value for a company with such strong fundamentals. The shares are trading 37% below the maximum levels of 2021, as a result of which long-term investors have a chance to purchase securities at a significant "discount".