According to a recent Research and Market report, the global online survey software market is projected to grow at 13% CAGR to reach $10.162 billion by 2025 from $4.87 billion in 2019. SurveyMonkey (Nasdaq: SVMK) recently reported its second fiscal quarter results that surpassed all market expectations.
SurveyMonkey’s second quarter revenues grew 21% to $90.9 million. GAAP net loss was $22.9 million, and non-GAAP net loss was $0.2 million or $0.00 per share.
Enterprise sales revenues accounted for 28% of the quarter’s revenues and grew 20% over the year. It ended the quarter with over 7,200 enterprise sales customers, growing 51% over the year. Deferred revenue grew 28% to $159.5 million and remaining performance obligation grew 27% to $178.1 million.
Paying users grew 11% to 781,000. It ended the quarter with almost 86% of its paying users on annual plans, up 80%. Average revenue per user grew 8% to $478.
For the third quarter, SurveyMonkey expects to report revenues of $93-$96 million. It has still not provided an outlook for the year due to the current economic conditions.
SurveyMonkey’s Product Upgrades
During the quarter, SurveyMonkey announced its latest release for Microsoft Teams that allows organizations to use in-the-moment feedback to improve employee experience, especially under current remote conditions. The solution includes expert-tested survey templates along with stronger analytics and reporting capabilities. The shared analytics will allow SurveyMonkey to bring all survey insights into one place, regardless of where the survey was launched. It also released private and expanded surveys that will give the teams the ability to send surveys beyond the regular team channel to individual or group chats to deliver more comprehensive insights.
SurveyMonkey’s PaaS Strategy: Platform or APIs
SurveyMonkey currently follows an API integration model. Its mobile SDK allows app developers to integrate SurveyMonkey surveys and responses into their iOS or Android apps. It has built several integrations with other platforms to provide pre-built apps that empower them to quickly integrate with other popular tools. It has more than a hundred apps and plug-ins with these partners. The company does not, as yet, have an active PaaS strategy.
SurveyMonkey’s PaaS Strategy: Developer Community
SurveyMonkey has tie-ups with several technology players to allow them to build integrations into other services. It recently announced the launch of its SurveyMonkey Technology Ecosystem Program (STEP), a partner platform that addresses enterprises’ growing and evolving needs to create feedback from stakeholders and change it into direct action. STEP will allow companies of all sizes to build, launch, scale, and amplify their ServiceMonkey integrations with the needed resources and go-to-market opportunities. Some already existing STEP partners are Zendesk, Hubspot, MailChimp, Constant Contact, Gainsight, and Freshworks, all of which are integrated with SurveyMonkey.
SurveyMonkey’s PaaS Strategy: Marketplace and Metrics
SurveyMonkey does not have an active PaaS strategy that nurtures an ISV ecosystem. I would like to see that as a likely evolution of its PaaS strategy.
Its stock is trading at $22.35 with a market capitalization of $3.2 billion. It was trading at a year high of $26.24 last month. The stock had fallen to a year low of $9.35 in March this year amid the market turbulence.
Photo Credit: SurveyMonkey/ Flickr
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