SurveyMonkey, the parent company of SVMK Inc (SVMK), reported a loss of 3 cents per share for the fourth quarter of 2018, which was in line with Street’s views. Revenue increased 19% year-over-year to $67.9 million, beating analysts’ views of $65.86 million. SVMK stock was up about 1% in the extended trading hours.
SurveyMonkey reported quarterly earnings for the second time after becoming a public company in September 2018. The company had guided Q4 revenue to be in the range of $64.8 million and $66.8 million. On a GAAP basis, net loss per share stood at $0.20 compared to a profit of $0.08 per share in the prior-year quarter.
Paying users totaled 646,727 compared to 606,077 in Q4 2017, representing a 7% year-over-year growth, and 4% quarter-over-quarter growth. Growth in paying users was primarily driven by sales of SurveyMonkey Enterprise and adoption of self-serve Teams plans. Approximately 77% of the paying users were on annual plans, up from 76% a year ago.
Average revenue per user (ARPU) was $425 compared to $375 in Q4 2017 and $418 in Q3 2018, representing 13% year-over-year and 2% quarter-over-quarter growth, respectively.
Revenue is expected to be between $67.5 million and $68.5 million for Q1 2019, representing year-over-year growth of 15-17%. For 2019, revenue is touted to be in the range of $290 million and $295 million, representing year-over-year growth of 14-16%.
In a letter to the company shareholders SurveyMonkey quoted, “In 2019, we will continue to invest in efforts that drive enterprise sales, fuel growth in our core self-serve channel, and expand our international business. We also expect to generate significant cash flow over the course of the year while investing to position the company for an even stronger 2020.”
SurveyMonkey expects growth investments in enterprise sales and self-serve Teams to drive accelerating revenue growth in the second half of 2019. The company believes investments in international market expansion to contribute to revenue growth towards the end of 2019.
SVMK stock inched down by 0.28% to $14.06 at the end of Wednesday’s trading session. The stock had gained 11% in the past 90 days and 15% since the beginning of 2019.
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