Further Job Cuts for Momentive Despite Revenue Rise
SurveyMonkey parent Momentive has reported revenue up 8% to $480.9m for full year 2022. The rise is the net effect of rapid growth in the 'sales-assisted' segment - up 27% to $181.3m - while self-serve business remained flat at $299.6m. However the firm says it will also cut 14% of its workforce.
Excluding currency effects, the overall rise was 9%. GAAP net loss was $89.9m but adjusted, non-GAAP figures show a net income of $27.1m, of which $20.7m came in the fourth quarter. Q4 revenue rose 4.3% to $122.4m, and the firm says it expects revenue growth of 0 - 2% in the current quarter.
Momentive announced in October that it was making 11% of its workforce redundant, as part of a 'restructuring plan' to improve operating margins and improve efficiency. This week in a filing with the SEC it announced a Plan 'designed to further improve its operating margin' and involving a further reduction of the company's workforce by around 14%. This is expected to result in $7 - 9m in charges, likely to be paid during the current quarter, while the redundancy process itself should complete in Q2.
CEO Zander Lurie (pictured) said of the announcements: 'Our fourth quarter results illustrate our continued execution against our top priorities: driving meaningful operating leverage and positioning the company for more profitable growth. Today, we are announcing plans to decrease costs and prioritize the products and pricing models that efficiently drive customer acquisition, retention, and expansion. While this is a difficult decision, we have conviction these steps will enable us to navigate a more challenging selling environment in the short-term, expand margins meaningfully in full year 2023, and deliver sustained, profitable growth over time'.
Web site: www.momentive.ai .