Revenue Rise, Slight Dip in Net Loss for Momentive

SurveyMonkey owner Momentive has reported a net loss of $20.3m during the third quarter, down from $22.9m a year earlier, while revenue rose 6% to $121.4m.

After adjustments, non-GAAP net income was $5.4m, and non-GAAP operating margin was 8%, up from 6% a year earlier.

The firm provides online subscription-based tools through which individuals can create surveys, collect responses and analyze results, along with an Enterprise version for companies wanting to gather, compare and share business-related feedback data. In addition, its GetFeedback division offers software to help companies understand and improve their customer experience.

Earlier this year, Momentive's sale to customer service and CX firm Zendesk was rejected by the latter's shareholders, and last month Bloomberg reported that it had been approached regarding another possible sale. Momentive also announced that it is making 11% of its workforce redundant, as part of what it calls a restructuring plan to improve operating margins and efficiency.

During the third quarter, Momentive's DIY/self-serve channel revenue was down 3% to $74.6m, while the sales-assisted Enterprise arm revenue increased 24% to $46.7m. The latter accounted for approximately 39% of total revenue, up from approximately 33% in Q3 2021. Momentive ended the quarter with approximately 15,400 sales-assisted channel customers, an increase of 46% from approximately 10,500 in last year's third quarter. Paying users totalled approximately 897,500, an increase of 2% from 877,100 in the prior year period - with around 92% of these users on annual plans, and annual revenue per user of c.$533, up 2% from c.$524 in Q3 2021.

CEO Zander Lurie (pictured) comments: 'In the third quarter, we remained focused on our long-term revenue growth and profitability targets while navigating an increasingly challenging macroeconomic environment. By reinvigorating our self-serve channel, expanding our existing customer relationships, and streamlining our go-to-market motion, we expect to drive continued operating leverage in 2023 and deliver Rule of 40* financial performance over time'.

Web site: www.momentive.ai .


*a principle that states a software company's combined revenue growth rate and profit margin should equal or exceed 40%.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.