What's happening: Shares of Cvent (NYSE:CVT) were up 14.8% as of 2:25 p.m. Friday after the meeting management software-as-a-service company announced solid second-quarter results.
Quarterly revenue rose 39% year over year to $47.3 million, including 35% growth in Platform Subscription sales to $32.7 million, and a 48% increase in Hospitality Cloud revenue to $14.6 million. Meanwhile, adjusted EBITDA was roughly flat from the year-ago period at $4.6 million, while adjusted net income fell 23% to $2.0 million, or $0.05 per diluted share.
Analysts, on average, were expecting a breakeven quarter on lower revenue of $45.8 million.
Why it's happening: Cvent CEO Reggie Aggarwal noted each of those figures were also well ahead of the company's previous guidance, driven by a combination of over-performance from each of its core segments, as well as record-breaking revenue related to its Cvent CONNECT user conference, which attracted over 2,300 attendees in June.
"We are optimistic about the enthusiastic response our solutions for the meeting and event industry are receiving," Aggarwal elaborated, "and we believe this is reflected in the strong momentum we are experiencing, as our leadership position in the market continues to expand."
In addition, for the current quarter, Cvent old investors to expect revenue of $47.5 million to $47.9 million, and adjusted net income per share of $0.07 to $0.08. Analysts were anticipating earnings at the low end of that range, and revenue of $46.6 million.
Finally for the full year, Cvent raised its guidance and now sees revenue of $185 million to $186 million -- up from $181 million to $183 million previously -- and adjusted earnings per share of $0.22 to $0.24 -- compared to its prior guidance range of $0.20 to $0.23. Here again, Wall Street was modeling earnings at the low end of Cvent's range on revenue of $182.5 million.
All in all, this was a solid report from Cvent that should leave investors encouraged for the future. With the company on the cusp of sustained profitability and Cvent stock trading down slightly year-to-date going into yesterday's close, it's no surprise the market is bidding up shares so aggressively today.
