What happened
Shares of SurveyMonkey parent SVMK (SVMK +0.00%) have jumped today, up by 10% as of 12:30 p.m. EDT, after the company reported first-quarter earnings. The survey software specialist beat expectations for sales and lost less money than analysts had predicted.
So what
Revenue in the first quarter jumped 29% to $88.3 million, topping the consensus estimate of $85.5 million in sales. That led to an adjusted net loss of $4.3 million, or $0.03 per share. Wall Street was looking for $0.04 per share in adjusted red ink. SVMK added over 25,000 paying users during the quarter, bringing total paying users to approximately 746,000. The bulk of those customers (85%) are on annual plans, and average revenue per user (ARPU) was $483.
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"SurveyMonkey's product suite is uniquely positioned to help our customers navigate this period of uncertainty," CEO Zander Lurie said in a statement. "Listening to stakeholder feedback and taking action is a top priority for organizational leaders in unstable times."
Now what
In its shareholder letter, management reassured investors that SVMK's business model is resilient -- even in the face of a potential recession on the horizon. Among other factors, the company pointed to its subscription-based model, broad customer base, and strong cash generation from its self-serve sales channel.
SVMK withdrew its full-year 2020 outlook, which had previously called for revenue of $375 million to $381 million this year, due to ongoing uncertainty around the COVID-19 outbreak. However, the company did provide guidance for the second quarter. Revenue is expected in the range of $87 million to $90 million, which represents 18% growth at the midpoint. Adjusted operating margin in the second quarter should be 0% to 2%.
