Here Are 5 Reasons to Add Cvent to Your Watchlist

Here are five reasons you should add Cvent -- a little-known innovative company taking advantage of a growing niche in the event management industry -- to your watchlist.

Jun 16, 2014 at 2:15PM

Cvent (NYSE:CVT) oversees a cloud-based event management software capitalizing on what turns out to be a global industry that cycles more than $550 billion (with a b) each year. Cvent has fallen out of favor with the market since its IPO last August -- the stock has dropped more than 22% so far this year -- but here are five reasons you should add the company to your watchlist: 

1. Leadership
Founder and CEO Reggie Aggarwal has a zest for this business that is evident in any of his interviews. Cvent was started in 1999, survived the burst of the tech bubble (barely), and now brings in more than $100 million of revenue each year and counting. 

"We still remember the bad times," says Aggarwal, "and we're always going to think like a start-up, which is don't get arrogant, treasure your customers, treasure your employees, and be frugal."

Aggarwal is surrounded by an experienced management team, many of whom have been with the company since its founding in 1999. Chief technology officer David Quattrone, chief information officer Dwayne Sye, and executive vice president Charles Ghoorah have been with Cvent since 1999. Senior vice president Brian Ludwig has been with Cvent since 2000.

2. Sales growth 
Cvent has capitalized on its growing niche in field of event management, with sales expanding at an average annual rate of 25.32% since 2010 to $111.14 million in 2013. In the first quarter of 2014 sales grew 28.9% year-over-year. 

3. Company culture 
Aggarwal's passion for the business has translated not only into a growing business, but a strong company culture as well. As CEO, Aggarwal receives an employee approval rating of 80% on Glassdoor, a site where employees anonymously rate their place of work. Cvent as a whole earns a 3.6/5 rating from employees. 

4. Free cash flow production 
Cvent is solidly free cash flow positive, meaning the company produces more operating cash flow than capital expenditures. Cvent has been free cash flow positive the past three fiscal years and produced $10.72 million in free cash flow in 2013. In the first quarter of 2014 free cash flow increased 22.45% year-over-year to $18.71 million. 

This free cash flow production has helped the company build an arsenal of $201.66 million in cash with no debt. The IPO last year also added a good deal of cash, but the business continues to produce cash that is added to the balance sheet. 

5. Innovation 
Over the past four years Cvent's R&D spending increased 5 times to $11.19 million in 2013. As Cvent enters the stage as a public company, Aggarwal says the company is especially focusing on innovations in the mobile field as well as expanding on a global scale. These significant opportunities -- and management's focus on continued innovation -- give me confidence in Cvent's long-term growth prospects.

Foolish bottom line 
Cvent is a company investors should watch closely. It isn't often that you find experienced leadership, an innovative culture, and strong cash flow generation all within one business. 

Cvent currently trades at a price-to-sales ratio of 9, so the stock will likely be volatile in the short-term. However, should the company's growth continue, Cvent can likely grow into its valuation over the long haul while outperforming the market in the process. 

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

David Kretzmann has no position in any stocks mentioned. You can follow David on his Foolish discussion board, Pencils Palace, on CAPS, or on Twitter @David_Kretzmann. Learn more about David's Pencils IRA Project at Fool.com. The Motley Fool recommends Cvent. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers